Lori Schafer in QSR: Why QSR Retail Media Networks Thrive on Clean Data

Read the original article in QSR here.

Today, the layout and consumer engagement opportunities within a QSR chain are vastly different than even just a few years ago. The main reason: digital screens and mobile apps. QSR chains have quickly adopted self-ordering kiosks, brightly lit digital menu boards, and loyalty-driven, immersive mobile experiences that keep consumers connected to their favorite chains.

For these reasons, quick service and fast casual businesses sit in a prime position to add a retail media network (RMN) to their locations and via their mobile, virtual, and online experiences. However, there are some challenges to overcome—primarily how a company manages, cleans, and flows its data through an RMN and all of its digital touchpoints.

Why QSRs are Well-Positioned to Launch RMNs

First, a QSR might operate its RMN slightly differently than a traditional retailer. For instance, a retailer like Kroger generates revenue by having CPGs and other services advertised on their networks. Ads run on mobile apps, shelf screens, in-store TVs, smart TVs at home, and more. A QSR, however, can leverage the ordering kiosks, mobile app, and in-store screens to build out an RMN component that advertises local services, licensed products that the chain sells in grocers and stores, limited-time new products, and live events. 

While many QSRs advertise on other RMNs like Walmart Connect or use third-party networks, the companies can explore building their own networks to generate revenue. Additionally, in an age of consumers eating on the go, convenience stores are competing with QSRs over fast food sales, and there are retailers benefiting from an RMN such as 7-Eleven and Wawa. To stay competitive, QSRs should accelerate the development of their own RMNs to further engage with consumers over their digital properties.

Bank of America’s State of the Restaurant Industry Report notes the importance of the digital experience, finding nearly 20 percent of sales came from mobile and third-party apps in 2023. More than half of restaurants are investing in technology to generate revenue, the report said, and they’re introducing digital technology to ease labor pressure on their workforce.

QSRs with dynamic loyalty programs harness tremendous first-party data that could entice advertisers, and chains have deeply loyal consumers. However, there are foundational elements needed inside a company’s IT strategy to ensure a network produces clean and actionable data for an RMN.

Quality Data Powers the Network’s Performance

In data analytics, the saying goes, “garbage in, garbage out.” The same applies for a QSR looking to operate a successful RMN. If bad data flows into a network, then advertisers won’t accurately reach personalized shoppers, engagement suffers, and revenue opportunities are lost.

In a sense, before a QSR company develops an RMN, it needs to have its technical house in order, implementing essential strategies such as:  

• Unifying and harmonizing data in one place—Silos can be rampant in QSRs, with data from mobile orders working separately from in-store orders, and data from third-party delivery services like DoorDash operating in a different silo. To succeed with RMNs, it’s key to construct a centralized location where internal and external data from all points integrate, flowing to one unified source where AI can support this integration by cleaning and formatting data, to ensure it’s applicable.

• Enabling real-time visibility of the data—Having data in one place is great, but it must be visible across the business. When everyone has real-time access, the company can make quick strategic decisions impacting the performance of the RMN. Based on how orders are impacting an in-store location, for example, the digital team can instantly alter content and ads running on the RMN to reflect demand.

• Leveraging AI and an open IT architecture—With data visible and harmonized, adding a native AI layer to that location can vastly speed up workflows. AI models can read insights, recommend business actions, and even write content for RMN ads using GenAI. An IT architecture that works with integrated enterprise data solutions enables data and tools to work together and supports innovations like agentic AI or GenAI tools that read and recommend timely business decisions.

Of course, many of the steps above don’t need to be accomplished all at once, either. Companies can launch an RMN and implement data and processes over time to grow the business. But, when data is unified, clean, and enriched by AI, QSRs can power RMNs that deliver value for the brand, its consumers, and advertisers.

Data Fuels Dynamic Digital Experience for QSRs

Unifying data and making it actionable and visible across an organization are foundational when launching an RMN. Ensuring that clean, enriched data powers the RMN enhances the overall experience and fuels innovation across all of a company’s digital engagements.

RMNs can serve as another revenue-generating digital tool in the QSR game plan. As companies excel with digital menu boards, mobile ordering, self-serve kiosks, and personalized loyalty programs, RMNs can fit right in. When the data ecosystem is aligned, RMNs thrive — unlocking new value across the entire QSR experience.