Datonics Research - QSR, Fast and Casual Dining

QSR stands for Quick Service Restaurant, more commonly known as fast-food restaurants. These establishments are designed to provide food quickly and efficiently to customers. They typically have a limited menu, offer takeout and drive-thru options, and require customers to pay before receiving their food. Notable examples include McDonald’s, Burger King, and Taco Bell. Due to their ease and cost-effectiveness, these restaurants have become a significant part of the global food industry.

Behavioral Audience:

Pre-Pandemic

Before the pandemic, fast food restaurants operated on a more traditional business model focusing primarily on dine-in services, with some locations offering a drive-thru option. Delivery options were available but were often limited, with a smaller emphasis on partnerships with third-party apps or extensive use of mobile ordering systems. Menus were typically extensive and diverse to cater to a broad customer base. While digital technology was being integrated, it wasn’t as central to operations as it would later become. Traditional in-person ordering at the counter or through drive-thru windows was the norm.

Post Pandemic

The pandemic radically altered this landscape, pushing the fast-food industry towards substantial operational changes. A shift towards takeaway, drive-thru, and delivery services became evident as restrictions on in-person dining were implemented. Fast food chains increasingly partnered with third-party delivery apps like Uber Eats and DoorDash, and other mobile ordering systems became more widespread. Door Dash, for example, had an annual revenue of .85bn$ in 2019, which jumped to 2.88bn$ by the end of 2020. Similarly, due to restrictions, Drive-thru and curbside pickup became a major focus, even leading to the physical redesign of restaurant spaces.

Amid the pandemic, many QSRs found themselves facing shortages, both of ingredients and personnel. This has since led to widescale changes in the industry. Menus have become more streamlined, limiting what’s offered while still providing all the most popular items. This change is still felt today, even though supply chains have mostly recovered. Regarding personnel, many fast-food restaurants have installed touchscreen monitors that allow customers to easily choose what they want and automatically submit their orders without human interaction.

With these changes, the industry as a whole is making a successful recovery. JLL’s F&B Report 2023 paints a generally optimistic portrait of both fast food and dine-in restaurants. When it comes to marketing, strategies need to change to address these new realities.

The way in which QSRs operate is not the same as it was before the pandemic. Any advertising efforts need to reflect this, focusing less on friendly interactions and the wide variety of products to focusing more on quick service and satisfying products.

 Market Research:

Men: Statistically, men are more likely than women to purchase fast food. According to the CDC, at least 38% of men eat fast food meals on any given day, 2.6% more than women (35.4%). Men between 20 to 39 years old (46.5%) eat fast food compared to 43.3% of women of the same age group.

Families with Children: The Prevention’s National Center for Health Statistics and the US CDC published a study stating that 34% of children and adolescents aged 2 to 19 ate fast food on a given day. Researchers found that adolescents and kids ate an average of 12.4% of their daily calories from fast food. Researchers also found that 83% of American families consume fast food at least once a week.

Young Adults (20-39): According to the CDC, 44.9% of Americans between 20 to 39 years old consume fast food on any given day. The simple convenience and affordability of fast food make it appealing to young adults who oftentimes have limited time and budget for food. It should be noted that the percentage of adults who consume fast food on any given day decreases with age: 37.7% aged 40–59 and 24.1% aged 60 and over.

Shift Workers: People who work non-standard hours, including late-night shifts, often turn to fast food because it’s one of the few options available outside of traditional mealtimes. Waffle House, IHOP, Denny’s, McDonald’s, and Burger King are only a few examples of fast food restaurants whose locations are either mostly or completely open 24 hours a day, seven days a week.

Busy Professionals: Professionals in fast-paced working environments or who work at odd hours might not have time to sit down and eat at a more traditional restaurant. QSRs in these situations are simply more convenient both in their abundance of locations to choose from and the quick service.

 To effectively target the audience for QSR, consider the following recommendations:

  • Digital Presence and Mobile Ordering: Given the post-pandemic shift towards takeaway, drive-thru, and delivery services, it's crucial for QSRs to have a strong digital presence. Develop user-friendly mobile apps and websites that facilitate easy and efficient mobile ordering. Highlight features such as curbside pickup, delivery partnerships with popular apps like Uber Eats and DoorDash, and drive-thru options.

  • Target Men and Young Adults (20-39): Since men and young adults between 20 to 39 are statistically more likely to consume fast food, tailor marketing campaigns to appeal to their preferences and interests. Consider using engaging visuals and messaging that resonate with this demographic, focusing on convenience, affordability, and quick service.

  • Family-Oriented Marketing: Given the high percentage of families with children who consume fast food, create family-friendly marketing initiatives. Emphasize kid-friendly meal options, value deals for families, and promote family-focused activities or giveaways to attract this audience.

  • Convenience for Shift Workers and Busy Professionals: Position QSRs as the go-to option for shift workers and busy professionals who require quick and convenient meals during non-standard hours or hectic work schedules. Promote the availability of 24/7 service, late-night menu options, and quick in-and-out service.

  • Streamlined Menus and Popular Items: Highlight the benefits of streamlined menus, emphasizing that despite the changes, all the most popular and beloved items are still available. Ensure that advertising materials showcase the variety of satisfying products available, catering to different taste preferences.

  • Social Media and Influencer Marketing: Engage with your audience through social media platforms where your target demographic is active. Partner with influencers who align with the brand image to promote special offers, new menu items, and the overall QSR experience.

  • Health and Transparency: While QSRs are known for their indulgent offerings, it's essential to address the growing demand for healthier options. Highlight any menu items that cater to health-conscious customers and communicate transparently about ingredients and sourcing. 

  • Loyalty Programs and Promotions: Implement loyalty programs and offer special promotions to incentivize repeat visits and foster brand loyalty. Consider limited-time discounts, rewards for app usage, or exclusive offers for members.

  • Adaptability and Innovation: Showcase how QSRs have adapted to the changing landscape and continuously innovate to meet customers' needs. Highlight new technological features, contactless payment options, and any other measures taken to enhance the customer experience. 

By tailoring marketing strategies to target these specific audience segments and reflecting the changes brought about by the pandemic, QSRs can attract and retain customers in this evolving fast-food industry.