Article
Critical factors to consider when implementing kiosks in restaurants
Age demographics and type of restaurant are crucial in decision making for self-service POS systems, indicates new study.
December 19, 2014 by Nicole Troxell — Associate Editor, Networld Media Group
Self-service point-of-sale platforms have become integral to many kiosk systems within a variety of industries. From health care and automotive to supermarkets and nonprofits, a wide spectrum of markets are now using kiosks instead of traditional POS tools to allow customers to take action, such as ordering and paying, without requiring assistance. Plus, POS kiosks are freeing up staffs to focus on more immediate customer needs, increasing quality of service and efficiency.
Restaurant settings are no different – POS kiosks can be essential tools in enabling customers to have a more pleasurable dining experience. But are there certain features restaurant owners and managers should examine when contemplating the addition of this technology?
A new reportby Software Advice, an Austin, Texas-based advisory company for buyers of restaurant-related and other software, surveyed more than 1,900 U.S. adults to discover which features they desire when it comes to self-service POS systems. The results show a preference for POS platforms that customize orders and split bills between patrons, especially in casual and fast-casual restaurants.
Key findings in the study:
- About half of the report's respondents (47 percent) indicated a preference for self-service POS features that enable order customization, with 26 percent preferring to view pictures of menu items.
- Splitting the bill is the most preferred feature of POS systems at 39 percent; 31 percent were in favor of multiple payment integration.
- Respondents elected casual and fast casual as the most preferred restaurant venues for integrating self-service POS systems, at 45 percent and 35 percent respectively.
Willingness to Use Self-Service POS Services
However, it's a close call when it comes to consumer preference for self-service POS. Although 54 percent are willing to engage with these systems, 46 percent responded they would not. But experts contend self-service POS kiosks are indeed on the rise, according to the study.
"I see rapid [self-service] kiosk adoption across multiple verticals," said Chris Ciabarra, Cofounder and Chief Technology Officer for Revel Systems, an iPad-based POS system with self-service offerings. "They're already a standard in Asia and Europe, and this will be a natural progression to consumer behavior in the U.S," he said in the study.
Preferred features: customizing orders and splitting the bill
To further analyze the data, Software Advice filtered out respondents who were unwilling to use self-service POS and then administered a second survey to respondents who affirmed their most preferred features, dividing the questions among self-ordering and self-paying categories.
The study revealed that 47 percent favor POS systems with the ability to customize orders, 26 percent desire an interface with pictures of menu offerings and 19 percent prefer the ability to view discounts and specials.
Most Preferred Self-Ordering Features
Among other key findings, 39 percent favor POS platforms that allow customers to split the bill, followed by 31 percent in favor of a system that enables multiple payment forms, 16 percent who desire multiple receipt options and 12 percent in favor of a tip calculator.
"The bill-splitting and tip calculator are well-received," said Executive Vice President of TableSafe Gary McGrath, highlighting the importance of all four self-payment features. TableSafe is a full-service restaurant solution featuring RAIL, a self-payment device. "And now that Apple Pay is joining the fray, I wouldn’t be surprised if ‘multiple forms of payment’ climbs to the top of the list."
Self-service in casual and fast-casual
Survey respondents were evenly split when asked what type of restaurant they prefer to access self-order and self-pay, at 41 percent each.
However, 50 percent of participants prefer self-pay at casual restaurants, 29 percent favor fast casual, 13 percent both self-order and self-pay at fast food venues, while the same features are preferable for finedining by 6 percent and 8 percent, respectively.
Paul Motenko, co-chief executive officer of Stacked Restaurants, a full-service casual restaurant, said the surprising 13 percent of respondents who prefer self-service POS in fast-food establishments can be explained by the fact that the eateries are already characterized by a quick and streamlined ordering and payment process.
Preferred Type of Restaurant for Self-Service POS
"In a fine dining environment, I think the service level is almost as important, if not more so, than the meal itself," Motenko said. "There’s an expectation that if you're going to spend that kind of money, you're going to get a level of service that truly enhances the experience. If you're going to spend $50 on a steak, you want to talk to the guy about exactly how the steak is prepared, why it’s so good and what you can pair with it."
John Regal, chief marketing officer at Ziosk, a POS-integrated Web-enabled tablet provider, agrees with Motenko. He sees the need to tailor the integration of self-service technology around restaurant type.
"The use and benefit of technology differs by the industry segment it is servicing," he said in the study. "For example, with quick-service and fast-casual restaurant concepts, we see self-service kiosks that enable guests to order, customize and pay for their entire meal—expediting their entire experience without need of a server. However, for casual dining, the benefit of tabletop devices act as a server assistant (as opposed to replacing a server), giving them more time to interact with guests at the table."
Patrons want self-service at the table
The Software Advice study also asked respondents where they prefer to use self-service systems in restaurants. The majority – 88 percent -- indicated a preference for this technology at their table, while 12 percent indicated a preference for a kiosk upon arrival.
"[Having iPad kiosks] is not a good idea unless you have a very simple menu," Motenko said in the study. "The more complex the menu, the more uncomfortable it becomes to stand there and try to place an order while others are waiting in line behind you. There's also a learning curve to it—most people need some level of instruction, which is hard to do in a fast-casual environment."
Preferred Location for Using Self-Service POS System Factoring in age demographics
Restaurateurs need to factor in age demographics and type of restaurant when considering self-service POS systems, according to the study.
"If your establishment’s customer base includes young, middle-age and older-generation consumers, you’ll fail if your new [self-service POS] technology makes one or two of the segments happy, but alienates the others," said Joe Snell, CEO of TableSafe, a pay-at-the-table solution.
Self-Ordering Preference by Age
Holiday implications
"This holiday season, as people are out and about shopping and traveling, it’s probable that restaurants will experience an influx of new customers. Given this, it’s imperative restaurant staff to be assigned to help customers use self-service kiosks. It can be daunting for those unfamiliar with the technology, so having someone there to help would increase customer experiences and expedite the ordering process," said POS researcher Justin Guinn of Software Advice.
"Another way to leverage self-service POS kiosks in restaurants this holiday season is through customizability and upsells. Nearly half of our respondents indicated that the ability to customize orders is their most-preferred self-service feature. Given this, restaurants could look for angles to incorporate special 'holiday' ingredients into their menu. The same is true for offering special holiday upselling opportunities. Restaurants can include holiday-themed upsell options throughout the kiosk ordering process," Guinn said.Enhancing the customer experience
Results of the survey demonstrate that order customization, pictures of menu items, splitting the bill and multiple payment options are what patrons want from self-service restaurant POS systems. The study also shows that consumers would most like to see self-service POS in casual and fast casual restaurants and that the 18-to-34 age demographic is most likely to use the machines.
Restaurant operators, however, should adopt this technology in a way that best enhances their customer experience, Software Advice concludes -- not merely for saving money on labor costs or for novelty.
"Guests should feel like they received as much attention as at a full-service restaurant," Motenko said. "My philosophy is that you should never do things that are primarily to your benefit unless they're to the guests' benefit as well."
About Nicole Troxell
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