Earlier this month, I had the privilege of attending the MediaPost Brand Insider QSR Summit in New Orleans. This intimate gathering brought together 75-80 QSR industry executives and decision-makers for three days of insightful discussions, networking, and thought leadership. Here are some key takeaways from the event that are particularly relevant for our industry.
Key Themes and Insights
Reaching Younger Generations.
Legacy QSR brands are grappling with the challenge of engaging younger audiences. Many are shifting their focus to align with the interests of these demographics, such as culture, music, and fashion.
TLDR: Originality is becoming a crucial differentiator in this highly competitive market.
Reinforcing the Importance of Brand Loyalty.
Loyalty emerged as a critical factor for QSR brands. While fandom doesn’t always equate to frequent visits, maintaining brand loyalty without eroding value through excessive discounting is a significant focus. The consensus is that gated discount strategies are effective for attracting new customers, retaining existing ones, and increasing visit frequency.
TLDR: Effective loyalty programs balance attracting new customers and retaining existing ones without over-relying on discounts.
Adapting to Digital Changes.
The industry is preparing for the post-third-party cookie era. Rising food prices are pushing brands to get creative with loyalty programs to retain customers. Many are driving traffic to their own apps to avoid the pitfalls of third-party delivery services, such as chargebacks and refunds.
TLDR: Brands are focusing on driving traffic to their own apps to better manage customer relationships and costs.
Leveraging Data and Technology.
Brands are heavily investing in loyalty programs and experimenting with new technologies to better analyze data from current and previous offers. Although no single brand has perfected its loyalty strategy, there is a clear emphasis on testing and adapting to find the most effective approaches.
TLDR: Continuous testing and adaptation are key to refining loyalty strategies and leveraging technology effectively.
Experimenting With Email Marketing.
Email continues to be one of the best-performing platforms in terms of ROI for QSR brands. A/B testing different offers to identify the most effective strategies for key performance indicators (KPIs) is a common practice.
TLDR: Email marketing remains highly effective, with A/B testing being crucial for optimizing offers and KPIs.
Throughout the summit, I attended sessions hosted by several prominent brands, including White Castle, Subway, Del Taco, and Tropical Smoothie Cafe, among others. These sessions provided valuable insights into how these brands are navigating current industry challenges and opportunities.
Key Learnings
- Customer Loyalty Programs: Most brands are prioritizing loyalty programs, with significant investments in internal strategies. For instance, Cici’s Pizza is launching their program at the end of the year. There's a clear opportunity for Kard here, as some brands expressed dissatisfaction with current data partners and are seeking better solutions.
- Brand Engagement: Engaging younger generations through culturally relevant content is vital. Brands are exploring ways to stay relevant and resonate with younger audiences.
- Strategic Innovations: The industry is seeing fewer limited-time offers, focusing instead on sustainable strategies that drive long-term customer loyalty.
Attending the MediaPost Brand Insider QSR Summit was an invaluable experience. It provided a platform to hear firsthand what’s working (and what’s not) for some of the leading brands in the QSR space. The insights gained will undoubtedly inform our strategies at Kard as we continue to innovate and support our partners. Reach out to me or my colleagues at Kard to learn more.
