Innovation has been a driving force in the QSR and restaurant category over the last couple of years, as brands have looked for more convenient ways to serve customers through digital ordering and pickup. Consumers are demanding smoother experiences, varied menu options and want to find QSRs wherever they are.
Food service prices increased 10 percent on average in 2022 due to high energy costs and an unstable global supply. Predictions are that inflation is going to continue to impact the costs of food and drinks into 2023.
Combining Value, Convenience and Quality
“Customers are going to demand more value next year than in years before as they see price increases on everything from their grocery bills to gas charges. However, as a marketer, value doesn’t always mean automatically ‘cheaper’ – it can mean ensuring your product offers something to the consumer that other brands in your category can’t do,” noted Lindsay Morgan, chief marketing officer of Pizza Hut (U.S).
“With wallets tightening, marketers will need to strike a balance of reaching audiences in creative ways to grow brand love over time while really dialling in on how they are presenting direct value offers to the customer in real time that’s what will define the winners of 2023.”
Finding a balance between quality and value are the driving forces behind QSRs next year. It's about consistency in the business and making sure that when a customer comes in today, and then they come next week, it's the exact same product, that same taste, and meets the standards of your guests.
As consumers continue to evolve their definitions of both value and convenience, companies are going to continue to chase that evolution down whatever path presents itself. The brands that succeed in that race aren’t going to be the ones that keep changing to meet the consumer demands of the day, the ones that succeed are the ones that know who they are and understand how to tailor those trends to fit their strategies moving forward.
Staying Relevant on Social Media
Digital channels will continue to play a key role in attracting customers and emerging channels like TikTok and the metaverse will be drivers in reaching key audiences. The rise of TikTok has allowed brands to zero in on their unique voice and story and that is resonating with consumers effectively.
The battle for marketers to entertain, inspire and engage with the coveted Gen Z audience will continue. It was reported this year that younger audiences use TikTok to search for information vs. traditional search engine platforms like Google. Knowing this, in 2023, it will be key for marketers to identify how to truly integrate into the TikTok platform in an authentic way that the younger generation doesn’t peg as ‘fake’ or ‘overly promotional.’
For QSR, Gen Z continues to show that traditional behaviours like going out to dinner are starting to change. In that place is the desire to have something more personal, and more unique when it comes to meal time options. Gen Z loves a snacking occasion – so it’s figuring out how marketers can grow with these new behaviours from above the line messaging to menu innovation.
