Article

Kiosks take over c-stores

Popular self-service devices to move in on convenience stores.

November 13, 2007

The kiosks look the same, sound the same and run the same. The difference — they're not just in grocery and retail stores anymore. They're in convenience stores.

 

Of the two dozen or so self-service kiosks on display at the 2007 National Association of Convenience Stores trade show, only a handful were new innovations or products. For many of the companies showcasing their technologies at NACS, they chose to stick with their current successful machines and focused on getting more of them in convenience stores.

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More than 20,000 convenience store owners, distributors and retailers visited the food and technology exhibit floors Nov. 6-9 at the 2007 NACS show at the Georgia World Congress Center in Atlanta.   In the next few months leading into 2008, many companies are moving self-service into the convenience store space, most for the first time. Among those in c-stores are industry stalwarts Coinstar, redbox, NCR and Verifone.   "C-stores are one of the last frontiers for kiosks and the self-service space," said Guy Markus, an NCR solutions sales specialist.   For Brad McGuinness, Verifone's vice president of development, it was only a matter of time before kiosks were part of c-stores.   "Customers that enter convenience stores are looking for quick and fast service," McGuinness said. "There are periods of big consumer rush. It makes a perfect fit for a kiosk."   Verifone's iOrder Food Service Kiosk is a touchscreen countertop terminal designed specifically for c-store food services such as a deli counter. The kiosk solution is integrated with a store's POS system; it's not used as a standalone kiosk.   "The special sauce for our customers is our integration," McGuinness said. "We're not chasing after the standalone kiosk crowd."   Coinstar, which owns half of redbox while McDonald's owns the other half, showcased its DVD-rental kiosk. No longer content to place DVD-rental kiosks solely in McDonald's restaurants and grocery stores, Coinstar and redbox announced plans to deploy more than two dozen DVD-rental kiosks in convenience stores across the United States. Coinstar plans to have 300 of the kiosks in place by the end of 2007, says Ray Taddeo, Coinstar's regional vice president.   Taddeo cited high-volume traffic as the main reason Coinstar and other self-service companies are introducing themselves to the c-store industry.   "And we know that many of them are DVD renters," Taddeo said.   Redbox is the nation's leader in self-service DVD rentals, growing from 93,000 rentals in 2003 to more than 21 million in 2006. The company says it is on pace to reach 40 million rentals this year.   Coinstar also introduced a financial-services kiosk, which currently distributes prepaid cards at a handful of c-stores. Future versions of the kiosk will include a bill-payment application and money-transfer capabilities, Taddeo says.   Here's a look at some of the other self-service exhibits at the NACS show.   Corporate Safe Specialists touted its MenuSOS software module for its kiosk platform. MenuSOS is offered as an enhancement to the CSS Kiosk platform, which is the only kiosk system to accept credit/debit cards and cash, according to a news release. Notes are deposited directly into a safe and CSS Kiosk security can be made ready for armored car pick-up.    The MenuSOS module also can be used as a digital chalkboard to communicate daily specials and other information to customers.   Cummins-Allison Corp. touted its JetCoin self-service coin-counting kiosk. Thousands of the company's kiosks are found in banks, credit unions, casinos, groceries and c-stores, said Bob Tarragano, the company's product support manager.   The JetCoin offers a single- or dual-bin collection system and allows the deployer to use custom signage. A way to deposit coins directly into a personal bank account from the kiosk is in the works, Tarragano said.   Elan Financial Services and Infonox partnered at a NACS booth to exhibit their multifunctional ATM/kiosk called the Pass+ line. Once signed up, financial institutions, independent sales organizations and retailers can tap into Infonox's Active Payment Platform, while processing transactions through Elan. The ATM/kiosk line also comes preloaded with Infonox software.   The Pass+ kiosk features ATM functions, check cashing, bill payment, money transfers and stored value card capabilities. The kiosks are deployed at Speedway and U.S. Bank.   If your kiosk needs to be outside in a cold or warm climate, than the Fiscal Systems Inc. outdoor payment terminal is the kiosk for you, said Kevin Struthers, Fiscal's executive vice president. The kiosk, currently deployed at truck stops and travel plazas, contains a heater and a cooler, which makes extreme conditions no problem.   Struthers said protective hardware, along with a new wireless capability, has opened many possibilities for Fiscal's clients. Currently in the works for deployment include locations such as national parks and ticket kiosks outside of movie theaters.   InComm showcased its Payment Kiosk, a self-service solution for bill payment, prepaid wireless and music downloads. The kiosks require only 2 square feet of floor space and the kiosk can be customized to display unique signage.   "Many customers want self-service options for retail purchases, and our kiosks enable retailers to offer some of the industry's best products in an easy-to-use, self-service format," said Brooks Smith, InComm's president and CEO, in a news release.   One of the few new products on display came from NEC Corporation ofAmerica. The Panel-I 6 Pro is a Microsoft Windows-based mobile kiosk with touchscreen that keeps track of store inventory. The touchscreen also gives stores information including weather, contacts and messages. The weather info can be an important tool, said Barry Lanier, an NEC retail solutions account executive.   "If you know that it might rain one day, you could put umbrellas in the store to sell," Lanier said. "This can and will help c-store owners move more products and increase their revenue stream."   The Utopia solution, by Pan-Oston Company, was on display. The kiosk is a customizable self-checkout solution that allows lanes to operate in a manned or self-checkout mode. The machine allows customers to prepay for gas, receive a voucher and then scan that voucher at the pump, said Camille Hartmann, a Pan-Oston account executive. If you don't use the full amount of prepaid gas, you can return to the kiosk for a refund.   Radiant Systems Inc. continues to see tremendous growth in self-service adoption, particularly in the mid-tier retail and c-stores.   "It's becoming easier to develop an interface and implement it in all kinds of stores," said James Hervey, Radiant's products marketing manager.   Though Radiant's booth didn't have any new self-service products, Hervey did say the company has exciting plans for the NACStech trade show in May of 2008.