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Inflation, economic headwinds and supply chain issues have put quick service restaurant (QSR) franchisees in survival mode, forcing many to focus on their current brand or current development extension agreements. Yet, opportunities abound — the recent global health crisis that shuttered many businesses also weeded out oversaturated restaurant markets (particularly the QSRs) and created new real estate space for potential expansion.
For franchisees looking to grow, the time could be now, despite rising building costs. But franchisors must provide options for franchisees to hunt down good real estate and offer them options to fit within those spaces. In turn, franchisees must be flexible on land and prototypes and understand that in site selection, a one-size-fits-all model doesn’t work because every market is unique.
The franchising world has evolved over the decades, and new approaches are necessary to grab consumers’ attention and gain their loyalty. Consumers have more QSR options, and the franchise community is both smaller and stronger. More than ever, franchisees must research their markets to gauge consumer demand and use new prototypes to meet it. Five considerations hold true when serving the customer — prototypes must provide value, accessibility, speed, transparency and scalability.
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1. Fresher options with value
Inflation has bred uncertainty. Consumers have tightened their wallets and now seek fresher food options with more value. Savvy consumers have begun to use social media to spread the word about selecting different options from menus to individually craft cheaper QSR meal deals. But these menu hacks wouldn’t be necessary if franchisees continued to offer value meals and clearer menu choices. Many brands have eliminated their value deals right when new prototypes should have value as their focus.
2. Ease and accessibility
With so many QSR options and apps for ordering and delivery, consumers are pickier and want their orders fulfilled virtually immediately. QSRs have always been about ease and accessibility. Consumers want to do business with brands, so give them options. Making it easier to get to and from the restaurant, get in and out fast, as well as throughput in drive-thrus has long been the game. But today, new prototypes must go beyond and provide dedicated mobile order and third-party pick-up lanes for those who order online and use apps like Uber Eats, Grubhub and DoorDash. Customers in a drive-thru don’t want to wait 20 minutes for their orders, nor do food delivery service drivers and those who order online. Mobile app and third-party pick-up lockers are also new conveniences a new prototype can offer to make pick-ups faster and more efficient.
3. Speed of service
In the age of apps, online ordering and more brand options, consumers expect instant gratification. Speed of service is assumed, so franchisees must deliver. Drive-thrus should focus on creating faster throughput. Drive-thru menu boards must also be streamlined to a limited number of options so customers can clearly understand their options and order faster. New markets need more simplified menus so customers new to the brand can learn about the offerings. Later, franchisees in new markets can upgrade the menu boards with the best-selling items as customer orders reveal predictable ordering trends. Kitchen design should also constantly be evaluated to ensure efficiency in meal prep and cooking, allowing the line to get meals out as quickly as possible. And if the kitchen design is the same for each restaurant, it makes training and moving employees around locations that much easier.
4. Brand transparency
Consumers seek safe and trusted brands. They still appreciate a brand story and hold onto their brand loyalties even during a tough economy. Brands that set high expectations for quality, service and experience and meet them predictably can drive loyalty, trust and perception. And by speaking the customer’s language, a franchise can ensure its customers understand the brand, its offerings and what it stands for. The market teams must convey with transparency what the brand is, constantly and consistently educate the consumer and accept the challenge of getting the brand’s value and message across so it resonates with the consumer.
5. Prototype scalability
When a franchisee finds desirable real estate, the question becomes how to best fit a prototype on that piece of land. The answer should come from a collaborative effort between the brand’s teams, architects and development department to discuss what makes the most sense for that space. Scalability in a prototype gives franchisees the flexibility and options to best fit the concept in their unique space and markets. What will allow for the easiest access in and out of the drive-thru? How do you do business the way your customers want to do business with you? Do add-ons like a third-party pick-up lane, lockers or parking stalls make the most sense for a particular location? Does a dual-lane drive-thru work for the location? Does the location need seats, and if so, how many? For example, a location that sees mostly drive-thru traffic likely doesn’t need ample seating — empty seats are just a waste of space that could instead be used for lockers or other better uses.
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Value, accessibility, speed, transparency and scalability are the future of QSR. These components have been actualized in Del Taco’s Fresh Flex prototype that its franchisees have embraced as they scale their real estate to the best opportunities in their unique markets. These considerations can also help any franchisee looking to expand real estate opportunities, lower net investment costs, optimize operational efficiencies and provide the best guest experience. And ultimately, these are the key areas that most impact guest satisfaction.
