Enhancing Digital Presence for Maximizing Customer Value in Fast-Food Restaurants

Abstract

Digital transformation has altered the way customers interact with restaurants. As a result, digital transformation has had an enormous impact, changing restaurant customer value. Therefore, this research aims to develop a dynamic and sustainable method for creating customer value in digital transformation. This study suggested digital dynamic capabilities and digital customer orientation as a process model (i.e., sensing, seizing, transforming, and refining) to develop digital transformation and create a dynamic customer value. We chose fast-food restaurants in Egypt to examine the proposed model using a qualitative approach of semi-structured interviews with fast-food managers and hospitality experts. The findings indicated that fast-food restaurants’ different digital transformation capabilities and tools (e.g., value innovation, SWOT analysis, artificial intelligence, new technology selection criteria, digital maturity, building several digital platforms, and gathering and analyzing customers’ online reviews) help them create customer value. However, interviewees highlighted how well-suited the suggested digital dynamic capabilities are to serve as drivers of digital transformation in fast-food restaurants and create a dynamic customer value. This research expands the dynamic capabilities theory by adding digital customer orientation (i.e., proactive and reactive to customer feedback) to develop digital transformation and create customer value in fast-food restaurants. This research provides fast-food restaurant managers with an in-depth explanation of how to implement the digital dynamic capabilities model for executing digital transformation and developing a new dynamic customer value.

The impact of fast-food restaurant customers’ digital transformation on perceived value and well-being

“…The study focuses on fast-food restaurants due to their highly competitive nature and rapid technological advancements (Daradkeh et al , 2023). Due to the lack of publicly accessible data on fast-food establishments in Egypt (Helal, 2022), the study relied on a convenience sample and used a self-administered questionnaire to collect data from fast-food restaurant customers.…”

“…Furthermore, the current study argues that customer hedonic and utilitarian values from fast-food restaurants' digital technologies enhance customer well-being in various ways. First, restaurant technology gives customers peace of mind by tracking orders and timely preparing meals (Daradkeh et al, 2023). Second, the technologies enable customers to order meals that suit their nutritional needs, preferences and budget (Xu et al, 2020).…”

“…In today’s digital age, customers use digital technologies to enhance their dining experiences (Ozdemir et al , 2023). Hence, fast-food restaurants must comprehend their customer’s digital technology readiness to give the most outstanding digital customer experience (Daradkeh et al , 2023). Digital technology readiness is the willingness to adopt and apply new technologies to fulfill personal and professional goals (Na et al , 2021).…”

“…Digital technologies have rapidly replaced traditional procedures in fast-food restaurants (Daradkeh et al , 2023). These digital technologies help restaurants quickly track customer orders and reply (An et al , 2023).…”

“…Consequently, fast-food restaurants digitally transform their services, products and processes. Digital transformation is how a restaurant uses digital technologies to create a new business model that creates and retains value (Daradkeh et al , 2023). In addition to technology, digital transformation requires alignment of customers, strategy, people, culture, mentality, talent development and leadership (Lam and Law, 2019).…”