What restauranteur does not want to increase restaurant sales?
There are hundreds of online sites talking about how to increase restaurant sales: By throwing themed events, a consistent social media presence, marketing strategies, hiring more staff to increase speed of service, advertising, refurbish the venue, … And all these ideas are great, but they require time and a high money expenditure. What if you could increase restaurant sales in a quick way, investing a little amount of money and without having to worry about checking on something or someone continuously?
Does this sound good? Then keep reading us!
You may be thinking this sounds to good to be true, but the reality is that self-service kiosks have demonstrated to increase restaurant sales and improve venues efficiency. Do you need proof? We don’t judge you, it is always difficult to trust new technologies. We leave you some evidence so you can see how interactive kiosks are making a difference in food businesses.
Self-service kiosks revenue projected to reach 21.42 billion of dollars by 2027
Self-ordering kiosks are projected to almost double their market revenue by 2027; no small feat when you realise that they currently account for 30% of market share in China (in APAC region) and 40% in the US. According to a KBV research report, the European Kiosk market size will see a 26.7% Compounded Annual Growth Rate (CAGR) during 2018-2024 period.
Digital self-service kiosks are expected to grow with a CAGR of 9.1% worldwide since the last year and until 2029. These self-service solutions are designed to provide enhanced purchases and offer technological solutions to day-to-day issues. Queues in peak hours, people’s lack of time, preference for online processes and technology, staff shortage and threats from competitors in providing better customer experience and food quality are situations that restaurants need to tackle with.
How are self-ordering kiosks increasing restaurant sales?
Self-service kiosks can help increase sales in several ways. The first one is obvious; by allowing restaurants to serve more clients at the same time, kiosks speed up the ordering and payment process. When customers don’t have to wait as long to order, be served and pay, tables free up faster and can be ready quickly for the next customer.
Self-checkout kiosks also encourage customers to order more and in consequence, to spend more. Suggestions like sides, desserts, extra dishes and drinks always appear in the kiosk’s screens and we all know that it is difficult to say no to a foodie temptation. Need proof? A study found that customers order 30% more when using McDonalds self-service kiosk than what they would spend by ordering at the counter. In Taco Bell, the study found a 20% increase in customer expenditure.
Other studies suggest that food businesses using self-service kiosk can expect an average of 13% increase in expenditure per person. Some of this increase in sales may be attributed to the strategic food placement in the menu and the increase of visibility of some items that could be missed in a traditional menu.
There are also other customer behavioural aspects that impact self-service kiosks restaurant’s sales increase- read on!
Interactive kiosks are not just for fast-food restaurants!
That’s right! When we think about self-service kiosks we think about McDonalds, Taco Bell and fast-food chains. But the reality is that self-service options are being more implemented everyday in other kinds of food venues, such as fast-casual restaurants and bars.
Self-service is not synonym for cheap and plain anymore. In fact, self-service is becoming a trend and a smart way to operate a business. We are living a social and behavioural change, especially in fast-paced cities like London, where businesses need to adapt to people’s lifestyle and arising needs. People are time-poor, and as a result time is the new money.
Many casual dining restaurants are implementing digital self-service kiosks, as kiosks machines make ordering process faster and more efficient. Also worth noting is the self-service kiosk usage growth since the Covid-19 pandemic started, as they reduce face-to-face contact between customers and restaurant’s staff, and allow venues to operate safely.
Customers increasing preference for interactive kiosks
A poll made to 2000 UK residents concluded that 41% would use a self-service kiosk over a cashier. Privacy and order control are the main reasons why customers prefer self-service ordering. Studies showed that people feel less judged when ordering food through a self-service kiosk, as they don’t feel the social pressure of ordering too many things or ordering high calorie food. Also, people feel less rushed in ordering because they don’t order to a waiter that needs to take the order fast while serving other people or carrying out other tasks.
Language is another barrier that we sometimes don’t think about. In multicultural and diverse cities like London especially, customers may be constraint in ordering food in a language that is not their mother tongue, and the same can happen with restaurants with foreign workers. Miscommunication is the main reason for order mistakes and it can end up in customer dissatisfaction and a bad experience at your venue.
According to Givex, 57% of customers will choose to walk away if there was a queue of more than 5 people to order from a cashier. If in the queue there were more of 7 people , 71% of customers would leave, and if they were more than 10 people, 91% of clients would leave. A study carried out by Tillster states that 30% of customers would prefer to order from a self-ordering kiosk versus a cashier if the lines are of equal length.
With self-service kiosk, unlike the cashier service, the percentage of people abandoning the queue decreases. In addition, 60% of surveyed people said they would visit casual restaurants more often if self-service kiosks were offered.
There is a clear evidence that self-service kiosks have come to stay and that they are creating its path in the future of Hospitality. Food businesses should be able to see technology as an allied and embrace change, as change is the only constant in life.
Yolanda Mir
