The Five Top Technology Trends in QSR Market for 2019

Quick-service restaurants have long had a reputation for being innovators when it comes to technology. In the early days of modern foodservice, QSRs were among the first to incorporate features such as drive-thru speaker system and cooking timers. Later, computerized point-of-sale systems and digital menu boards emerged.

However, the developments haven’t stopped there. All of these trends have one feature in common: They provide operators with a firehose of data they can use to improve their operations.

McDonald’s, for example, acquired software company Dynamic Yield in March for $300 million, giving it technology that will allow it to customize digital menu boards based on data including time of day, weather and current ordering trends to deliver a more personalized in-store experience. The fast-food giant also took a stake in software company Plexure in April, giving it access to a mobile platform that uses digital marketing tools to increase sales. The platform manages mobile-based promotional offers and a customer loyalty program as well as serving as the backbone of McDonald’s mobile app.

Because 70 percent of the revenue for a typical QSR comes via the drive-thru, it only makes sense to look there as an avenue for technological improvements. Digital menu boards have been appearing in drive-thru lanes for several years, and will likely be standard going forward. Companies including Dunkin’ Brands have eyed dedicated pickup lanes for mobile orders as a way to eliminate bottlenecks, although the idea seems to be slowly gaining traction. Also, several kiosk manufacturers have introduced devices designed for the drive-thru in recent years as restaurant operators seek to duplicate the success of dining-room self-order technology. Olea Kiosks’ Detroit model was an early entry into that category. Technology provider Xenial, which provided the facial recognition application for Bryn & Danes, has installed touchscreen drive-thrus in nearly 400 Subway restaurants to date. Drive-Thrus have become so popular that some countries (Canada) and US cities are looking at restricting drive-thru’s.

Location technology and geofencing appear to be an up-and-coming trend, with its potential demonstrated by Burger King’s recent Whopper Detour promotion. Customers who participated in the promotion, which ran in mid-December 2018, could purchase a Whopper for just a penny via their mobile app, as long as they were within 600 feet of a McDonald’s. Other applications for the technology include alerting restaurants when a carryout customer pulls into the parking lot, with restaurant staff then delivering that customer’s order to their car.

Artificial Intelligence or AI-based systems are already being tested. Holly, made by Valyant A.I., is a disembodied voice that takes drive-through orders at a Good Times in South Denver.

Many of these up-and-running technologies are likely to be incorporated into the self-order kiosks that have been at the heart of recent restaurant trends. There are plenty of reasons why: Research conducted by financial news site PYMNTS.com found that consumers spend as much as 30 percent more at a self-order kiosk compared with other ordering methods. Self-order kiosks allow easy customization of orders, never forget to suggestive sell and eliminate the “indulgence guilt” that can occur when ordering extra-large fries or an apple pie for dessert.