What QSRs need to know about ultrafast electric vehicle charging

Widespread adoption of electric vehicles (EVs) will lead to the biggest overhaul of American transportation and infrastructure since the 1950s when Eisenhower launched the interstate highway system. Quick service restaurants (QSRs) that embrace EVs by adopting EV are poised to improve their business operations, brand awareness and overall success.

Three chief benefits QSRs should be aware of if they decide to adopt EV charging are: ease and cost of deployment; revenue opportunities, and brand loyalty. For example, consumers are increasingly directing their spending to socially conscious corporations. By installing ultrafast chargers, QSRs can attract EV drivers, a fast growing segment of coveted, affluent consumers.

Today about two percent of the vehicles on the road in the U.S. are electric. But according to the International Energy Agency, that number will rise to 50% by 2030. EVs will revolutionize transportation infrastructure because powering them will require a massive network of public ultrafast chargers. While the proposed federal infrastructure bill aims to have 500,000 public charging stations installed nationwide, the real need is likely much higher.

While some EV drivers can use slow (Level 2) chargers at their home or office, those take upwards of six to ten hours to fully charge a car. When there are tens of millions of EVs on the road, drivers will demand the convenience of powering up in approximately the amount of time it takes to fill up a tank. These drivers will rely on high-power ultrafast chargers, which reduce charging times to under twenty minutes.

The current generation of ultrafast chargers can deliver 100 miles of charge in 10 minutes. Just enough time to run into a QSR for a tasty meal. However, ultrafast charging requires an enormous amount of power, and retail locations simply don't have the utility infrastructure to support that level of power.

The infrastructure upgrades needed to connect most ultrafast chargers are expensive and often require buy-in from utilities and local governments, which can easily take months. Altering the existing grid to power hundreds of thousands of chargers is not a feasible option.

Fortunately, newly developed technologies address these two main hurdles to EV adoption. For example, our team is working on technology solutions that leverage an integrated battery system to deliver high-power ultrafast charging using a retail site's existing low-power utility service. This type of innovation lowers costs and enables rapid deployment.

Now that QSR operators can install ultrafast chargers, there are several factors to consider:

Ease and cost of deployment

Ultrafast chargers can cost over $100,000 to install, including the cost of local grid upgrades. In most cases, utilities need to be involved, which can complicate and add costs to the installation process. However, an independent study by the Electric Power Research Institute found EV charging companies can save operators of tens of thousands on installation. Additionally, its peak-shaving and load shifting capabilities can reduce energy fees and demand charges by $30,000 annually, lowering operating costs by 70%.

Revenue opportunities

Installing ultrafast chargers enables QSRs to attract and retain customers at minimal cost. EV charging stations appear on a national network. So when drivers need to power up, their GPS and map applications direct them to your restaurant at no cost to you. Drivers appreciate the convenience of being able to eat and power up without making two stops.

EV drivers are appealing customers since on average they make twice the national income. And they'll be "double-dipping" at your restaurant, buying food and power for their car. The revenue potential from ultrafast charging currently equates to approximately $1 per minute.

Brand loyalty

Once customers have enjoyed the experience of eating and charging at the same time, QSRs can use loyalty programs and other promotions to keep them coming back. For QSRs, ultrafast charging offers an opportunity to associate their brand with innovative technology and environmental stewardship. In Sweden, for example, some McDonald's restaurants have installed chargers to attract customers and burnish their brand.