U.S. Quick Service Restaurant (QSR) Ecosystem Market to Grow due to Rising Digital Platforms

Today, increasing consumer preferences has resulted to ever shifting menu landscape of quick service restaurants. The quick service restaurant industry has entered into digital era mainly due to growing consumer demands and increasing commodity cost. Until recently, innovation in quick service restaurant was primarily driven by credit card networks. However, the increasing adoption of digital devices such as signage systems, kiosks, point of sales, handheld devices and digital menu cards have fundamentally changed the nature of employee customer interaction.

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The QSR (Quick Service Restaurant) ecosystem market is poised to go through intense transformation in next several years, due to entangled drivers of mobile device proliferation, rapid changes in consumer behavior resulting into new customer and merchant experience, and transition of hardware systems to cloud. These changes are expected to occur under the backdrop of innovation in kiosks, point of sales, digital menu cards, signage systems, handheld devices and software solutions and services.

The U.S. quick service restaurant market is segmented by hardware and software solutions. Hardware solutions include devices such as signage systems, kiosk, drive through terminals, point of sales, handheld devices and digital menu cards. Software solutions include billing and management solutions as well as data analytics solutions. In 2012, digital signage systems were the largest contributors to quick service restaurant ecosystem market. However, kiosks and handheld devices is expected to grow at fast rate as it allows restaurants to replace wired POS thereby allowing employers to process payments at customers table. The success of smartphones and downloadable applications has resulted into numerous innovations in point of sales systems. However, most of the small and proprietary quick service restaurants have traditional cash registers in order to accommodate customers who wish to pay by cash. Today, many of the leading players are focusing on serving broader needs of hospitality sector mainly quick service restaurants.

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The key focus areas of leading players include integration of in-store systems with customer mobile devices in order to offer unique opportunities to restaurants so as to efficiently engage customers in personalized ways. Advancements in QSR ecosystem hardware are increasingly reciprocating the software innovations in order to connect and control different types of hardware peripherals. Much of the software innovation is expected to be driven by increasing adoption of cloud solutions and big data analytics, and integration of hardware devices in order to support access from multiple platforms thereby facilitating real-time transaction flows. Taken together, increasing adoption of digital platform is expected to shape the future of quick service restaurants.

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The U.S. QSR ecosystem market is fragmented in nature and contains leading players such as Keywest Technology Inc., Nanonation, Inc. NEC Display Solutions Ltd., Cisco System Inc., Hewlett-Packard Company, Omnivex Corporation, Panasonic Corporation, Samsung Electronics Co. Ltd., LG Display Co. Ltd., and REDYREF Inc. among others.

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