Analyzing the Rise of QSRs in the Age of COVID-19

As reported in an article in QSR Magazine earlier in the summer, the quick serve restaurant sector is the only market segment to increase sales since the beginning of the coronavirus pandemic.

Other reports have attached figures to this growth, some saying as much as 100 percent growth, while others like Statista showing an increase in QSR revenue from 273 billion in 2019 to 293 billion so far in 2020.

Led by chains like Domino’s, increases in same-store sales have consistently hovered above 20 percent, a number that would shock aficionados of restaurant revenues.

Certainly, a big part of this growth can be attributed to significant shifts in how customers dine. From closed and reduced-capacity dining rooms to curbside carryout and ghost kitchens, much of these changes have been forced by circumstances, health regulations, and customer confidence. Couple that with the frequency of health reports detailing the pandemic could stretch well into the future, and we could be poised to see even more growth in the QSR sector.

But why? There are a few simple reasons why QSR sales are ramping up at exponential levels in 2020.

Convenience In Restaurants

Anyone who can offer goods and services that don’t require consumers to get out of their vehicles are set up for success. Operations that minimize or even eliminate restaurant/customer contact all together are also providing levels of convenience that are highly valued.

Value – Bang For Your Buck

QSR menus are often value-driven and provide a big bang for your buck. This is important in the age of COVID when stabilizing the supply chain is just as important for the QSR as it is for the consumer. In order to continue to achieve the value-driven menu, QSR’s are limiting menus to match the supply they can dependably purchase as well as take advantage of historically low commodity prices. Budgets are tighter all around, and coupled with other benefits like convenience, QSRs are providing even more value for consumers in 2020.

Confidence in Restaurants

With convenience also comes confidence. Operations that can reduce or eliminate points-of-sale — or at least make them easier and less risky — are more likely to cultivate customer confidence. As we’ve seen across so many types of business during the coronavirus pandemic, the consumers that feel safe and secure are the ones who are likely to buy, and rebuy.

Consider the following consumer statistics as they relate to restaurants since the outbreak of COVID-19.

CONSUMER RESTAURANT TREND GRAPHIC (1)

 

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Topics: Foodservice Industry Trends, Restaurants