Last Updated on June 13, 2026 by Craig Allen Keefner
Tillster’s biggest news this year is the release of its 2026 Phygital Index Report, based on a survey of more than 2,100 U.S. diners. This was released in April 2026 and is the 8th installment?
Key findings:
- 45% of consumers changed their favorite restaurant brand in the last year.
- Diners increasingly value food quality, convenience, and speed over simple discounts.
- Convenience stores and grocery foodservice are becoming stronger competitors to QSRs.
- Delivery fees are causing significant cart abandonment.
For kiosk operators, this reinforces the importance of frictionless ordering and personalized experiences rather than relying solely on loyalty points.
Quick takes from an older American and wife?
- Food quality is top consideration
- Panera’s — expensive, smaller portions and less wholesome
- Speed of ordering and getting it right matters — Chick-Fil-E is routine culprit here.
- Super fast, inexpensive and clean food — Qdoba
- Taco Bell – the drive thru is audio nightmare but I deal with it
- Popeyes — bad drive thru, not always correct, and food quality varies
- Uncle Jacks NYC — $100 for steak and baked potato — excellent value
Why the Tillster 2026 Phygital Index matters
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Tillster’s 2026 Phygital Index is built on a survey of 2,144 U.S. diners and shows just how fragile restaurant loyalty has become.
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Almost half of diners say their favorite chain changed in the last year, and 31% say they’re visiting chains less often because of higher prices.
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At the same time, kiosk usage and other digital ordering channels are way up, making “phygital” execution a real competitive lever, not just an IT project.
Summary of the report
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Diners are shopping around more, with grocery and c‑stores gaining share, while fast‑food and fast‑casual visits soften.
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People are holding the line on budgets and often cutting delivery first because of service fees and tip prompts.
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“Value” is being redefined: food quality, convenience, and speed now beat pure price as decision drivers.
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Self‑service kiosks and first‑party ordering (own app / web) are winning more traffic, while third‑party apps face pushback.
Kiosk insight #1 – Kiosks are mainstream, not experimental
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Two‑thirds of diners (64%) say they order via an in‑store self‑service kiosk at least several times a month, up from 61% in 2025.
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71% say they are equally or more satisfied with kiosk ordering compared to other options, citing speed and control as key reasons.
Strategies to consider
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Treat kiosks as a primary front‑of‑house channel, not a side pilot; design menu, staffing, and operations assuming heavy kiosk use.
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Make sure kiosk uptime, performance, and UX get the same operational discipline that drive‑thru and POS get today.
Kiosk insight #2 – Speed and control are the killer features
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When asked what they like most about kiosks, 40% say “it’s quicker,” and 34% like that “nobody is rushing me.”
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Diners also value visual confirmation and the ability to see all their options without feeling pressured at the counter.
Strategies to consider
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Design kiosk flows to minimize friction: fewer taps, larger buttons, no buried steps for common orders.
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Allow customers to go at their own pace—avoid auto time‑outs, aggressive “are you still there?” prompts, and confusing back buttons.
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Make confirmation screens clear and visual so guests can catch mistakes before paying.
Kiosk insight #3 – Upsell is real, but needs to be smarter
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Nearly a quarter of diners (23%) say they always end up ordering more than planned at a kiosk, and 54% sometimes add extra items.
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However, 23% never order more than intended, which suggests current upsell prompts still miss a lot of opportunities.
Strategies to consider
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Replace generic “Would you like fries?” prompts with context‑aware suggestions based on the item, time of day, and basket size.
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Use one or two well‑timed offers rather than bombarding users with pop‑ups that feel like spam.
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Test different add‑on layouts (e.g., slim strip vs full‑screen interstitial) and measure acceptance rates instead of guessing.
Kiosk insight #4 – Tipping prompts are a real risk
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40% of diners have abandoned an order because they felt pressured to tip, and 62% say they tip less or avoid places due to tipping prompts.
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Half of diners do not tip at all when ordering from a kiosk at a fast‑food restaurant.
Strategies to consider
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Re‑think tipping UX on kiosks:
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Make tipping optional and easy to skip.
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Use fewer, more reasonable default percentages.
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Be clear about who the tip actually supports (staff, drivers, etc.).
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Monitor kiosk drop‑off at the payment screen—if abandonments spike after adding or changing tipping prompts, roll back.
Channel mix – design kiosks as part of a unified system
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Diners are using multiple channels: 64% use kiosks, 59% use a restaurant app or website for pickup, 54% use restaurant platforms for delivery, and 47% still use third‑party apps multiple times a month.
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Drive‑thru remains popular but 24% plan to use it less in the next year, which points to more volume flowing into kiosks and pickup.
Strategies to consider
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Align menus and pricing across kiosk, app, web, and counter so customers aren’t confused by discrepancies.
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Use the same core engine for menus, modifiers, and promotions so you can change an item once and have it update everywhere.
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Offer clear wayfinding in‑store: signage that guides guests to kiosks for “faster ordering” and to pickup shelves or counters for completed orders.
Loyalty and “value” – what kiosks can influence
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Diners say the most important factors in choosing where to eat are food quality (45%), convenience (44%), and speed (34), with price at 33% and “redeeming offers” at 28%.
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When assessing “overall value,” quality and freshness (44%) and portion size (34%) outrank price (32%), which is way down from 59% in 2025.
Strategies to consider
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Use kiosk real estate to reinforce value: highlight portion size, freshness cues, and quality indicators (e.g., “made‑to‑order,” “freshly baked”).
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Integrate loyalty into kiosk flows without making it mandatory: simple sign‑in, scannable code, and clear progress toward rewards.
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Show “You’re X points from a free item” on kiosks, mirroring the insight that guests value programs that clearly track progress.
Personalization and healthier choices on kiosks
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62% of diners are pleasantly surprised by customization options they didn’t know existed, which means many modifiers and combos are still “hidden.”
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56% say they’re interested in healthier default menu choices, such as lower‑calorie or better‑for‑you options.
Strategies to consider
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Make customization obvious:
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Add a clear “Customize” or “Make it yours” button at the item level.
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Surface popular modifications as one‑tap chips (extra cheese, no mayo, etc.).
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Build healthier defaults into kiosk UX:
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Offer “swap to salad” or “make it grilled” as first‑class options, not fine print.
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Use visual labels and concise copy instead of dense nutrition tables.
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Generational behavior – how Gen Z and millennials differ
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Gen Z is more likely to cut back on fast‑food and fast‑casual visits and more open to alternatives like grocery prepared foods.
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Millennials are more budget‑focused and more engaged with loyalty programs and offers than Gen Z.
Strategies to consider
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For Gen Z: emphasize quality, customization, and discovery on kiosks (new items, limited‑time flavors, plant‑based choices).
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For millennials: lean on clear deals and loyalty value (earning and burning points, bundled offers, family meals).
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Segment your kiosk messaging where possible (daypart, store type, known loyalty profile) instead of running the same content for everyone.
AI and automation – where to be cautious
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44% of diners report noticing AI or automated bots taking drive‑thru orders, but 38% are uncomfortable with AI voice ordering and 51% say they have had a negative experience.
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58% say they would be comfortable with autonomous delivery, suggesting back‑of‑house and logistics automation are less sensitive than conversational ordering.
Strategies to consider
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If you deploy AI (voice bots, recommendations), make transparency and error‑handling a first‑class design requirement.
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Use AI behind the scenes first—dynamic menus, smart upsell, staffing and kitchen pacing—before putting bots in front of guests.
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When you do pilot AI ordering, keep a clear “tap to talk to a person” or “call an attendant” escape hatch.
Practical checklist for kiosk and phygital teams
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Make kiosks a primary channel: design operations, staffing, and signage around high kiosk adoption, not just “optional” use.
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Simplify the kiosk journey: optimize for speed and control, not for cramming in every possible promotion.
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Rethink tipping UX: remove pressure, avoid aggressive defaults, and monitor abandonment.
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Unify menus and offers across kiosk, app, web, and counter to avoid confusion and support a true phygital experience.
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Use loyalty and personalization to reinforce value (quality, convenience, speed) instead of racing to the bottom on price.
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Add healthier defaults and clear customization paths, especially for younger segments that care more about quality and control.
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Pilot AI where it quietly improves the experience (recommendations, dynamic menus) before relying on it as the primary interface.
Resources and Reviews
- https://www.tillster.com/reports/2026-phygital-index-report
- tillster report-compressed
- Linkedin report by Tillster
- Hospitality Tech take
- QSR Pro
Related
- Restaurant Technology Guide – Self-order kiosks, drive‑thru and menu board systems, and AI‑driven ordering.
- Self-Service Technology Statistics – Market size, installed base, growth rates, and consumer behavior stats worldwide.
- Digital Signage & Menu Boards – Interactive digital signage, menu boards, and vision analytics.
- Standards and Regulations — includes EAA checklist for 2026
- 2026 Compliance Architecture Framework for Self-Service — moving to mandate from recommendation
ABOUT TILLSTER
For the kiosk industry, Tillster appears to be evolving from a traditional digital ordering vendor into a restaurant commerce orchestration platform. The emphasis has shifted from simply deploying kiosks to connecting kiosks, mobile ordering, loyalty, AI personalization, and operational analytics into a single ecosystem.