SXSW 2025: How AI-driven personalization and creative are shaping the future of QSR customer loyalty
The quick-service restaurant (QSR) industry is facing an unprecedented transformation. With heightened competition and evolving consumer expectations, traditional approaches to driving customer loyalty—centered around price, taste, and convenience—are no longer enough.
Today’s customers are looking for something more: a personalized, seamless experience that reflects their unique needs, preferences, and behaviors.
Recently at the Leadership in Brand Marketing Summit at SXSW, we had the opportunity to sit down with Ashley Travis, Senior Director, Digital & Channel Marketing at Pizza Hut, to discuss the brand’s exciting journey into AI-driven CRM and how the QSR industry is navigating these changes. The message was clear: AI isn’t just about operational efficiency; it’s about reshaping the entire customer experience and elevating loyalty in an industry with traditionally low retention rates.
But AI isn’t the only innovation making waves in the QSR space. The future of QSR is also about creativity—blending technology with bold, innovative thinking to engage customers in new and meaningful ways. This fusion of AI and creativity is at the heart of what it takes to win over today’s consumers and stand out in a crowded market.
AI-driven personalization: The key to true customer loyalty
Consumers today expect more than just a generic experience when interacting with brands. Whether they’re browsing Netflix, shopping on Amazon, or ordering from a restaurant, they’ve grown accustomed to highly personalized experiences that cater to their individual tastes, preferences, and behaviors.
This is where AI comes in. By leveraging AI tools to gather insights from massive amounts of data, brands can deliver truly personalized experiences to their customers, driving deeper engagement and stronger loyalty.
During our conversation at SXSW, Ashley highlighted how Pizza Hut is using AI to transform its CRM strategies. In the past, Pizza Hut, like many brands, relied on a batch-and-send approach to customer communication—essentially sending the same messages to everyone, regardless of individual preferences. But thanks to AI, the brand has moved toward 1:1 personalization, tailoring offers, promotions, and content to each customer’s specific behavior and preferences.
The results? Significant improvements in customer engagement and retention. Pizza Hut has successfully re-engaged at-risk customers with highly personalized offers, proving that AI-powered personalization is a key driver of loyalty in an industry where customer switching is high. And this is just the beginning. As AI continues to evolve, Pizza Hut plans to expand its use across other CRM touchpoints, including web and app channels, further enhancing the customer experience.
Creative innovation: Going beyond convenience and price
While AI is undoubtedly a game-changer in driving personalization, it’s only one piece of the puzzle. The other crucial element in today’s QSR landscape is creativity. In a world where consumers are bombarded with countless choices, convenience, and price simply aren’t enough to differentiate one brand from another. Brands need to think beyond the basics and create memorable, engaging experiences that resonate with customers.
This is where KFC’s transformation comes into play. We had the privilege of partnering with KFC on a similar journey to rethink what it means to engage customers in a meaningful way. KFC was once focused mainly on transactional online orders and relied on third-party platforms for delivery. But with consumer expectations shifting toward a more integrated, omnichannel experience, KFC recognized the need to rethink its digital strategy.
Through our partnership, KFC overhauled its entire digital presence, from a revamped website and mobile app to innovative drive-thru experiences. By blending the brand’s distinctive personality with the speed and convenience consumers expect today, KFC saw a 13% increase in same-store sales over a two-year period. We also drove a 40% open rate, $2.1 million in incremental revenue, and 1.2MM app downloads from KFC’s CRM. This transformation wasn’t just about technology; it was about creating an experience that matched the brand’s personality and connected with customers at every touchpoint.
Integrating AI with creativity for a seamless, personalized experience
The true magic happens when AI and creativity are brought together. AI allows brands to understand customer behavior on a deeper level, but creativity is what enables those insights to be translated into compelling, personalized experiences that truly resonate with customers.
At DEPT®, we focus on helping brands seamlessly integrate these two elements. For example, KFC’s app isn’t just a tool for placing orders—it’s an integral part of the customer experience. Features like real-time order tracking, personalized recommendations, and even a dynamic rewards system help foster a sense of connection between customers and the brand. It’s a seamless experience that integrates the best of both technology and creativity to create moments that feel personal and valuable.
Pizza Hut’s AI-powered CRM system also exemplifies how personalization and creativity can work together. With AI, the brand can deliver highly relevant offers to individual customers at the right time, in the right format. The AI tools help optimize messaging for maximum impact, allowing Pizza Hut to offer tailored experiences that go beyond simple promotions. It’s about creating an experience that feels personal, timely, and engaging—an experience that keeps customers coming back.
The future of the QSR experience
As we look ahead, the future of the QSR industry will hinge on brands’ ability to blend AI-driven personalization with creative innovation. Consumers are more demanding than ever before, and brands need to go beyond just offering great food—they need to offer an experience that feels uniquely tailored to each individual.
AI provides the data and insights needed to create these personalized experiences, but creativity is what allows brands to communicate those insights in ways that resonate. In a highly saturated QSR space, investing in your brand will make your CRM work harder. Whether through personalized offers, innovative digital tools, or memorable in-store experiences, brands that master both creativity and technology will be the ones that lead the charge in shaping what’s to come in the QSR industry.
The QSR industry is evolving rapidly, and the brands that will thrive are those that can merge AI-driven personalization with creative innovation. It’s not just about delivering food—it’s about delivering an experience that keeps customers engaged, loyal, and excited for what’s next. And that’s the real opportunity for the future of QSR.
[Disclaimer: DEPT® does not have a formal relationship with Pizza Hut.]
