A whitepaper sponsored by MSL – Part 1 of a two-part Series. This report was co-authored with Dr. Phil Hendrix, Andy Favell, and Paul Berney.

Leading restaurants, especially quick service and fast casual† , are leveraging digital, social and mobile (DSM) capabilities, including people, process, technologies, and budget, to redefine "table stakes," e.g., what guests expect. In the process, they are transforming marketing, operations and every other aspect of their business to deliver not just table stakes but "just deserts,” e.g., what guests expect and deserve. By reimagining their business strategies beyond channels and campaigns, restaurants are on the forefront of retail, redefining customer engagement, boosting loyalty, and creating advocates for their businesses.

Together, table stakes and just deserts represent new “terms of engagement" for restaurants and their guests. To respond, restaurants are infusing DSM capabilities into their strategies, processes and organizations, as the following illustrate:

· Redefining Ordering – Touted by CEO Brian Niccol as "the biggest innovation in fast food since the drive-thru," Taco Bell’s new location-aware mobile app allows guests to customize and place their order. With online and mobile ordering spreading rapidly, Taco Bell has raised the stakes with innovative capabilities, allowing customers to "build their own" entrées with preferred ingredients; geo-fencing to recognize when a guest is near the restaurant so the team can begin preparing the meal; and others.

· Enhancing Guests’ Experience – In 2014 Chili's Grill & Bar began placing some 45,000 tablets on tables in its restaurants, allowing customers to view the menu, place orders, play games and more. With wait staff freed up to "better serve customers,” the platform has reduced guest wait times and increased sales of appetizers and desserts (up 20% and 30%, respectively). Applebee’s, Buffalo Wild Wings are others are following suit.

· Rewarding Loyal Customers – To remain top-of-mind for all meal occasions, McDonald's is engaging with customers throughout the day with its Surprise Alarm mobile app, which rewards customers "just for waking up." When the mobile alarm goes off, customers receive surprises that include free music downloads as well as giveaways available at McDonald’s restaurants. The award winning app is boosting awareness, driving traffic, especially at breakfast, and yielding new insights into customers’ behaviors.

· Fostering Connections – By creating compelling content and making it easy for customers to participate and share with one another, Chipotle, Chick-fil-A, and other restaurants are leveraging social media to engage consumers in and outside their stores.

As these examples suggest, from sit down to takeout, across all meal occasions and price points, restaurants are leveraging DSM capabilities in new and innovative ways. Part 1 of this whitepaper is designed to guide restaurants executives responsible for directing and implementing efforts to engage customers via DSM. The discussion highlights strategies leading restaurants are employing to achieve operational results and competitive advantage. Key trends fueling the opportunity and insights from research and interviews with innovators across the industry are summarized. Part 2 of the whitepaper examines provides a roadmap and 5 key frameworks to guide restaurants in using DSM to engage consumers.

View the complete report here.

†The focus in the whitepaper is on Quick Service (QSR) and Fast Casual restaurants and their on-premise and
takeout services, hereafter referred to collectively as restaurants. See Exhibit 1 for Definitions.