Kiosk Solutions Feb-Mar 2020 | Page 28

make way for the millenial they’re familiar with. easier. This generation are also more likely to use self-service kiosks than their older counterparts (gen X and baby boomers). Raising the roof on rent Commercial rent remains higher than pre-recession levels and last year, a report by CDG Leisure found 90% of operators would find costs unsustainable for their business if rents and rates increased as forecasted. Increasing rental costs and guests’ propensity for at-home dining has led to operators opening ghost kitchens or dark kitchens. These kitchens are set-up specifically to 28 KIOSK solutions Personalised, digital experiences Earlier this year, McDonald’s acquired a tech company called Dynamic Yield to increase personalisation and customer experience at its drive thrus. Using Dynamic Yield’s technology, the drive thru menu shows food based on the time of day, weather, current traffic and trending menu items. The tech can also instantly suggest and display additional items for a customer’s order based on their current selections. If you can’t afford the $300 million encourage additional purchases once the guest is sat at their table. Using mobile to top-up orders for additional drinks or sides can be a lucrative way to drive up spend per head following their main purchase. There are many challenges facing operators and their bricks and mortar stores but looking at the industry as a whole, one thing is clear: the operators that are embracing innovation are thriving. Whether it’s mega-acquisitions on an eye-watering financial scale or the strategic implementation of hand- picked digital solutions, technology holds the key to survival for fast casual chains willing to make the move. n Embracing innovation Mobile order and pay is also helping to open up additional revenue streams for operators. For example, at buffet-style restaurants where diners pay upon entry or at quick service restaurants where meals are ordered and collected at counters, there’s little opportunity to looking for on a device rammed during the lunch rush hour for example, allowing them to focus on offering great customer service. Pay at table can also dramatically reduce incidences of fraudulent chargebacks and can be used to encourage reviews and collect contact details to help build membership. added convenience they’re solutions can offer guests the Mobile ordering and pay at table Minimum wage hikes In the US, the minimum wage has risen from $7.25 that was set almost a decade ago, to $15 per hour. Whilst this is a great win for employees, it puts operators under enormous pressure to fulfil these wage increases. In the UK, a similar Living Wage was put into force pushing up national minimum hourly rate to £9.30 and this is expected to rise to £10.50 by 2024. The ghost kitchens, smaller street food vendors, food trucks and pop-up food stalls have spawned and are providing stiff competition for mainstream casual dining brands. This added pressure has forced many operators to digitise their customer journey, unlocking additional revenue streams, driving greater spend within their current channels and making the experience so easy and frictionless, that guests will be keen to dine with them again. price tag of acquiring a tech company to digitise your processes, thankfully, there are other options. Digital ordering and payment (mentioned previously as a millennial desire), are proving valuable in the competitive fast casual landscape. Solutions such as mobile ordering and pay at table offer guests the added convenience they’re looking for on a device they’re very familiar with, saving them time and delivering that enhanced experience. For operators, mobile order and pay can speed up service helping to turn tables faster and, as a result, drive revenues. This technology can also help to take pressure off staff when they’re fulfil orders for delivery only. No large seating or serving areas needed and minimal staff required to prepare, clean and deliver. Uber co-founder Travis Kalanick’s new start-up Cloud Kitchens, for example, sets-up and hires out ghost kitchens to everyone from national chains looking for an additional revenue channel to food entrepreneurs looking to test their concepts. make way for the millenial www. p o si f l ex. c o m KIOSK solutions 29