Article

Fast casual, QSR dining chains opt-in for self-service technology

Kiosks generate larger tickets for restaurants but may not be right for all customers.

September 30, 2010

Several operators of Fast Casual and Quick Service Restaurants (QSR) are rolling out kiosks and self-service technology as a fresh alternative to their traditional behind-the-counter approach to taking orders and payments from customers.

Some are finding that self-service can be especially appealing to a younger crowd. However, kiosks can appear as a contradiction to friendly customer interface, which has become a standard for the QSR industry.

Adding another dimension to the debate is the growth of the iPad device, which can be used as a portable, order-taking tool.

Addition to Personal Service

Bob Phibbs, retail expert and author of “The Retail’s Guide to Growing Your Business,” cautions that kiosks in restaurants should be considered an addition to personal service, not a replacement. Further, the kiosks should be simple to use so restaurant owners don’t have to give customers ‘how to’ training.

“Direct customer contact cannot be matched by self-service technology. If that is the market you’re going into, you should expect attracting a more analytical customer," he said.

Before writing off the technology, consider that kiosks may offer benefits as well, said Brian Darr, media representative with restaurant research firm Datassential.

"While contact and interacting is certainly important in an operation it is not the only aspect. There could be a number of other factors that restaurants deliver on," he said.

For instance, self-ordering through kiosk can lead to higher average tickets, said OrderTalk chief executive officer Patrick Eldon. “Fast casual chains see a marked increase in average order value due to built in cross- and up-selling techniques, as well as suggestive selling which would be impossible to do in person. At the same time, consumers feel less rushed and spend more time browsing menu items.”

The technology also gives restaurant operators the opportunity to learn more about their customers, he notes. “By encouraging consumers to register for self service, restaurants are able to introduce data: e.g. track spending habits of customers, order frequency, order types, and so on. This in turn feeds into targeted marketing based on data collected," Eldon said.

Trial and Achievement

Several restaurant firms choosing to integrate kiosks or iPad tablet technology into QSR and fast casual are finding some success. QSR chains Subway and Jack in the Box along with a number of sandwich shops and bakery cafes are using self-service.

“Operators say the trick is getting customers to try kiosks. In some instances they are using incentives like a free item or some type of upgrade," Darr said.  

Jack in the Box is using traditional kiosk stands because it believes the technology increases customer enjoyment and experience.

“Jack in the Box has found that some customers love interacting with the kiosk versus the cashier, especially in restaurants with a large student population. Teenagers who are used to talking to each other via text messaging are much more comfortable using a kiosk to place their orders,” said Randy Carmical, communications manager of Jack in the Box.

Darr said the feedback received from operators is that once customers try self-service, they like kiosk ordering, and believe the order, accuracy and speed of services improved.

Jack in the Box has also noticed increased average check from self-service ordering because the customer sees a greater menu variety including check builders such as smoothies, shakes, and desserts, Carmical said.

The kiosk vibe?

Some industry observers argue that kiosks and self-service give off a colder vibe in what should be a warm and sociable environment.

"Most people enjoy meeting other people and you can easily be offending other people by insisting the customer use a kiosk. The reason people go out to eat is to have a personal connection," Phibbs said.  

That’s why, say some restaurant operators, that self-service implementation should be planned carefully, with location and demographics in mind.

“We do not use kiosks in all our restaurants, but target restaurants with busy counter business versus the drive thru, and the right demographics (near students). But self-service is here to stay and has taken a strong hold in many industries. The late adopter to self-service will be missing out on the benefits that the more innovative restaurants enjoy,” Carmical said.

Incorporating the iPad

Some QSR and fast casual chains are offering a form of self-service to customers through the iPad technology. Chains such as Au Bon Pain and service firm OrderTalk have opted for the iPad as a linebuster with staff using the device to take customer orders and payments on the floor.

"Staff enjoy the ability to get out from behind the counter and interact with consumers on the floor," Eldon said. "It also removes the great divide of the counter between employees and customers."