Why Quick Services Restaurants Need To Use Mobile Location Data

Why Quick Services Restaurants Need To Use Mobile Location Data
SHARE
THIS



There’s a plethora of quick service restaurants around, but they’re failing to leverage location-based data. In this guest post, Cam Curtis, general manager of Australia and New Zealand arm of location intelligence platform Near (pictured below), argues why the fast food chains need to up their game.

In Australia, the Quick Service Restaurant (QSR) industry will see an annual revenue growth rate of 2.4 percent in the next five years. This market, which is led by McDonald’s and Subway has an annual revenue of more than $15 billion currently and employs more than 150,000 people. The reason for this growth and massive amount of revenue is simple: in today’s fast-paced world, consumers are seeking more ways to save time. Eating at a QSR is also cheaper than eating at more formal restaurants and is child-friendly, which is great for those with families.

Cameron Curtis

As more people eat at QSRs, these restaurants will want to step up their marketing and business strategies. One area that many should seriously consider pursuing is mobile location intelligence.  Location Intelligence gathers data, such as a customer’s geographic location and demographics and analyses it to provide an actionable insight into the customer’s actions. This is especially important for Australian businesses because the country is one of the leaders in mobile phone usage.

What Location Intelligence can tell Businesses about Consumers

The intelligence gained from location data can provide QSRs with a large amount of information about their consumers.  This includes insights like which places they tend to visit, what do they do in the digital world, what type of consumers they are (affluent, homemaker, etc.), where they’ve been, what they’ve been doing, and much more. This information can be used to determine the types of strategies that could influence the consumer, the peak times for store visitation for different brands, and why customers act the way they do.

With this information, it’s possible to see more than just what the consumer did when they entered the restaurant. Brands have access to the consumer’s entire journey. What did they do before eating at a QSR? Have they eaten there before? What type of consumer are they, and is that particular type of consumer typical?

QSRs can evaluate their business strategies to determine if they are reaching the desired audience and learn which locations are more likely to bring in what type of consumer.

In the case of McDonald’s and Subway, the two restaurants could gain very actionable insights from using location intelligence. For example, when it came to their locations in Perth, McDonald’s might be surprised to learn that more consumers preferred Subway. Their store on Hay Street received 21 per cent of traffic out of the total users analysed in Perth during the Near study in December 2015. With the Subway on Forrest Place taking 79 per cent of the consumers, McDonald’s would be faced with a decision: let Subway continue to dominate this particular market or open a new location in Perth that may be more convenient to consumers.  Another option would be to try changing its business tactics or consider tailoring its offerings more towards the needs of consumers in the city.

Near’s study looked at mobile location data from five different locations across Australia to see what insight could be drawn about consumers who ate at McDonald’s and Subway. The locations included one of each restaurant in Perth, Adelaide, Melbourne, Sydney, and Brisbane. This study was done to understand how consumers’ footfall behavior can vary within cities and also to glean insight into their tastes and preference.

From the study, one such piece of information that both restaurants could easily take advantage of was ‘when’ do consumers walk in these restaurants. Consumers who ate at McDonald’s did so in the early evening hours, while those who ate at Subway did so later in the evening.  This information could be used by both restaurants to fuel strategies aimed at drawing consumers away from the competitor. For example, McDonald’s could introduce later hours or a special late night menu, while Subway could promote a late afternoon/early evening special.

Knowing the who’s & their whereabouts that impacts business decisions

Another piece of information both McDonald’s and Subway would be interested in learning is who their audience is. The majority of those who eat at QSRs, according to the Near study, are from the professional and affluent categories.  In fact, there were more professionals eating at McDonald’s and Subway than any other category, although affluent consumers were a close second in most cities (and actually made up a higher percentage of diners at McDonald’s in Perth). This tells QSRs (not just McDonald’s and Subway) that professionals tend to eat more fast food and that they should aim their strategies towards this group.

The bottom line

The insights that can be derived from using mobile location data can be used by brands in a number of ways.  From deriving consumer habits to looking at who is eating where and when, QSRs will be able to better measure how successful their marketing and business strategies are and will be able to better focus them on specific consumer groups. In the long run, this will allow businesses to improve sales and dominate the market.

Latest News

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.