If there’s one thing you can say about restaurant kiosks, it’s that they are impossible to ignore. This technology has been front-and-center at some of the largest and most successful quick service restaurants (QSRs) for quite some time.
While it’s easy for the casual observer to dismiss QSR kiosks as a novelty or cost-cutting measure, major players in Foodservice understand that kiosks are set to play a critical role in the way they engage customers, build brand loyalty, promote new products, and improve operational efficiencies. Technology options now factor into restaurant choices for about one-quarter of consumers, so it shouldn’t surprise anyone that many major QSR and Fast Casual restaurants such as McDonald’s, Subway, Panera and Wendy’s all have kiosks throughout their stores.
No, the real story here isn’t that kiosk restaurant technology is gaining traction — it’s why. What are the real factors that are leading restaurant operators to change the way they interact with customers, and why should your business consider doing the same? To answer, we need to dive deeper into the business case for kiosks.
Kiosks Will Bring in New Customers (i.e. Millennials and Gen Z)
When the largest demographic on earth shows a strong preference for wanting digital self-service, you’d be wise to cater to it (pardon the pun). Recent surveys have shown that 61% of millennial consumers are likely to place an order using a self-service ordering terminal (if provided with the option), while 62% would place an order online. As one industry expert recently said, “The language of the millennials is digital.”
Indeed, it’s not surprising that the generation “raised by technology” would prefer this type of digital, customizable ordering experience. What’s surprising is that QSRs haven’t acted faster in providing this alternative. These brands spend billions marketing and advertising to millennials, so kiosks can and should be used to augment these efforts.
Of course, once you’ve acquired a new customer, you’ve now got to keep her coming back, which leads to our next point...
Kiosks Will Increase Customer Satisfaction (oh, and revenue)
It doesn’t always take a market research firm to pinpoint what prevents a one-time customer from becoming a repeat customer. For QSRs, it basically boils down to three common complaints:
The more control customers have over their experience, the happier they will be, and the more likely they are to return. This is true for every business, but it’s especially true for QSRs, where the percent of repeat customers is exceptionally high. As you can see from the above examples, kiosks can play a significant role in eliminating (or at least mitigating) the source for most customer complaints.
What about revenue? For one thing, satisfied customers will be more inclined to come back to your business and recommend it to their friends. But self-service kiosks can also result in higher ticket sizes on average for each visit. How? Kiosks make it easier for customers to review all of their choices. And a kiosk can make suggestions on every screen, so customers are more likely to discover new menu items and add-ons. There are also many who believe that guests are more likely to upsize or add a desert than when they don’t have to make the request to a live person.
Kiosks Will Improve Efficiency (but not by firing everyone)
There’s a huge misconception that the QSR industry would like to do away with all human employees at some point, and the cynics view self-serve kiosks as a step in that direction. Yes, all businesses want to reduce costs, but ultimately kiosks can be a way to hire more people — just not necessarily cashiers. Here’s what Blaine Hurst, Panera’s Chief Transformation & Growth Officer, had to say on the matter (emphasis added):
"The consumer-facing technology results in labor savings for Panera; these hours are redeployed in the cafe. In fact, in most cases, Panera increases the number of associate hours in our cafes; and they see increases in overall guest satisfaction.”
Properly implemented, kiosks can shift a significant percentage of employee costs away from order taking and towards order delivery. When the former accounts for roughly 30% of a QSRs total cost, any improvement is going to be significant.
Self-service technology also has application with team members. Staff can use tablets to help customers in the store or the drive thru to help alleviate wait times. The result is a more efficient use of time for employees as well as customers.
What Qualities Should You Look for in a Self-Serve Kiosk?
Earlier, we mentioned the benefits a custom self-serve kiosk can have for your business provided that it's intuitive and fun for customers to use. But what makes the difference between a self-service experience that customers love and one that will leave them frustrated? And what's the best fit for your business? Here are some of the top qualities you should consider when you evaluate kiosks to determine which is best for you:
While kiosks can have benefits for businesses in nearly any industry, there's no such thing as a one-size-fits-all kiosk solution. You know your business and your customers better than anyone, and once you consider the above factors, you're sure to find the right solution for your company.
Final Thoughts
It needs to be stressed that a kiosk itself will not help you reap these benefits on its own. A kiosk that does not make it easier for consumers to place an order will not draw them into your restaurant. If you’re unaware of your most common complaints, a kiosk will do little to improve the customer experience in any measurable way. And without the right support staff, kiosks can actually make your business less efficient (and less profitable).
Like any digital solution, kiosks are only going to deliver lasting value if they are intuitive, fast, and fun to use — and if they are designed by people with insight into the business. But when designed and delivered successfully, they have the potential to make a meaningful impact.
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