The quick-service restaurant (QSR) industry is in a moment of contradiction. On one hand, consumers are signaling caution by pulling back on discretionary spending and reacting to the potential ripple effects of global tariffs. 

On the other, while some QSRs are thriving, others (like McDonald’s) are reporting declining sales. In any case, the U.S. QSR market is still projected to expand from $447.2 billion in 2025 to over $731 billion by 2030.

This tension between financial restraint and sector growth reflects a broader shift in how consumers evaluate spending decisions. People aren’t necessarily rejecting QSRs. They’re just becoming more discerning about where they spend and why. The challenge for operators is no longer just about convenience or price, it's about differentiation and efficiency. And this becomes particularly important when looking at Gen Z, and their quickly rising purchasing power. 

A tech-savvy generation with high expectations

To better understand how QSRs can deliver on this moment, we recently used our Gen Z On-Demand solution to understand the preferences and behaviors of Gen Z consumers in the United States and Canada.

This Reach3 Insights research, which leverages the Rival platform and our chat-based, conversational approach, uncovers a clear theme: Gen Z is not only interested in QSR experiences, they’re actively looking for smarter, more personalized, and tech-enabled ways to engage.

In fact, 93% of Gen Z in the US expressed interest in technology-enhanced QSR experiences, with nearly 80% showing interest in AI specifically. These consumers are fluent in digital tools and expect restaurants to be as seamless, intuitive, and responsive as the other apps and platforms they use daily.

But importantly, their expectations are pragmatic. When asked which features they most wanted to see, Gen Z pointed to:

• Mobile ordering (57%)
• Self-ordering kiosks (49%)
• Tablet ordering at tables (46%)

What’s driving this interest isn’t novelty, it’s utility. The top outcomes they want from tech are faster service, better order accuracy, and more personalized recommendations. In other words, QSRs don’t need to invent the future. They need to optimize the present.

AI as a differentiator in QSR — adding real value 

AI, in particular, holds promise with this group, but only when it delivers meaningful improvements. Gen Z respondents said they were most interested in features like:

• AI-driven order suggestions (30%)
• Personalized discounts and offers (27%)
• AI-powered voice ordering (24%)

One respondent described an ideal scenario where “AI-powered personalized menu recommendations” would streamline the decision process and reduce how overwhelming it can be. Another imagined drive-thru experiences where AI could “pick up orders faster and clock them into the system faster than people at the register.”

There are clearly opportunities for brands to use AI to enhance operational efficiency and customer satisfaction. The key is to ground these innovations in empathy and practicality, not flash.

How AI innovations shape brand perceptions in QSR 

When asked which QSR brands they associate with AI innovation today, Gen Z named familiar leaders: Dunkin’ (41%), Starbucks (39%), Chipotle (37%), and McDonald’s (37%). These brands aren’t necessarily the most advanced in terms of back-end tech, but they’ve created perceptions of being modern, forward-thinking, and responsive. 

There’s a wide open lane for other QSRs — especially regional players, emerging chains, and independent concepts — to signal innovation and capture attention. It will also be interesting to see how brand perceptions change as companies make more AI-related announcements, like this recent one from Yum Brands (which owns Taco Bell, Pizza Hut and KFC). 

In today’s competitive environment, being perceived as current and culturally aligned can be just as important as menu innovation or pricing strategy.

How QSRs can meet Gen Z where they are

Based on our research, here are four strategies QSR operators can consider as they navigate a new generation of expectations:

• Invest in tech that solves real problems. Focus on features that improve speed, accuracy, and convenience. Gen Z doesn’t need bells and whistles—they want frictionless experiences.
  
  
• Use AI to personalize, not just automate. Offer recommendations based on order history, suggest relevant add-ons, or tailor promotions based on past visits. This kind of personalization makes interactions feel thoughtful, not robotic.
  
  
• Design with cultural fluency in mind. Gen Z values inclusivity, authenticity, and self-expression. Align your brand voice, marketing, and in-store experience with how they see the world, and themselves.
  
  
• Listen continuously. Traditional market research is too slow to keep up with this generation. Embrace agile, conversational approaches that let you tap into real sentiment in real time.

While the QSR industry may be facing a dichotomy at the moment, it’s also standing at the edge of a powerful opportunity.

Gen Z isn’t turning away from quick-service restaurants, they’re turning toward the ones that understand them. The brands that will thrive in this next chapter are those that deliver not just speed and affordability, but relevance, personalization, and emotional connection.

To learn more, check out our research, The State of QSR: A Gen Z Deep Dive.