Wendy’s will make self-service ordering kiosks available to all of its franchises later this year as minimum wage hikes help market push labor costs.
6,000 plus restaurants getting selfservice kiosks. Adoption rests with the franchisees. Most have been raising prices. Most of minimum wage is phased in years from now and virtually unchanged in California.
- New York went from 9.00 to 10.50 (on way to 15)
- CA went to $10 this from $9.00
- Company owned Wendy stores number is 5% of total stores.
- Wage inflation seen at company stores is 5%
- More customers hit bottom line at 3.6% same store sales increase for last quarter
Wendy’s President Todd Penegor said, “wage pressures have been manageable both because of falling commodity prices and better operating leverage due to an increase in customer counts. Still, the company is wary about both wage hikes and a possible recovery in commodity prices and is “working so hard to find efficiencies” so it can deliver “a new QSR experience but at traditional QSR prices.”
In addition to self-order kiosks, the company is also getting ready to move beyond the testing phase with labor-saving mobile ordering and mobile payment available systemwide by the end of the year. Yum Brands and McDonald’s already have mobile ordering apps.
Since the chain’s rollout of kiosks and other digital systems, sales are up 6.2 percent. Panera CEO Ron Shaich gives the rundown on this development.
Wrap of earnings call.
A leading national restaurant chain facing growing competition and an increasingly mobile-first customer base enlisted WWT to bring their holistic customer experience solution to life.
Excerpt – Same store sales where the new technology has rolled out has increased at almost double the rate of stores not yet converted. Digital sales now make up more than 20 percent of overall business, with projected e-commerce sales of $1 billion by 2017. Mobile sales and in-store, self-service kiosks have reduced bottlenecks to provide all customers with faster service and an improved customer experience. As the company moves to increase their home delivery and catering business, we are continuing to collaborate with them to provide their customers with a personalized and seamless user experience.
NEW YORK – The CEO of Carl’s Jr. and Hardee’s says he sees automated restaurants as the future of the industry and a solution to rising minimum wages. “I want to try it,” Andy Puzder told Business Insider.
More news from CKE owner (Hardee and others)
Recently, a few (very few) restaurants have begun offering a fully automated, Jetson-like food experience (think eatsa). The futurism is pretty cool, but what does today’s workplace automation really look like?
Excerpt: “At a bank, you can opt for traditional teller service, an ATM, a drive-thru, or online/mobile banking. Restaurants are doing the same by offering traditional counter service, ordering kiosks, touchscreen/video drive-thru, as well as online/mobile ordering. All orders are funneled to production for fulfilment and real-time inventory management,” explained Tommy Woycik, founder and president of Nextep Systems, whose tagline is “Order Food Faster.”
“Automating the ‘simple’ tasks like order entry and counting change will allow restaurants to provide improved speed-of-service and more value to their guests,” Woycik said. “Customer service means different things to different guests (e.g., Baby Boomers versus Gen X versus Gen Y) and doesn’t have to be face-to-face (e.g., eatsa and drive-thru). All guests value food quality, order accuracy, and speed of service, which is what smart technology is improving.”
Rest of the story on Foodable.
Since 2012, Panera Bread has been driving growth in their restaurants and have invested in tablet kiosks (which is part of their Panera 2.0 initiative) to increase their sales and customer experience.
Nice breakdown on the positive “consequences” of expanding customer choices (aka omnichanneling if I may). In Panera’s case the increased rate of return is what counts to investors (and the Board of Directors).
More ways to order mean more orders in this case right?
Panera plans to bring Panera 2.0 to all its locations nationwide — 400 locations, or roughly 50% of the chain, will be updated by the end of 2015. The rest will be rolled out in 2016. This Panera at 23rd and Park Avenue has already been brought up to speed.
NEXTEP SYSTEMS joined as a charter member of the Kiosk Industry Group in 2015. A profile of NEXTEP follows: The NEXTEP Advantage: Single platform software eliminates the headaches and costly interfaces necessary with legacy solutions. Our cloud based technology reduces hardware needs and associated costs while giving operators a web based tool to manage their concept from anywhere.… Read More »
From the Olea Blog DECEMBER 14, 2015 WIN MILLENNIALS WITH QUICK SERVE RESTAURANT KIOSKS The next game-changing technology in the quick serve restaurant (QSR) industry is Quick Serve Restaurant Kiosks. These devices are capable of increasing sales by up to 15% and significantly reducing operating costs by eliminating the need for staffing a cashier at the drive-thru window.… Read More »
In Panera Bread (NASDAQ:PNRA) Q4 2014 Earnings Call February 12, 2015 Ronald M. Shaich – Co-Founder, Executive Chairman and Chief Executive Officer details results. Source: seekingalpha.com One number that struck me is that 8% of all Panera sales are now conducted thru digital channel. Their Rapid Pickup has been big factor. Began with 3 in Boston, 17 in… Read More »
NRF Highlights Here are the items we saw and read related to NRF 2015. ZDNet wrap — At the National Retail Federation trade show, tech vendors are displaying a mix of self-service devices designed to drive higher sales and create repeat shoppers. Source: www.zdnet.com NCR, Wincor, Microsoft, CKE Restaurants, Intel, TGI Fridays, Oracle, Dell, Beef-O-Bradys, Hardee’s, Carl Jr,… Read More »
One of my favorite things in the world is playing with computers. Whether building them or using them, I am as happy as can be. We computer nerds get hungry, however, and we need to fuel our bodies. Sure, some of us nerds eat healthy (Mark Wilson is a vegetarian), but fast food and caffeinated beverages are still staples… Read More »
Casual-dining chain’s tests tablets; burger brand tests kiosks, supplier Microsoft says Source: nrn.com Fridays’ tablet test uses new “Fridays Service Style” technology based on Windows 8.1 with Oracle’s MICROS Restaurant Enterprise Solution (RES) 5.4 on the Dell Venue mTablet E-Series mobile point-of-sale devices, the Redmond, Wash.-based software company said.
Jan. 13 — CKE Restaurants CEO Andrew Puzder discusses the company’s self-service food kiosks running Microsoft software. He speaks on “Bloomberg West.” (Source: Bloomberg) (Video) Source: www.bizjournals.com The 2015 edition of CKE and food ordering. Let’s not forget the other two iterations.