It’s no secret that quick-service restaurants are having a tough time right now, like most of the hospitality industry. Customer demand is decreasing with people having less disposable income, but costs are still pretty high. It’s stretching both ends of the P&L.
Bold statement incoming 🚨 Focusing on growth during turbulent times can help you overcome these challenges.
We know, it sounds counterproductive. Growing when times are tough? Surely not. Well, in certain situations, research shows that pursuing growth in tough conditions can be the key to success.
But for growth to be successful, there are some things you need to consider — which is exactly what we cover in this article. By the end, you’ll have a good idea of how to build a solid foundation for sustainable growth. Plus, how restaurant technology can elevate the entire process.
What are the foundations for sustainable QSR growth? 3 things you need to do
Let’s take a look at the backbone of creating a successful and scalable QSR.
1. Develop a scalable business model
Before you start growing your business, you need solid foundations in place to ensure its success. This is where a scalable business model can help.
A scalable business model ensures that you maintain profitability and operational efficiency as you expand — both of which are essential for success. It involves designing systems that can be easily replicated throughout a growing operation, such as:
- Centralising supply chains. Keeping all your supply chain management in one location helps you monitor inventory needs and prices. This means you can identify ways to maximise profitability even when your business is growing.
Hot tip 🔥 Use Nory to manage your inventory and track supplier costs in real-time!
- Creating efficient labour management practices. Managing labour gets trickier as you hire more people in your growing operation. With solid labour management processes in place — for things like scheduling and payroll — it’s easier to manage existing staff and onboard new employees efficiently.
- Adapting to local market conditions. Scalability also requires the flexibility to adapt to changing consumer preferences and market conditions without compromising quality or service. For example, switching to more sustainable ingredients to meet the growing demand for more environmentally friendly options (36% of diners actively seek restaurants with robust sustainability initiatives). Take a look at Subway as an example, which has made various changes and commitments to a more sustainable operation.
2. Build a strong brand identity
A strong brand identity helps you build credibility with diners. People trust a brand they’re familiar with, meaning they’re more likely to dine with you.
McDonald’s is a good example of a strong brand identity. You see the golden arches and you know exactly what it is, and you know what to expect in every McDonald’s — no matter where it is in the world.
Have a look at their growth strategy to see how they plan to use their solid brand identity to fuel further growth.
Your brand identity also differentiates you in the already-competitive market, which helps you attract more diners and (hopefully) generate more revenue. This means you can invest more money back into your restaurant to help it grow.
Here are a couple of tips for building a strong brand identity:
- Create a compelling brand story. Develop a narrative that reflects your restaurant’s mission, values, and origins. For example, showing them where you started and how you’ve progressed over time. This backstory creates an emotional connection with diners, which encourages repeat business and keeps profits healthy as you grow.
- Use consistent visual and verbal messaging. Ensure that your logo, colour scheme, typography, and tone of voice are consistent across all platforms and in your restaurant venue (or multiple venues if you expand into new locations. This reinforces brand recognition, building trust and credibility with customers.
3. Establish standardised processes and procedures
Standardised processes and procedures are crucial for ensuring consistency across all QSR locations. It involves creating company-wide practices for things like:
- Menu recipes
- Food preparation and storage practices
- Employee training programs
- Customer service protocols
- Quality control measures
By establishing clear, replicable processes, you can maintain high standards of service and product quality as you grow. Plus, it reduces operational inefficiencies, like overstaffing during off-peak hours or not managing inventory effectively. With less inefficiencies, it’s easier to scale operations
Take a look at Chipotle as an example. The Mexican QSR launched Project Square One in 2022, which aimed to standardise and refine the employee experience. It focuses on the little things that add up during its peak times, making sure that staff are always efficient, productive, and confident in their roles.
“The nuances of great throughput include teaching team members on the line how to deliver a great experience and keep moving, to listen out of both ears, hand items down politely to the next team member. The little things add up during a peak volume window and make us so much more efficient.” – Scott Boatwright, Chief Restaurant Officer at Chipotle.
Standardising these processes also maintains a strong company culture as you grow, which improves the employee experience and boosts retention. During the current labour shortage, it’s safe to say that retention is a top priority for most restaurant operators.
How restaurant technology supports QSR growth
Using restaurant technology like Nory is an invaluable tool when it comes to growing your QSR brand. Why?
Let’s take a look:
- Track costs and profit margins in real-time. Keep track of spending, sales, and profit margins as it’s happening. This means you can make quick and informed decisions about spending to enhance growth and improve your cash flow management during expansion.
- Review capital allocation and investment strategies. Get real-time insights into your financial performance to enable smarter capital allocation. For example, if you’re preparing to open a new location, you can use Nory to review the return on investment (ROI) from previous expansions. The data reveals that drive-thru installations provide higher returns than dine-in renovations, guiding future capital allocation.
- Adapt to changing consumer preferences. Use Nory’s sales insights to spot consumer trends and preferences and adjust your offerings accordingly. If more people are ordering plant-based options, you can incorporate more vegetarian and vegan dishes into your menu (or optimise your menu to promote your plant-based options).
- Create accurate forecasts. Accurately predict sales and demand to ensure you remain profitable as you grow. For example, our AI-powered software can predict customer demand so that you order the right ingredients. This means you avoid stockouts, reduce waste, and increase profit margins even during an expansion.
Nory success story 🥳 Find out how CUPP achieves a 99% sales forecast accuracy with Nory! Using the Vita Mojo POS integration, CUPP accesses all the data they need to make informed decisions about business growth in one location — from handling customer payments to streamlining operations across the entire business.
“In the hospitality sector, you need everybody singing from the same hymn sheet. Having a central system like Nory helps us align our process across all our locations, which has been fundamental to our productivity and growth.” – Paul Tanner, Managing Director at CUPP
Use Nory’s AI-powered solutions to grow and scale your quick-service restaurant
A scalable business model is at the heart of success for a growing quick-service restaurant. Everything else falls under this umbrella, so you must have this in place before anything else.
And what better way to create scalable processes and practices than with AI-powered technology?
With Nory, you can grow your business without impacting the day-to-day operations of your restaurant. Keep track of sales, monitor performance, and ensure that your customers are receiving the same quality of food and service throughout the entire process.
FAQs about QSR growth
What is the meaning of QSR?
QSR stands for quick-service restaurant. It’s a type of food establishment that focuses on speed of service, convenience, and affordability. These restaurants typically offer a limited menu of fast-prepared items (like sandwiches, burgers, or pizzas) and often provide takeaway options or quick dine-in experiences.
How big is the QSR industry?
The global quick-service restaurant industry is pretty big. The market size was worth $894.68 billion in 2023 and is expected to grow to $1,930.14 billion by 2032. Despite the challenges in the industry, there’s a lot of potential for growth in the market. With the right processes and systems in place to track costs (and identify ways to reduce spending and boost margins), QSRs can thrive in the coming years.
