December 18, 2011 by Kim Williams — Reporter, NetWorld Alliance
The use of self-service solutions in restaurants has been steadily picking up over the past few years. Several chains, including Jack in the Boxand the Blazing Onion Burger Company, report success when it comes to customers ordering and paying via kiosk. However, Fresh to Order, a self-described fine fast casual restaurant chain, is using kiosks for not only order taking and at the POS, but also has a way to provide health and nutrition info to customers.
The restaurant recently deployed SmartMenu, an integrated ordering and selling solution created by UsableHealth, that uses an iPad tablet computer to allow guests to customize meals based on dietary needs and taste preferences.
Suggestions are tailored to customers who input various dietary requirements, including daily caloric intake, allergies, dietary needs associated with high blood pressure, diabetes, and more.
"Customers can see how the restaurant organizes its food into categories and focus their search, so you can look for vegetarian or vegan options, or items that have a specific protein, like chicken," said Chad Bonner, co-founder and chief strategy officer, UsableHealth. "It's a very intuitive experience."
Efficiency, better customer experience
UsableHealth focused on making the ordering process intuitive to make it an easy-to-use experience for a broad range of customers, Bonner said.
In Fresh to Order, for example, the iPad tablet is encased in a surround and positioned on the counter for walk-up ordering. After completing their order, customers can pay at the terminal by swiping their credit card.
"We've also been experimenting with a line-busting ordering station positioned at the front door with a sign that literally says 'avoid the line,'" said Jesse Gideon, vice president of operations, Fresh to Order.
Bonner said they haven't yet been able to generate data that tracks return visits, but they have administered surveys asking customers if they'd be more likely to return to the restaurant based on the ordering experience.
"Four out of 10 users said they were more likely to come back based solely on their improved ordering experience with the SmartMenu," Bonner said. "They expressed feelings about being able to make more informed decisions during ordering and not having to wait in line as long."
Tin Drum Asia Café owner Steven Chan implemented the system partly because the timing was right — people are now more familiar with touchscreen tablet computers.
"From an operator point of view, it's been fantastic because it eliminates the chances of making mistakes on our part, and it also provides health information to the customer that the staff may not be able to provide right away," Chan said. "It's super convenient for a high volume establishment like ours."
UsableHealth tested a few tablet computers before deciding on the iPad because of its user-friendly touchscreen approach. Bonner said he expressed apprehension at first about how older adults might react to the iPad and whether or not they'd be willing to adopt it.
"It's a great interface and has a large screen, so it's easy to read," Bonner said. "It's been surprising to us that some of the people most excited to use the SmartMenu have been older adults. For them, there's a bit of a 'wow' factor. Some of the best feedback and endorsements we've received have been from older people."
Cost and ROI potential
SmartMenu offers three plans, according to Jiten Chhabra, founder and CEO of UsableHealth. Restaurant owners can choose a monthly subscription plan, which has no upfront costs and a fixed monthly subscription of $200 per location. Another option is to pay an upfront cost of $1,200 per location, and they keep a percentage of SmartMenu sales. The last option combines the first two with restaurateurs paying an upfront cost of $500 per location, keeping a percentage of the SmartMenu sales as long as there is a minimum of $50 per month.
Fresh to Order experienced a return on investment within the first six months after installing the kiosks, Gideon said.
"The SmartMenu has reduced front-of-house labor costs and impacted our food costs. Because guests are ordering for themselves, we've had fewer mistakes and less food having to be re-made or comped, so we've had a reduction in food costs," Gideon said.
The SmartMenu also utilizes suggestive selling for various add-ons. So, if someone orders a meal at Fresh to Order, the SmartMenu will suggest a drink, dessert or an additional side or upgraded side feature as well.
"We've had a positive increase in check averages, definitely," Gideon said. "It's been enough of an increase to warrant putting in additional kiosks and recommending the kiosks to our franchisees."
According to Chan, check averages at Tin Drum Asia Cafe have been increased $2 per check since implementing the SmartMenu. With an average daily lunch volume of 350 people, that's an increase in sales of $700 per day.
Chan said the reason for the significant increase is two-fold. The first is the up-selling function that suggests add-ons, such as side items, and the second is the health-matching section of the menu that drives a lot of combo options.
"The customers enjoy the experience and are glad to order more, especially if the food they eat is better for their bodies," Chan said.
Read more about self-service options in the restaurant industry.
Cherryh Butler contributed to the story.