September 6, 2005
C-store operators are always looking to add new products and services to beef up their bottom lines. Another worthwhile approach is taking an existing service and refining the workflow to get every bit of profit out of something you're already doing well.
Many storeowners find their deli to be a profitable venture, but a bit of a headache in terms of time spent and personnel needed. That second issue is particularly tricky, given how hard it is to find good help.
"In the fast food industry, and in c-store, supermarket and big-box retail, all of those companies are looking for help on a regular basis," said Ronald Bowers, senior vice president of business development for Frank Mayer & Associates. "Some of them have turnover as much as 1,000 percent."
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Kiosks in c-store delis have an added benefit apart from the reduction in employee costs: Wait times tend to be shorter, which means lines move much quicker, which makes customers happier.
"A long line means that customers have to wait and become upset or they simply leave," said Peter Kaszycki, president of Suwanee, Geo.-based Pro-Tech. "Also, when the line is long, the order-taker does not take the time to upsell. Many owners make a significant margin on the upsell - that's why they push it so much with advertising and promotions. However, when they have the most customers in the store they have the least amount of time to do the upsell."
"The response has been very positive," said a spokesperson for the Subway restaurant chain, which is beginning to implement kiosks from Pro-Tech in its stores. "The customers used it once and then used it again when they came back in, with no assistance. One customer in particular used the kiosk the first day and then went back to his office and told everyone about this new ordering option. The next day, he was back with a bunch of his co-workers and he was actually showing them how to use the kiosk, proud that he discovered this new technology."
Kaszycki said businesspeople are not necessarily looking for fancy technology, they simply want to reduce their costs. He added that a kiosk can increase customer satisfaction, reduce labor issues and increase the bottom line - and on Pro-Tech models, the kiosk can pay for itself within four to six months.
"It is an employee that never calls in sick, never has a 'bad-hair' day, and always - and I mean always - offers the upsell through both software and voice-over prompts," Kaszycki said. He added that tests with his company's kiosks have shown upsells of 15 percent to 20 percent, "which is huge, since these are high-margin items."