The Mobile QSR Experience & COVID-19

Last fall, the National Restaurant Association claimed in its Restaurant Industry 2030 Report that “the only constant will be the speed of change and the hyper-competition the restaurant and food service industry will face.”[1] Little did the world know in the coming months that the biggest speed of change would be a global pandemic shuttering on-premise dining establishments and pushing food service operators to delivery and online ordering. Digital ordering and apps for restaurants are not a new trend, and mobile apps for the QSR industry have been driving growth over the past few years for many brands, from Domino’s Pizza to Chick-fil-A. Take a look as we explore and rank what app features were working for QSR brands before COVID-19, which are proven to be essential during COVID-19 and as we look to the future, what elements of these apps will have staying power into the new normal?

By 2017, 63% of diners had at least one quick-service app on their phone.[2] This same report by DMI showed that share of space on mobile can drive loyalty and repeat business — 85% of these diners would visit a restaurant more often if it had an app that appealed to them. But if apps don’t provide relevant and convenient features, it has little staying power. Almost 1 in every 2 apps installed are uninstalled within 30 days, according to a report by Apps flyer in 2019.[3] So what mattered the most for diners before COVID-19?

1. Mobile offers: It’s no surprise free food will drive an app download. Just ask Chick-fil-A, who saw a record breaking 250k downloads on January 17 of this year after offering free chicken nuggets or a kale salad. This is more than Popeyes or Burger King have ever received on a single day in the United States.[4]
2. Placing orders: Guests don’t want to download an app and realize it’s just a logo and a menu. Digital order placement is table stakes for any QSR app. Tillster data shows that 76% of customers expect a restaurant’s branded app to offer mobile ordering.
3. Loyalty programs: As with mobile offers, strong loyalty programs will bring back repeat diners. Starbucks has long utilized this as part of its mobile strategy.
4. Customization and personalization: Convenience and service based technology helps QSRs keep their apps on their guests phones. When any aspect of dining is made easier, from saving frequent orders to offering customization options, guests will respond positively.
5. Viewing menus: Often ranked as one of the top uses in a restaurant app.
6. Delivery/order status: Domino’s has built its ordering strategy around this, with delivery and technology being its anchors of innovation and growth over the past decade.
7. Mobile payments: Going alongside with placing orders, mobile payments help speed up the process for diners in digital ordering.
8. Location technology: Location technology can automatically check in guests when they drive up to ensure optimal food preparation, help facilitate curbside or drive-thru lanes for pickup and help guests find the closest locations.

Digital apps can help QSRs scale and connect with guests when physical people and environments cannot. The New York Times recently said we’ve seen 10 years of change in one week for telemedicine, and the same can be said for virtually every business category, including dining and QSR. Off-premise sales, including drive-thru, delivery and carryout — made up 60% of all foodservice occasions pre-COVID-19. [5] With this jumping to 100%, digital and touchless payments are more important for the health and safety of QSR establishments and diners alike. Below is our re-rank for feature relevance during the COVID-19 crisis.

1. Mobile payments (increased): Mobile payments help protect restaurant workers and guests with contactless ordering and handling of any cash or credit cards at checkout.
2. Location technology (increased): As noted in QSR Magazine, location technology is being used to dramatically improve the operation of drive-thru lanes and curbside pickup. For example, using accurate location technology, QSR can reliably sequence and time the fulfillment of off-premises orders — eliminating the need to stop at the speaker box, all while ensuring orders are fresh and ready when the guest arrives.
3. Placing orders (decreased): As stated above, still table stakes.
4. Delivery/order status (increased): With fear and uncertainty when leaving the house or waiting for food, this gives diners peace of mind when food will be ready.
5. Mobile offers (decreased): Deals and offers will continue to drive downloads, especially as consumers are being conscious of spending during uncertain times.
6. Loyalty programs (decreased)
7. Customization and personalization (decreased)
8. Viewing menus (decreased)

We may not know what will hold in one week, in one month, or even one year — but what we do know is new consumer habits and behaviors are forming. During this time, consumers who previously may not have used digital apps for ordering food and groceries will be more open and comfortable with using this type of technology. And like any retail experience, ease of use will keep consumers coming back. Dining experiences that are positive both on and off-premise will continue to grow. Businesses and QSRs that can take learnings during COVID-19 and apply those that help drive loyalty, comfort and ease of use will come out on the other side better than before.