QSRs battle for prime drive-thru areas
More chains access customer data, including delivery locations, through their own apps.
Quick-service restaurants (QSR) are fighting for prime drive-thru and delivery-optimised sites, even as restaurant openings slowed in 2024, according to Aussie location intelligence firm GapMaps.
QSRs have turned away from third-party food delivery aggregators and have started gaining access to valuable consumer data using their own apps, Andrew Smith, head of research and economics at GapMaps, told QSR Media.
“We're seeing an increasing number of QSR brands enhance their understanding of delivery catchment areas and their sales potential,” he said in an emailed reply to questions.
He noted that delivery aggregators do not share customer addresses with QSRs, making it difficult for them to assess the full revenue opportunity across suburbs.
Under Australian privacy laws, a company can only share personal information for the purpose for which it was collected, unless there is consent from the data owner. Therefore, if customer data is collected by a delivery service to facilitate delivery, sharing it with a QSR for marketing or other unrelated purposes requires consent.
“More brands are now enabling customers to place delivery orders directly through their own apps,” Smith said. “These orders are then forwarded to aggregators, but critically, the QSR brand gains access to customer data, including order history and precise delivery locations.”
He said the key drivers of restaurant sales remain the same — a successful location still requires a strong base of local residents or workers, along with high foot traffic.
What has changed, however, is that high-traffic locations are no longer driven solely by office workers but also by a growing mix of visitors, shoppers, and local residents.
“This trend extends into the inner city suburbs, with 43% of Melbourne’s new store openings occurring within five kilometers of the central business district,” Smith said. New brands are also making their way toward urban centres before expanding to regional markets.
He said El Jannah, which has 35 locations, Fishbowl with 49, Gami Chicken with 37, NeNe Chicken with 44, and Salas with 18, have all concentrated their growth within east coast capital city areas rather than pursuing a national footprint.
“Whether these brands will expand into regional markets, Perth, or Adelaide remains to be seen,” he added.
Smith said a brand to watch is Marrybrown, a Malaysian halal fried chicken chain that is present in 20 countries. The company has announced plans to open 30 stores in Victoria and has opened eight branches in the past six months.
“The trend toward drive-thrus continues, with an increasing number of smaller brands, such as GYG, Zambrero, Banjo's, and NeNe Chicken competing with larger chains like McDonalds, KFC and Hungry Jack's for prime drive-thru locations,” he said.
“Additionally, new drive-thru QSR and coffee projects are increasingly integrated into mixed-use developments, allowing for better capital cost management and more efficient land use,” he added.
He noted that even without accounting for high levels of population growth, opportunities abound for fast-food chains to expand to fundamentally sound locations.
