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The Spoon

Daily news and analysis about the food tech revolution

self-order kiosks

Three Ways Self-Ordering Technology is Revolutionizing Top QSRs (Sponsored Post)

The labor shortage, a facet of the post-pandemic economy, hurt the restaurant industry across verticals as more businesses were forced to close their doors to account for the lack of employees. However, restaurants that embraced self-ordering technology fared better throughout the pandemic, as self-ordering technology positively impacted revenue, franchising, and restaurant design.

This is evidenced by top QSRs that meet consumers where they want to order– be it online, at a kiosk, or using a tableside QR code. Franchises are increasingly relying on technology to automate operations and drive business success in their restaurants. Incorporating technology, such as the Samsung kiosk powered by GRUBBRR, digital menu boards, and online ordering into your restaurant design can have numerous long-term benefits.

Bhavin Asher, founder and CTO of GRUBBRR, a leading self-ordering technologies company, explained, “the pandemic made it clear that the restaurants with automation are most poised to stay open because they meet consumers where they want to order. With demand for omnichannel dining increasing, the restaurants that integrate their physical and digital channels will perform best.”

Increase Earnings

Based on an analysis of several restaurant brands’ Q4 earnings reports, it is clear that automation is the key to long-term success. Chipotle’s Q4 earnings and 2021 results demonstrate this point. The results for the full year 2021 show that digital sales grew 24.7% to $3.4 billion and represented 45.6% of total sales.

In other words, about half of all orders at Chipotle were from order ahead digital transactions, and as such the brand has focused their efforts on growing this segment of the business. This showcases that the industry shift towards digitization directly results in increased sales and revenue. QSR’s like Chipotle are benefitting from new technologies and digitization, and this trend is not new within the restaurant industry.

Chipotle Chairman and Chief Executive Officer Brian Niccol credits the use of automation for his company’s success. “Moving forward, we believe expanding access and convenience through our digital ecosystem, accelerating unit growth, and continuing to develop and support our restaurant employees, will put us in a much stronger competitive position,” Niccol said.

Chipotle has also changed its business model to focus more on drive-thrus. It estimates that greater than 80% of new restaurants will have a “Chipotlane,” including their 3,000th restaurant in Phoenix, Arizona. Chipotlanes offer higher revenue margins than a traditional Chipotle make-line and dining room. Consumers spend on average 12%-20% more when they order with their eyes and with touch from a self-ordering device than when ordering from a cashier.

Strengthen Franchising

For franchisors looking to expand, technology presents a unique opportunity to entice franchisees and strengthen the brand image. One of the first and most obvious benefits of implementing technology, such as the Samsung kiosk powered by GRUBBRR, for franchisors is strengthening the restaurant brand. In a world that is becoming increasingly digital, consumers are likely to experience your brand through digital touchpoints before setting foot in a physical location. And, when they do experience your brand at a physical location, it is imperative that the experience is similar to that of your digital brand.

Consistency is key to developing the brand and building a customer base when establishing a restaurant. Your loyal customers trust your brand and expect a high level of consistency and customer experience no matter which location they visit. By introducing new Samsung kiosk technology at one franchise location, you’re implicitly promising that they can enjoy it at every location.

The Samsung kiosk powered by GRUBBRR allows restaurants to streamline efficiency, leading to a reduction in average transaction time. By rolling out this technology across locations, franchisees are set up for success, as self-ordering technology is proven to increase revenue, decrease operating costs (including labor spending), and improve the customer experience.

For instance, the average cost of a cashier at a quick service restaurant that is open 15 hours per day. With all  associated carrying costs, this position will cost more than $6,000 per month. On the other hand, the Samsung kiosk powered by GRUBBRR is a fraction of that price. In addition, kiosks always show up, don’t call in sick, and are ready to work 24/7.

Improve Restaurant Design

Like many chains, Shake Shack’s Q4 earnings success demonstrated an opening of the digital funnel. Shake Shack’s willingness to abandon its traditional business model and embrace technology, including multi-channel delivery, enhanced digital pre-ordering, and expanding fulfillment capabilities, enabled digital sales to grow at a rapid rate.

Shake Shack’s latest innovation, “Shack Track,” is a tech-forward restaurant that centers on pick-up shelves, windows, and curbside. “The need to enhance and alter the physical restaurant to meet the needs of digital is so important to Shake Shack that today, nearly all new restaurants we open have some aspect of Shack Track,” said CFO Katie Fogertey.

For Shake Shack, the results of embracing technology are astounding. In one example, Shake Shack units with self-ordering kiosks saw 75% of sales come through that channel as well as digital. “We have had to be and will continue to be strategic with our investments, but most importantly, we will continue to invest in digital initiatives to help welcome more guests into our omnichannel,” Fogertey said.

Restaurants that embraced self-ordering technology fared better throughout the pandemic, as self-ordering technology positively impacted revenue, franchising, and restaurant design.

“Technology, and specifically self-automated technology that meets the customers at the point of sale, has been a major boon for many restaurants since the start of the Covid-19 pandemic,” said Asher. “Now, we see the positive effects of technology reflected in new restaurant prototype designs, with many incorporating kiosks, online ordering, and tableside. That is why GRUBBRR partners with tech-forward companies like Samsung to help restaurants to create a customer experience design of the future.”

This post is sponsored by GRUBBRR. To learn more about Samsung’s self-ordering kiosks powered by GRUBBRR, click here.

Off-Premises and Outside: Two Tech Companies Have a New Take on the Standard Self-Service Kiosk

Of all the challenges restaurants face right now, this is one of the biggest: being able to serve enough customers to generate some kind of revenue while still keeping everyone safe and socially distant.

Touchscreen technology shared among clientele isn’t the first thing that springs to mind to combat the issue. But two companies, international hardware manufacturer Elo and Swedish software startup Clicksys, have devised a way to make the concept more palatable to wary restaurant customers and help businesses fulfill more orders in the process. Combining their respective technologies, the two companies have created a touchscreen kiosk that allows customers to self-order without ever setting foot inside the restaurant.

Over a Zoom chat this week, Clicksys’ CEO Aleksandar Goga and Sonal Apte, Elo’s VP of Retail and Hospitality Solutions, explained to me how the system works. 

The kiosk uses an open frame capacitative touchscreen monitor that can be installed flush against a windowpane. Because the touchscreen is projected capacitative, it can sense touch even through thick glass, such as a window. That means restaurants can display a kiosk to the outside world without actually putting the machine outside. 

In the restaurant world, one use case for the technology is with Sushishop in Stockholm. The restaurant is one of those small establishments in the middle of the city that holds few tables and normally accommodates a line of about nine people inside waiting for pickup orders. After social distancing guidelines, that meant Sushishop was only allowed to accommodate four people inside — not exactly a booming business model.

The restaurant teamed up with Clicksys and Elo and installed a kiosk against its front window, providing a way for customers to place orders without actually having to go inside.

Mikael Shaaya, the owner of Sushishop, told me over email that when coronavirus first hit, the restaurant was not able to serve any customers because of its inherently limited capacity. “Thanks to Clicksys and Elo, we can handle more guests while still being able to more easily follow the rules of the public health authority,” he wrote. Guests can order and receive their food outside and are “happy they don’t have to crowd into the restaurant.”

A small shop in a city center is one use case for the technology, and a good one. These kiosks could also have a huge impact on restaurants outside dense urban centers, where either drive-thru congestion needs to be alleviated or people would prefer to just order from an outdoor kiosk and then wait in their car for their food. Goga likens it to a more digitized version of Sonic, where customers can park a car, order via the touchscreen, then wait until a staff person brings out their meal.  

For restaurants, another plus is that they don’t need their own digital properties to power the order and pay functions of the kiosk. As we discus a lot, sophisticated mobile apps and order systems a la Starbucks or McDonald’s are financially out of reach for smaller restaurants and even smaller chains. A mom-and-pop store that simply needs a way to efficiently offer takeout orders could install the touchscreen, which would include their logo and branding throughout the user interface. As a bonus, customers would not have to download yet-another app with which to order food. The system simply collects a user’s phone number and sends them a text once the order is ready.

The kiosks haven’t come stateside yet, though they may at some point in the future. Goga said right now the company has its sights set on London, then the wider U.K. for the near-term future.

Of course, all this talk of touchscreens during a pandemic brings up questions of safety and cleanliness. Will customers want to order from a screen 10 people have touched before them, even if through glass?

“What I see here is that the fear of meeting people is bigger than having to touch something,” said Goga. “Better to touch something and be alone than to stand in front of another person.”

Apte added that when it comes to sanitization, social distancing, and the new standards the pandemic has placed on the restaurant industry, there are three Cs to keep in mind. The first is “clean frequently.” “Think about every touchpoint on that journey,” she says. After that, restaurants should “communicate that cleaning” with their customers. Finally, “Allow your customers control.” For example, Sushishop offers a hand sanitizer station next to the kiosk.

Practices like the ones above will be important for restaurants moving forward when it comes to reassuring customers and also offering them alternatives to sitting in the dining room. In the U.S., states have allowed dining rooms to reopen, but at a reduced capacity that’s as low as 25 percent in some cases. Countries like Spain and Italy are allowing some areas to reopen, but again, with reduced capacity and in some cases only outdoor seating. Even a place like Sweden, which did not shut down like other countries, has enacted social distancing guidelines for bars, cafes, and restaurants. Meanwhile, 66 percent of U.S. consumers recently polled said they would not immediately go back to a restaurant once it reopens.

In all likelihood, the practical nature of kiosks in terms of being a digital ordering device will outweigh concerns about safety in the long term. With off-premises orders expected to drive the bulk of restaurant sales over the next decade, restaurants small and large will need to offer some kind of kiosk technology to accommodate spur-of-the moment orders from customers driving by in their cars or passing on the sidewalk outside. And the pandemic has, in Apte’s words, “greatly accelerated digital transformation.” For the hundreds of thousands of restaurants that aren’t digital behemoths like Chipotle or McDonald’s, a kiosk like this one could go a long way in helping them make that transformation.

Week in Restaurants: Moe’s Goes Digital, Denny’s Adds Pay-at-the-Table Features

Some weeks are all about the incremental developments. Such has been the case over the last few days, with much of the news in the restaurant-tech space about chains adding new tools and features to their digital-focused operations. As the weekend sets in, here are a few more of those developments. 

Moe’s Southwest Grill Plans Digital-First Locations
Joining the growing number of restaurant chains experimenting with off-premises-focused store formats, Moe’s Southwest Grill announced this week it will launch its first-ever “all-digital/kiosk-only” locations in the first quarter of 2020, one in Pittsburgh, PA and the other in Charlottesville, VA. Each store will be equipped with four self-order kiosks and accept cash, Apple Pay, and, for, University of Pittsburgh students, university credit cards. Both locations will also offer limited in-house seating and one traditional cash register.

Denny’s Adds Pay-at-the-Table Feature
Denny’s, beloved pit stop of roadtrippers everywhere, plans to add tabletop devices in its restaurants that allow customers to pay for their meal, rather than having to wait for a server to run a credit card. The Spartanburg, S.C.-based chain has teamed up with restaurant tech company Presto, whose partners also include Applebee’s, Red Lobster, and Outback Steakhouse, among others. An initial deployment of Presto tablets at Denny’s is slated for 2020, and guests will be able to pay, complete feedback surveys, and access loyalty points on the devices. As of now, they will not be able to order food. 

Now You Can Reorder Your Favorite Chipotle Meal With Alexa
Chipotle added a little extra beef to its existing Alexa efforts this week by announcing a reorder skill for the device that functions just as it sounds. Customers download the Alexa app, enable the Chipotle skill, link up their Chipotle profile, and say something like “Alexa, tell Chipotle to reorder my favorite for delivery.” While a very incremental development in the world of restaurant tech, as voice-enabled technologies improve and become more integral to the order process, we’ll see more restaurant chains offering similar functions for repeat customers.

DoorDash May Go for a Direct Stock Listing Instead of an IPO
There have been plenty of rumors about DoorDash’s IPO, which we first heard rumblings about in August. But according to Bloomberg, DoorDash many now opt for a direct stock listing, which would allow it to enter the public markets without incurring the burden of investor pressures that go hand-in-hand with IPOs. This is an approach both Slack and Spotify took when they entered the public markets, and it’s one that lets companies save on bank fees. Whether this is the better approach for food delivery companies, who continue to struggle with the problem of becoming profitable businesses, remains to be seen.

Wendy’s Doubles-Down on Its Tech Ambitions Post Earnings Call

If there’s one big takeaway to glean from Wendy’s first-quarter 2019 earnings call, which took place on Wednesday, it’s that the quick-service burger chain is ramping up its tech game in a big way.

Not that the Dublin, OH-based company was slacking. Prior to Wednesday’s call, Wendy’s had already installed self-serve kiosks in about 75 percent of its (North American) stores, accelerated its delivery program with DoorDash, and made progress on redesigning existing stores to better serve the digital needs QSRs in 2019 must meet.

Based on the transcript from this week’s earnings call, those initiatives have so far paid off. CEO Todd Penegor noted on the call that Wendy’s saw “system-wide sales growth” and that the company continues “to make meaningful progress with [its] consumer-facing digital capabilities.”

That progress includes further expansion of its delivery program, which Penegor said “continues to pace ahead of expectations.” The company plans to have 80 percent of its North American system available for delivery by the end of 2019, along with a more streamlined mobile app that will integrate DoorDash and make off-premise ordering an easier experience for customers. Mobile ordering will be available across the North American Wendy’s market by the end fo the year. (It currently operates in 75 percent of North America.)

A newer initiative for Wendy’s is the introduction of digital scanners, which are part of Wendy’s $25 billion investment in digital initiatives. Penegor said on the call the company plans to have scanners in all its restaurants by the end of 2019. Speed is the obvious benefit here, as the technology will allow employees to simply scan mobile coupons on orders, rather than keying them into a POS system, as was done previously.

For a QSR, however, providing speed at scale is almost important as the quick turnaround times themselves. Penegor said as much on the call, going as far as to say that scale “allows you to make investments in such things as enhanced training and tools, and that those with scale will ultimately win.”

Wendy’s celebrated its 50th birthday this year, but in terms of digital adoption, it has moved slower than McDonald’s, whose aggressive “experience of the future” redesign and foray into personalized recommendations have garnered much attention of late. That said, so has its ongoing battle with its franchisees, for whom all this new technology is sometimes more of an albatross around the neck than a revenue generator.

Wendy’s hasn’t reported any such friction as yet, so it will be important to keep an eye on the company as it scales its tech plans across the continent. They may not have a Dynamic Yield-like deal in the works yet (that we know of), but they could be creating a solid blueprint for growth worth mimicking in future.

What the New McDonald’s Flagship Tells Us About the Fast Food Giant’s Future

One of the most famous McDonald’s locations in the world just got a major makeover, inside and out.

The former Rock N Roll McDonald’s reopened last week as a new flagship store, and “redesign” is an understatement. The fast food giant unveiled a 19,000-square-foot structure and a business strategy that are all about two things: staying eco-friendly and improving the guest experience through digital.

So yes, that means there’s a lot of tech involved in this new iteration of an old fast food standard. Dubbed an “Experience of the Future” restaurant, the Chicago location incorporates all McDonald’s latest tech initiatives.

Self-order kiosks — which McDonald’s now plans to install in 1,000 stores each quarter — are front and center. Customers can browse, order, and customize food items, which a McDonald’s employee brings the food directly to the table. It’s a setup company CEO Steve Easterbrook calls “repurposing labor,” and it reportedly is creating more jobs, rather than leaving people unemployed. For those who prefer ordering the old-fashioned way, there are still four cashiers, and yes, they still take cash.

Kiosks are now in about 5,000 McDonald’s restaurants across the U.S. Adding 1,000 per quarter is part of the company’s plan to have kiosks in nearly all freestanding restaurants by 2020.

Better accommodating mobile is another key part of McDonald’s self reinvention. While there are fewer parking spaces in general (it is Chicago, after all), the new flagship has dedicated spaces for those doing curbside pickup via their mobile app. There will also be space to serve more Uber Eats drivers efficiently — another crucial part of McDonald’s rebranding strategy.

But plenty of chains are revamping their business strategies to focus on mobile and kiosks. What sets McDonald’s apart just a little bit more is the actual location. The Chicago flagship building is a massive steel, wood, and glass structure with 27-foot windows, an enclosed arboretum with birds, and over 70 trees on the ground level. It’s basically an Apple store with Big Macs. The location also has a solar pergola with 1,062 panels that can power about 60 percent of the restaurant.

None of these changes are specific to the Chicago location, though; they’re part of a $6 billion effort to “modernize most U.S. restaurants by 2020.”

In some cases, that word “modernize” could be be a BS term drummed up by a marketing department. The reason I believe McDonald’s is that this redesign — the current one as well as future stores — addresses multiple hot-button issues at once: digital ordering may be convenient, but it produces more waste and emissions, even when drivers are third parties or paying customers. That’s where those solar panels come in, as McDonald’s can use them to collect renewable energy and offset some of its non-renewable energy consumption onsite. (The Chicago restaurant is also in the process of becoming LEED certified.) Meanwhile, the addition of table service and Easterbrook’s “repurposing of labor” suggest that our fears of robots taking over might be overly pessimistic. For now, at least, automated services will just become another fixture in the restaurant.

But there’s one thing I can’t shake: at the end of the day, McDonald’s is still serving fast food, which, to name another hotly debated item, conflicts with increasing consumer desire to eat whole, health(ier) foods. Foliage and solar panels are great, but they don’t curb obesity, diabetes, or heart disease. McDonald’s is doing some work in this area. Burgers are now “100% fresh beef” that’s cooked to order. They also unveiled an initiative this year to make the Happy Meal a healthier option.

I’m going to risk oversimplifying the matter here by saying McDonald’s could do more to accelerate its these efforts. Offer more more fruits and veggies as side options. Deter excessive soda drinking by charging for refills. Serve plant-based burgers instead of triple cheeseburgers.

Granted, too many health-conscious options and it wouldn’t really be McDonald’s as we know it. Oddly enough, the mega chain could use that to its advantage. They more or less invented fast food as we know it. Why not modernize the notion of it while they’re reinventing the business?