No need to tell Americans change is afoot as all they need do is take a look at some of their favorite local drive-thrus. But the changes happening in QSR store design are all founded on expectations about a changing fast food diner.
Yes, COVID-19 is one of the reasons so many QSRs are redesigning but there are others that have little to do with the pandemic. (Photo: iStock)
From the smattering of recent restaurant redesign news stories, to restaurant industry experts at Deloitte and facilities management firms, like ServiceChannel, the story of the rapid evolution of fast food store design seems to be everywhere lately.
Kitchens are growing. Dining rooms are shrinking. And tech and drive-thrus are omnipresent.
From Taco Belland Sonic to Checkers & Rally's and Golden Chick, new store design is the movement of the moment. A lot of the change is the result of COVID-19 and the restrictions it has put on consumers and the restaurant industry as a whole. But the increasing use of technology and decreasing amount of time most diners have today have also strongly affected everything from where QSRs locate, how they are constructed and what they do and do not offer customers and employees.
Facilities management experts at ServiceChannel would be among the first to tell you about the surge in such changes across the quick-service sector, QSRweb learned when we spoke with CEO Tom Buiocchi.
In his role Buiocchi works with some of the nation's largest QSR chains to help them automate and transform facilities to take the greatest advantage of the market forces at play at any given moment. Recently he spoke with this website about the latest trends taking place specifically within and across the quick-service segment.
Buiocchi identified three top trends occurring now across the QSR sector, related to restaurant locations, including:
- Increasing suburban real estate sourcing — For instance, Buiocchi said one QSR client that primarily previously had focused its stores around core metro central business areas, is for the first time now headed to the suburbs.
"They're following the COVID-19 remote workforce to their residences versus their workplaces," he told QSRweb. "This will mean more pickup windows and drive-thru windows, which they never had in their city locations, as well as smaller footprints tucked into the local neighborhoods. These new-format locations will serve smaller markets than their urban counterparts, aided by a reduced need for parking."
- Free-moving furniture to enhance flexibility — Buiocchi said a couple of customers have identified a need to keep store assets portable to help enhance flexibility overall, including wheels on just about everything from tables and shelves, to ovens and countertops. He said these measures allow managers to reconfigure stores inside and out "at a moment's notice."
"One prominent fast food client specifically says they're removing all screws from their restaurant tables across the country in light of COVID-19 distancing policies and their rate of change," he said.
- Re-evaluation of location formats systemwide — A client relayed this process was underway for the brand's entire system nationally, with an eye toward implementing drive-thrus in areas without them, changing layouts to 90% kitchen space, considering virtual locations, and installing insulated storage pickup stations or lockers.
Aside from those three main trends, Buiocchi also detailed how facilities are changing in the fast food and pizza restaurant sectors, where he offered some examples.
"They had to think through the entire customer experience from adding curbside pickup windows and drive-thrus, to digitizing their menus, to adding more flexibility to their store configurations and menus. Nearly a year into the pandemic, brands are rethinking how this changes their overall strategy. Some restaurants, like Panda Express, are focusing on their drive-thru and carryout offerings as well as redefining their dining rooms to have more flexible concepts for when they need to adapt again," he said, as part of a Q-and-A discussion with QSRweb.
Q: How has that changed since the pandemic first hit?
A:While some restaurants were already integrating new technologies like apps and deliveries into their business to deliver a safer, more flawless, convenient, and enjoyable experience to customers, COVID-19 accelerated this urgency for digital transformation. To cater to new guest preferences and legislation requirements, we saw many fast food restaurants adopt technologies at an unprecedented pace, whether that was using QR codes in lieu of paper menus, touchless payment options, adding geofencing to in-app experience, or incorporating new technologies to ensure enhanced cleanliness and safety for both customers and employees.
Q: Could you expand a little on the top fast food leanings that are most deeply affecting store design?
A:Safety and cleanliness have quickly become the most fundamental, primary drivers in the "new reality" since COVID-19 hit. Restaurants are experimenting with, and adopting new technologies and processes to ensure that locations have a new level of safety, and that customers see, perceive, and understand this. Without this, nothing else matters. UV robots, ionizing cleansers, and new air flow filters are among the various technologies being deployed.
In addition, providing options for enhancing the customer experience (e.g. more drive thru and curbside pickup stations) has been a major theme during COVID-19 for restaurants. A few trends I've been seeing on this include:
- Restaurants adding more convenient in-building pick-up zones for 3rd party delivery services. COVID-19 showed us that the demand for food delivery is not going away and moving forward we'll see fast food brands continue to build dedicated pick-up sections in their restaurants to cater to this shift in ordering habits.
- We'll also see more restaurants adding dedicated consumer pick-up areas to their buildings, whether that's an additional line added to their drive thru or reserved parking space near their entrance.
- Another trend I've observed is that the drive-thru is quickly becoming the new dining room. We've changed the habits of the American eater with COVID-19, and the exterior of fast food buildings is now more important than ever. Brands will continue to enhance the outdoor facade of their buildings, by adding features such as more windows to provide food preparation transparency, to give customers a great experience in the drive thru.
Q: Are you noting any changes in what pizza restaurant brands are seeking in their facilities that differ from that and if so, what?
A: Nothing in particular. In fact, pizza restaurants, with their historical high percentage of take-out and online orders, have been the model for other restaurant types.
Q: What area of change appears to be most challenging to transition into for restaurant brands and why?
A: One of the most challenging areas of change for restaurants right now is navigating the ever changing governance guidance regarding COVID-19 restrictions. In California where I live, the state has implemented a confusing multi-tiered, color-coded county system. With these regulations constantly shifting, restaurants are constantly being affected, whether that's through capacity regulations and limited hours of operation with county curfews in place.
Now QSR facilities managers are responsible for keeping up the brand's standard of excellence while meeting the rules and regulations of each individual location. On a larger scale, there has never been more attention on facilities as there is right now and data is critical for brands to efficiently run their businesses during this time. A recent report we issued revealed the average QSR in California spends over $30,000 on facilities each year for things such as maintenance and upkeep. Facility managers need to be constantly reviewing data like this so they can reduce costs and improve overall business outcomes.
Q: Finally, what aspect of fast food physical locations is on its way out for good and why?
A: I think we'll always have the sit-and-stay restaurant format because it's in our nature to want to socialize with others. But that might become an experience reserved for full-service concepts, as fast food and QSRs prioritize a convenience-minded consumer.
The convenience and experience delineations we started to see as a marketing differentiator in 2018 and 2019 could very well become an inherent differentiator as they get built into business models and operations. I also believe customers will expect more transparency around their food orders, from where the food is sourced all the way to how clean the facilities making it are.
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