Kiosks, AI Ordering and Data-Driven Loyalty Apps Are Top Priorities for QSR in 2024

Fast growth, AI-powered technology and a big kiosk comeback are just some of the trends quick-service restaurant (QSR) franchises can expect to see in 2024, according to the 5th Annual State of Digital Report released on March 6 by enterprise restaurant chain POS platform Qu.

Restaurants in the QSR space are entering a new normal, according to the report, as they adjust both their services and tech to account for post-pandemic consumer behavior. 1851 Franchise spoke to Qu’s Chief Marketing Officer Jenifer Kern about the top priorities for QSR and fast-casual restaurants for the coming year.

“Quick service and fast-casual restaurants' top priority post-pandemic should be to re-evaluate their entire tech stack to ensure efficiency, value, and scalability,” said Kern. “In other words, look at ways to cut technical debt in favor of more API-friendly systems (holistic platforms) that prioritize data sharing and allow brands to remove any ‘silo mentality’ within the organization — across operations, technology, marketing, finance, supply chain, and in-store teams. With more teams on common platforms, synergies will naturally result.”

Restaurants have reached a pivotal moment: they were forced to make rapid consumer driven changes due to the pandemic and are now emerging into a future that’s informed by technology and digital sales.

The survey, which included responses from nearly 200 brands representing 62,000 locations across the country, indicated the key trends include big changes to loyalty plans and a massive resurgence of kiosks, along with other shifts in the available ordering methods.

Data Driven Platforms Over Loyalty Plans

According to the survey, 80% of the respondents feel loyalty plans aren’t working as well as their brands once hoped. Some of the new solutions being implemented are easier signup processes and increased variety in payment options for loyalty members. The biggest change, however, is adjusting loyalty frameworks to become more data-centric. 

AI will be used to analyze consumer preferences, behaviors and data to tailor menu recommendations and promotions to each consumer through loyalty apps. The expected result? Improved customer experience, leading to improved customer loyalty.

Although 25% of participating brands confirmed they would be investing in a mobile app as a new ordering channel in 2024, nearly double the amount of brands plan to focus on kiosks. 

Kiosks and Ordering Methods

Kiosks are back and more popular than ever. In fact, 43% of brands plan to add kiosks as new ordering channels in 2024. Why is there such a drastic resurgence? Because kiosks ease labor costs while leading to higher consumer spending. It’s a win-win. 

Plus, consumers have developed an expectation for self-serve options through their pandemic experiences and flexibility of this option has become standard. Digital ordering options have persevered through post-COVID times for reasons beyond that of customer preference. Digital sales have continued to grow in the wake of the pandemic, with 77% of participating businesses reporting digital sales growth in 2023, and 87% expecting continued growth in 2024.

Qu’s advice for business owners and franchisees looking to up their technology game focuses on accurately calculating the return on investment (ROI) for each update.

“Along with the tech review and consolidation effort, we strongly urge operators/owners and franchisees to be able to calculate the ROI for any of their tech systems. If a specific provider cannot help you find cost-savings and revenue-boosting value with their technology, it's a red flag,” said Kern. 

As for other ordering methods, 25% of brands plan to expand with new delivery partners, 20% will add phone AI ordering options and 16% will develop voice ordering opportunities for drive-thru consumers.

Engaging Guests Requires Innovation and Creativity

The pandemic was a catalyst for change in consumer desires, some of which have persevered after the fact and some of which continue to change. To keep up, business owners need to adapt and embrace technology.

“The winds of change are not slowing down in the QSR space; operators need to remain open to new, innovative and creative approaches for engaging guests — ‘earning’ that next visit — and running their businesses more efficiently,” emphasized Kern. “From areas like loyalty — which most agree needs to be restructured in a more holistic way — to AI, labor optimization and the demand for kiosks, the digital transformation of restaurants has only just begun.”