QSR customers have more money but demand more
People want to eat what they want to eat when they want to eat it.
Increased consumer spending is expected to drive growth in the quick-service restaurant (QSR) industry this year, but rising customer expectations and more complex operations could be a challenge, according to industry players.
“As cost of living pressures come off, it’s going to be a case where people will have more disposable income, so discretionary spending will go a bit further,” Scott Bush, CEO at The Cheesecake Shop, said at a QSR Media webinar on 12 March 2025. “But people are going to want even better value.”
In February, the Reserve Bank of Australia cut benchmark interest rates by 25 basis points to 4.1% — the first time in more than four years — making it cheaper for fast-food chains to borrow money for expansion and encouraging consumer spending.
Braeden Lord, CEO at Starbucks Australia, said more and more customers prefer mobile ordering and payment for a quick, seamless, and minimal-contact experience.
Meanwhile, others still seek cafes as a comfortable retreat or a place to relax, work, or study, making a welcoming environment and reliable amenities essential.
“Understanding your customer, their journey and what they're looking for is going to give you the best opportunity to be able to maximise the environment that we're dealt with,” Lord said during the webinar titled “The Future of QSR — Loyalty, Digitalisation, and Market Dynamics in 2025.”
Matthew Marshall, CEO at Retail Food Group Ltd., said easing inflation means consumers will have more money to spend, but the industry still faces challenges in the near term.
“What that means is customers are really conscious of their choices, which means their expectations are through the roof,” he told the virtual forum. For example, consumers demand a seamless experience across multiple touchpoints and no longer differentiate between a physical store and online channel.
“Our outlook is really optimistic around a business on the move against a backdrop that requires us to raise the bar significantly on how we talk to customers,” Marshall said.
Nick Mecozzi, senior vice president of global solutions consulting at FranConnect, said the concept of QSR itself is changing.
“People want more convenience — they want to eat what they want to eat when they want to eat it,” he told the webinar. He added that businesses should follow where consumers are going, track their preferences and habits, and prepare for any changes.
Julia Illera, research manager at Euromonitor International, said artificial intelligence (AI) has become a tool for companies to track and adapt to shifting consumer habits. “The other factor is [the economy] and how [it evolves], because that also drives the way [consumers] behave.”
