Qu's 2025 State of Digital Report: How Restaurants Can Win with Direct Ordering, Smarter Tech and Unified Data

Brands shift to first-party sales, consolidate tech stacks and invest in data-driven personalization to drive long-term growth

ARLINGTON, Va., March 19, 2025 /PRNewswire/ -- Qu, the creator of the industry's leading cloud-native Unified Commerce Platform, released its sixth annual State of Digital Report, unveiling critical insights for fast casual and quick service restaurant (QSR) operators. Based on data from 170 brands across 85,000 locations, the report uncovers a growing shift as brands reclaim the guest relationship and streamline systems to fuel profitable growth.

The findings reveal that restaurants relying on fragmented, third-party ordering platforms face hidden challenges that erode margins and complicate operations — making it harder to meet guest expectations and accurately forecast performance. By consolidating systems and moving to direct ordering, operators can eliminate the disconnect created by multiple ordering channels, third-party marketplaces and piecemeal tech providers. This shift unlocks real-time business insights, empowering smarter decisions, more efficient operations and a deeper understanding of guest preferences. First-party ordering isn't just about cutting fees — it's about owning the guest experience, building real loyalty and creating sustainable growth that boosts corporate and franchise value.

"When restaurants own the guest relationship and bring all their data together, they stop operating in the dark," said Amir Hudda, CEO of Qu. "Our report's findings make it clear: holistic, integrated tech gives brands the clarity and agility they need to navigate changing market dynamics and stay ahead of the competition. For franchise systems, this connectivity translates into stronger P&Ls, justifiable tech fees and a more compelling pitch to prospective franchisees."

Qu's 2025 State of Digital Report identified six trends driving fast casual and QSR profitability this year:

1. Shift from third- to first-party ordering: Forty percent of brands say first-party digital sales represent their biggest revenue growth potential in 2025, followed by catering (24%) and on-premises ordering (14%). For QSRs, 55% eye first-party ordering for revenue growth, outpacing drive-thru and third-party apps. Fast casuals follow with 36% prioritizing direct digital channels. By reducing reliance on third-party platforms, brands can control costs, improve unit-level economics and lay the groundwork for more personalized loyalty and marketing efforts.
   
   
2. Consolidating tech systems unlocks efficiency and prepares brands for AI: Sixty-four percent of brands are simplifying their tech stack, transitioning to unified systems to reduce costs and eliminate tech debt, while aligning the underlying data infrastructure and models. This simplification is freeing up resources for growth and accelerating access to richer data insights — critical for both operational efficiency and AI-powered innovation. For franchises, streamlined systems reduce onboarding time, lower training costs and make scaling easier.
   
   
3. Data-driven personalization unlocks guest engagement: While loyalty program participation lags, with 85% of guests still unreachable through traditional programs according to Paytronix, operators are shifting investments. Loyalty spending dropped 8% year-over-year, but investments in guest data platforms increased by 11%. As Chris Demery, CTO of Blaze Pizza – a Qu customer, noted at MURTEC 2025, leveraging real-time data is key to anticipating guest needs and driving satisfaction.
   
   "At Blaze, we use Qu's cutting-edge tech to enhance hospitality — texting guests when orders are ready, delivering tableside and capturing real-time feedback," said Demery. "This kind of data helps operators and franchisees forecast demand, manage surges and streamline orders — all of which drive better guest experiences. Even one extra visit per guest each year can boost revenue by 5 to 10%."
   
   Hudda added, "When brands unify their data, they can create more relevant and personalized experiences that keep guests coming back. Without real-time, connected data, loyalty programs are bound to fall short."
   
   
4. Kiosks ease labor strains: Sixty-two percent of brands are adding kiosks, with adoption even higher in QSRs (80%). While kiosks are becoming ubiquitous, operators are primarily using them to reduce labor pressures and give guests more flexibility — speeding up service while enhancing the in-store experience.
   
   
5. Smart kitchens drive accuracy and productivity: With 70% of brands citing order accuracy and team productivity as key operating challenges, many are adopting smart kitchen tech that uses unified data and AI to optimize workflows, minimize errors and improve speed of service, leading to a more consistent guest experience.
   
   
6. Digital sales level off, pushing brands to focus on profitability: After years of rapid growth, digital sales have plateaued, rising just 4% over the past three years. This signals a shift from chasing volume to refining operations, balancing on-premises and off-premises channels and using data to build sustainable, long-term profits.

The common thread: Unified data is the foundation of future success

The Qu report underscores one overriding takeaway: success in 2025 hinges on how well brands unify and activate their data. Restaurants that build a connected technology ecosystem that effectively centralizes and unifies their underlying data — integrating first-party channels, AI-driven insights and operational tech — will gain a lasting competitive edge. For franchise brands, this level of connected intelligence isn't just a growth driver — it's a powerful tool for recruiting franchisees and accelerating market expansion.

"In the rush to 'go digital,' many brands built their tech stacks like a Jenga tower — unstable, ready to topple and blocking innovation," Hudda said. "With digital sales growth now stabilizing, restaurants must focus on dismantling these disconnected, legacy systems and adopting more modern, flexible approaches. The next phase of growth lies in using unified data to create more value for guests, improve staff efficiencies and drive lasting profitability."

The Qu 2025 State of Digital Report is available as a free industry resource. For more information and to access the full report, click here.

About Qu
Qu is evolving restaurant POS to create a truly connected restaurant experience for guests and operators at quick service and fast casual restaurants. Qu's industry-leading, cloud-native Unified Commerce Platform fuses the ordering, operations and guest engagement functions, delivering the real-time data needed to drive loyal, repeat guests. Based in Arlington, Virginia, Qu is backed by leading restaurant entrepreneurs and investors including Cota Capital, Enlightened Hospitality Investments (EHI), Bobby Cox Companies and NRD Capital. Visit qubeyond.com and stay connected with LinkedIn.

SOURCE Qu