Tapping Restaurant Kiosks

McDonald's has added self-serve kiosks to almost all of its 14,000 locations, and Taco Bell is following suit.¹ Chains such as Chili's and Applebee's use tablets that enable guests to order drinks and desserts or pay their bill without calling the server over. Similarly, Panera has installed Fast Lane Kiosks,² in almost every location. With self-service kiosks becoming commonplace across the nation, do you need to add them to keep up with your competitors? Are cashiers and servers going to be out of a job?

Do I Need Restaurant Ordering Kiosks?

With restaurants having a difficult time securing enough employees, many operators look to kiosks as a possible solution to unsustainable operating costs.³ However, almost everyone involved in implementing kiosks, from the manufacturers to the brands using them, are adamant these machines do not replace human workers. While there may be fewer cashiers, there are just as many if not more employees needed to keep up with increased throughput.

"In fact, in restaurants currently testing our self-order kiosks, the scheduled number of restaurant crew is the same or higher as without kiosks in order to support the needs of our guests," claimed Adam Gracknik, a spokesperson for McDonald's Canada.⁴

That seems to be the case at Panera⁵ as well, where locations with kiosks actually have more employees than Panera cafes that have not been updated. That's at least in part because the kiosk-equipped operations now have table service. It may also be the busiest establishments were given kiosks first.

However, while you may not be able to reduce your workforce by installing kiosks, it appears you can increase sales. Several restaurants have reported a noticeable increase in sales⁶ after kiosks or digital apps were implemented. Possible reasons for this uptick in total sales per ticket are the pressure of social interaction and the potential for judgement of their eating habits is removed. Some customers feel more open to customizing their orders or choosing items they might not feel comfortable pronouncing. Additionally, ordering kiosks will always remember to ask guests if they'd like to add fries or make their meal a combo.

Do Customers Prefer Self-serve Kiosks?

The biggest question most restaurant owners have about kiosks is whether customers would even want to use them.⁷ A survey done by National Restaurant Association found over 65 percent of customers reported they would be more likely to frequent a restaurant that utilized ordering kiosks, with 30 percent reporting preference to a kiosk over a human cashier. According to other studies,⁸ customer opinions of kiosks fluctuate wildly based on a restaurant's demographic, though. If you target a more senior audience, kiosks may not be an investment you need to make yet, as only 34 percent of respondents 55 and up expressed interest in using a kiosk. On the other hand, if you draw a younger crowd, you may want to consider catering to the 71 percent of 18-to-34-year-olds that prefer kiosks.

The Software Advice survey also asked customers what features they valued most in self-service kiosks. The winners were order customization, pictures of menu items, and the ability to split the bill. The ability to view specials and discounts also ranked highly. Self-service kiosks at the table beat out kiosks available upon arrival by a landslide. This may be because of the pressure to order quickly when a line is building behind you – a kiosk at the table gives customers more time to ponder their options and explore the entire menu.

Will I Fall Behind Without Self-ordering Kiosks?

Are we heading into a future in which every restaurant has self-service kiosks, where we can order and pay for a meal without ever speaking? Are cashiers going extinct? Harvard Business School Assistant Professor of Business Administration Ryan Buell, who specializes in technology and operations management, doesn't think so.

"We're deeply social animals," he pointed out in Harvard Business Review. "If you think about the places where we're truly loyal, these are often places where we've had the opportunity to develop a relationship, right?"⁹

Some fast food franchisees where most sales are made using a drive-thru board are resisting the self-service kiosk trend. Self-serve kiosks are also a significant upfront investment, so smaller operators may not even have the option of adding them.¹⁰ Small businesses may find the expected benefits of a restaurant ordering kiosk don't exceed the certain costs. In the end, each restaurateur will need to assess what a self-service kiosk could add to his or her restaurant, and how customers will respond to the change.

Pros and Cons of Restaurant Kiosks

References

1. The Pros and Cons of Restaurant Self-service Kiosks. Upserve. Accessed January 2022.
2. Kiosks Keep Their Cool. Upserve. Accessed January 2022.
3. Why Self-service Technology Isn't Replacing Workers. Touch Dynamic. Accessed January 2022.
4. McDonald's Canada: Self-Serve Kiosks Not a Threat to Jobs. Huffington Post. Accessed January 2022.
5. Panera's Self-service Kiosks Provide Key to Growth. Fast Casual. Accessed January 2022.
6. Four Ways Self-order Kiosks Grow Restaurant Revenue. Hospitality Tech. Accessed January 2022.
7. 65 Percent of Customers Prefer Self-service Kiosks. Foodtec Solutions. Accessed January 2022.
8. Preferences for Self-service Point of Sale. Software Advice. Accessed January 2022.
9. How Self-service Kiosks Are Changing Customer Behavior. Harvard Business Review. Accessed January 2022.
10. Are Kiosks Too Expensive for Restaurants?. QSR Magazine. Accessed January 2022.