For years, the majority of cash at quick service restaurants has gone “through the window.”  The growing car culture has dictated a focus on drive-thru efficiency to the point where the dining room has become an afterthought to operators and subsequently a barrier to customers.

The cost of updating and maintaining a dining room has seemed cost prohibitive to many QSR chains and their franchisees, especially in light of the high drive-thru ratio. But by not offering a unique, pleasant dining experience, they have let the brand image wither on the vine. And it’s now coming back to haunt them. I contend that the high drive-thru ratio is in large part due to customers avoiding the “ick” factor of enduring outdated, smelly, deteriorating environments with no sense of place or brand personality.

The dining room is the brand.
Most customers will, at some point, come inside and that is the greatest opportunity to make a connection. Panera and Starbucks understood this a long time ago and snagged loads of customers that wanted a clean and cozy place to enjoy the product. McDonalds and Burger King have seen the light and announced major remodeling and prototype initiatives that appear to be paying off.

So to my friends in the QSR and Fast Casual game: differentiated, branded and engaging experiences win with customers; there is only so much connection you can make at the pay window. So elevate your brand with every possible touchpoint including the most important and substantial asset you have—your dining room.

It was a surprise to see major players like McDonald’s, Subway and Panera were not included in Nation’s Restaurant News, Top Ten Fastest Growing Restaurant Chains. The article focused instead on the “up & coming” brands beginning to populate the restaurant landscape.

I’m always looking for restaurant innovation that goes beyond new menu items and expanded dayparts. That’s why I was gratified to see that Which Wich? was #1 on the list. They have been on my radar screen for quite some time, because they have transformed the customary submarine sandwich experience. They have a guest experience that brings new meaning to the phase “brown bagging” it. Their unique ordering system puts the guest in control while improving the process for employees. Plus, it’s clever and simple. At Which Wich? customers place their orders by using custom red Sharpie pens to mark up pre-printed menus on sandwich bags.

The article made me think of a famous quote, “If we’re growing, we’re always going to be out of our comfort zone.” And if you think about brands that take chances and continue to be successful they are always searching for new ways to connect and engage with their guests, and in many cases, their franchisees and employees. Delivering a unique experience that is aligned with the brand vision while keeping it simple—in today’s marketplace, that is being innovative.

Have you ever seen a client celebrate as if they’d just won Wimbledon? I got to experience that last night at the Association for Retail Environments awards dinner. The Burger King Whopper Bar took first place in the fast food restaurant category. We were thrilled to see a client who embraces innovation be rewarded for their ongoing commitment to improving the brand experience and delighted to celebrate the moment with an enthusiastic client.

Recession or no, our research shows that shoppers enjoy finding something new in the store. It’s human nature. Whenever retailers bring energy and inspiration to the game—even when shoppers are thinking long and hard before opening their wallets—they still give the store credit for a better shopping experience. And from a better experience comes all good things: the engagement, loyalty and bottom-line bolstering that smart businesses seek.

“Something new” encompasses a lot of territory. It can be a new prototype, a store-within-a-store, a value product, a time-saving service or an educational program. For our client Burger King, it’s a combination of value and excitement, from Burger Shots to the Whopper Bar, a hip new restaurant design we helped them create.

The Whopper Bar is a great example of what many brands are trying to do right now—be more interruptive, opportunistic and dramatic with their innovations.

A key differentiator of the BK brand is flame-broiled burgers. We brought this attribute to life through various design elements. The overall look is darker and urban-industrial with textures of fire and metal, yet the space is simple to use and friendly. The smaller footprint of this concept has opened doors to new real estate opportunities. That plus the revitalized business brand strategy is helping BK enter venues no one would have considered them for previously.

One of the mistakes made most with new concepts is the lack of an idea that’s powerful enough to get you where you want to go. Companies know that doing something is better than doing nothing. And some are closing under-performing stores intending to do a better job with their best stores. But if your goal is disruption, you’ve got to really fire up the passion around your brand and find an aspect to dramatize.

The second most common mistake in retail seems to be lack of speed. While looking back on other times of crisis, a CEO of a dot-com recently recalled how his company managed to survive and thrive because he pushed for radical new ideas. But in hindsight he realized his biggest mistake was moving too slowly. Had he been quicker, he’d have a bigger share of the market today. The same often happens in retail.

Last year our clients were urgently asking us for “Quick Wins” in the store. This year they are more cautious. Despite the increased challenges facing them, moves are being carefully evaluated to minimize risk and preserve capital. But time is of the essence. We can’t let uncertainty rule. Surveys suggest that shoppers are taking more time to research their purchases both at home and in the store. That means they’re looking at your competition.

Most companies are quick to cut costs, but slow to find and execute the ideas that deliver a new bundle of value to the customer who’s looking for a retailer to help them reach a balance between frugality and the indulgences they’ve had to give up.

Today you can tap into the many innovative tools that help speed up decision making, such as research and modeling to create a business case for change or to deliver the solid insights needed in the creation of fresh strategies. Collaboration tools can help cut across silos so you can speed up productivity. You can make decisions with a replicable process that offers scale, speed and flexibility.

There are also optimization tools available. We’ve got one of the best that keeps proving itself very powerful and effective, StoreBoard. So if it’s simply not wise to make a radical change to your business, you can still do what you do better than anyone else. A top priority for your brand right now is generating ideas for improving relationships with customers. We’ve noticed creative retailers are putting more emphasis on service, getting credit for solving customer problems and earning trust. That will definitely score points.

Whether you decide on a dramatic brand update or a more simplified retail experience that’s emotionally engaging, the intelligence and invention available today can help you look past the challenges to see the opportunities. You can add intensity and difference without compromising—sort of like Angry Sauce on a Whopper.
Thoughtfully,
D. Lee Carpenter