Thanksgiving 24-25 Analysis

QSRs are among the hardest hit of all, with losses from theft reaching 7% of sales in the segment. In an industry where typical net profit margins range from 3% to 5% on average, such losses can effectively erase an entire quarter’s profitability. This reality makes restaurant loss prevention a key priority for brands of all types and sizes.

Shrinkage is primarily the result of theft — about 75% according to the National Restaurant Association — and most of it is done by team members. This puts regional, district, and store managers in the uncomfortable position of constantly policing employees to protect profits.

The methods employees use to steal are extremely varied, from fake refunds, discounts, or voids to giving away free food to friends. All these tactics accomplish the same objective: obscuring what really happened at the register to keep the cash or food.

Ironically, employee theft and fraud can be relatively easy to detect. The real challenge for QSRs is time management. Combing through every transaction for discrepancies is incredibly time-consuming — so much so that it is basically impossible to do manually, especially when overseeing multiple stores.

That’s where technology comes in.

• Focus on What Matters

Identifying suspect transactions manually is not a realistic approach for QSRs with several, dozens, or hundreds of stores, each of which logs hundreds of transactions every day. The investment in time and resources would not only negate any potential gains, but it would also detract from a long list of daily activities that provide genuine strategic and operational value.

To solve this problem, many QSRs are turning to the automation provided by restaurant loss prevention software. These platforms quickly target questionable transactions for follow-up, enabling managers to focus only on those stores, transactions, or employees that deserve attention. These efforts can be incorporated within a daily routine. They also provide insights that can be replicated across multiple stores.

One of the most important benefits of automated fraud detection is the ability to differentiate between employee theft and human error. For example, the platform might surface a series of big-ticket returns during a late-night shift at a store when the manager is likely not there. The timing is an obvious red flag. But is an actual crime occurring, or is it something more innocent?

In many cases, managers discover employees are not following proper procedures for disposing of food, accounting for inventory, handling returns, or other common activities. This creates an opportunity to retrain specific employees in an efficient and focused way, while sharing these learnings with other stores to reduce risk similar errors from happening elsewhere.

By prioritizing transactions for special attention, automated restaurant loss prevention software gives management enough time to understand the situation and follow up effectively. It also helps brands avoid the default approach of firing the employees involved, which leads to unnecessary turnover, compromised customer service, and a cascade of staffing issues.

Essentially, automated fraud detection empowers district managers, area coaches, and others to keep closer tabs on each store without the need to visit all of them daily. On top of saving money, this frees up valuable time that can be spent on coaching team members and improving the guest experience.

• Neutralize Phone Scammers

Automation is also useful for uncovering stores that have been victimized by phone or email scams. These scams are much like consumer scams, initiated by a caller or sender supposedly “from corporate” telling an unsuspecting worker that an audit has uncovered a serious problem — one that can be resolved by issuing a gift card or refund.

Like anyone who has been scammed, employees are often embarrassed to admit what happened and are afraid they will be fired if they report the fraud. But with automated detection, managers can identify the problem, quickly investigate, and build trainings that prevent other stores from repeating the same mistake. Turning a common threat into a stronger overall defense can save substantial time and money.

• Improving Restaurant Loss Prevention

As we all know, there will be times when what’s really going on at the register is employee theft or fraud. Automated loss prevention restaurant software delivers several advantages in these instances. Most critically, it makes it far faster and easier for managers to identify when theft happens and take appropriate action — without the need to devote hours on tedious manual review.

Even better, many of these tools can be integrated with popular video surveillance platforms that allow managers to review flagged transactions in parallel with video footage, yielding a clearer situational understanding of what went on compared to data alone. In just a few minutes, managers can gather the evidence needed to determine whether theft occurred and confidently take next steps.

Managers can also bring these same assets along with them when reviewing any questionable transaction face-to-face with the employee involved. If theft has occurred, the manager can proceed accordingly. If the employee just made a mistake, then it’s a simple matter of training.

Either way, these conversations serve as a long-term theft deterrent, helping to establish a culture where employees understand that all suspicious activities will be identified and investigated — rather than simply getting lost in the shuffle like so many are today.

PAR Technology helps QSRs strengthen fraud and theft detection through industry-leading restaurant loss prevention software that uncovers losses, inefficiencies, and blind spots long before they become problems. Request a demo today.

Victoria Tran is a Senior Product Marketing Manager at PAR Technology, leading go-to-market strategy for PAR OPS, an enterprise restaurant operations management platform. She oversaw the post-acquisition portfolio unification — bringing together PAR Data Central and Delaget under the PAR OPS brand — and manages all marketing efforts for PAR OPS product launches, including PAR Technology’s first AI data analytics assistant, Coach AI. Previously, she held product marketing roles at Spectrum Brands and Bradshaw Home, delivering e-commerce growth, new product commercialization, and high-impact campaigns. She holds a B.A. in Economics and Government from the University of Virginia.

Two recent examples highlight the range of innovations which have delivered mixed results. On one end, we have Starbucks, which announced last June it would begin sunsetting its “mobile order and pickup-only” stores introduced in 2019. While mobile orders aren’t going away, the idea here is to bring customers back into the traditional Starbucks environment to slow down a bit and converse with the staff and other members of the community.

On the other end, we have Taco Bell, which started rolling out AI-powered drive-thrus at 500 U.S. locations to reduce mistakes and speed up service. This led to some unfortunate consequences captured in viral videos, two of which included a customer ordering 18,000 cups of water from the drive-thru intercom (which crashed the system) and another getting angry with an AI agent that can’t stop upselling beverages.

The point is not whether these experiments succeed or fail. The larger question is: how can QSRs optimize the drive-thru experience during a time of constant, rapid, and unpredictable change?

Diving into the Data

Let’s back up a bit to take a closer look at why this part of the QSR is under such a microscope. While the drive-thru still represents around 70% of revenues, the trends are negative — and they’ve been that way since early 2024. Month-to-month drops ranged from 5% to as much as 13% during this time.

At the same time, we’ve never seen so many takeout orders. A report from the National Restaurant Association says that 75% of restaurant visits involve takeout. Almost all consumers (95%) say that “fast service” is critical to the experience.

What’s going on here? Nobody is exactly sure, which is why so many QSR brands are making changes to the experience. What is clear is that consumer behaviors are shifting and operators need to adapt if they are going to protect this highly profitable space.

Getting Beyond Speed

In previous decades, speed was the name of the game. Cars per hour was the only drive-thru metric that mattered. But brands are discovering that a fast experience doesn’t build loyalty if it misses other important factors — like order accuracy and friendly service. In this sense, focusing only on speed and throughput is a short-term win at best.

Of course, what customers say they want doesn’t necessarily align with what they do. Consumers want their drive-thru order quickly. But like any of us, they also want that order to be right, and they want the whole experience to seem easy.

You can draw a straight line between the demand for speed and accuracy and widespread adoption of AI tools, which are designed to reduce human error and help QSRs process more orders faster. This isn’t the case yet, but let’s assume that drive-thru system AI agents will eventually get it right. When they do, is this the magic bullet?

Probably not. Because consumers also tell us the human touch is very important. Guests want to feel acknowledged, greeted, and attended to — if only for a couple minutes. An AI agent can’t really do this in the way customers want. Which puts us back at square one, trying to make the drive-thru more efficient without removing people from the equation.

The Diversity of Consumers

One mistake we all might be making is thinking of “consumers” as a single entity with consistent wants and needs. In reality, each of us brings our own opinions and experiences into the drive-thru lane, and not all of these are the same.

I’ll use myself as an example. On one hand, I appreciate what Starbucks is trying to do with its “return to the coffee shop” approach. I would love to sit in a vibrant coffee shop, enjoying my favorite drink side-by-side with my friends. But I also have four kids with four separate school drop-offs and after-school activities. My schedule simply doesn’t have room for an in-store experience.

My average workday also involves a lot of screen time and apps, and computer tasks. So, the last thing I want to do outside of work is pull up to the drive-thru window and talk to a robot.

But I’m just one person. And I can easily imagine a person who does have time to enjoy a more relaxed coffee shop experience. Or a person who spends their whole day talking to people and is relieved and delighted that they can get their drive-thru order without talking to anyone.

5 Ways to Adapt

The answer to this drive-thru dilemma isn’t about choosing between humans or AI, or between speed or warmth. It’s about finding balance. That balance looks different for every brand, but it starts with intentional action. Here are five actions that your brand can take.

Map the micro-journeys.

The fastest drive-thru isn’t always the best one. It’s the one that feels effortless. Break the experience into small steps from greeting to handoff, and look for moments where tension builds. Even a 10-second friction point can ripple across your entire operation. Use your timer or camera data to spot where guests pause, hesitate, or repeat themselves, then design against those moments.

Personalize the queue, not just the menu.

Speed means something different to every guest. Some want a quick grab-and-go. Others want confirmation that their order is right. Use what you already know — loyalty data, past orders, daypart habits — to give them that choice. Whether it’s a quiet lane for quick reorders or a custom lane for complex ones, personalization turns efficiency into loyalty.

Redefine the human touch.

Technology can make things faster, but empathy is what keeps guests coming back. Reframe headset shifts as moments of connection, not just throughput. A calm tone, a name at the window, or a simple “thanks for being patient” has more power than any AI script.

Modernize without overhauling.

Not every store needs a full-tech refresh. Instead, you can layer improvements in phases (e.g., noise-canceling headsets, followed by smarter timers, followed by confirmation screens) and track how much each phase moves your metrics. Small, steady modernization builds confidence without overwhelming crews or budgets.

Build a continuous feedback loop.

Use QR codes, text prompts, or short post-visit surveys to capture feedback while it’s still fresh. By combining this feedback with your operational data, you can see not just what’s fast, but what feels fast. Then adjust monthly, not annually.

The drive-thru will always be a study of contrasts: human and machine, efficiency and empathy, routine and chaos. The brands that win won’t be the ones chasing trends. They’ll be the ones that keep learning from the people in their restaurant’s lane.

PAR offers a proven portfolio of drive-thru solutions to help operators find that balance, combining reliability, clarity, and innovation to meet guests where they are and keep your most profitable square foot performing at its best.

Samantha Young is a marketing leader in restaurant technology, known for driving brand evolution, partner growth, and thought leadership across some of the industry’s most influential companies. She currently serves as Product Marketing Manager at PAR Technology, guiding hardware strategy and cross-business integration, and was recognized with the 2024 CEO Award for her impact and leadership. With a background spanning Global Payments, ReSource Point of Sale, and Xenial, Samantha has consistently built programs that combine storytelling, strategy, and measurable results.

In general, Baby Boomers and Gen Xers see hardware repair services as a reactive safeguard tied to protecting investments and reducing risk. Millennials and Gen Z, meanwhile, push for proactive solutions: the former lean on data and transparency, while the latter also demand instant, digital-first support on top of this transparency.

As repair is defined differently across generations, these shifting expectations are reshaping the service landscape. This article looks at this expanding diversity among the decision-makers for hardware repair and field installation services, and why understanding and meeting all their expectations is just as critical as fixing the equipment itself. (Spoiler: those overseeing equipment upkeep are increasingly trending younger.)

For seasoned franchise owners who are often older individuals, hardware repair services act as a safeguard, much like insurance. Their main goal is to protect investments and keep operations running smoothly, letting owners focus on the bigger picture of their business. These operators are willing to lock in multi-year service contracts when they view them as reliable safety nets. To them, repair is a straightforward break/fix assignment: it only needs to be front-of-mind when something goes wrong, and trust is built face-to-face.

Many Boomer and Gen X operators came up in an era without today’s constant presence of technology or predictive analytics, and their approach reflects this hands-on, reactive mentality. It wasn’t unusual for them to take on hardware repairs themselves (and things were built better back then, so the need for repair was less frequent). But as restaurant systems have become increasingly complex, most older restaurant owners now delegate repair tasks to younger team members who bring fresh perspectives and new expectations to the role. In other words, the person paying for the POS repair and other hardware fixes may not be the same person who uses the equipment. Restaurant ownership itself is also becoming much more generationally diverse.

As Millennials increasingly take on ownership and system maintenance roles, they approach hardware repairs with a more digital mindset. Data and transparency are central to how they run their business, so it feels natural for them to manage repairs using predictive service models, preventive maintenance schedules, transparent SLAs, and dashboards that track uptime like a KPI. To them, reactive repair seems outdated — no longer just an insurance policy waiting in the background. Instead, they want data to help spot and prevent issues before they arise.

Millennials remain open to working with live technicians and value building partnerships, but they’ll only work with technicians who are proactive in their approach. They expect specialists to be engaged and involved, not simply waiting for a call but actively helping to keep systems running smoothly.

The next generation of managers grew up in a world that’s always connected. For Gen Z, dialing a 1-800 number and speaking with someone directly is simply out of the question. They expect to jump into a live chat and have a technician dispatched that same day, all without any need for human interaction. Gen Z customers don’t seek social connection or relationship building. They want the technician to arrive, fix the issue, and be on their merry way. Next time a problem arises, they simply get on live chat again. It doesn’t matter who comes, as long as the person is competent.

For Gen Z, repair is about convenience, not contracts. Even predictive analytics aren’t enough. They expect everything to be fast, proactive, and digital-first, reducing predictive service to a bare minimum for meeting their expectations.

The Takeaways

Now that we’ve identified the distinct generational attitudes and expectations toward repair, how should restaurant equipment repair services adapt their approach? What key insights and best practices can help them effectively meet the needs of Boomers, Gen X, Millennials, and Gen Z?

Perhaps the biggest takeaway is to make sure to recognize the assumptions and comfort zones of each generation and meet them where they are. At the same time, introducing the proactive, data-driven, and digital-first mindset of younger generations could serve as a catalyst for improving uptime across the board.

For Boomers and Gen X highly who trust and reliability, adding predictive models as a layer on top of their existing priorities could yield significant cost-saving benefits. According to an article on xtraCHEF.com, a four-hour outage at a restaurant with $10,000 in daily revenue can cost up to $4,000. An article on Milagrocorp.com also reported that a 1% drop in uptime may result in $12,470 in lost revenue annually. Another study revealed that unplanned equipment failures drain as much as 11% of annual revenue across QSRs.

These numbers clearly show why operators are eager to move from reactive to proactive strategies. Younger generations are leading the way, and ongoing technological advances are making it easier and more cost-effective for all operators to adopt these smart restaurant repair and maintenance models. This shift is more than a trend. It’s where the entire industry is heading.

Samantha Young is a marketing leader in restaurant technology, known for driving brand evolution, partner growth, and thought leadership across some of the industry’s most influential companies. She currently serves as Product Marketing Manager at PAR Technology, guiding hardware strategy and cross-business integration, and was recognized with the 2024 CEO Award for her impact and leadership. With a background spanning Global Payments, ReSource Point of Sale, and Xenial, Samantha has consistently built programs that combine storytelling, strategy, and measurable results.