RFG CEO predicts value as the next frontier for Australian QSRs
Growth in foodservice was solely driven by an increase in average eater cheques.
QSRs in Australia will find themselves competing for value and convenience as consumers make conscious choices about where they spend their discretionary spending income during tough economic times, Matthew Marshall, CEO of Retail Food Group said.
In a recent study by Circana, foot traffic in foodservice dipped 0.9% despite foodservice spending growing 3.8% compared to last year. The report said that growth in foodservice spending was solely driven by an increase in average eater cheque of 4.7%.
Matthew will join other speakers at the QSR Media Conference & Awards 2024 this 23 September at the Hilton Sydney Hotel The conference is a gathering of the top brand leaders in the quick-service restaurant industry.
Ahead of his speaking session, Matthew shares some of his thoughts on the current trajectory of the QSR industry.
What are the key trends currently shaping the quick-service restaurant industry in Australia?
Customers are looking for value and convenience as they make conscious choices about where they spend their discretionary income during tougher economic conditions.
Despite a general trend in reduced customer counts, moderate growth is still being achieved in brands that can deliver outstanding customer experiences to drive higher transaction values through effective innovation, digital engagement and price management
Additionally, stretching to new occasions and adding bundle deals that drive transaction values is becoming increasingly important.
What strategies have you implemented to address these new trends?
We have put a major focus on 3 things;
- Working closely with our Franchise Partners to ensure our store execution standards are of the highest quality and our brands deliver a consistent customer experience
- A focus on technology to unlock incremental revenue streams and improve access to our brands online
- Insight-led innovation, particularly around new occasions, and strong brand partnerships that enhance brand awareness and resonance
How has technology impacted your operations and customer engagement in recent years? (Please give an example if possible)
The acceleration of digital technology in food retail has dramatically changed the way customers interact with brands. For example, enhanced mobile app functionality, QR codes, digital kiosks, eCommerce capability, home delivery tracking, the convenience of 3PA platforms and compelling loyalty programs are now basic customer expectations when choosing which brands to purchase from.
Enhanced data technology has also allowed us to more effectively target and reach customers, personalising the marketing messages through their journey for greater efficiency in our marketing budgets.
Can you share your thoughts on the challenges and opportunities that the quick-service restaurant industry will face in the next five years?
Brand differentiation and product innovation are opportunities to build brand relevance, particularly as customers become increasingly health-conscious and look for new experiences
Store formats, cost of development and access to quality locations will remain challenging as customers continue to engage differently with brands online and look for convenient ways to purchase. I also believe that ongoing investment in technology to deliver solutions that meet customer expectations will become a requirement (if it isn’t already)
What strategies can QSR operators use to enhance value and retain and attract new customers?
Deeply understand your customer, be clear on what makes your brand unique and execute brilliantly. Anything that creates a distraction should be removed or simplified to improve the customer experience. Invest in innovation that enhances your brand relevance across products, technology, and services to deliver better value and customer experiences.
How important is innovation in maintaining competitiveness in the QSR industry, and what innovative approaches have you adopted in your business?
Within a franchise model, finding new ways to unlock profitability at the store level is sure to unlock engagement and motivation with Franchise Partners.
Innovation in both product and technology can play a huge part in helping shift the mix of sales from traditional bricks and mortar into higher a proportion of digital sales to drive incremental profit across various new occasions. For example, we have had great success in the last 12 months in launching new brand concepts that leverage existing assets to access new revenue streams in our QSR pizza outlets with Rack em’ Bones BBQ Ribs and with the launch of Donut King Occasions in Donut King stores nationally.
Hear more from Matthew at the QSR Media Conference & Awards 2024. For more information about the event, please visit this link.
