The fight over which restaurant gets to satisfy your appetite is surely heating up. With ~$800B sales last year, this is an exciting space to watch, especially now. Customer expectations are at an all-time high and the consumer behavior is simply changing. Before we jump in, let’s look at what makes the quick service restaurant business so unique.
What Makes the Service Restaurant Industry Unique
The average ticket value is low
Think about it this way, if you picked up all the bills from the last 10 times you visited a pizza chain and added it up, you probably won’t go beyond $1000. Juxtapose this with an apparel retailer and you would see that their average ticket value by itself is probably more than $1000.
Visit frequency is higher and cyclical
Compared to other retailers, the restaurant industry might see the same customers 8-10 times in a period of 6 months and before the frequency drops. Guest frequency is one of the most important metrics that a restaurant tracks.
Size of the meal matters
Apart from guest frequency, the moolah is made by maximizing the size of the order. A large coke with the burger? Small fries to go with that? You can try combo 1 and …