The U.S. quick service restaurant (QSR) ecosystem market is highly fragmented, with the top four companies accounting for less than 20% of the market in 2012, states a new report by Transparency Market Research. These are Samsung Electronics Co. Ltd., Panasonic Corporation, LG Display Co. Ltd., and NEC Display Solutions Ltd.
A TMR analyst says, “A focus on developing innovative display devices for business expansion is the key growth model that top companies in the U.S. quick service restaurant ecosystem are adopting.” Panasonic Corporation, for instance, has focused on introducing innovative devices to help its customers expand their business. In January 2014, the company introduced curved display and ultra high HD display to take their customer’s business to a new level.
Business growth by means of new product development is another key growth model that key vendors in this market are focused on. This involves the utilization of hi-tech features to extend an immersive and impactful in-store experience for customers. Key vendors in the U.S. QSR ecosystem market are also focused on portfolio expansion in a bid to provide differential offerings to customers.
Big Data Analysis Aid Comprehend Customer Purchasing Behavior for Quick Service Restaurants to Rectify Service Loopholes
“An increasing shift towards data-centric business models that helps optimize business processes is the foremost factor driving the U.S. QSR ecosystem market,” points out a TMR analyst. This involves monetization of data captured by wired or wireless point of sale (POS) systems and kiosks systems. The use of such business models facilitates restaurants to track purchased and canceled items at point of sales. For example, McDonalds is continuously carrying out big data analysis to address flaws in the drive-thru experience.
The increasing need to provide an altogether new experience for customers is also boosting the growth of the U.S. QSR ecosystem market. This is because the increasing number of quick service restaurants has heightened competition, thus has put digital technology at the center stage to deliver a highly satisfying experience for customers.
Use of Digital Technologies Lacks Human Element for Two-way Communication – A Key Restraint
“Increased automation using technology lacks human interpretation skills, which is challenging the growth of the U.S quick service restaurant ecosystem market,” says a TMR analyst. This is because self-service machines require customers to type the query, which increases the chances of mistakes, thus receiving zero or too many results in response. Moreover, personalized services can go a long way in building customer relationships. The use of digitization lacks this.
The high price factor of QSR ecosystem devices is also challenging their adoption, especially among small-scale restaurants. For instance, the usage of digital signage systems involves a high cost of installation and maintenance as compared to black menu boards.
The U.S. quick service restaurant ecosystem market is expected to be worth US$7.32 bn by 2019. The hardware component segment was the largest with 79.2% of the market in 2012. Within hardware, kiosks that are equipped with cloud technologies will display the highest growth rate in the coming years. Point of sale hardware equipped with innovative features such as inventory management and cloud-based reporting will also contribute substantial revenues to the U.S. quick service restaurant ecosystem market.
The information presented in this review is based on a Transparency Market Research report, titled “Quick Service Restaurant (QSR) Ecosystem - U.S. Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019.”
The U.S. quick service restaurant (QSR) ecosystem market is segmented as follows:
U.S. Quick Service Restaurant (QSR) Ecosystem Market, by Component
- Signage systems
- Drive through terminals
- Point of sales (POS)
- Handheld devices
- Digital menu cards
- Billing solutions and management solutions
- Analytics software solutions (bid data analytics)
- Services (network security and cloud based services)
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