
2014 Blog
The fast food industry is currently in the midst of some major changes. Some of these developments are relatively familiar, but on a larger scale – for example, the increasing focus on breakfast offerings. Even more overarching is the public’s growing appetite for healthy foods and subsequent weaning off of fast food. This long-gestating shift is so significant that many brands now see the introduction of higher-quality menu items as key to their survival.
It’s not all about the food, though. One of the single biggest changes currently occurring in the fast food industry concerns technology. Specifically, franchises are rapidly developing plans to improve their customer engagement by introducing mobile ordering, pre-ordering and other convenient offerings. Many analysts believe that such efforts will prove vital to fast food vendors’ competitiveness in the years to come. However, to make these plans a reality, these companies need to shift their IT teams’ focus from the back office to the front office.
This means that back-office managed services are rapidly becoming an essential resource throughout the fast food industry.
Front-office measures
The industry’s emphasis on front-office efforts is clear to every industry observer. Writing for CNBC, Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, offered an assessment of the biggest fast food trends likely to emerge in 2015. These included the addition of new fountain drinks, the introduction of loyalty programs and, critically, the introduction of voice-activated ordering apps for mobile devices. Specifically, these apps will be designed to integrate with the Apple Watch.
According to Sozzi, voice-activated ordering apps are a winner for the fast food industry, one that will almost certainly pay off.
“Companies, from restaurants to retailers, continue to try and remove barriers to buying their goods and services,” he wrote. “Who wants to tap five times on an app to order a pizza, right?”
Already, fast food chains are taking steps to introduce voice-activated ordering apps, as well as other mobile apps specifically designed to make ordering faster and easier. For example, Domino’s Pizza has begun to market a virtual-voice ordering assistant on its app known as “Dom.” Additionally, Taco Bell recently unveiled a new app that, in addition to pre-ordering, allows customers to save meals and reorder them simply by rotating their mobile devices quickly.
“It’s a game-changer,” Taco Bell President Brian Niccol said, the Orange County Register reported. “We believe mobile ordering and payment is the biggest innovation since the drive-through. This is the future if you want to stay relevant.”
Back-office efforts
Developing, maintaining and upgrading these mobile apps is not an easy task. These resources need to be easy-to-use, aesthetically pleasing, completely reliable and totally secure. Anything less will not only undermine the value of these efforts, but could potentially damage the company’s reputation and brand loyalty.
And it’s not just a question of difficulty – it’s also a matter of time. Moving away from traditional Point of Sale systems and toward mobile payments and preordering is a time-consuming process. Fast food companies now need their IT teams to devote their time to overseeing this shift from systems of record to systems of engagement.
But there are still plenty of back-office issues that need attention under this new arrangement. After all, apps and mobile payment tools cannot function without a robust and well-maintained infrastructure. Yet the shift to systems of engagement will inevitably eat up the vast majority of IT personnel’s time.
That’s where a managed services provider can provide immense value. With an MSP, fast food companies can outsource back-office responsibilities to a third party, freeing up their in-house staff to focus on front-end matters. This allows the franchise to remain competitive, improving its outreach and customer service, without sacrificing functionality or reliability, and without vastly expanding their IT department.
By working with an MSP, businesses can set themselves to thrive in the still-evolving fast food industry.