Restaurants and Fast Food
Coming in second last year, this time the sector took home the brass ring of effort – fourth place in the sector ranking, with no improvement in any of the pillars and biggest drops in time and effort, integrity, and resolution. However, the situation is a bit more interesting when you start comparing different subsectors. Cafes scored above market average in empathy but received rather low ratings in terms of value for money, just like restaurants. Clearly, the sector has not yet bounced back from the drain of qualified workers during the COVID-19 pandemic. Businesses now have to offer higher salaries to attract new staff, which affects their pricing – and customers are not happy about that.
The fast food subsector has not made any significant progress, while the online food delivery subsector actually performed worse, especially in time and effort, but also in terms of value for money. Last year’s sector winner, Starbucks, managed to defend the title, with Ovocný Světozor and UGO coming in second and third, respectively. Honourable mentions go to Costa Coffee and KFC, who moved up the ladder quite a bit. Where should the sector turn its attention? Examining the strategy of those on the podium might help find answers. Integration of AI could also help the sector grow. In the fall of 2023, a new player entered the Czech market – Popeyes, an American chain of fried chicken restaurants. We do not yet know if it will make it into the study next year and how well it will do, but we will definitely be watching it to see if maybe this move attracts more US-based fast-food chains into the heart of Europe.
When customers are the brand
With its famous siren-bearing logo, Starbucks is a textbook example of how to build and maintain customer loyalty. They know that attracting new customers is important, but so is taking great care of the existing ones – because it’s them who share their positive experiences through natural channels. After all, word of mouth is a great way to spread the awareness of great coffee and carry the news about special deals and promotions (like their holiday buy 1, get 1 free deal that took over social media).
The brand is quick to react to social media trends and is really good at coming up with things customers love. But it’s not just about special mug editions with quotes or seasonal drinks. It’s about the way they engage with their fans. After all, wouldn’t you feel flattered if your favourite brand shared a picture of your visit for hundreds of thousands of people to see? Personal, word of mouth recommendations are also behind the success of Ovocný Světozor, a brand loved across generations and always delivering good quality.
We made this for YOU
Both Ovocný Světozor and UGO, who came in second and third this year, improved greatly in personalization. The now-legendary chain of sweets and deli shops is praised for knowledgeable staff who know their products well, give great suggestions and are forthcoming to individual requests. UGO staff is clearly open to dealing with unusual requests as well, as reviews of the healthy fast-food outlet clearly show, with a number of great reviews from vegans and vegetarians.
Obviously, Starbucks is not far behind in personalization, and it’s more than just your name on the cup – they put a lot of effort into personalized offers too, with several loyalty schemes to choose from and an option to build your own drink for those hardcore coffee lovers. Clearly, personalization doesn’t necessarily require a huge selection – you can do well with a smaller, unique offer designed specifically for that one person.
This year’s top climber of the sector, KFC, deserves a mention as well, taking personalization to a new level with the idea that fast-food doesn’t always have to be something wrapped in paper that you hastily devour at the mall food court. Instead, what if fast-food could work as a base for a home-cooked dinner? This new concept, in partnership with singer Martina Pártlová, offers delivery of individual ingredients that you can then use to build a meal following one of KFC’s recipes.
Top three (scale 0–10)
„Great coffee with tons of options to personalize your drink and courteous, always-smiling staff. A truly personal approach to every customer.“
Man, age 38, Starbucks
„I love Starbucks because of their broad selection of desserts, snacks, and coffee. I also love their new drinks with dragon fruit. And what I love most is the fact that they make your coffee exactly the way you like it. I highly recommend Starbucks to all who love coffee and sweets.”
Woman, 23, Starbucks
„I like how fresh and varied their products are, so I like to pop in once in a while. I appreciated that they were able to quickly prepare a product that was not ready to be served immediately and accommodate my request within a couple of minutes.“
Woman, age 32, Ovocný Světozor
„I only visit this chain occasionally since there isn’t one in my city. I like their selection and the food is always good. I prefer meat-free meals, and I never have trouble choosing something I like. Their broad selection of drinks is also great.”
Woman, age 57, UGO
„Great and tasty vegetarian options, wide selection of dishes. Good price. In harmony with nature.”
Man, age 21, UGO
Responsible together
More and more restaurant chains start to acknowledge the load they put on the environment. And while getting rid of single-use containers is hardly an option for fast-food chains, recyclable or even reusable containers are becoming more commonplace. Ovocný Světozor encourages customers to return glass dessert jars by awarding loyalty points for every return that you can then spend on their products. And in the case of UGO, customers sometimes mentioned sustainability in relation to what’s on offer – meaning a broad selection of plant-based dishes.
Last May, Starbucks took to the catwalk, running a sustainable fashion show to demonstrate their philosophy and remind everyone that even a multi-national corporation can follow principles of social responsibility and sustainability. Of course, the brand still has ample room for improvement in this area, for instance through the reduction of single-use packaging. Making a difference here requires strong cooperation from customers, which is incentivized by Starbucks. To motivate customers, it introduced reusable cups that help reduce waste and also let customers save money on every drink. Next sustainability step? Milk alternatives at no extra cost.
Smart solutions
Just like in other sectors, AI could help restaurants and fast-food chains improve personalization – for instance, by creating personalized suggestions and offers based on the customer’s behaviour or location. Speech to text software could be of use to make ordering faster and more pleasant for both customers and those taking care of the order.
Artificial intelligence can also remember a customer’s favourite ingredients, so it could easily create a limited, tailored offer or provide a discount on the client’s favourites items, appealing to their cravings and potentially increasing the restaurant’s income.
Take KFC, for example, who is using AI to process customer data and update their menu regularly to make sure it reflects customers’ needs. Starbucks opted for a platform called Deep Brew that helps with better personnel allocation, optimizes the menu and stock, and helps minimize waste and avoid shortages of ingredients or products.
Inspiration from abroad: top-notch speech-to-text and neural search
Marco’s, a US fast-food pizza chain, has successfully tested a voice-to-text ordering system in 50 stores. How does it work? A client places an order by phone. Next, AI converts speech to text that’s then saved into the outlet’s internal system. The chain’s conversation AI scored over 90% in order accuracy in beta testing already, greatly increasing both customer and employee satisfaction.
Another example worth following is Swiggy, an Indian delivery service. It uses neural search to help customers navigate the offer with conversational, open questions and provide them with personalized suggestions that match their needs. This way, customers can find what they need without having to remember specific keywords. Plus, AI also helps Swiggy to distinguish between vegetarian and non-vegetarian foods by classifying pictures.
Restaurants and Fast-food
