Popular fast-food establishments such as Burger King, Shake Shack, and KFC are intensifying their focus on digital order kiosks. However, be cautious as this may lead to increased spending.
Fast-food giants in the United States are swiftly rolling out more digital order kiosks across their restaurants. This strategy is aimed at cutting labor costs, improving order accuracy, and encouraging customers to spend more money. Here’s a detailed breakdown of what’s happening:
Expansion Plans:
Major fast-food chains like Burger King, Shake Shack, and KFC are planning extensive expansions of their digital order kiosk systems. Burger King, for instance, saw tremendous results from a pilot program and is now aiming for a widespread deployment of kiosks in its US locations. Shake Shack has already introduced kiosks to nearly all of its US company-operated restaurants and has reported a significant increase in kiosk sales.
Benefits for Restaurants:
Kiosks offer several advantages for restaurants. They reduce labor costs, allowing restaurants to either hire fewer staff or deploy them to other areas of the business. With rising wages in the industry, there’s a growing need for labor productivity savings, and kiosks provide a solution by enabling staff to focus on more value-added activities. Additionally, kiosks improve order accuracy, facilitate menu adjustments, and can be used to promote deals when not in use.
Increased Spending:
Customers tend to spend more money when ordering through kiosks. They are more likely to add drinks, sides, or costly customizations to their orders. Shake Shack reported that customers who ordered through kiosks spent nearly 10% more on average compared to those who ordered at cashiers. Kiosks are designed to upsell customers on larger items or additional menu items, contributing to higher average checks.
Customer Acceptance:
While some restaurants initially hesitated to introduce kiosks, consumer acceptance has grown significantly in recent years. The pandemic has accelerated this trend, with customers becoming more comfortable with digital ordering. Millennials and Gen Z, in particular, are accustomed to digital technology and find it easy to use kiosks. As a result, fast-food chains are increasingly adopting digital ordering channels as a key component of their business strategy.
Future Outlook:
Executives in the fast-food industry see digital order kiosks as essential for the future of their businesses. Burger King’s parent company aims to transition its business to “100% digital” in the long term. This means expanding digital ordering channels to encompass all order-taking processes. Despite the current low percentage of sales attributed to digital orders, the goal is to shift the majority of ordering to digital channels over time.
In summary, the rapid deployment of digital order kiosks by major fast-food chains in the US reflects a strategic move to enhance efficiency, increase sales, and meet evolving customer preferences in the digital age.
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