Takeaways from the QSR Evolution Conference

The QSR Evolution conference was packed with insightful discussions about the future of Quick Service Restaurants (QSR) and the evolving landscape of food service. From franchise operations to loyalty programs, here are the takeaways I was able to capture from various sessions, highlighting the importance of guest experience, technology, data, and innovative strategies in driving growth and success.

1. Loyalty Programs: Driving Engagement and Retention

In a session with ???????? David "Rev" Ciancio , Olivia Ross , Sergio Pérez , Urvi Patel , Alicia DiStefano , Scott Hudler , Zachary Goldstein , Graham Humphreys , the focus was on the importance of loyalty programs.

The panel was asked which key metrics they monitor to gauge effectiveness of their loyalty programs. The answers varied from each panels, but overall included:

• Customer lifetime value
• Incrementality
• Overall sales
• Program reach and participation rates - how much revenue is running through the program
• Guest satisfaction, which has been found to be directly correlated to sales and comp traffic
• How many people in program
• How often to they visit
• Check amount
• Days to second/next visit
• Cohort breakdowns

Loyalty programs can benefit from personalized offers based on consumer data. Cart abandonment campaigns can help reactivate 25% of lost customers. Creating loyalty rewards that feel like privileges (rather than discounts) enhances guest bragging rights and brand loyalty. Engagement through exclusive rewards, such as early access to secret menus or skip-the-line privileges were also tossed out as creative ideas.

2. Franchising: Building a Strong Foundation

A panel featuring Troy Hooper , Erin Snyder , Josh Halpern , Peter Ortiz , Jeff Drake , and Matthew Haller discussed franchising essentials. They stressed that:

• Choosing the right franchisee is critical. Look for those passionate about the brand and engaged with day-to-day operations.
• Franchising is not just about making money but growing something your passionate about. Ensuring long term operational excellence starts with focusing on IT, training, and other foundational elements.
• Leveraging local chambers and tapping into raving fans of the brand are highly effective ways to find the right franchise partners — especially if they have business experience.

Franchisee engagement is key. Hands-on operators who care deeply about the business and spend time in-store each day tend to be the most successful.

3. Revenue Streams: Expanding Beyond Traditional Models

Gregg Majewski , Geo Concepcion , Reem Fahoum , Bonnie Lavaroni, James Walker, CFE , and Bruce Reinstein focused on expanding revenue streams. Some valuable strategies include:

• Creating virtual brands can drive additional sales by leveraging existing resources.
• Catering and events as a high-growth avenue, particularly for lower cost breakfast services. Plus, everybody loves a good work breakfast meeting!
• Retail opportunities to sell sauces, syrups, and other proprietary products in stores and online extend the brand experience into guests' homes and deepen brand affinity.
• Using limited-time offers (LTOs) to gauge consumer preferences and adapt to evolving tastes.

Menu optimization, showing photos of top-selling items, and offering regionally tailored products also enhance the guest experience and drive incremental revenue.

4. Value and Guest Experience: Elevating Brand Perception

Scott Murphy and Danny Klein emphasized the importance of testing value marketing and optimizing packaging and presentation for maximum perceived value. When combined with an exceptional experience, value extends beyond price, offering guests a more connected and memorable experience.

• Having multiple brands can allow for shared resources and cross-pollination strategies, which can strengthen operational efficiency across the portfolio.
• Order accuracy and training were highlighted, particularly in high-pressure environments like drive-thrus and delivery. When the guest experience is taken off-prem, there's higher risk for a poor experience if accuracy slips.
• Engaging with authenticity through social media and influencer partnerships can enhance brand loyalty and expand audience reach.

Side note: This session felt like Between Two Ferns at times, and had me quietly cracking up.

5. Technology: Transforming Operations and Guest Experience

The tech stack session with Wade Allen , Alessandro Biggi , Adam Klaers , Meredith Sandland , Davide Macchi , Joseph Szala, GSD, DCMJ discussed how technology can be a game-changer for QSRs:

• When considering new tech, assess whether it impacts team members, sales, guests, or profit.
• AI and data integration can improve operations, but it's crucial to ensure data cleanliness and accuracy to have the greatest positive impact. Garbage in, garbage out.
• Successful tech adoption hinges on getting buy-in from employees, from hourly workers to GMs, through intentional roll-out planning and execution.

Technology isn't just about the newest gadget—it’s about making the entire operation more cohesive and impactful across all levels.

6. Operational Excellence: Focusing on Core Products and Efficiency

Josh Kern from SPB Hospitality shared insights on driving growth through operational efficiency:

• Significant savings can be found in the supply chain and efficient processes like menu printing.
• Cross-brand collaboration fosters a stronger culture, while remote work continues to be a challenge in maintaining a cohesive restaurant team environment. SPB encourages creating engagement through recognition and skip-level meetings to provide employees with direct channels for feedback.
• Employee engagement and empowerment, including allowing them to fail and learn, is key to fostering a curious and innovative culture.

7. Guest Experience: Tailored and Memorable

Brandy Blackwell , Mike Sebazco , Michelle Heffernan , Andrew Jaffe , and Matthew Eisenacher emphasized creating unique and tailored guest experiences. Some of the highlights include:

• Premium proteins and curated menus to meet evolving consumer demands
• Understanding the difference between fast-paced services like weekday breakfast versus the laid-back, social atmosphere of brunch
• Regionalizing menus and experiences can also enhance customer satisfaction
• Real-time feedback tools help operators stay connected with guests and respond to their needs, driving loyalty and satisfaction

Final Thoughts

The QSR Evolution conference underscored the importance of staying ahead of the curve by leveraging technology, improving operational efficiencies, and focusing on personalized, data-driven guest experiences. As consumer preferences evolve, brands must continuously innovate in terms of loyalty programs, franchising models, and the use of data to offer value beyond just price. Balancing traditional strengths with forward-thinking strategies is the key to long-term success in the competitive QSR landscape.

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