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Restaurant News – Global Payments Acquires SICOM

Global Payments to Acquire SICOM Systems, a Leading Provider of Enterprise Technology Solutions to Restaurants

ATLANTA–(BUSINESS WIRE)–Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions, announced today an agreement to acquire SICOM Systems, Inc. from LLR Partners. SICOM provides enterprise, cloud-based software as a service (SaaS) solutions and other technologies to quick service and fast casual restaurants, as well as food service management providers, worldwide.

“The acquisition of SICOM aligns perfectly with our software-driven payments strategy and establishes Global Payments as a leader in one of the largest addressable markets we serve today”

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“The acquisition of SICOM aligns perfectly with our software-driven payments strategy and establishes Global Payments as a leader in one of the largest addressable markets we serve today,” said Jeff Sloan, Global Payments’ Chief Executive Officer. “SICOM’s technologies are highly complementary to our existing Xenial solutions, with the combination providing Global Payments’ market-leading technology solutions across the entirety of the restaurant vertical market. The transaction also allows us to expand our owned software solutions into food service management, a large addressable market globally with attractive fundamentals, while further accelerating our business mix toward technology enablement.”

Under the terms of the acquisition agreement, Global Payments will acquire SICOM in a cash transaction valued at approximately $415 million. Global Payments will finance the acquisition with its existing credit facility and cash on hand. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2018. Global Payments expects the transaction to have an immaterial impact on 2018 financial results.

About Global Payments

Global Payments Inc. (NYSE: GPN) is a leading worldwide provider of payment technology and software solutions delivering innovative services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to accept all payment types and operate their businesses more efficiently across a variety of distribution channels in many markets around the world.

Headquartered in Atlanta, Georgia with approximately 11,000 employees worldwide, Global Payments is a member of the S&P 500 with customers and partners in 31 countries throughout North America, Europe, the Asia-Pacific region and Brazil. For more information about Global Payments, our Service. Driven. Commerce brand and our technologies, please visit www.globalpaymentsinc.com.

About SICOM Systems, Inc.

SICOM Systems, Inc. is a leading best-of-breed provider of end-to-end technologies and services for quick service and fast casual restaurants, as well as food service management companies. The company offers front-of-house, middle-of-house and back-of-house solutions that are helping leading restaurant brands around the globe streamline their operations. Founded in 1987, SICOM is headquartered in Lansdale, Pa. and can be found online at www.SICOM.com.

About LLR Partners

LLR Partners is a lower middle market private equity firm committed to creating long-term value by growing our portfolio companies. LLR invests in select industries, with a focus on technology and services businesses. Founded in 1999 and with more than $3.5 billion raised across five funds, LLR is a flexible provider of capital for growth, recapitalizations and buyouts. For more information about LLR and advice for scaling growth companies, please visit www.llrpartners.com.

Forward-Looking Statements

Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue, earnings estimates and management’s expectations regarding future events and developments, statements about the benefits of the proposed acquisition of SICOM including future financing and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts, are forward-looking statements and are subject to significant risks and uncertainties.

Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include our ability to safeguard our data; increased competition from larger companies and non-traditional competitors, our ability to update our services in a timely manner; our ability to maintain Visa and MasterCard registration and financial institution sponsorship; our reliance on financial institutions to provide clearing services in connection with our settlement activities; our potential failure to comply with card network requirements; potential systems interruptions or failures; software defects or undetected errors; increased attrition of merchants, referral partners or independent sales organizations; our ability to increase our share of existing markets and expand into new markets; a decline in the use of cards for payment generally; unanticipated increases in chargeback liability; increases in credit card network fees; change in laws, regulations or network rules or interpretations thereof; foreign currency exchange and interest rate risks; political, economic and regulatory changes in the foreign countries in which we operate; future performance, integration and conversion of acquired operations, including without limitation difficulties and delays in integrating or fully realizing cost savings and other benefits of our acquisitions at all or within the expected time period; fully realizing anticipated annual interest expense savings from refinancing our corporate debt facilities; our loss of key personnel and other risk factors presented in Item 1- Risk Factors of our Report on Form 10-K for the year ended December 31, 2017 and any subsequent SEC filings, which we advise you to review.

Additional important factors that could cause actual events or results to differ from those anticipated by our forward-looking statements or historical performance associated with the proposed acquisition of SICOM include the ability to meet closing conditions at all or on the expected terms and schedule, business disruption during the pendency of the acquisition or thereafter making it more difficult to maintain business and operational relationships, including the possibility that our announcement of the acquisition could disrupt SICOM’s relationships with financial institutions, customers, employees or other partners; and difficulties and delays in fully realizing benefits of the acquisition.

Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. We undertake no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

Contacts

Global Payments Inc.
Investor Contact:
Winnie Smith, 770-829-8478
investor.relations@globalpay.com
or
Media Contact:
Kimberly Mann, 770-829-8755
media.relations@globalpay.com

Acquisition – SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS

SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS

Lansdale, PA and Troy, MI – June 12, 2018 –Nextep Systems Order Kiosk SICOM announced today the acquisition of NEXTEP SYSTEMS, a provider of self-ordering point of sale solutions, digital signage and restaurant management software for managed food service, quick service and fast casual restaurants. NEXTEP’s lineup of self-ordering solutions includes kiosks, touchscreen drive thru systems and mobile ordering and will be added to SICOM’s Encounter™ Omni-Channel Point of Sale platform.

NEXTEP was founded by Tommy Woycik when he realized self-ordering technology could prevent people from waiting in lines at restaurants. After creating its first self-ordering solution, NEXTEP has expanded its product catalog to include a full spectrum of order management solutions on its single-platform, cloud-based architecture.

NEXTEP has also introduced several innovative technologies in the self-ordering space, including Intelligent Upsell™ for increasing check averages and facial recognition functionality that provides a personalized guest experience.

“We are truly excited to welcome NEXTEP to the SICOM family,” said Jim Flynn, CEO of SICOM. “The talented team at NEXTEP has created an impressive lineup of industry-leading and inventive self-ordering technologies, and this acquisition will allow SICOM to offer the most comprehensive omni-channel point of sale platform in the industry. We’re also excited to expand into managed food service and fast casual restaurants with a broader and proven suite of products designed specifically for these markets.”

“The team at NEXTEP has accomplished a tremendous amount since our inception in 2005,” said Tommy Woycik, President and Founder of NEXTEP. “SICOM is a perfect fit for NEXTEP, and we are excited to join a company with the same level of commitment to providing leading technology solutions to managed food service providers and quick service and fast casual restaurants. We’re confident that joining forces with SICOM will provide new opportunities for the NEXTEP team and our customers.”

ABOUT NEXTEP SYSTEMS

From Self Order Kiosks and Touchscreen Drive Thrus to mobile ordering and traditional POS terminals, the NEXTEP SYSTEMS solution empowers guests to check out faster, resulting in bigger check totals and higher sales volume. With 7 patents granted and 4 more pending, NEXTEP SYSTEMS offers the industry’s first and only 360° integrated foodservice technology platform to more than 1,500 managed food service, QSR, and fast casual customers.

ABOUT SICOM

SICOM Systems, Inc. is a leading best-of-breed provider of end-to-end technologies and services for quick service and fast casual restaurants. The company offers front-of-house solutions (Digital Menu Boards, Point of Sale and Order Confirmation Units), back-of-house solutions (Drive-Thru Director™ and Chef™ Kitchen Management), as well as above-restaurant solutions (360° Data Analytics, SEMS4 Restaurant Management and RTIconnect Restaurant Management) that are helping leading restaurant brands around the globe streamline their operations. SICOM has over 40,000 digital menu boards, 8,000+ Drive-Thru Directors and 7,000+ Chef Kitchen Management solutions in operation worldwide, while its Point of Sale systems are in more than 6,500 restaurants worldwide and it has more than 10,000 restaurants leveraging its enterprise management systems. Founded in 1987, SICOM is headquartered in Lansdale, Pa. and can be found online at www.SICOM.com.

Kiosk Industry Association Announces 2017 Hall of Fame Inductees

Kiosk Hall of FameNEXTEP SYSTEMS, OLEA, Netshift, and other kiosk companies represented in 2017 Kiosk Hall of Fame inductions

EASTLAKE, Colo.June 22, 2017 /PRNewswire/ — The Kiosk Industry Association is proud to announce the 2017 Hall of Fame inductees.  This year our inductees are Tommy Woycik of NEXTEP SYSTEMSTraci Martin of Olea KiosksBen WheelerNigel Seed (UK) and James Vande Castle is the media inductee.

Posthumous inductees are Tommy Wincent of Swecoin (Sweden) and Eric Dumouchel of Ultimedia (France).

The leading vote getter for the 2017 edition is Tommy Woycik, Founder and President of NEXTEP SYSTEMS, which specializes in self-order for QSRs, Restaurants and Fast Casual and counts SUBWAY, Wow Bao, and Which Wich among its clients. NEXTEP self-order includes indoor, outdoor, drive-thru, and mobile solutions.

Tommy Woycik of NEXTEP SYSTEMS
Tommy Woycik of NEXTEP SYSTEMS

Tommy Woycik says: “It’s an exciting time in self-order technology, as it’s become clear that the restaurant industry has started adopting self-order kiosks on a massive scale.”

“In much the same way that mobile ordering began with pizza and spread throughout restaurants of every category, self-order has started with QSR and fast casual pilots, but will soon become standard industry-wide, both inside and at the drive-thru.”

“Consumers will come to expect a consistently elevated experience, regardless of location or brand. As standardization builds momentum, we’re looking forward to the opportunity to help restaurants weave self-order technology into their business models and brands.”

The Kiosk Industry Association and Advisory Board congratulate all the inductees and thank them for their dedication to the kiosk industry over the many years.  Their success is our success.

In addition to the Hall of Fame inductees, the Association gave out two Special Recognition awards posthumously to Eckhard Reinmann of Germany and James Bickers, editor. See the Hall of Fame page for more details.

The Association thanks KioWare for sponsoring the Hall of Fame for 2017. Thank you.  The complete Kiosk Hall of Fame list is located here.

2017 SPECIAL RECOGNITION

Along with our Hall of Fame inductees in 2017 we also have some special recognition posthumous awards for people instrumental in the industry which might not otherwise be noted.

  • Eckhard Reimann — some of his many articles are located here. A nice In Memoriam for Eckhard is here.  Excerpt: The only worldwide independent, all-embracing competence (“gray eminence”) for interactive kiosk, media, digital signage & room installations, comprehensive e-kiosk know-how as “Mr. Kiosk “(DMMK), Father of the Kiosks (NCR), multimedia pioneer (Prof. Swoboda, Trier), contacts, network, long-term (1999-2005/6) e-kiosk speaker at BVDW, , Jury chairman for kiosk / room installations at the German Multimedia Award (2002 – 2005), long-standing kiosk author at the HighText publishing house and the “Reimann commentary” at www.friendlyway.de Extensive literature source archive, moderator of the “E-Kiosk & Digital Signage Networking “. Co-author of “Handbook Practice Customer Relations Management”, October 2007, author of the “DIGITAL MEDIA Best Practices Report – Digital Signage & Kiosks in Practice”, Volume 1 (Trade) March 2011.  “I was friends with Eckhard and worked with him on creating a stronger industry.  He was a mentor for me.”, Craig Keefner.
  • James Bickers — Nice In Memoriam on Digital Signage Today.  From LinkedIn — Senior editor of the web news portal Retail Customer Experience, Bickers was founding editor for Digital Signage Today portal which launched digital signage into prominence.  “James was one the most creative, talented people I’ve ever worked with,” said Joseph Grove, the former executive editor of Networld Media Group, who hired Bickers in 2005 after being impressed with his freelance work.

Kiosk Industry Association on Social Media

About the Kiosk Industry Association

The Kiosk Industry Association is a professional “not for profit” news and marketing association for  kiosk and self-service manufacturers. It is for the benefit of kiosk manufacturers, component vendors, service vendors, developers, resources and client companies who are involved in self-service and kiosk systems. News about the industry and by the industry is published on our website when it is relevant to companies that deploy or may deploy self-service, or illuminating companies that support those deployers with hardware, software or applications. It is part of the Kiosk Industry Group which was begun in 1995. Visit //kioskindustry.org for more information.

Media Contact:

Craig Keefner

303-261-8836

craig@catareno.com

Related Links

Kiosk Industry Group LinkedIn

Retail Automation

Related Video

http://www.youtube.com/watch?v=pdxZO1qa0AM

SOURCE Kiosk Industry Association

Feature – Serves you right!

Good article by Elliot Maras published last week regarding jobs and the fast food kiosk.

By now you’ve already heard it — the introduction of self-order restaurant kiosks is raising fears that kiosks are killing jobs. News media outlets and websites are perpetuating the story that restaurants want to replace workers with kiosks to protect their bottom lines.

What’s to be done about it? Plenty.

If ever there were a time for the kiosk industry to speak with a collective voice, that time is now.  Let’s start with a reality check.

Restaurants in the fast casual space have deployed tablets on the tables for years now.  Those kiosks have increased the spend and added efficiencies.  They have helped increase business and traffic flow.  Customers complete surveys and provide feedback.  E-Club enrollments.  Customers and businesses are very happy with these kiosks. Notables in this “fast casual” space are Chili’s, Paneras and Red Robin.

The restaurants have grown and prospered. Kitchens have been upgraded for more capacity, and more people have been employed. One industry insider says:

In a dozen years of providing self order kiosks to the restaurant industry, I haven’t seen a reduction in “total labor”. In many cases the order taking (and less frequently payment) is automated, but more orders are processed and the orders are larger. That means more labor is needed in the kitchen and customer service. It really is more of a shift that a reduction.

Drive-thru and outdoor ordering have been mainstays for kiosks/ordering stations, and we are seeing next generation touchscreen ordering from companies like NEXTEP and many others. Tommy Woycik of NEXTEP insight:

When we introduced self order at the drive thru, many restaurants that had closed their drive thrus were able to reopen them. Without the automation, the economics simply didn’t make sense (i.e. the drive thru was losing money). Closing the drive thru eliminated a job. Reopening with a kiosk actually added labor, but just enough to make the drive thru feasible.

As far as the economic circumstance consider what the investment Seeking Alpha site has to say — 

The restaurant industry can be difficult to navigate as food trends shift like the wind. Companies that operate a large number of locations should produce significant margins from size and scale. However, because the consumer can be fickle when it comes to eating out, margins and revenue can quickly turn south as volume slips from over extension, saturation, or just a change in diet. Restaurants need foot traffic, automobile access, or a consistent supply of guests like a hotel or resort. Because of this and other equipment requirements, restaurant leases are amongst some of the highest cost in the country. The reason for this is simple: Location. Location. Location.

Margins in a franchisee business, especially in low-cost fast food like a McDonalds or Burger King or Subway are tough adversaries.

Still, Americans are spending more at bars and restaurants than at grocery stores for the first time ever. $55B versus $53B according to Quartz report.

Click for full size

Fast Food Kiosk Coming Up Fast?

Recently we have seen the McDonalds announcement where, having done most of Europe, it is now looking to introduce self-ordering in the United States.

The CEO of CKE Andy Puzder, who has been a tireless opponent of minimum wage over the years, is now conveying the sense that kiosks are a result of minimum wage coming with a bit of “I told you so” for effect.

We have seen very few deployments in fast food and we won’t see significant minimum wage increases for several years.   The franchisee model and the type of food service may be more relevant factors.

Self-service arrived many years ago and is simply expanding given the increased connectivity and independence of those customers.  And the battle for new customers and most importantly retaining your current customers.

More Jobs – consider the jobs that automation supports. From basic metal fabrication, design, concierge, assistants, service techs, admins and yes, even, salespeople which we sometimes make fun of. They all support families and communities.

Automation creates a ton of jobs all the way across the food chain (so to speak) from metal fabricators, engineers, service techs, salespeople and many many more.  How many jobs does automated checkout at Walmart account for at NCR?  Tens of thousands.  Panera’s is a great example of modern thinking in the food industry.

How many jobs does Amazon and Bezos create, foster and necessitate? Those automation jobs in the warehouses (even with the automation) count.

And before we assign the entire industry to McDonalds/CKE/Darden/YUM/JackintheBox/Wendys, consider this quote from thebalance.com:

Even though it seems like the largest U.S. restaurant chains dominate the retail restaurant niche, only about 30% of America’s restaurants are part of a multi-unit chain, and only a fraction of those restaurant chains are publicly traded restaurant companies. The vast majority of U.S. retail diners are spending $1.9 billion in approximately one million restaurant locations owned by individual culinary entrepreneurs.”

For contrast consider the early theory that ATMs will eliminate bank employees.  Banks became smaller for sure but they built more of them, and more people were employed.

So What Does Kill Jobs  If Anything?

The statements that kiosks are killing jobs are more targeted at killing minimum wage politically.  That’s politics and those issues come and go as it serves someones interests.  You might also say China is killing jobs too, but it’s not really them that is killing jobs.

The tax advantages of imported goods may go away in a new “border adjustable” Republican plan (which companies like Walmart are not happy with).   Incentivising companies to build in the US will create jobs.

A labor shortage for skilled workers and craftsmen (higher middle class) is killing jobs.  People need to be trained. See Profoundly Disconnected and Mike Rowe which we support.

Fact is though Automation and connectivity are killing jobs.

Mr. Maras makes the good point that training and skilled workers is a fundamental issue.  Vocational schools which focus on job skills with computers and automation.  And why not take a page from the German labour playbook? Works for their labour force.

From the Wall Street Journal:

Other countries devote more resources than the U.S. to cushioning and retraining displaced workers. As a share of gross domestic product, Denmark spends 25 times as much, says Dr. Autor.

He offers another historical example. Near the end of the 19th century, America’s agricultural states faced the prospect of mass unemployment as farms automated. 

In response, they created the “high school movement,” which required everyone to stay in school until age 16. It was hugely expensive, both because of the new schools and teachers, but also because these young people could no longer work on the farm. But it better prepared workers for 20th century factory jobs and fueled the explosion in college attendance after World War II.

Self-service automation is energizing the job market and the general economy. The clear benefits will not go away and by implementing them properly businesses will be enabled to indeed grow to the next level, and even more people will be employed.

Amazon says it will create 100,000 jobs in U.S. by 2018

Amazon will create 100,000 full-time jobs in the United States with full benefits over the next 18 months, the tech giant announced in a statement Thursday.

The company says the positions are for workers across the country and across all skill and experience levels. Most of the positions will be at fulfillment centers, including new ones under construction in California, Florida, New Jersey and Texas.

“Innovation is one of our guiding principles at Amazon, and it’s created hundreds of thousands of American jobs,” said Amazon founder and CEO Jeff Bezos in a statement. “These jobs are not just in our Seattle headquarters or in Silicon Valley—they’re in our customer service network, fulfillment centers and other facilities in local communities throughout the country.”

Full article

Kiosk Industry Association

Followup:  One of the KI sponsors (Olea) contributed this — We’ve been following Mike Rowe of Dirty Jobs fame and he’s doing a lot to promote this sort of thing. Our thought was to create a foundation that starts with say a $5k scholarship or money to a school who’s got a great set of shop classes, or one that is building a shop class and is short on funds. We think we could get suppliers and other companies that we work with to also support our efforts to take that number higher over the years. Companies that we buy CNC equipment from or grinder belts those types of vendors.

Comments:

When we purchased a new press brake for $300k Amada the manufacturer told us that it had all sorts of software on it to make running it easier. Then we got it and found out you really needed very qualified operators at +$50k salary. We had to use 3 agencies to find two people and we offered a signing bonus, 1 week vacation and 75% company paid HMO. It took us months to find people.

A year or so later we had a conversation with them and they said it’s not something that is taught anywhere. You get on the job training and build up to it. So, we have a program here to teach anyone that wants to learn. Then Amada said they’ve been forced to figure out how to make the machines smarter so that anyone can run them. In exchange, you’ll get anyone to run the machine for $15 bucks an hour but why??? All because nobody is being trained to do these things. Businesses will adapt. Labor shortages and training is causing higher level middle class jobs to disappear just as fast or faster than innovation or anything else.

Then of course there’s China or other places with low labor costs causing havoc. Everyone pays the same price for a high-end CNC machine no matter where you are in the world. But the guy standing at the machine for a few bucks an hour vs. the guy making $26 per hour makes it tough for America to compete. Hence the US Kiosk industry needing to be very fast with custom designed goods that can be built and delivered before a Chinese box can be put on a boat for a 4-6 week journey.

 


Members  involved in Self-Service and this article.

NEXTEP SYSTEMS Introduces the All New Touchscreen Drive Thru DT5

Which Wich Order Kiosk
Click for full article.

The DT5 offers a lower cost of ownership, a more flexible footprint, and improved ergonomics to drive thru customers

Source: www.nextepsystems.com

Very nice drive-thru order kiosk from Nextep Systems.

Excerpt: The DT5 integrates seamlessly with the rest of NEXTEP’s product suite, including POS and mobile ordering. With bold graphics and a clean interface, our POS lets restaurant employees see orders in real-time and process those orders intuitively, thereby speeding up operations. Additionally, guests can order from their mobile devices and use the DT5 to tell the restaurant that they have arrived to pick up their orders.

Related

Watch “Equalizing the Drive Thru” and See how the Touchscreen Drive Thru makes the ordering experience identical for the Deaf and Hard of Hearing and any other guest, truly eliminating any stigma or discrimination.

Equalizing the Drive Thru from NEXTEP SYSTEMS on Vimeo.

Learn More on Deaf and Hard of Hearing along with multiple local and national resource listings here:

https://www.nextepsystems.com/support-dhoh/