A Tale of Two (Actually, a Few) Restaurant Categories

So, for those in the know, this should be pretty easy. For the uninitiated, here's a brief refresher. QSR (quick service restaurant) vs. fast casual vs. fine dining vs. “Wait, is Casey’s pizza really from a convenience store (gas station)?” There are more categories than that, but for today, we are going to stick to the burger world. Any way you look at it, there’s a lot going on in the restaurant industry, and it goes well beyond buns and fries.

Traditionally, QSRs have focused on being:

1. Fast
2. Consistent
3. Value-focused

Meanwhile, fast-casual and fine dining have, for years, placed a higher premium on:

1. The Experience
2. Quality (Yes, that artisan brioche bun does cost more)
3. Innovation

The Blurring Lines: QSRs, Fast Casual, and the Battle for Customer Loyalty

The traditional distinctions between Quick Service Restaurants (QSRs) and Fast Casual establishments are fading. QSRs are investing in higher-quality ingredients and "premium" offerings, while Fast Casual chains are rolling out value-focused menus to attract a broader customer base.

Today, you can walk into a QSR burger restaurant and see phrases like “100% fresh Angus,” “Organic produce,” and “Artisan” all over the menu. Meanwhile, some of your favorite fast-casual spots might be offering a value combo that won’t make your wallet cry. Applebee's, for example, has THE REALLY BIG MEAL DEAL (YES, IT IS IN ALL CAPS) which includes a bacon cheeseburger OR Big Cluckin' Chicken sandwich (so fun to say) and endless fries and drinks for $9.99.

By the Numbers:

• About 50 million Americans grab fast food every day (that’s more than the entire population of Spain!).
• The average cost of fast-food meals has risen 13% overall since 2016, with some chains jumping over 35% in price (or MORE with some seeing +50%)
• Fine dining and even convenience stores (hello, fancy new C-store offerings!) are all getting in on the technology game to lure you in.

If you’re feeling conflicted about paying $10 or more for a “value” combo meal, you’re not alone. But keep in mind that many of these brands are adopting new technology not simply due to inflation, but to enhance the customer experience (at least that’s the intention).

The Ghost of Fast Food Past: 2016’s “Value Wars”

Quick pop quiz: How many of us keep receipts for seven years? That’s what I thought. Luckily, I did the work of investigative journalism for you. Now, come with me back to 2016. A simpler time...a cheaper time:

• McDonald’s let you grab two Big Macs (or 10-piece McNugget, Filet-O-Fish, Quarter Pounder, etc.) for $5 total.
• Wendy’s had its famous 4 for $4 deal (which, incredibly, still kind of exists...but the 444 meal is now 5 )

• Burger King launched a 5-for-$4 promotion, making everyone wonder if it was all some sort of game of “My combo’s cheaper than yours!” (This was also the year BK introduced the Mac n' Cheetos menu...ah..simpler times 2016 was)

Fast-forward to present day, and we’re looking at significantly higher menu prices across the board. (Don’t believe me? Just compare a Big Mac combo to that 2 for $5 total, and tell me you’re not weeping into your Coca-Cola.)

Who’s Stuck in the Middle?

The short answer: Us, the guest, the everyday consumer. In an industry where every brand is vying for “mind share,” “stomach share,” and “wallet share,” the race to win your loyalty has never been tighter (much like our belts).

This is where technology becomes the star of the show.

1. Mobile & Loyalty Apps – Because who doesn’t love racking up points? 20K points for a small ice cream cone you say? SIGN ME UP!
2. Payment System Refreshes – Security, convenience, and speed matter.
3. Drive-Thru and Voice - An area we will continue to see significant growth, especially with the increase in VoiceAI ordering
4. Digital Signage – Menu boards that change with the time of day, the weather, or just because marketing had a sudden flash of genius.
5. Advanced Analytics – Wi-Fi and camera-based analytics to measure foot traffic, peak times, ane more

The goal? Differentiation. Everyone is looking for an edge—whether it’s shaving seconds off a drive-thru time or serving up a more frictionless experience, the goal is to lure you away from the other guys...one fry at a time.

So...Where Do We Go from Here?

All right, you've stuck with it this far..but I've got news for you: This is a Two-Parter!! In the next edition we will talk more about the technology investments and innovation (some of which I already mentioned) on how the industry has reached a digital inflection point: invest, innovate, or be left behind.

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