Technological advances have infiltrated almost every walk of life. In a time when consumers have become accustomed to getting their every demand satisfied at the snap of the fingers, quick service restaurants (QSRs) are being touted as the next big thing worldwide. Prompt services offered by quick service restaurants have made them immensely popular in various parts of the world, especially the U.S. These restaurants have a dynamic setting wherein orders are handed over in the minimum required time and the payment is processed swiftly. Facilitated by robust payment mechanisms, QSRs across the globe are capitalizing on the benefits offered by new digitized operations. These significant digital changes introduced in quick service restaurants are primarily driven by the growing need to ensure speed, accuracy, and clarity in transactions.
Escalating consumer demand and mounting commodity costs are the two main factors that have prompted quick service restaurants across the world to invest in the digitization of their ecosystems. Until recently, technological progresses introduced in quick service restaurants were mostly driven by credit card networks. However, the advent of an array of digital services such as point of sales, kiosks, handheld devices, signage systems, and digital menu cards have fundamentally transformed employee-customer interaction across QSRs in the U.S.
U.S. QSRs Ecosystems Market to be worth US$7,324.2 million by 2019
As revealed in a recently published research report by Transparency Market Research, a leading U.S.-based market research and intelligence firm, the U.S. QSR ecosystem market
, which was valued at US$3,506.9 million in 2012, is likely to reach a net worth of US$7,324.2 million by 2019. The market can be segregated into service, hardware, and software, on the basis of components. Components encompassed within the market segment of hardware are point of sales, kiosks, handheld devices, signage systems, and digital menu cards. Of these, digital signage was the largest contributor to the U.S. QSRs ecosystem market in 2012, accounting for 45.6% of the total revenue generated by the hardware segment. However, industry experts are near-unanimous that kiosks will emerge as the fastest growing segment in the U.S. QSRs ecosystem market. Kiosks are likely to demonstrate growth at a 12.3% CAGR between 2013 and 2019.
Billing and management solutions and analytics software solution are the two categories within the software segment of the U.S. QSR ecosystems market. Among these, the billing and management solutions segment accounted for the largest share of the market in 2012 and is anticipated to remain the fastest growing segment over the next couple of years as well, owing to the fact that billing and management software solutions can be tailored to cater to specific requirements of the restaurateurs and are thus preferred over standard solutions.
Rapid Proliferation of Smartphones and Other Technological Advances to Drive the Market
Rapid proliferation of smart phones and other handheld devices, in conjunction with the expected transition of hardware systems to cloud in the next couple of years, will enhance the customer and merchant experience in the market. This is will further transform and boost the quick service restaurants ecosystems market in the U.S. The growing popularity of smartphones and downloadable applications has paved the way for innovations in a point of sales system. However, many small and proprietary quick service restaurants in the U.S. are yet to discard traditional cash registers, to accommodate customers who prefer making cash payments. In addition, the high cost of QSR ecosystems devices will inhibit the market growth to an extent.
QSRs Ecosystem Market to Capitalize on Personalized Customer Interaction
Nevetheless, the U.S. has always been an early adopter of the latest technologies. Accordingly, most prominent names among the country’s quick service restaurants are integrating their in-store systems with customer’s mobile devices to capitalize on unique opportunities and encourage more personalized interaction with customers.
The U.S. QSRs Ecosystem market is highly competitive with the presence of many players. Some of the most popular names in the market are Nanonation Inc. NEC Display Solutions Ltd., Keywest Technology Inc., LG Display Co. Ltd., Omnivex Corporation, Cisco System Inc., Panasonic Corporation, Hewlett-Packard Company, REDYREF Inc. and Samsung Electronics Co. Ltd.