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