Dec 8, 2023
Quick Service Restaurants (QSRs) are increasingly turning to self-serve kiosks, a trend backed by promising financial returns. Large players in the space like Shake Shack and McDonalds are pouring millions of dollars into their in-house development of self-serve technology. The adoption of this technology has been proven to positively impact the bottom line. Let's explore what benefits your QSR could attain by investing in this fast-growing technology.
Reduced Labor Costs
One of the most immediate impacts of self-serve kiosks is the reduction in labor costs. By automating the order-taking process, QSRs can operate with fewer front-of-house staff, particularly during peak hours. This reduction in labor expenses can significantly enhance the bottom line.
Increased Sales and Order Value
Self-serve kiosks have a proven track record of increasing the average order value (AOV). Customers using self-serve kiosks tend to spend 10-30% more per order. Customers often feel more comfortable and less rushed when placing orders through a kiosk, leading to more add-ons and upgrades. Kiosks can also be programmed to suggest complementary items, effectively upselling in a way that staff might not. [”]
Improved Order Accuracy and Customer Satisfaction
Order accuracy improves with self-serve kiosks, leading to fewer mistakes and waste. This accuracy enhances customer satisfaction, as orders are fulfilled correctly the first time, and reduces the cost associated with remaking incorrect orders.
Data Collection and Marketing Insights
Kiosks collect valuable data on customer preferences and buying habits. This data can inform menu adjustments, promotional strategies, and personalized marketing efforts, ultimately driving more sales.
Operational Efficiency and Market Growth
The self-service market is expected to reach $30.8 billion by 2024. Kiosks address labor shortages by providing 24/7 service, adding to their operational benefits. [”]
Real-Life Success Stories
Shake Shack and Panera Bread have reported significant financial improvements following the adoption of self-serve kiosks. Shake Shack found kiosks to be their most profitable channel, and Panera experienced an 11.5% surge in sales after implementing tablet kiosk ordering. [”]
The financial benefits of self-serve kiosks for QSRs are clear. From increased sales to improved efficiency and customer satisfaction, the investment in kiosk technology offers a substantial return, making it a strategic move for forward-thinking QSRs.