Using BI to Prepare your QSR for Recession
With the recession of 2023 looming, many Quick Service Restaurants (QSRs) are wondering how they can survive the economic downturn.
"Dana Peterson, the chief economist at the Conference Board, told CNBC this week that 98% of the CEOs it surveyed are preparing for a recession, up from 95% earlier this year. And Bank of America strategists said last Friday the US could fall into a recession over the next 10 to 12 weeks."
The answer lies in Business Intelligence (BI). By utilizing BI, QSRs can maximize efficiency and reduce costs in order to stay competitive during a period of economic contraction. Let's look at seven ways Business Intelligence (BI) can help your QSR survive a recession in 2023.
1. Improve Decision-Making
By utilizing data-driven insights and analytics, executives can make informed decisions to help maximize profits and reduce costs. One such example is providing visibility into customer behavior and spending patterns so that you can better target your marketing efforts.
2. Leverage Data for Competitive Advantage
You can analyze competitor data using BI tools and identify opportunities to gain an edge. This could result in an increase in market share or entering new markets with more significant potential for growth. Additionally, it allows you to identify weaknesses in competitors' operations that you can address to your advantage.
3. Increase Visibility into Performance Metrics
Business intelligence provides real-time visibility into performance metrics such as sales volume, profit margins, customer satisfaction rates, operational efficiencies, and more. This helps identify problems and bottlenecks before they become too severe and develop strategies to address them promptly.
4. Automate Processes for Greater Efficiency
Automation is essential for any business looking to remain competitive during a recession. It reduces costs by eliminating manual labor associated with specific tasks and streamlines processes for improved efficiency overall. BI tools allow businesses to automate processes such as financial reporting or inventory management so that human resources can be best used elsewhere for more meaningful tasks.
5. Identify Areas for Cost Savings
By leveraging data from all areas of the business, BI enables QSR operators to identify areas where costs could be reduced without adversely affecting quality or productivity levels—a key factor when trying to survive an economic downturn like the one we will be facing in 2023.
6. Analyze Customer Behavior
Understanding customer behavior is critical to surviving a recession since customers are likely to cut back on their spending during economic hardship. The insights provided by BI allow businesses to determine which products customers are buying (and not buying), which channels they're shopping through, and what promotions resonate most with them so that they can optimize their sales strategies accordingly.
7. Utilize Predictive Analytics
Predictive analytics helps businesses anticipate future trends based on analysis of historical data, providing invaluable insight into how best to optimize based on human behavior and data. This allows QSRs not only to plan ahead but also quickly adapt when needed, giving them an edge over their competitors, who may need access to this type of predictive information.
Proper utilization of artificial intelligence and machine learning can help QSR operators vastly minimize the upcoming recession's impact. But how do you use business intelligence in the real world? What exactly are its applications?
Let us See below,
AI & ML marketers will have a huge role to play:
One Major factor that influence that will influence the adoption of BI is understanding its value. The knowledge in the hands of the right person will see seamless implementation among organizations.
Cost of AI solutions will become highly competitive:
According to Dr. Vishal Sikka, CEO, and founder of systems software company Vianai, companies leaning on AI and ML for their turnkey BI solution, will have to get aggressive in their pricing strategies and improve AI performance.
Once that happens, the QSR operators will look into these companies and determine the best platform in terms of ROI and how those solutions can help operators make wise, cost-effective business decisions for the hard times ahead. Dr. Vishal says, "Putting these systems in place can help reduce the budget and infra cost in recession times."
Technologies like i3Ai, offering collection & analysis of data will see an uprise:
With all these benefits discussed above, it's no secret that QSR operators with business intelligence systems will see benefits compared to businesses that don't.
According to Vy Hoang, CCO at i3 International Inc, and over 30 years of industry experience, "hard times catalyze businesses to adopt new technologies. The last we saw was the peak age of the COVID pandemic when occupancy alerting systems were a hit among many different business owners."
i3Ai is a tech that uses computer vision to detect and analyze things, producing data in an easy-to-consume format, allowing real-time actionable data to make the most informed decisions.
In today's ever-changing business landscape, quick-service restaurants need every advantage they can get to survive a recession—and business intelligence is one of those advantages! From improving decision-making capabilities and leveraging data for competitive advantage to increasing visibility into performance metrics and utilizing predictive analytics, there are countless ways that BI can help your QSR stay afloat during these turbulent times! With the right tools in place, your QSR will be set up for success now and long after the economic crisis has passed!
Contact i3 International today to discuss how a self-paying system can help you transition through this economic situation.