These 10 Tips Will Make Your Quick-Service Restaurant Profitable

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Ever since I have watched the movie ‘Chef’, food trucks have started to fascinate me.

You can get a vintage van, convert it into a kitchen, and roam around the city selling meals that are quick, cheap, and delicious.

That’s a life to live. If I ever get a chance, I would definitely start my own food truck business; name it ‘Meals on Wheels’ and become the Jon Favreau of Assam.

But then, I started watching videos of Mr Beast where he would go to drive-thrus and tip workers. Now, I feel like starting a drive-thru.

Life is tough, you see.

Okay, I will talk about my dreams some other day. Let’s now focus on the topic at hand.

There is one thing that is common between both — they are, one way or the other, a type of Quick Service Restaurant (QSR).

Lately, I have witnessed a lot of QSRs struggling to scale and make a good profit. So, I have taken it upon myself to help you all with just that.

Whether you own a food truck, drive-thru, or even a fast-food stall, this blog is going to be of great help.

What is a Quick Service Restaurant?

A quick-service restaurant (QSR) is exactly what it sounds like. It serves customers with food as quickly and efficiently as possible.

Most of the QSRs are usually self-serviced. Meaning, customers are required to collect their food from the counter.

One of the best examples to explain the quick service restaurant characteristics is KFC.

In KFCs, you go straight to the counter, place your order, make the payment, and wait for it. The food gets ready in just a few minutes; now, you just have to collect it from the counter and have it.

Also, while placing the order, you can let the person know whether you’re going to dine in or it’s a takeaway.

Casual Dining and Fast-Casual

When we talk about the quick-service restaurant industry, two more terms tend to confuse people — casual dining and fast-casual.

Here in this section, I will try to help you understand both terms.

What is casual dining?

Casual dining is basically classified as our typical restaurant with a laid-back atmosphere and affordably priced menu.

These restaurants generally offer table service. Meaning, you don’t have to go to the counter and place your order. Instead, a server brings your meal to the table.

What is fast-casual?

Fast-casual is a combination of both fast food and casual dining. Meaning, you might not get table service, but you can expect freshly prepared, higher-quality food and an inviting sit-down ambience.

Not to mention, many fast-casual restaurants allow you to create your own meal. You can choose the combination of ingredients you want in your food.

Tips to Make Your Quick Service Restaurant Successful

Now that you have learned about QSR along with casual dining and fast-casual, let’s take a deep dive into how you can increase profits at your quick-service restaurant.

In this section, I will share some of the top tips for quick-service restaurants to stay profitable.

1. Write down your business plan

This might sound generic, but it is THE most important point.

You need to have a quick-service restaurant business plan in place to give your QSR the right kickstart.

A plan helps you define the business and enable you to understand the various aspects of it. Furthermore, it also helps you set clear objectives and implement them in a much easier way.

One of the critical elements of a quick-service restaurant is its concept. And when you have a business plan in place, you can justify that concept.

2. Conduct research to define your target market

The idea of defining the target market is simple.

Like I said above, QSRs need to have a concept. But for that concept to work, the restaurants must determine the segment of customers. Focusing on the wrong market segment results in wastage of marketing budget and resources.

For example, you’re starting a new food truck in India that serves burgers. Do you think the baby boomers are going to be your target customers? Nope. Millennials and Gen Z are more likely to be your target market.

The more refined your target market is, the better the chances of attracting customers to your restaurant and boosting your bottom line.

3. Innovation and creativity are the keys

At present, there are numerous quick-service restaurants. The competition is really tough.

To stay ahead of the game, you need to strengthen USPs and tap into the psychological aspect of your customers. You have to explore different ideas in terms of everything — be it the design, ambience, or menu.

Many people might argue on this, but restaurants today are much more than just the food. People expect a lot of things. And for a QSR to succeed in this generation, it must give up on the old school tactics and take a sip from the fountain of youth.

There are gazillion restaurants that offer decent food but are supremely profitable because of their ambience and service.

4. Lift your marketing game

Your restaurant’s success is directly proportional to its marketing plan. And when I say a restaurant, I also mean QSR.

Setting up and running a QSR is one thing, but you also have to make sure that you’re spreading the word (that too in an intriguing way) to a wider audience. This is where marketing comes into the scenario.

We have done an in-depth blog on restaurant marketing. I suggest you give it a read. It will definitely bring in a lot of value.

Creative Restaurant Marketing Strategies for 2021

5. Pull out all the stops for branding

Now, you have to understand branding is not the same as marketing. Branding is about defining who you are as a business.

Of course, there are marketing efforts involved in branding, but that’s a little different.

Marketing campaigns for branding must be curated in such a way that your quick-service restaurant’s characteristics, values, and mission are loud and clear.

Not to mention, you also have to spend time crafting content that shows the concept and ambience of your quick-service restaurant business.

Note: Branding is very sensitive. So make sure you’re careful about the message you’re trying to convey.

6. Use a loyalty program to increase sales

According to Bingage, 83% of people are more likely to purchase with a brand that has some sort of loyalty program.

Loyalty programs are about rewarding your customers for a certain action and encouraging them to keep engaging in the desired behaviours.

Again, we have covered this topic in detail along with the science behind it. Do give this article a read.

I am sure, you don’t need any other resources to master the art of rewarding your customers and increasing your sales.

All You Need to Know About Restaurant Loyalty Program

7. Offer discount during lull hours

Every eatery faces lull hours. It is basically that hour/time of the day when the crowd is really low in a restaurant.

While many don’t give it a sincere thought, it is actually a lucrative time if you have a strong strategy in place.

Try offering discounts during lull hours to attract more customers and make more sales.

8. Develop your QSR menu

A well-engineered menu is the reflection of a restaurant’s concept and intended audience.

If you haven’t considered working on your menu, then you must.

Wondering, how? I got your back.

Some time back, in one of my blogs, I talked about creating an enticing menu.

Click here to read and learn.

9. Invest in the right POS system

Apart from all the strategic actions, there’s one more thing you need to focus on – how to manage a quick-service restaurant?

The answer to this burning question is a point of sale (POS) system.

A POS system has become a necessity for restaurants. And why not? It streamlines your restaurant’s complex operations. Be it about menu management, inventory management, tracking sales and cash flow, or staff management, it does everything.

If you haven’t thought about investing in a POS yet, then YOU MUST.

10. Find the right suppliers for your QSR needs

To run a successful restaurant, you must spend a good amount of money on outsourcing several things such as software, frozen food, raw materials, etc.

Therefore, to get quality products, you need to choose the right supplier.

However, that/it may not be simple. There are certain aspects you need to keep in mind.

• Identify the things you need to outsource
• Conduct research about different suppliers
• Check for suppliers with fair/reasonable/negotiable pricing
• Check whether the products of the suppliers are of good quality
• Make the best out of your existing relationships with vendors
• Find out whether the after-sales service of a supplier is good enough
• Check references before selecting a vendor

You can use the above points as a checklist and see which supplier/vendor fits into your criteria.

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