Unlike kiosks’ rapid deployments in airports, grocery stores and casinos, F&B seems to adopt kiosk lately. As shown in the below figure, where we survey those international restaurant chains about when they start experimenting with kiosks (from PoC, PoS, to PoB) and when they decide to roll out their self-service kiosk globally (mass deployment).
Global F&B Chains on KIOSK Pilot/Deployment in the past decade
Some interesting findings could be summarized here: the bigger the brand is the earlier it prepares and the later it deploys. Why? According to our installation experience in Asia pacific . Kiosk requires tons of advance preparation on proof-of-concept stage and somewhat adjustment according to user, staff and owner feedback. Thus, user-friendly hardware, simple software and even thorough service design does matter.
Further, we found at least three advantages for motivating kiosk deployment to earn more than what we pay for it in the long term.
three advantages for motivating kiosk deployment
1. Reduce cost: time is money
a. cashless payment Integration maximizes efficiency of routine transaction and revenue sharing by financial units.
b. free up time for staff from ordering to concentrate on product and service, which also avoids human-error of hearing and ordering.
2. Create value: experience matters
a. data-driven promotion ads could suitably recommend consumers and also create useful interaction to meet satisfaction.
b. well-designed menu motivates customers browse products as their wishes, which enhances upselling and cross-selling capability
3. Data is brick: insight is castle and AI is future
a. transaction behavior data provides future insight from visitors to consumers (why customer buy; what they buy, how frequent they buy, when and where they prefer to buy, and so on.)
b. software and hardware could be optimized along with technology evolves: next generation application like AR/VR, 5G, and remote control service. Thus, this kiosk terminal provide its first version and could also be customized for future scenario. That helps owner to know deeper your customers gradually. Finally, these operation optimization drives possibility of automation, which meets the next-step threshold: artificial intelligence. KIOSK could be placed anywhere where it require your request and meet your need according to its computing insight.
What evidences prove more on KIOSK?
Some studies also provides empirical results on how Kiosk makes different comparing to traditional cashier only.
New research from Tillster shows that 25% of restaurant customers have used a self-ordering kiosk at a restaurant within the past three months—up 7% year-over-year. Further, more than 65% of customers said they would visit a restaurant more often if self-service kiosks were offered, and 30% of customers prefer to order from a kiosk versus a cashier if the lines were of equal length.
The PYMNTS Unattended Retail Tracker puts that number even higher, reporting that the increase in consumer spending when ordering through self-service kiosks is 30%.
Don’t expect this momentum to slow anytime soon. According to the National Restaurant Association State of the Industry 2019 report, 41% of quick-service operators plan to devote more resources to tablets, iPads, tableside ordering systems, or self-serve kiosks this year.
And, according to the Tillster report, a whopping 67% of customers plan to place an order with a self-service kiosk within the next year—a 25% increase over the previous year.
Last, we quotes some C-level executives comments from studies for those adopting KIOSK well.
“We have kiosks in about two-thirds of our company restaurants. We are seeing benefits and are trying to convince the rest of the system to make the capital investment because we think it has a return,” Wendy’s CFO Gunther Plosch said during the call.
“With kiosks, we are able to be smart about what menu items to showcase, which makes it easier to upsell or cross-sell,” Hope Neiman, chief marketing officer at Tillster, said. “When you get smarter about how to showcase your menu, you’re not just growing your topline, but also your bottom line and that’s where this technology thrives.”
“According to our data, if you’re standing in front of a kiosk, you feel like no one is judging you if you choose to add a shake or get a large combo,” Nieman said. “There is as much as a 5% difference there.”
KFC CFO Gavin Felder said “kiosks help ease order anxiety, which explains why they tend to order more through the technology.”
“Digital capabilities change by the day and impact what customers ultimately expect from us,” McDonalds CEO Easterbrook said on the earnings call. “The technological ecosystem we’re building will enable us to meet these rising expectations, positioning us for new opportunities to elevate and transform the customer experience.”
Notably, McDonald’s Q2 global sales grew by 6.5%, the most in seven years for the company.
In short, Kiosk shows its rising trend among well-known restaurant brands and consumers are getting used to adopt it as their first option while ordering. Kiosk may not be the first priority or right solution for all restaurants, but it indeed provides brand’s omni-channel experience and it’s profitable for operation.
Partner Tech works with our solution group alliance Lafresh, Epoint Systems, and Benq Business Solution to support our customers in Asia Pacific deploying their Kiosk solutions. Some key experiences will be shared soon in near future: why they make progress and how to prepare for customizing your business-unique Kiosk.
Partner Tech’s Kiosk footprints in APAC