Jack in the Box restaurant kiosk

Kiosks are the most convenient solution to reducing customer waiting time and allowing customers to take control of their shopping experience.

However one quick service industry that hasn’t really adopted kiosk systems is the fast food industry. The whole concept started out in 2006 when Subway, McDonald’s, Burger King and Arby’s started trying out the kiosks systems which allowed customers to place and pay for orders via touch screen systems.

While they have attempted to add kiosks here and there, there has not been as massive explosion on the kiosk side as many of us had anticipated.

Tommy Woycik, president of kiosk supplier NEXTEP Systems, said that the restaurant industry is a bit of a unique industry to compare. Airports, supermarket stores and casinos have seen an explosion of kiosks where as restaurant kiosks have been few and far between.

“We’ve been doing this for six years and every year our restaurant revenue has gone up to 40 to 50 per cent. It has been good, sure, but it lags a lot behind other industries, which have doubled in that same time,” Woycik said. “We thought it would be higher at restaurants – both in the fast casual and quick-service segments – but it’s just not at the same rates.”

El Pollo Loco restuarant kiosks

Many restaurant owners are very apprehensive about kiosk deployment particularly for technophobe customers. Others are concerned about the costs involved in kiosk deployment and not sure on the idea of reducing their workforce or compromising customer service.

However it is certain that over the next 10-12 years US, European and Asian countries will embrace self service systems into their restaurants.

“It’s not that customers aren’t ready,” said Woycik, “This trend is evident in other industries, and people love it. They’d much rather self serve than wait in line. The biggest issue is restaurants worrying it impersonalises customer service. But two-thirds of their business goes through the drive-thru, an experience that minimises  personalisation. If I want to focus on customer service, I go to a nice steak house, not a fast food place.”

There is a lot involved before deploying a kiosk system which can often include parent companies of franchises who need to consult their parent company before installing a kiosk.

“Often only the parent company prescribes what technology can be used. Which is understandable since they are doing the accounting,” Woycik said. 

El Pollo Loco – an American flamed grill chicken restaurant chain – deployed kiosks at two of its California chains and Jack in the Box - American fast food restaurant - has around 230 kiosks installed throughout the country. Both companies are supplied by EMN8.

Jack in the Box began a pilot scheme in 2006 as part of the company’s strategy to reinvent the brand providing innovation guest services, menu and restaurant facilities.

 

McDonald's restuarant kiosk system

El Pollo Loco is at early stages with the kiosks and has set no timetable to expand its kiosk presence. At present they are focusing on the two stores where the kiosk system has been deployed.

“We expect to make changes to the physical layout of the kiosks, the order screens and other adjustments based on customer feedback from our test in the two initial restaurants,” said Joe Stein, senior vice president of strategy and innovation.

However the kiosks have received mixed reviews.

“We’ve received positive feed back from guests who like the technology, and negative feedback from guests who were initially taken aback by the kiosks in the lobby,” Stein said.

Whether the kiosks have been a success is definitely too early to tell.

“We believe kiosks have the potential to provide our guests with a better customer experience,” Stein said. “We also believe that without personal interaction between our guest and restaurant personnel, the dining experience isn’t the same for most. That is why we have an employee in the dining room to greet and assist our guests.

“The kiosks are not replacing employees. There has been no elimination in labour. In fact, restaurants can actually earn more labour if they facilitate higher transactions. We believe the kiosks can enhance the guest experience by giving them an additional option for ordering, and freeing up restaurant labour to focus on other areas of service,” said Brian Luscomb, corporate communications vice president at Jack in the Box.

Woycik further added that restaurants don’t lead to staff reduction.

“Having kiosks usually means there are more orders to fill, so it just redistributes the labour. Those employees can now spend time working the kitchen, greeting customers, cleaning tables, whatever they are needed for to make that restaurant more efficient, ” he said.