Drone Delivery & Its Impact On The QSR Industry

Drone Delivery & Its Impact On The QSR Industry

Drones are somewhat of a hot topic across many industries in 2018. Over the past couple of years, the range of drones available to consumers has skyrocketed and adoption has gone through the roof, it would now be considered commonplace to own a drone to take aerial footage on your holiday, or simply for fun in your own backyard. However, uptake of the technology is not limited to the consumer front, with many businesses looking for ways in which they can integrate drones to make their processes, quicker, easier and cheaper.

One particular industry that has seen the benefits is QSR. With the home delivery trend continuing to grow in popularity, brands are looking for ways in which they can cut down labour costs and still provide convenience to their customers. At the forefront of this movement in the Australian market is Guzman Y Gomez. Their 2017 partnership with X’s Project Wing saw them become the first company to actually implement drone delivery to their customers front door.

Despite only being launched on a trial basis available to customers around their test site in Royalla, ACT, this was a big step in showing the rest of the industry that the previously out of reach concept of drone delivery, can now become a reality.

There are many questions surrounding the practical use of drone delivery and what it may look like as more brands get systems up and running. Early adopters such as Guzman Y Gomez have said they they envision a national network, similar to that of air traffic control, to ensure safe use and reduce the risk of incidents like collisions.

Aside from the obvious convenience benefit to consumers, there are a range of other upsides that come with the introduction of drone delivery systems across QSR. For a long-time the industry has sought out sources of automation to reduce costs, and drones are just the newest part of this larger trend.

As QSR brands continue to explore this space, it is predicted that drive-thru will become less relevant whilst food delivery takes centre stage as brands ‘convenience’ offering. The drop of drive-thru’s may also preface a longer-term trend of virtual restaurants. The rise of ‘dark kitchens’ came to light as a strategy for popular eateries to churn out food delivery orders without disrupting their main location. Rather, they opened a cheaper to operate, non-customer-facing site that was solely for the purpose of creating order that came through third party food-delivery apps such as Uber Eats and Menulog. If food delivery becomes the norm, some brands may opt to eliminate the dine-in experience in order to run a more affordable and efficient delivery only offering.

Ultimately, the rise of drone delivery could impact the QSR service model fundamentally. However whilst many brands are doing small trails here or overseas, it is unlikely that a full blown drone delivery system will be hitting the Australian market any-time this year. The concept is creating a buzz as many brands line-up to get on board, but a formal infrastructure and legislation needs to be put in place first before we see drones dropping food at our doorsteps.

Big Names Take On The QSR Model

Is there a trend for big name restaurants to delve into the QSR industry?

As the dining options available to Australian consumers continue to expand both in terms of food variety and service models, is Hogs Breath the first of many in the trend of big name dine-in restaurants jumping across to the quick service model?

After the successful launch of the very first Hog’s Express in Brisbane’s Myer centre late last year, the second of its kind is opening at Mandurah Forum, WA. The new fast food-esque version of the classic Australian brand is set to roll out across the country throughout the year.

Hog’s Express allows customers to get their favorite menu items but without the wait time. The Mandurah Forum location also offers a wealth of entertainment with a multimedia suite to watch the game, a PlayStation and playground for the kids. Along with the offer of ‘Kids Eat Free’ it’s hard to see why customers would go back to the more traditional table-service locations.

CEO Ross Worth speaks of the change saying “We know that consumers are increasingly busy and looking for quick, accessible and inexpensive food options, so we’re excited about the future of this model…”

Worth also notes the versatility of the new model, suggesting that it will allow the Hog’s bran04d to reach consumers in locations that were not realistic before, continuing to say they may “pop up anywhere from shopping centre and petrol stations, to airports and cinemas.’

Looking at this trend on a larger scale, the Australian restaurant industry is moving towards this new concept. Dubbed ‘fast casual’, the model allows restaurants to offer their same high quality food to consumers but in a faster no-wait service environment.