The Growing Use of Kiosks in Restaurants: Boosting Sales and Customer Experience
Introduction to Restaurant Kiosks
In recent years, many restaurant chains, including well-known names like Panera and Shake Shack, have introduced self-service kiosks for ordering. These machines have sparked discussions regarding their potential to enhance customer experience while simultaneously increasing sales figures.
Sales Impact of Kiosks
Research conducted by Technomic, a food service research firm, indicates that average order values tend to rise when customers place their orders via kiosks. Specifically, quick-service restaurants have recorded a sales increase of approximately 8%, while fast-casual establishments report an even more significant uplift of 15%.
Reasons Behind Increased Spending
Several factors contribute to this increase in spending:
- Kiosks consistently prompt upselling opportunities without the limitations faced by staff who may be overwhelmed during busy periods.
- Visually appealing food imagery displayed on the kiosks can entice customers to opt for additional items.
- Customers may feel less self-conscious about their selections when ordering through a machine, as opposed to interacting with a cashier.
Expert Insights and Observations
Industry leaders have spoken positively about the kiosks’ impact on business. Shake Shack’s CEO Robert Lynch noted that kiosks have become “an amazing contributor” to their revenue. The company anticipates sales growth in the high single-digit percentage range thanks to these technological enhancements.
Similarly, brands such as Jack in the Box and Sweetgreen have seen promising sales increases of at least 10% following the implementation of kiosk technology.
Consumer Behavior and Kiosk Usage
However, according to Lu Lu, an associate professor at Temple University, the effectiveness of kiosks may diminish in high-traffic situations. Customers may feel pressured to make quick decisions, leading to less browsing time and ultimately fewer purchases.
As Lu noted, “They tend to spend less time browsing through menu options, and eventually, they order less.”
Attracting Different Customer Segments
Research indicates that kiosks may appeal particularly to certain demographics, including higher-income individuals and larger groups. These customers are often more inclined to purchase extras, such as sides and desserts, whether they’re ordering at the counter or through a machine.
Operational Considerations for Restaurants
In addition to driving sales, kiosks may alleviate some pressure on staff, a noticeable advantage in current labor markets. However, results regarding their impact on staffing levels have been mixed across the industry.
Patrice Leys, CEO of FGNY, which operates Five Guys franchises, has observed a 15% sales increase since integrating kiosks. Leys emphasizes a careful rollout strategy to maintain the brand’s “very homey feel.”
Conclusion: The Future of Kiosk Technology in Dining
As kiosk technology continues to evolve, its ability to enhance both customer experience and sales performance may shape the future landscape of the restaurant industry. With a focus on balancing efficiency and personalized service, businesses will need to carefully assess their approach to kiosk implementation.