Innovations Created by Quick Service Restaurants in the New Normal: Basis for Operations Development
Angelyn C. Dy Tioco
La Consolacion University Philippines
Mylin DJ. Damian
Bulacan State University
Innovations Created by Quick Service Restaurants in the New Normal: Basis for Operations Development
Angelyn C. Dy Tioco
La Consolacion University Philippines
Mylin DJ. Damian
Bulacan State University
ABSTRACT
This study explores the innovative strategies adopted by quick service restaurants (QSRs) in the Province of Bulacan to navigate the operational challenges brought about by the COVID-19 pandemic. Employing a mixed-method approach, the research examines innovations in products, services, and physical operations, alongside their impacts on key business functions such as sales, marketing, and customer satisfaction. Data were gathered from interviews with QSR managers and surveys involving 30 loyal customers across top establishments, including Jollibee, McDonald’s, and Chowking. Findings reveal that QSRs have embraced technologies such as online food delivery, cashless transactions, and sanitation protocols to enhance operational efficiency and customer safety. These innovations significantly contributed to customer satisfaction, particularly in product quality, service friendliness, and compliance with health guidelines. Moreover, strategic promotions and pricing adaptations during the pandemic sustained customer loyalty and mitigated revenue losses. The study underscores the role of innovation in sustaining the QSR industry during crises and provides actionable insights for future pandemic-resilient strategies. By aligning operational innovations with customer needs, QSRs can maintain competitiveness and enhance resilience against disruptions.
keywords: quick service restaurants, operational innovation, customer satisfaction
INTRODUCTION
Quick Service Restaurants (QSRs), commonly known as fast-food chains, are characterized by their focus on efficiency, affordability, and convenience, making them highly popular, especially in urban areas. In the Philippines, QSRs such as McDonald’s, Jollibee, Chowking, Mang Inasal, and Greenwich have become embedded in the national food culture, offering affordable and comforting meals across generations. Their operating model hinges on rapid service, standardized menu offerings, and minimal customer interaction, which make them resilient but also vulnerable during large-scale disruptions such as the COVID-19 pandemic.
The outbreak of COVID-19 in March 2020 forced the Philippine government to implement Enhanced Community Quarantine (ECQ), resulting in widespread closures and operational disruptions across various sectors, including the foodservice industry. According to the World Health Organization (2021), COVID-19 is a novel coronavirus that triggered a global health crisis, necessitating strict public health protocols. Consequently, QSRs in Bulacan and other regions experienced a sharp decline in revenue and customer traffic due to mandatory closures and consumer anxiety.
Yet, the industry responded with agility through innovation. Innovations during the pandemic included ready-to-cook meal offerings, online ordering platforms, drive-thru modifications, and heightened sanitation protocols—practical responses that mitigated revenue loss while ensuring compliance with safety standards. These changes align with Joseph Schumpeter’s (1934) Innovation Theory of Profit, which posits that economic advancement arises from entrepreneurial innovation. Schumpeter identified key dimensions of innovation, such as new product introduction and novel organizational methods, that QSRs adopted during the crisis (Suhartanto et al., 2021; Tan et al., 2023).
Additionally, the application of Crisis Management Theory (Coombs & Holladay, 2012) provides a strategic framework to understand how QSRs navigated through uncertainty. The theory’s three-phase approach—pre-crisis, crisis response, and post-crisis recovery—was evident in the way QSRs adapted: implementing contactless payments, creating safe dining layouts, and utilizing data analytics to forecast supply needs (Kim et al., 2022; Zhang & Lee, 2024). These initiatives exemplify proactive and reactive management approaches crucial for business continuity.
The intersection of innovation and crisis management underscores the evolution of QSRs from reactive service providers to adaptive and forward-thinking organizations. Recent literature highlights the need for QSRs to move beyond temporary fixes and embrace long-term strategies such as AI-driven customer engagement and sustainability-focused operations (Chhabra et al., 2023; Park et al., 2023). The Lean Startup methodology (Ries, 2011) and open innovation frameworks (Chesbrough, 2020) reinforce this shift, advocating for iterative experimentation and customer-centered development.
In Bulacan, where QSRs are a staple for many consumers, these innovations were not only survival tactics but also became competitive advantages. A pre-survey conducted by the researchers identified the top five QSRs in the province, Jollibee, McDonald’s, Chowking, Mang Inasal, and Greenwich, all of which implemented modifications to their products, services, and physical environments. From sanitation booths and QR code-based contact tracing to VIP drive-thru systems and motion-sensor doors, these restaurants prioritized safety while enhancing customer convenience.
Therefore, this study aims to examine the innovations introduced by QSRs in Bulacan during the new normal, particularly in product development, service delivery, and physical modifications. Furthermore, it evaluates the impact of these innovations on key business areas such as customer satisfaction, marketing performance, and operational resilience. In doing so, the study contributes to the growing literature on pandemic-responsive strategies and offers a grounded basis for future research and development in the foodservice industry.
THEORETICAL FRAMEWORK
The theory that was used in the study is the Crisis Management Theory, as discussed by Kim, Park, and Lee (2022), which underscores the structured approach organizations must take in navigating disruptions through preparedness, responsive innovation, and post-crisis recovery. This theory is particularly relevant in the context of Quick Service Restaurants (QSRs) in Bulacan, which had to swiftly adapt their operations during the COVID-19 pandemic. The theory emphasizes the role of strategic planning and innovation in minimizing the adverse impacts of crises and ensuring business continuity. In this study, the application of Crisis Management Theory supports the analysis of how QSRs managed operational challenges, sustained customer satisfaction, and developed a crisis response management plan, thereby reinforcing the importance of innovation as a core response strategy in volatile environments.
CONCEPTUAL FRAMEWORK
The study's conceptual framework highlights a three-phase model, which includes pre-crisis, crisis response, and post-crisis recovery, which organizations must undertake to ensure resilience and continuity in the face of disruption. Applying this framework to the context of Quick Service Restaurants (QSRs) in Bulacan, the study conceptualizes innovation as a core mediating mechanism linking crisis conditions to operational recovery and sustained performance. The independent variables include the various forms of innovation adopted during the COVID-19 pandemic, namely product innovations, service innovations and physical innovations. These innovations are evaluated for their influence on customer satisfaction (dependent variable 1), sales and marketing performance (dependent variable 2), and operational resilience (dependent variable 3). The framework also extends toward the development of a Crisis Response Management Plan as an output variable, synthesizing customer feedback and managerial strategies into a model for future preparedness. By positioning innovation as both a response to crisis and a pathway to sustained operations, the conceptual framework offers a dynamic model for understanding how QSRs can maintain stability and competitiveness in times of uncertainty.
Figure 1. The Conceptual Model of the Study
STATEMENT OF THE PROBLEM
This study examined whether operational innovations that were introduced by Quick Service Restaurants (QSRs) in Bulacan during the COVID-19 pandemic influenced customer satisfaction, business performance, and crisis response planning.
Specifically, the study sought to answer the following questions:
What is the level of customer satisfaction with product innovations introduced by QSRs in terms of food quality, menu variety, serving temperature, value for money, and cleanliness?
What is the level of customer satisfaction with service innovations, including order accuracy, employee friendliness, staff presentation, and drive-thru communication clarity?
What is the level of customer satisfaction with physical innovations in QSRs, such as cleanliness, safety protocols, dining ambiance, menu readability, and parking accessibility?
How have QSR innovations during the pandemic affected sales performance and marketing strategies?
What are the perceived impacts of these innovations on the operational resilience of QSRs amid crisis conditions?
Based on the study findings, what Crisis Response Management Plan can be developed to guide future operations of Quick Service Restaurants in times of disruption?
METHODOLOGY
This study employs a convergent parallel mixed-method approach to provide a comprehensive analysis of innovations in quick service restaurants (QSRs) in Bulacan. This design integrates quantitative and qualitative data, allowing for triangulation to enhance reliability and validity (Creswell & Plano Clark, 2021). The quantitative component consists of a structured survey, while the qualitative component involves in-depth interviews with QSR managers.
A purposive non-probability sampling method was used, targeting 30 loyal customers and three QSR managers. Loyal customers, operationally defined as individuals who patronize a QSR at least twice a week for the past six months, were selected to ensure informed responses. The three managers were chosen based on their direct involvement in operational decision-making and innovation implementation.
While the sample size limits generalizability, it provides focused insights into customer experiences and managerial strategies. Future research may expand the sample to strengthen external validity. To minimize selection bias, customer respondents were drawn from different QSR brands and locations, ensuring diverse perspectives.
Data was collected in two phases. The quantitative survey assessed customer satisfaction, perceived effectiveness of innovations, and behavioral changes. The qualitative interviews explored managerial insights on innovation strategies, operational challenges, and sustainability plans. Surveys were distributed both online and in-person, while interviews followed a semi-structured format to allow in-depth exploration of key themes.
Ethical protocols were strictly followed. All participants provided informed consent, ensuring voluntary participation, confidentiality, and the right to withdraw at any time. Customer responses were anonymized, and managerial insights were used with consent. The study was reviewed and approved by the Research Ethics Committee of La Consolacion University Philippines (LCUP), ensuring adherence to ethical research standards.
The quantitative data was analyzed using descriptive statistics, with measures such as mean and standard deviation to summarize customer perceptions. The qualitative data underwent thematic analysis, identifying patterns in managerial responses. Triangulation was applied by cross-validating survey results with interview findings, ensuring a robust interpretation of data.
A pilot survey with five respondents tested clarity and consistency in survey questions. Independent reviewers analyzed interview transcripts to ensure coding reliability. By integrating multiple data sources, the study strengthens its findings, offering a nuanced understanding of QSR innovations and their sustainability.
This methodological approach balances depth and breadth, capturing both statistical trends and managerial insights. While limitations in sample size are acknowledged, the study lays a strong foundation for future research on innovation sustainability in the QSR industry.
FINDINGS
Customer Satisfaction in Terms of Product, Service, and Physical Aspects
Table 1 reveals that the product received an overall average weighted mean of 4.30. Among the individual statements, Statement 1 recorded the lowest mean at 4.10, while Statement 2 achieved the highest at 4.50. These results indicate that most respondents agree that Quick Service Restaurants (QSRs) offer a menu with a good variety of items. This finding aligns with the study by Liu and Jang (2010), which identifies five key dimensions influencing customer satisfaction in the food service industry: food quality, service quality, price and variety, convenience, and atmosphere. Furthermore, elements such as taste, variety, and overall quality—core components of the product—play a significant role in shaping customer preferences and choices.
Table 1
Customer Satisfaction in terms of Product
Table 2 indicates that the average weighted mean for service is 4.18. Statement 5 received the highest mean score of 4.60, while Statement 4 recorded the lowest at 3.97. These results suggest that the majority of respondents strongly agree that staff in Quick Service Restaurants (QSRs) are properly dressed. This finding supports the assertion made by Raju (2020), who emphasized that “taking necessary precautions not only helps mitigate the spread of COVID-19, but it also shows that an establishment is serious about keeping customers and staff safe.” In the context of the pandemic, ensuring customer safety has become a critical priority. Without customer trust and satisfaction, QSRs risk losing patronage, which could ultimately impact their profitability and continued operation.
Table 2
Customer Satisfaction in terms of Service
Table 3 shows that the average weighted mean for the physical aspect of Quick Service Restaurants (QSRs) is 4.33. Statement 3 received the highest mean score of 4.53, while Statement 5 had the lowest at 4.13. These results indicate that most respondents strongly agree that QSRs maintain a clean and safe environment. This supports the observation made by Mark Kubriak (2019), who noted that while creative social distancing measures help businesses continue operations and ensure safe consumption, they often reduce the quality of the dine-in experience by limiting human interaction. Nonetheless, adherence to government-mandated health protocols remains essential. Without compliance, QSRs risk closure. On the other hand, maintaining cleanliness and safety not only ensures operational continuity but also encourages customer loyalty and patronage.
Table 3
Customer Satisfaction in Terms of Physical Aspects
Effects of Innovations and Development in Terms of Sales and Marketing
With the effects of innovations on sales and marketing, the respondents clearly identified that innovations and developments have significant effects on their sales because the main goal of this is to come up with a product and service experience that will delight the changing needs and wants of customers.
To complement the quantitative findings, qualitative data from interviews and documents were analyzed to explore the types and perceived impacts of innovations introduced by QSRs during the COVID-19 pandemic.
Crisis Response Management Plan
In the past two months, selected Quick Service Restaurants (QSRs) have faced a noticeable decline in sales and profits. This downturn is primarily due to customers prioritizing essential needs amid ongoing economic challenges, as well as the lasting impact of the COVID-19 pandemic, which led to temporary closures and reduced customer turnout. Although these QSRs offer a wide variety of menu items that attract repeat customers, their current sales levels have not returned to pre-pandemic figures. Observant customers have noted that the restaurants maintain clean and safe environments, with well-dressed staff, which contributes positively to customer satisfaction despite the financial setbacks.
To address such challenges, implementing a robust crisis management plan is crucial. This plan not only equips QSRs to respond effectively to specific emergencies but also encourages proactive identification of potential risks. By outlining clear communication strategies, operational procedures, and contingency measures, QSRs can enhance their resilience and maintain service continuity. Ultimately, a well-developed crisis management plan strengthens team coordination and ensures that businesses are better prepared to protect both their operations and customer trust during future disruptions.
Product
Since the pandemic, many restaurants have been losing money and closing down due to the rules and regulations implemented by the IATF. Some fast food restaurants offer ready-to-cook foods at cheap prices to prevent spoilage. This is part of their marketing strategy; it is explained here, they are getting new options, so their restaurant is still earning income, and many people enjoy these innovations because they will be cheaper compared to when you dine in at the restaurants. People are becoming practical because most of them have limited access to money, and in that case, they choose to order fresh food rather than dine in a restaurant.
Due to the pandemic, another source of sales could be from having promos. Since the consumers hurry to it when they see the promotional packages. It is also used to increase sales and, in turn, lessen the bulk stocks in their storage. Which is a successful strategy because it gets revenue, and the food product given in the bundle promo is noticed at the same time, and individuals get an idea if it's worth it in the bundle promo.
Place
To enhance customer confidence and ensure safety, Quick Service Restaurants (QSRs) should consider innovating designated areas for disinfection and sanitation. These areas serve as visible indicators of the restaurant’s commitment to cleanliness and public health, especially in the context of a pandemic. By requiring customers to sanitize before entering the ordering and claiming areas, QSRs can help prevent the spread of viruses and create a safer dining environment. This added layer of precaution not only protects customers and staff but also increases the likelihood of attracting more patrons who value hygiene and safety.
Another essential service in fast food operations is the drive-thru, which offers convenience and efficiency. During the pandemic, however, many customers faced challenges due to space limitations and safety concerns in drive-thru areas. Expanding these spaces and implementing clear safety protocols can significantly improve the customer experience. A well-designed, spacious drive-thru can reduce congestion, eliminate interference with main roads, and allow for smoother traffic flow. This not only enhances customer satisfaction but also supports increased sales by accommodating more vehicles with minimal delays.
Promotion
Product promotion plays a vital role in the success of Quick Service Restaurants (QSRs), with commercial advertising being one of the most effective strategies. QSRs can promote their offerings through direct advertising or by encouraging customer purchases that generate organic word-of-mouth promotion. Commercial advertisements, especially those broadcast through various media channels, are essential in reaching a broad audience and creating brand awareness.
In today’s digital age, social media has become a powerful tool for business promotion. Most people are familiar with social media platforms, making it easier for fast food chains to spread information about new products, services, and trends. Social media allows for real-time updates and interactive engagement, which helps customers stay informed and connected. A unique and meaningful promotional approach—especially one that resonates with the audience—can significantly boost customer interest and loyalty.
Price
Product pricing plays a crucial role in determining the sales performance of Quick Service Restaurants (QSRs), especially during challenging times like a pandemic. In such situations, QSRs should adopt flexible pricing strategies that reflect the economic conditions and the financial capacity of their customers. Offering affordable pricing options can help maintain customer loyalty and sustain sales even when consumer spending is limited.
To further support this approach, QSRs can introduce value-driven bundle promotions that provide more for less, making meals more accessible to a wider audience. Additionally, offering targeted discounts to loyal customers or those who avail of membership privileges can enhance customer retention and satisfaction. By aligning pricing strategies with customer needs and current market conditions, QSRs can remain competitive and continue to attract and serve their target market effectively.
Physical Evidence
Significant changes have been necessary in Quick Service Restaurants (QSRs) due to the pandemic, particularly in terms of layout and safety protocols. Dining areas have been modified to comply with health guidelines, including the installation of physical barriers between tables to minimize contact. Similarly, drive-thru stations have adopted acrylic barriers to protect both customers and staff, especially those assigned to handle transactions, reducing the risk of exposure during interactions.
To further enhance safety and convenience, QSRs should consider implementing motion-sensor doorways. These automated doors would eliminate the need for physical contact when entering or exiting the restaurant, reducing the spread of germs and improving the overall customer experience. This innovation would also protect staff members stationed near entrances, ensuring a safer environment for everyone. By adopting such contactless solutions, QSRs can demonstrate their commitment to health and safety while streamlining customer flow.
Process
The pandemic has accelerated the adoption of cashless payments, making transactions faster, safer, and more convenient. Quick Service Restaurants (QSRs) should fully embrace this shift by integrating contactless payment systems such as mobile wallets, QR code scanning, and tap-to-pay options. These methods not only reduce physical contact but also enhance customer trust by ensuring a secure and hygienic payment process.
In addition to cashless transactions, QSRs can further innovate by implementing an automated food delivery system within the restaurant, similar to Japan’s "kousoku" or express lane systems. This technology allows orders to be delivered directly to customers without staff intervention, minimizing contact and streamlining service. By combining contactless payments with automated food delivery, QSRs can significantly improve operational efficiency while prioritizing customer safety and satisfaction.
People
Implementing a VIP sticker system for drive-thru customers is a valuable strategy for recognizing and rewarding loyalty. This initiative encourages repeat visits, as customers are motivated by the exclusive benefits that come with VIP status. These benefits may include product upgrades, priority service, or special discounts, enhancing the overall customer experience. Not only does this system foster customer retention, but it also boosts brand loyalty and creates a sense of exclusivity that benefits both the customer and the fast food chain.
Additionally, introducing an ID card with a QR code for customers can significantly improve safety and operational efficiency. This system would store essential contact information, enabling fast and accurate contact tracing in the event of a health-related incident. With the high volume of daily visitors, it can be difficult to track interactions manually. A QR-based system simplifies this process, ensuring that customer data is securely recorded and easily accessible when needed. This innovation supports public health efforts while streamlining entry procedures and enhancing customer trust.
IMPLICATIONS/CONCLUSIONS
This study explored the innovative strategies employed by Quick Service Restaurants (QSRs) in Bulacan in response to the challenges posed by the COVID-19 pandemic. Using a convergent parallel mixed-methods design, the research revealed that QSRs implemented a range of innovations across key operational areas, including product development, service delivery, physical layout, marketing strategies, and digital integration. These innovations were not merely reactive but represented strategic adaptations aimed at enhancing customer experience and ensuring business continuity.
Quantitative data indicated high levels of customer satisfaction, particularly in areas such as food quality, staff responsiveness, and adherence to health and safety protocols. Complementary qualitative findings—gathered through interviews and document analysis—highlighted the effectiveness of specific innovations such as ready-to-cook meal options, contactless ordering systems, cashless payment methods, and improved sanitation practices. These responses align with Schumpeter’s Innovation Theory, which emphasizes entrepreneurial adaptation for sustained profitability, and Crisis Management Theory, which underscores the importance of strategic planning in navigating disruptions. Overall, the findings demonstrate how QSRs in Bulacan successfully transformed crisis-induced challenges into opportunities for innovation, growth, and long-term competitiveness by aligning customer needs with adaptive business practices.
References
Chhabra, R., Sharma, P., & Gupta, A. (2023). The evolution of quick service restaurants: Digital transformation, personalization, and sustainability. Journal of Hospitality & Tourism Research, 47(3), 512–530. https://doi.org/10.1016/j.jhtm.2023.05.002
Haddon, H. (2020, July 28). Coronavirus pandemic squeezes McDonald's profit. The Wall Street Journal. https://www.wsj.com/articles/mcdonalds-profit-takes-a-hit-from-coronavirus-pandemic-11595968967
Kerry Group. (2020, April 15). COVID-19 restaurant innovations and adaptations. KerryDigest. https://www.kerry.com/insights/kerrydigest/2020/covid-19-restaurant-innovations
Kim, D., Park, S., & Lee, J. (2022). Digital adaptation and resilience strategies in the restaurant industry post-pandemic. International Journal of Contemporary Hospitality Management, 34(2), 389–405. https://doi.org/10.1108/IJCHM-2022-0154
McKinsey & Company. (2020, April 2). Delivering when it matters: Quick-service restaurants in coronavirus times. McKinsey Insights. https://www.mckinsey.com/industries/retail/our-insights/delivering-when-it-matters-quick-service-restaurants-in-coronavirus-times
Norris, C. L., Taylor Jr., S., & Taylor, D. C. (2021). Pivot! How the restaurant industry adapted during COVID-19 restrictions. International Hospitality Review, 35(2), 123–132. https://doi.org/10.1108/IHR-02-2021-0012
Park, H., Kim, M., & Yoon, S. (2023). AI-powered customer engagement and sustainability practices in QSRs. Service Industries Journal, 43(5), 678–695. https://doi.org/10.1080/02642069.2023.1178942
QSR Magazine. (2020, April 10). 3 new restaurant tech innovations COVID-19 accelerated. QSR Magazine. https://www.qsrmagazine.com/operations/outside-insights/3-new-restaurant-tech-innovations-covid-19-accelerated
Suhartanto, D., Helmi, A., & Purwanto, E. (2021). Digital transformation and customer experience in quick service restaurants: The role of AI and robotics. Asia-Pacific Journal of Business Administration, 13(4), 601–620. https://doi.org/10.1108/APJBA-2021-029
Tan, K. L., Wong, R., & Chan, B. (2023). The future of food: Plant-based diets and QSR sustainability practices. Food Policy Review, 15(1), 45–62. https://doi.org/10.1016/j.fpr.2023.04.003
Zhang, Y., & Lee, C. (2024). Predictive analytics in food service: How QSRs optimize demand forecasting and inventory management. Journal of Business Analytics, 10(1), 88–106. https://doi.org/10.1080/2573234X.2024.0123456