Working as a Consultant, Product & Platform Engineering at Brillio. Business & Presales Consultant, MBA graduate from NMIMS with a Marketing major and Strategy minor. Experience in Business Design, market research, stakeholder management, branding & marketing strategy & Industry Analysis across various small stints.
10th November, 2022
The QSR (Quick Service Restaurant) industry has been growing at an exponential rate in the US and has shown a sharp revival amid robust demand post-pandemic, with more stores opening as well as aggressive ad spending. The rising presence of international brands, increasing disposable incomes, consumers’ increasing propensity to eat out & lifestyle changes, and reduced time for going out/cooking are fueling the growth of the QSR industry.
Important consumer trends in the QSR industry:
Challenges in the QSR industry
The inability to service a high number of orders at a particular time of day is a major problem affecting brand image, revenues, and customer retention. Better store layouts and processes can potentially help address this challenge. Procurement, inventory management & high working capital are massive but necessary impediments in this industry. If not handled efficiently, losses can start piling up fast. Delivery costs have always been a factor affecting margins in QSRs. It is paramount to reduce these costs as many customers rethink ordering if these seem too high, directly affecting profits. Staffing is a crucial business problem and needs optimization, as handling peak loads whilst maintaining efficiency, standardization & least time-to-serve is essential.
Digital Twins Use Cases
This is where Digital Twins – as technology disruptors – can come as a strong solution. Recently, CKE restaurants used DTs to simulate restaurant & kitchen floor assets. They also tested new equipment and predicted a new kitchen layout with the highest efficiency possible. The experiment successfully found the most optimized layout, reducing the workload on employees, and thus improving retention rates.
The Road Ahead
Many major companies in the QSR industry have taken cognizance of and are on the road to adopting this technology. Still, to make Digital Twins a low-cost, highly efficient technology, more companies need to adopt it and increase strategic investments in DTs’ R&D. Leaders must be made aware of the benefits, cost savings, process improvements, increased CX & RoI, as well as competitive advantages that come with Digital Twins to ensure higher adoption within the QSR industry.