In the current scenario, the quick service restaurant industry’s growth has been spurred on by globalization and the general increase in the income of the global population. The rapid economic growth has also enabled the creation of a new market for the quick service restaurant space, owing to the increased demand for and consumption of convenient, quick serving, and ready-made meals. The high demand and popularity of these businesses can be attributed to several factors including the handy dining experience offered at a relatively low price. Speed in service, competitive pricing, and convenient locations mark the characteristics of a typical QSR. Furthermore, quick service restaurants are considered to be low-risk ventures in terms of investments and operations. However, changing customer preferences, increasing demand for quality, and extreme competition pose challenges to firms operating in this sector.
Let’s take a look at a few impediments for players in this industry:
- Technological factors: Technological factors have been an important influence in the quick service restaurant industry. Technological factors have brought about significant changes in the way food brands interact and engage with their customers. Moreover, they also affect the marketing and advertising strategies of brands.[spacer height=”20px”]
- Increasingly saturated market: The quick service restaurant space is currently booming and businesses operating in this sector face stiff competition from their peers, leading to the decline in individual store sales. Hence, firms have started focusing on developing strategies to enhance customer loyalty and gain a competitive edge.[spacer height=”20px”]
To overcome such challenges and to enable smooth functioning several players operating in the quick service restaurant space are leveraging the use of marketing strategy solutions. Marketing strategy helps companies focus on customer retention to increase the visibility of the brand. Additionally, our solutions help clients develop lasting relationships with their customers while developing ways to improve loyalty and trust with both the current customers and prospects.
The Business Challenge[spacer height=”20px”]
- The client: A Quick Service Restaurant
The client, a leading player in the quick service restaurant space, with outlets spread across the globe, wanted to devise effective ways to monitor consumer demands and expectations. The client was looking at implementing certain methods which will help them reduce service time and drive customer satisfaction. Additionally, in order to achieve long-term success, the client wanted to build loyal consumers through a strategy of relationship marketing approaches.
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The Journey[spacer height=”20px”]
Infiniti’s team of marketing strategy experts carried out extensive interviews and discussions with prominent stakeholders, to gain a detailed understanding of the current market scenario. Moreover, our experts were also successful in gathering information from primary sources including industry experts, researchers, consultants, and distributors. They also explored secondary sources like newsletters, business journals, and market research data.
The Solution Benefits and the Business Impact:[spacer height=”20px”]
The solution’s offered by Infiniti’s marketing strategy experts assisted the client in improving customer loyalty through targeted ad campaigns. Our solutions also helped the client in identifying promotional strategies to enhance their profitability and maintain a successful business performance during the recession in an economy. The client was able to divide their end-consumers into navigable segments and develop effective campaigns based on their preferences. Based on a combination of past performance and future projections the client was able to set their goals. Furthermore, our solutions helped them develop a consistent level of brand recognition amongst the target segment.
The Future[spacer height=”20px”]
Around the world, QSRs are investing tens of millions of dollars in offering mobile on-the-go service to their customers. Technology will continue to play a pivotal role in transforming the industry, as technology is one of the assets that aid in offering a seamless customer experience. Moreover, restaurant brands who understand their customers, capitalize on digital/technology investments and analytics, and seize upon the opportunity to engage customers in an extremely personalized way can drive increased dining frequency, check size, customer conversion, and loyalty.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the quick service restaurant sector