Preparing for Your QSR Brand’s International Expansion: What You Need to Know
Your QSR or fast-casual restaurant has really blossomed in your country. It’s time to expand, and you’re thinking internationally. What should you consider before making that big leap?
In a recent episode of Digital Dish, we talked with Tillster CMO Hope Neiman about the challenges of taking a restaurant chain multi-national. Hope has a deep background in this area and shared some fascinating insights on what brands need to know to make a successful expansion. We’ve distilled some of the key points in this article, but you can get more details by watching the video.
Why Is International Expansion Hard?
Maybe you’ve thought about opening locations in another country, but you’re not sure how to do it. Or maybe you’ve tried and things didn’t go as planned. The plain fact is that – technically, logistically, and operationally – expanding beyond your home country’s borders is harder than most people expect.
In the US, we’re used to the same payment providers, restaurant tech services, and general workflows. US-based operators may not even realize how different these things are in other areas of the globe. For example, many European customers have very different expectations around kiosks and mobile apps than their American counterparts.
There are major cultural shifts, too, like differing expectations about how customers will interact with employees and how employees will perform their work. Then there are the challenges we do expect: translating and localizing the menu text, adapting food items for local tastes and ingredient availability, etc.
So, it’s not surprising that international expansion is full of challenges. The important thing is to realize that things will be different in different areas. We can’t assume that any new market will function like our current market(s).
One example of how differently things work across borders is the order delivery process. In some countries, payments for delivered food are made in cash. Thus, the location manager has to decide how much cash to send with the delivery person so they can make change for the customer. Then the restaurant’s tech stack has to be able to record cash transactions for delivery orders. It may also have to track tips given to the delivery person. What looks like a small change actually affects the very fabric of restaurant operations.
With that in mind, let’s consider a few factors that often get overlooked when brands decide to expand beyond their current market.
What Should Restaurant Brands Know About International Expansion?
Don’t Count on the Same Tech Infrastructure
First, don’t expect your new markets to seamlessly blend into your existing tech stack. Let’s take just three examples of this: payments, restaurant software, and Internet service.
In the US, we expect customers to use the same handful of payment card processors (Visa, Mastercard), payment services (PayPal, Venmo), etc. Other countries may or may not have these services; if they do, they’ll probably also have widely used local equivalents. And as we mentioned earlier, some regions still prefer to make all transactions via cash.
Then there’s the restaurant tech stack. Not all restaurant software providers are willing to support multi-national usage. Even if they do, there are significant differences in language and expected performance. We’ll get into these in detail later in the article, but it’s worth noting that the systems that serve you so well in one country may not be available in another.
Another thing that varies widely by location is Internet availability, price, and quality. In some countries, unlimited data – mobile or otherwise – is simply not an option. Data can be expensive and connections can be unreliable, which changes the mobile ordering experience for customers. It also impacts how restaurants set up their tech stack.
Finally, another issue is that not all restaurant locations will have the same tech stack. You might find that some locations of a restaurant chain use one version of, say, a point of sale system while others use another POS (maybe even a homebrewed version). All of this makes it difficult to provide a uniform customer experience. It also makes maintaining a good user experience for employees across locations just as difficult.
What can you do? First, you want to thoroughly research the tech landscape for any new market. You may also want to partner with an experienced local restaurant tech provider to ease any transitions.
Regional Preferences May Be Very Different
While it’s no surprise that tastes change from region to region – even within the same country – there are some unique aspects of international expansion that catch some business owners by surprise.
Religious and dietary requirements. For example, in areas with a large Muslim population, you may have to follow Halal guidelines. Or your current menu items may have certain ingredients that are hard to obtain in that region.
Delivery options. There may be local delivery customs that you’re not familiar with, such as delivering to a drop-off location instead of the customer’s actual address.
Information flow. The customer information you gather and how you ask for it can be different in other cultures.
Data privacy regulations. In addition to things like GDPR, individual countries may have stringent data privacy requirements that you’ll have to meet.
Localization Is More Than Language
Localization is about more than translation. You also have to think about local preferences in design and layout. What’s normal in one country, like reading left to right, is nearly incomprehensible in another. What some cultures may see as cluttered and hard to read, others accept as cheerful and full of information. And the list goes on.
Translation itself is full of pitfalls. A word-for-word translation almost never works. Famously, KFC found this out when their “finger-lickin’ good” slogan was rendered as “you’ll eat your fingers” in Mandarin.
Ready for More Advice on International Expansion?
We’ve gone through a few areas that brands should consider before they try expanding their operations internationally. Does this mean that international expansion is too complicated? Not at all!
International expansion can be rewarding and fun. Moving into new markets can spur innovation and create a mutually beneficial exchange of ideas. But to reap all these positive outcomes, you have to do your due diligence.
This can mean doing a lot of research (including on the ground!) and partnering up with local experts and other experienced providers. For an overview of how Tillster can help you with a successful international expansion – as well as a few more details that we didn’t include here – check out this episode of Digital Dish. Or you can contact us directly and we’ll be happy to help you explore your options.
