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Food Service Industry Updates

For Fast-food, the Digital Transformation is Just Getting Started

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For limited-service and quick-service restaurants, it has been the year of digital transformation.

And that will continue for the next several years, according to a new report from Incisiv titled, “Limited Service Restaurant Digital Maturity Benchmark, 2020.”

Incisiv, a West New York, N.J.-based firm that provides digital transformation insights for consumer industries, reported that adoption of digital as an avenue for sales is expected to triple this year and the market share is set to grow to close to 50% of total limited-service and quick-service restaurant revenue by 2025, which is about 70% higher than pre-pandemic projections.

According to Incisiv, success in the segment is predicated on investment in the right technologies, and adapting the operating model and processes to meet customer expectations across in-dining, take-out and delivery.

Incisiv found in its research that most restaurant chains are making investments but not necessarily addressing the highest priorities nor the solutions that will deliver the best maximum return on investment across diverse customer expectations. Chains with a higher digital maturity on Incisiv’s maturity scale have outperformed their peers and managed the COVID-19 crisis more effectively.

“However, the overall digital maturity in the limited-service and quick-service restaurant segment remains low and lags digital maturity of other consumer business like retail, travel, transportation and hospitality (hotels),” Incisiv stated.

But the pandemic has completely recalibrated customer expectations and forever changed how the limited-service and quick-service restaurant industry must operate, the firm stressed. Post pandemic, Incisiv expects the growth rate of digital ordering for limited-service and quick-service restaurants will stabilize with guests reverting back to in-restaurant pickup and dining, which is particularly true for the 25-50 age group.

“However, limited-service and quick-service restaurants are being forced to step up investments across their digital channels as it becomes a significant portion of their overall business,” the company added.

Click here to download the report.

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