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The Spoon

Daily news and analysis about the food tech revolution

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Burger King, Popeye’s to Modernize Their Drive-Thrus With More Tech

Restaurant Brands International (RBI) announced today its plans to “modernize” the drive-thru at more than 10,000 Burger King and Tim Horton’s locations in North America by 2022. Additionally, a drive-thru modernization for Popeye’s, also owned by RBI, will kick off later this year. 

RBI first hinted at this development back in February. Most of the updates and changes are around the digital menu boards on display in drive-thru lanes. These menu boards will be equipped in the future with “predictive selling technology” built in-house that can learn consumer purchasing habits and make recommendations based on those as well as factors like current weather and traffic.

These new menu boards will also incorporate loyalty programs and contactless order/payment features, with the latter being developed in partnership with Verifone. The first prototype of this order/payment integration is currently testing at a Tim Horton’s location in Canada. An additional 15 locations are set to test it by January 2021. 

RBI notes that it already has a number of these newly revamped menu boards installed at its restaurant brand locations: 800 at Tim Horton’s locations in the U.S. in Canada and more than 1,500 at Burger King in the U.S. As noted above, Popeye’s will start to incorporate them into its drive-thru layout later this year.

Making menu boards more dynamic is just one way QSRs are modernizing their drive-thrus to make them faster, more efficient, and more contactless. That modernization, while broad in terms of real-world application, is necessary now that the pandemic has forced the restaurant biz to go off-premises. Drive-thru times are about 30 seconds slower right now than they were in 2019, a lag QSR Magazine says equates to lost revenue, typically around $64,182,668 annually per 2,000 stores. That’s a lag restaurant chains will have to fix in order to remain competitive, since the future of the dining room still hangs in the balance (because pandemic) and drive-thru sales can account for up to 70 percent of a chain’s overall sales.

Efforts from other restaurant companies of late include full-on pivots to drive-thru format from the likes of Shake Shack and Chipotle as the companies add more lanes and increase mobile order-ahead functionality for this format. KFC is exploring license plate-recognition technology, and of course there is McDonald’s Dynamic Yield technology that’s currently installed at thousands of the chain’s locations.

RBI actually has much more than menu boards up its sleeve when it comes to modernizing the drive-thru. The company recently showed off a Burger King prototype that features a conveyor belt system for delivering food to cars and a kitchen built over the drive-thru lanes. Undoubtedly, some of the ideas embedded in that prototype will make their way to other RBI brands and locations in the future.

Report: Impossible Whopper Boosts Burger King Sales, Will Popeyes Embrace Plant-Based Meat?

Yesterday Restaurant Brands International (RBI), owner of fast-food chains Burger King, Popeyes, and Tim Horton’s, announced its Q3 2019 Earnings Results.

The report showed that Burger King’s sales increased roughly 15 percent globally for the quarter. In the U.S., the launch of the Impossible Whopper drove 5% comparable sales growth, which Jose Cil, CEO of RBI, noted was the “strongest level since 2015.”

This isn’t exactly surprising. Impossible Whopper sales reportedly boosted traffic by over 18 percent to the BK in St. Louis which first tested the plant-based burger. Reports show, that the alt-meat burger is also leading to higher ticket sales and attracting more millennials and lapsed visitors (like The Spoon’s Chris Albrecht) to the fast-food giant. The RBI Earnings Results seems to indicate that this boost in traffic/ticket amount has continued as the Impossible Whopper rolled out to all Burger Kings nationwide.

Not all was rosy in the report, though. Tim Horton’s had what Cil called “a challenging quarter,” reporting only 0.1 percent growth compared to 2.8 percent growth in the same quarter a year earlier. This comes at the same time that the Canadian fast-food chain nixed Beyond Meat products from its menu, except in Ontario and British Columbia, just months after adding the plant-based meat to 4,000 of its restaurants.

These two facts might have nothing to do with each other. However, the report shows a rapid downturn for Tim Horton’s after the chain had a surprisingly strong Q2, in which its success was attributed, at least in part, to its adoption of Beyond Meat patties. Tim Horton’s rolled out the plant-based meat nationwide in July (that is, during Q3), so maybe consumers across Canada didn’t flock to the Beyond Meat offerings in the same way they did in the initial test markets?

Interestingly, Popeyes had one of its best quarters in nearly two decades, thanks to the viral popularity of its chicken sandwich. Next up, RBI might well continue its history of experimenting with alternative protein and launch a plant-based chicken sandwich. But it better hurry if it doesn’t want KFC or Chick-fil-A to beat it to the punch.