Editorial
The restaurant industry today is practically unrecognizable from its pre-pandemic days. What used to be a fairly straightforward business model—good food, good service, and maybe a memorable ambiance—has transformed into a high-stakes, tech-driven race for relevance. The current restaurant landscape is a blend of opportunity and complexity, balancing labour shortages, consumer expectations, and a rapidly evolving digital marketplace.
In this edition of This Week in Consulting, we offer insights into the latest challenges, innovations, and strategies driving growth and resilience in the restaurant industry. We highlight how the industry is undergoing evolution with digital transformation, how armed with brand apps and social media, restaurants can now capture consumer insights to optimize service and tailor experiences like never before. How loyalty programs are evolving, moving beyond discounts to emotional connections that keep customers coming back.
Read about industry giants like McDonald’s and Popeyes showcasing successful turnarounds—smart financial planning, operational tweaks, and innovative marketing make all the difference. And with AI like IBM’s watsonx™ tackling drive-thru efficiency, the future is digital. For growth, restaurants need a blend of tech, strategy, and a dash of personality.
So, what’s cooking in the industry’s future? Let’s dig in.
Laurent THOMAS
Chairman Consulting Quest
This week’s must read
In this edition of This Week in Consulting, we offer insights into the latest challenges, innovations, and strategies driving growth and resilience in the restaurant industry.
LEK Consulting highlights the new challenges restaurant chains face post-COVID-19, including labour shortages and elevated consumer expectations. The rise of digital tools has become crucial for driving sales and loyalty. Restaurants must harness consumer data from various sources, like brand apps and social media, to optimize operations and personalize experiences.
This week’s media
This Deloitte video delves into how restaurants can elevate their customer loyalty programs, shifting from purely transactional interactions to experiential and emotional engagements. By enhancing these programs, restaurants can strengthen brand loyalty, fostering deeper connections with customers and creating long-term value beyond traditional incentives and rewards.
Thought Leadership
IBM’s watsonx™ Orders revolutionizes drive-thru ordering by using AI to handle complex real-time audio challenges, isolating human voice amidst noise, and understanding diverse accents and speech. By translating speech directly into actionable orders, watsonx™ enables faster, seamless customer service and increased profits with over 90% automation.
Publicis Sapient highlights how digital transformation reshapes the restaurant industry. Brands like Starbucks and Chick-fil-A thrive by leveraging AI, mobile ordering, and delivery-focused innovations. With a projected $85.46 billion U.S. delivery market by the end of 2024, restaurants must enhance digital strategies to meet shifting consumer preferences and improve off-premise experiences.
Aaron Allen & Associates explore the complexities of restaurant turnarounds, emphasizing strategic diagnostics, effective planning, and decisive execution. Through case studies from industry leaders like McDonald’s, Domino’s, and Popeyes, the article showcases how a combination of financial acumen, operational efficiency, and marketing innovation leads to recovery and growth.
McKinsey outlines how restaurants can leverage eight strategic ‘ingredients’ for growth amid economic pressures and shifting consumer habits. These range from data-driven marketing and revenue growth management to operational efficiency and tech integration. Sustained, profitable growth ensures higher shareholder returns and sets brands apart.
This week’s consulting news selection
Grant Thornton appoint Nathan Dreyfus in Silicon Valley and Jeff Strassman in Boston as new office leaders, succeeding Amanda McCarty and Chris Martin.|
Accenture has acquired Allitix to boost Anaplan-based planning capabilities, enhancing client agility and data-driven decision-making across finance, sales, supply chain, and HR functions.|
Matt Wood has joined PwC as US and Global Commercial Technology & Innovation Officer, bringing 15 years of AWS experience to enhance PwC’s global technology and innovation strategy.|
BDO has promoted 2,440 employees, including 36 new partners, across audit, tax, consulting, deals, and central teams, highlighting its commitment to recognizing talent.|
Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.
