Quick-service restaurants (QSRs) have always focused on pricing, and that is clearly one way to drive customer traffic. But value is so much more than price, and c-store foodservice operators must focus on these six key components to maximize value, increase traffic and be profitable at the same time.
1. Food and Beverage Quality
There is no shortage of options for consumers to purchase food and beverages, but quality remains at the top of what consumers look for. Yes, they want it to be priced fairly, but if the product is not consistent and does not meet or exceed their expectations, they will not go out of their way to frequent your establishment. The consumer wants a product that has a memorable taste and is appealing in how it looks. The basics of hot and cold food are sometimes taken for granted, but you can never take your eye off the basics. This is all part of the value proposition.
2. Speed of Service and Hospitality
There is no better way to ruin a guest’s pleasant food and beverage experience than inconsistent speed of service and hospitality. No matter how good the product was or what price value was offered, if the accuracy of the order was poor or there was a lack of team training and/or certification that fell short of consumer expectations, the value proposition will be negative. C-store foodservice operators must focus on hiring team members that are personable and engaged, but they also must have excellent training and certification programs which ensure that the customer will see great service and hospitality as a positive factor in how they rate their value.
3. Embracing the Beverage Category
In the Q4 Kinetic12 Emergence Group Report, operators said that the No. 1 new stream of revenue that they needed to focus on was beverages. For the most part, beverages can be basic or innovative and the consumer is more willing to pay a premium for a beverage product versus food. In looking at beverages as a category, specialty teas, mocktail innovation, functional beverages and cold brew coffee were some of the key anticipated introductions in 2025. Essentially, each of these items are basic beverage categories with a twist. It is okay to charge more and for it to be good value for the consumer if you can jazz it up. Coffee versus cold brew, Infused green iced tea versus basic iced tea and more.
4. Changing the Approach to Innovation
The biggest and most important adjustment being made when it comes to innovation is to avoid being too hasty with change. Consumers are looking for innovative food and beverages, packaging and more, but new products must undergo adequate testing to ensure that the product meets what consumers want and can be executed consistently by employees. Great value requires improved take-out and delivery packaging, new and improved technology to make the consumer experience better and continuing to evolve the most popular menu items, using as many ingredients as possible that are currently in stock. Consumers want operators to stick to their core and avoid “throwing darts” when it comes to innovation.
5. Bundling with a Different Approach
Does a value meal have to be a sandwich, side and fountain beverage? Many of the QSR value meals are old and tired. They tend to be strictly price driven. There needs to be an evolution of bundling that includes products that are new and exciting. Telling the story of what is included in some bundles can create tremendous excitement and the consumer will pay a little more. Why not have a cold brew instead of drip coffee in a bundle? How about short rib, four-cheese grilled sandwich with sweet potato fries and a mango lemonade? These bundles can drive revenue and still be profitable.
6. Differentiating Product Offerings
Whenever possible, a successful operator tells a compelling story about the ingredients they use and how their menu items are different. When done properly, it will drive more traffic, add revenue and build greater loyalty. Great value for a consumer can be about focusing on exceeding expectations. Why serve just a burger? You can get that anywhere. What is special about your burger from the burger itself to the roll, cheese and condiments? Are you serving fresh cracked eggs? Does your yogurt parfait use Greek yogurt and fresh fruit? Is your fountain beverage machine a standard Coke or Pepsi machine or are you offering Stubborn Soda? You can make a statement to consumers, and it can change their perception of your company. Operators must look at their offerings and make sure they are getting credit if they are differentiating, and if you are not differentiating, it may be time to take a hard look.
Bruce Reinstein is a partner with Kinetic12, a Chicago-based foodservice and general management consulting firm. The firm works with leading foodservice operators, suppliers and organizations on customized strategic initiatives as well as guiding multiple collaborative forums and best practice projects. Kinetic12 also engages as keynote speakers at operator franchise conferences and supplier sales meetings. His previous leadership roles as president of multiple restaurant brands and operator consulting firms provide a balanced industry perspective.
