The gist was that although major players like Subway, McDonald’s, Burger King and Arby’s started experimenting with kiosks in 2006, we had yet to see mass adoption in the restaurant space, despite kiosks’ rapid deployments in airports, grocery stores and casinos.
In technology terms, it has since been a lifetime. However, kiosks finally seem to be having their moment in the quick-service space.
Self-Order Kiosk Research
New research from Tillster shows that 25% of restaurant customers have used a self-ordering kiosk at a restaurant within the past three months—up 7% year-over-year. Further, more than 65% of customers said they would visit a restaurant more often if self-service kiosks were offered, and 30% of customers prefer to order from a kiosk versus a cashier if the lines were of equal length.
I have covered the restaurant industry since 2010 when I was named editor of QSRweb. I later added fast casual and pizza beats to my portfolio as editorial director of foodservice media. This coverage spanned the gamut of topics that make up the foodservice space, from marketing and customer service, to the supply chain and display technology. My work has been featured in publications around the world, including NPR, Bloomberg, The Seattle Times, Crain’s Chicago, Good Morning America and Franchise Asia Magazine. I continue to serve as a contributor for many publications, including QSRweb, Food Dive, Innovation Leader and the Digital Signage Federation.
Preference for self-order seems to have swung positive over last 12 months (MSN poll quoted)
Younger customers contributing
Amazon trained us
Subway is big example nowadays
Wendy’s covers 2/3rds of locations. Thinks it has a return.
KFC to do 5000 by 2020
Taco Bell doing entire chain
Self-service market research by Tillster says 30.8 billion
Taco Bell Kiosk – Taco Bell president on kiosk: ‘It’s super fun’2019/06/24 Excerpt from Nation’s Restaurant News June 17, 2019 Editor’s Note: How China tariffs might affect this are in play. Taco Bell Kiosk consumer-facing technology efforts are in full force this year. On the heels of rolling out delivery nationwide in February, Taco Bell has quietly installed kiosks in about 4,000 restaurants. Rob Poetsch, spokesman for the Irvine, Calif.-based chain, …
Asian Grill Opens New Location with Self Order Kiosks 2019/06/21 Asian Grill Opens New Location with XPR Kiosks Asian Grill, known for its authentic regional cuisines, has recently implemented XPR’s self ordering kiosks and mobile application to help automate the ordering process. Along with the new equipment throughout the kitchen to help relay orders to the staff, these changes have helped to improve operational efficiency, check …
McDonald’s & Sonic Optimizing with Self Order AI Technology2019/06/20 Self-Order and AI Sonic McDonalds Read full article at PSFK From menus curated to individuals’ dietary needs to offers that adjust in real time to trends and even weather patterns, here’s how top food names like Sonic and THE.FIT are using AI to enable tailored food experiences Today’s consumers have more food options than ever. The ordering experience …
Tapit demonstrates unique self-ordering kiosk 2019/06/18 Excerpt from BakeMag Jun article. Read full article Tapit demonstrates unique self-ordering kiosk Courtesy of Tapit 06.11.2019 By John Unrein Tapit, a leading restaurant and retail-focused software vendor, has launched Selfit, a self-ordering kiosk platform with accompanying online ordering via a mobile app and interface to the restaurant’s website. Purpose-built for the restaurant and retail industries, Tapit demonstrated its self-ordering platform …
Inside Times Square McDonalds flagship – CNBC 2019/05/29 McDonalds Times Reprinted with permission in full from CNBC May 2019 & Amelie Lucas On Thursday, McDonald’s opened a new flagship store in Times Square, expected to be its busiest in the U.S. The location showcases the modern updates that McDonald’s has been bringing to its U.S. stores. It boasts digital menu boards, 18 self-order kiosks and wireless mobile …
Self-Order Kiosks – Forbes Article Having A Moment was last modified: July 31st, 2019 by News Editor
ATLANTA, June 25, 2019 /PRNewswire/ — Coca-Cola North America is launching a digital marketplace this fall that connects its foodservice customers to pre-vetted, industry-best restaurant technologies with competitive pricing. The marketplace of solutions for front of house, back of house and outside of house is powered by Omnivore, a universal point-of-sale connectivity platform, that offers seamless integration into restaurants’ point-of-sale (POS) systems. The marketplace is the result of a year-long collaboration between Coca-Cola and Omnivore and one output of Coca-Cola’s investment in Omnivore, announced in late 2018.
Today, restaurant consumers’ expectations and use of digital technology are evolving at a record pace, creating growth opportunities for restaurants. While third-party technology companies are innovating to provide game-changing solutions for the restaurant industry, it is challenging and costly for restaurant operators to research, test, integrate and deploy the right technologies to capitalize on this growth opportunity.
Coca-Cola’s digital marketplace addresses these concerns. Experts at Coca-Cola and Omnivore have partnered to vet today’s leading foodservice technologies, taking the guesswork out of finding the best-in-class digital solutions for restaurant operators. Coca-Cola’s strategic partnership with Omnivore allows for easy and affordable integration between any of the technologies in the marketplace and a restaurants’ POS system. This seamless connection capability reduces the time, money and resources restaurants currently expend on technology integration.
The curated marketplace will include restaurant technologies to improve consumer engagement and optimize all aspects of restaurant operations, including:
front-of-house technologies (tableside ordering and payment, guest engagement, kiosk, digital menus);
back-of-house technologies (inventory, labor, analytics); and
outside-of-house technologies (online ordering, third-party delivery, loyalty and more).
“For 133 years, Coca-Cola has been focused on adding value beyond the beverage for our customers,” said Billy Koehler, Director of Digital & Payment Platforms for National Foodservice & On-Premise Marketing at Coca-Cola North America. “Decades ago, we provided customers with value-adds like Coca-Cola-branded cash registers and static Coca-Cola signage. In the 21st century, combining our expertise in foodservice and digital to offer tangible technology solutions provides the most value for our restaurant partners who always welcome an edge to increase their revenue. The marketplace is just one example of the digital solutions we’ll be rolling out for customers in the months to come.”
Coca-Cola and Omnivore are collaborating with today’s leading technology providers for inclusion in the marketplace, which is set to launch in September 2019. Access to the marketplace and technology integration through Omnivore is free for Coca-Cola customers. Cost to a restaurant for technologies in the marketplace will vary by technology, but more competitive rates will be available for Coca-Cola customers.
Coca-Cola has been focused on providing digital solutions for their customers the last few years. After forging a partnership in 2018, this spring Coca-Cola and Omnivore launched the Menu Management Solution (MMS) app, a single source of truth software that allows restaurants to own their digital menu content and control their brand across any digital platform.
“Our year-long collaboration with Coca-Cola and select restaurant operators has helped us validate and develop additional digital solutions that contribute to profitable growth for restaurants,” said Shane Wheatland, Chief Marketing Officer at Omnivore. “These solutions align well to consumer needs as well as common barriers experienced by restaurant operators as they digitize and build a competitive advantage for their brand. We look forward to the launch of Coca-Cola’s marketplace, and continuing to foster agile and affordable access to meaningful third-party solutions.”
Coca-Cola’s strategic partnership with Omnivore and the launch of the digital marketplace are important milestones in Coca-Cola’s long-term vision of building a digital ecosystem that connects Coca-Cola, foodservice operators and consumers. This ecosystem, which has been in planning and development over the last two years, will be fueled by proprietary technologies, analytics and tools available only for Coca-Cola customers aimed at optimizing customer business operations and driving their profit growth.
ABOUT THE COCA‑COLA COMPANY The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200 countries and territories. In addition to the company’s Coca-Cola brands, its portfolio includes some of the world’s most valuable beverage brands, such as AdeS plant-based beverages, Ayataka green tea, Costa coffee, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest Tea, innocent smoothies and juices, Minute Maid juices, Powerade sports drinks, Simply juices, smartwater, Sprite, vitaminwater and ZICO coconut water. It is constantly transforming its portfolio, from reducing sugar in its drinks to bringing innovative new products to market. It is also working to reduce its environmental impact by replenishing water and promoting recycling. With its bottling partners, it employs more than 700,000 people, helping bring economic opportunity to local communities worldwide. Learn more at Coca-Cola Journey at www.coca-colacompany.com and follow the company on Twitter, Instagram, Facebook and LinkedIn.
ABOUT OMNIVORE Omnivore empowers restaurant brands to digitize their guest and operational experience in a meaningful and sustainable way. We deliver an end-to-end suite of solutions built on data and insights that help optimize the essential elements of the digital restaurant experience; online ordering, pay at table, 3rd party delivery, kiosk/digital menu, reservations, loyalty, inventory, labor and analytics. All of these solutions completely integrate into the restaurant POS system for operational efficiency, future agility and leveraging of data. For more information, visit Omnivore.io.
Tapit, a leading restaurant and retail-focused software vendor, has launched Selfit, a self order kiosk platform with accompanying online ordering via a mobile app and interface to the restaurant’s website. Purpose-built for the restaurant and retail industries, Tapit demonstrated its self-ordering platform at the National Restaurant Association 2019 Show.
According to an IHL Services research, 96% of adults aged 18-39 favored self-kiosks for food ordering. With Tapit, single restaurant locations or large chains can meet this demand and affordably install Selfit’s feature-rich, highly customizable and scalable technology.
“On average, Tapit self order kiosks increased each individual order by a remarkable 30% and 13% per branch,” said Eli Cohen, head of operations at New Deli restaurant chain.
Excerpt from BakeMag Jun article. Read full article
The self-service drumbeat rattled Chicago’s McCormick Place last week as attendees swarmed exhibits promising faster customer service. This year’s National Restaurant Show showcased even more interactive kiosks (39 exhibitors) than last year’s record-breaking 36 exhibitors. Less than a third of this year’s companies (11 exhibitors) were repeats from last year, indicating the market continues to attract new interest.
Kiosk hardware and software manufacturers have heeded the call from restaurants looking to automate the customer order to deliver a more satisfying guest experience, boost sales and make more efficient use of store labor. And while established kiosk providers were once again well represented on the trade show floor, restaurant POS software companies have also entered the fray in a big way.
Once again, many of the kiosks on display integrate with other front-of-the-house and back-of-the-house touchpoints, such as online ordering, mobile ordering, loyalty rewards, customer messaging, order delivery, ingredient and nutrient content, kitchen display systems, inventory management, labor management and more. Foodservice operators have clearly recognized interactive kiosks as one part of a customer experience ecosystem rather than an isolated guest interface.
And while self-order kiosks dominated the presentations, artificial intelligence is allowing additional capabilities such as allergen lookup and guest location.
Highlights of KI Sponsors
Pyramid Computer GmbH
Pyramid Computer GmbH presented its Pyramid Location System that saves guests from having to wait in line after placing their order. The customer can order and pay at the self-order kiosk, which dispenses a puck. The customer then places the puck on the bar and chooses a seat while their order is prepared. The system will recognize their location when their order is ready, allowing a server to serve the customer accurately at their table. The system was presented in the Intel booth.
Larry Kron of Pyramid Computer GmbH demonstrates the Pyramid Location System kiosk at the Intel booth.
Zivelo LLC presented a prototype of its X2 Slim kiosk which offers a larger screen size compared to pole-mounted tablets without taking up too much counter width. There is also an X2 Extended model that takes up the same amount of counter width but has a deeper component door to allow for additional components such as a printer.
Mike Moon presents a prototype of the X2 Slim kiosk.
Frank Mayer and Associates Inc.
Frank Mayer and Associates Inc. demonstrated a self-order kiosk the company designed for a food truck using KioWare POS software. The software works on Windows and Android, and features browser lockdown. The customizable and EMV-compliant kiosk was demonstrated in the ADUSA Inc.booth.
David Anzia of Frank Mayer and Associates Inc. presents a food truck self-order kiosk in the ADUSA booth.
Appetize Technologies Inc.
Appetize presented its Interact kiosk which is part of a comprehensive POS, inventory and analytics package. The company’s kiosk line includes an Android-based solution, 15- and 20-inch landscape touchscreen options, countertop and freestanding models, and support for barcode scanners, printers and payment devices.
Self-Service Kiosks Drive Up to 40% Lift on Orders; Company Brings on New Customers AT&T Center, LSU, Museums
PLAYA VISTA, Calif.–(BUSINESS WIRE)–Appetize, the modern Point of Sale (POS) and enterprise management platform, today announced strong results from its self-service kiosk technology seeing up to 40% increase in order size across its customer base. Appetize is at the forefront of a growing industry shift toward self-service kiosks and has recently expanded its kiosk reach with new customers Louisiana State University (LSU), AT&T Center, home of the San Antonio Spurs, and SSA (Service Systems Associates), foodservice provider for the Cincinnati Museum Center and other attractions.
Self-Service Kiosks from @appetizepos Deliver Up to 40% Lift in Orders. Announces New Customers @Attcenter, @lsu and more
Appetize’s Interact self-service platform offers embedded upsell functionality and data shows that consumers are 47% more likely to add an item on a kiosk than when asked to do so by a cashier. The company is seeing consistent results from kiosks across multiple industries, including attractions, education campuses, restaurants, and sports and entertainment facilities.
Some recent data shows customers are experiencing both an increase in order size and items per order, including:
AT&T Center selected Appetize to be its point of sale platform arena-wide in 2018; in 2019, it deployed self-service kiosks and has seen an 18% increase in average order size.
SSA (Service Systems Associates), a foodservice provider for leading cultural attractions, deployed Appetize self-service kiosks at Cincinnati Museum Center and saw a 40% adoption rate in less than six months and a 20% increase in average order size.
LSU deployed Appetize self-service kiosks in its arena and has seen a 16% increase in average order size and 25% more items per check at kiosks compared to terminals at point of sale counters.
“We have been working with Appetize since 2017 and recently deployed kiosks to enhance our food service and offer a more convenient and frictionless experience for our students and guests,” said Matthew LaBorde, Assistant AD from LSU. “Appetize made it extremely easy for us to deploy a self-service platform and shift toward the future of ordering at athletic events.”
“Our customers are focused on two things: guest experience and financial performance. The Appetize Interact platform offers a modern and dynamic digital experience for guests while driving increased share of wallet for the business,” said Max Roper, Co-founder and CEO at Appetize. “In the past six months, over 45% of our deployments have included self-service kiosks, and we expect this trend to continue as businesses require more automation and consumers desire a more frictionless experience.”
Designed to enhance the guest experience and increase staff productivity, Appetize’s cloud-based self-service platform, Interact, gives businesses an intuitive checkout interface with custom menu ordering and branding for both Quick Serve and Retail environments. The platform also includes a back of house management suite, real-time connectivity for fulfillment and cashless payment experience, and more.
Appetize is a modern Point of Sale, inventory and analytics platform transforming how enterprises manage and process guest transactions. With an omni-channel approach, Appetize makes front of house transactions more intuitive through fixed, self-serve and handheld form factors, while providing robust kitchen and back office tools. Appetize is trusted by some of the largest and highest volume businesses in the world, including sports and entertainment properties, education campuses, theme parks, travel and leisure sites, and national chain brands. For more information, please visit getappetize.com.
Editors note: There should be a way to accept cash without the usual liabilities and the usual ways. Cash for credit conversion machines for example.
By ALEXANDRA OLSON and KEN SWEET AP Business Writers
NEW YORK (AP) — Hembert Figueroa just wanted a taco.
So he was surprised to learn the dollar bills in his pocket were no good at Dos Toros Taqueria in Manhattan, one of a small but growing number of establishments across the U.S. where customers can only pay by card or smartphone.
Cash-free stores are generating a backlash among some activists and liberal-leaning policymakers who say the practice discriminates against people like Figueroa, who either lack bank accounts or rely on cash for many transactions.
Figueroa, an ironworker, had to stand to the side, holding his taco, until a sympathetic cashier helped him find another customer willing to pay for his meal with a card in exchange for cash.
Two friends in Australia appear to have cracked the McDonald’s kiosk system, allowing them to score a free burger. A YouTube video shows the pals taking advantage of a burger discount by tricking the machine.
In the video, they order 10 burgers for $1 each using the kiosks. Then, they remove the meat from the ten burgers, which discounts each of the burgers by $1.10—leaving enough surplus to cover the cost of a regularly priced burger at McDonald’s.
The Golden Arches revealed Monday its biggest acquisition in more than 20 years, acquiring privately held tech platform Dynamic Yield. McDonald’s didn’t disclose a purchase price but a source close to the matter said McDonald’s plunked down in excess of $300 million for Dynamic Yield.
McDonald’s CEO Steve Easterbrook sold the acquisition as a means to be similar to the web experiences offered by Amazon, Best Buy or Walmart.
“When we reflect on the last four years, our owner/operators, our developmental licensees, and the corporation, we’ve all invested into the necessary technology to make the overall customer experience more relevant, easier, more enjoyable, with the ultimate aim for a much more personalized experience,” Easterbrook said in an internal video to employees and franchisees obtained by Yahoo Finance.
“When we get onto websites like Amazon, or Best Buy, or Walmart.com, as you place your cursor over an item and click, and it enters your shopping basket, it automatically suggests other items that are associated with that. This technology can work with the intelligent menu boards we have,” Easterbrook added.
He also thinks the technology will help ease congestion of the drive-thru at peak times, which is always a problem for McDonald’s.
Drive Thru Ordering – McDonalds Goes For Dynamic Menus in Drive-Thru was last modified: April 1st, 2019 by News Editor
Chick-Fil-A Now at School Campus with Self-Order Kiosks
New to the nation and new to the APSU campus, Chick-fil-A order-taking kiosks were officially debuted to students on Monday, Jan. 14. The kiosks are located in the Morgan University Center food court. Lauren Fladger, Senior Leader of Chick-fil-A’s Service and Hospitality team, said “[Austin Peay] is the first college campus that Chick-fil-A has been really involved with the implementation of kiosks.”
Construction for these kiosks began in December and was completed just in time for the Spring semester. There are a total of three kiosks and customers can easily navigate the touch screens when fulfilling their orders.
The kiosks will automatically change menus depending on the time; properly formatting to breakfast, lunch and dinner options.
Upon completion, students or guests will be shown an order confirmation on the kiosk screen and receive a printed receipt. After that, customers can get into line to receive their order from Chick-fil-A’s counter.
Craig is a senior staff writer for Kiosk Industry Group Association. He has 25 years of experience in the industry. He contributed to this article.
Chick-Fil-A Kiosks Installed on Campus was last modified: January 17th, 2019 by News Editor
Editors Note: We originally reported this on November 28 and continued to monitor this story from the UK to see how it developed. It originated on the tabloid website — https://metro.co.uk/ which generally publishes things that only some people on Facebook are looking to believe.
The article below came out on a tabloid and it certainly bears a closer inspection before taking it at face value.
Not that screens don’t need to be cleaned. They do. And they are treated with antimicrobial treatments to ensure they stay as clean as possible.
Editors Note: It is amazing to us the number of top-tier, presumably news organizations that felt compelled to excerpt a tabloid site and push it out to the masses though. Maybe our current President is correct in some fashion here. They need to revisit their ethics. Being first and being the most extreme in delivery can reverse the criminal act here in our opinion. I don’t eat at McDonalds but I do read the news. I’d rather not read tabloids or a rehash of one.
Sad to see kiosk niche sites propagate this with no restraint. Are they working for the self-service industry or for a buck? Appears to be a buck…
Excerpt: “Poo found on every McDonald’s touch screen tested.”
So says a tabloid headline that conjures an image of stool smeared on McDonald’s self-order touch screens ― you know, those giant screens that people touch just before they eat their cheeseburgers.
But the reality is far more mundane, not the public health pandemonium this headline suggests.
No, there is no poop on McDonald’s touch screens. There are, however, bacteria — a lot of them. These are the same bacteria that live in people’s gut, intestines, nose, skin, mouth, throat and, yes, stool. Some live in soil and water. The article with the aforementioned headline lists the harmful bacteria that were found on the touch screens of several McDonald’s restaurants in the London area. It notes the infections and diseases people could get from them.
Also — The McDonalds order kiosk manufacturers in the US, Canada and Rest of World are using a special hardened AntiGrafitti powder coating which is resistant against aggressive, disinfecting cleaning substances. It is unknown what kind of surface treatment is used or done by the UK manufacturer.
Maintenance and design are critical steps and even more critical when it is a multi-national deployment that involves multiple providers in the supply chain. We would estimate as high as 7-10 kiosk manufacturers involved across the world. This incident is just some restaurants in the UK.
These strains of bacteria are not “an active threat to human health but something to be monitored,” one of the study’s authors said in a statement.
Additional excerpt: Matewele said he did not intend to place any blame on the fast-food giant and only wanted to raise awareness, especially among people who consume food at restaurants or other public places.
“If people know about it, they can do something. … They can probably take something like an anti-bacterial cleanser,” Matewele said.
In a statement, McDonald’s said: “Our self-order screens are cleaned frequently throughout the day with a sanitizer solution. All of our restaurants also provide facilities for customers to wash their hands before eating.”
Traces of feces have been found on every single McDonald’s touchscreen swabbed in an investigation by metro.co.uk. Samples were taken from the new machines that have been rolled out at restaurants across the country – every one of them had coliforms.
Metro.co.uk’s study with the university’s school of human sciences involved swabs taken from eight McDonald’s restaurants. Six in London and two in Birmingham.
A McDonald’s spokesman said: ‘Our self-order screens are cleaned frequently throughout the day. All of our restaurants also provide facilities for customers to wash their hands before eating.’
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”
“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.
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.
Approach Video Showing How Unique Needs Met by Self-Service Kiosks
GRAFTON, WI – Recently, Frank Mayer and Associates, Inc. released a promotional video for the company’s self-service kiosk Approach, featuring why the self-order kiosk is a simple solution for businesses seeking additional convenience for customers as well as new revenue opportunities.
With multiple industries embracing the digital experience for their patrons, self-service options are becoming increasingly visible in places like quick service and fast casual restaurants, retail stores, hospitality locations, banks, dispensaries, and more.
Frank Mayer and Associates, Inc. is a leader in the development of in-store merchandising displays, interactive kiosks, and store fixtures for brands and retailers nationwide. The company helps retailers and brands utilize the latest display solutions and technologies to create engaging customer experiences. Visit www.frankmayer.com/approach for more information about Approach.
HMSHost kiosk ordering in Quick Service Restaurants Roll Out
QikServe kiosk solution deployed in more than 50 highway and airport restaurants
BETHESDA, MD – Meeting the needs of busy travelers, global restaurateur HMSHost continues to innovate the restaurant industry with expanded service format options, offering self-order kiosks in quick service restaurants it operates in airports and highway travel plazas across North America. This modern ordering and payment amenity is now available across a variety of HMSHost quick service restaurants in over 50 airports and travel plazas and will be deployed in approximately 100 locations by the end of 2019. The innovative kiosk solution utilizes the QikServe self-service platform and is seamlessly integrated with HMSHost’s point-of-sale system.
Kiosk ordering in these restaurants serves travelers using QikServe’s enterprise platform, allowing guests to browse the menu and make selections, order, and pay via an intuitive digital interface. The ordering process also includes a range of cross-selling and up-selling options that offer guests more options to add to their meal. The kiosks have already demonstrated a typical increase in average transaction value of around 20%.
“Since deploying the QikServe kiosk solution, we have seen a significant improvement in overall guest satisfaction,” said James Schmitz, Vice President of Innovation at HMSHost. “We are confident that technology solutions like kiosk ordering are transforming the food industry. By introducing these innovations in travel venues, HMSHost is exposing people from all over the world to the technology-driven future of dining out.”
Self-order kiosks improve the guest experience for travelers by helping combat long lines and providing more flexible levels of interaction when placing an order. Guests have more time to browse the menu with kiosk ordering, often leading to the discovery of new favorites and greater sales. The platform also helps during times of high customer volume, common in travel venues.
“We are thrilled to be working with a world leader like HMSHost to revolutionize the ordering process at its restaurants across North America,” said Daniel Rodgers, Founder & CEO, QikServe. “I am delighted that we are delivering value for HMSHost while also bringing convenience to the traveler experience. This is a fantastic demonstration of how our integrated platform provides the flexibility to deliver a wide range of digital self-service experiences across the hospitality industry.”
Exposure to broad audiences will play a role in revolutionizing the restaurant industry as HMSHost continues to launch innovations like the QikServe-powered kiosks in more of its restaurants. The companies are also working together on self-service solutions beyond kiosks. These technology solutions are impacting the restaurant industry, giving guests convenient options to order exactly what they want and giving restaurants improved satisfaction levels and stronger overall results.
HMSHost Leading the Industry
HMSHost is recognized by the industry as the top provider of travel dining with awards such as 2018 Best Overall Food & Beverage Operator (for the eleventh consecutive year) by Airport Revenue News. USA Today 10Best Readers’ Choice Travel Awards recognized HMSHost’s Summer House Santa Monica at Chicago O’Hare International Airport as Best Airport Bar / Restaurant Atmosphere. HMSHost is a leader in sustainability practices which include plans to eliminate conventional plastic straw use by 2020. The company also creates original award-winning events like Airport Restaurant Month, Channel Your Inner Chef live culinary contest, and the Adrian Awards Gold winning campaigns, #HMSHostLove and Eat Well. Travel Further.
Global restaurateur HMSHost is a world leader in creating dining for travel venues. HMSHost operates in more than 120 airports around the globe and at more than 100 travel plazas in North America. The company has annual sales of nearly $3.3 billion and employs more than 41,000 associates worldwide. HMSHost is a part of Autogrill Group, the world’s leading provider of food & beverage services for people on the move. With sales of €4.6 billion in 2017, the group operates in 31 countries and employs over 58,000 people. It manages approximately 4,000 stores in about 1,000 locations worldwide.
QikServe is the enterprise platform for guest self-service in hospitality. Using any channel from kiosks and tablets to web and mobile apps, hospitality operators can provide powerful in-store solutions from ordering to payment, giving guests the convenience to order and pay for their food and drinks whenever and however they want. www.qikserve.com
BOSTON — The world’s first restaurant with a robotic kitchen that cooks complex meals has opened. Spyce’s automated kitchen has seven cooking woks able to serve up to 200 meals an hour.The Boston eatery’s menu is based on a half-dozen bowls with flavors t
SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS
Lansdale, PA and Troy, MI – June 12, 2018 –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.
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.
Acquisition – SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS was last modified: June 13th, 2018 by News Editor
QSR Ordering Kiosks Evolved From A 1980s Solution For Out-Of-Stock Shoes
As a college student in the 1970s, Murray Lappe heard that his fellow students wanted to promote their organizations through a new medium. During a retreat, the students thought of having a traditional bulletin board, but Lappe had an alternate take: Why not digitize the concept?
“We kicked the idea around, and it got some interest,” Lappe told kioskindustry.org. “After the session, the Dean suggested I apply for a grant to see if we could make it happen.”
With just $2,500 in seed money for the project, Lappe went to work on an interface and an algorithm to power what would arguably become one of the first self-service kiosks. The device would come to have a plasma touchscreen, which was important since many people didn’t know how to use a computer at the time.
“I wanted to make it as simple as possible for people who had never used a computer before,” Lappe added. “I didn’t want it to look or feel like a computer.”
The kiosk, which was dubbed the PLATO Hotline, appeared in the University of Illinois in Urbana-Champaign’s student center only a few weeks before Lappe graduated. And it was a resounding success.
Kiosk Meets Retail
A few years after the introduction of Lappe’s kiosk, the Florsheim Shoe Company decided to bring self-service kiosks into its retail stores. Through the kiosks, customers could also view different styles on a video screen, while the machine would literally talk to customers and sell them on the features of different shoes.
Self-serve kiosks are making their debut in the fast food industry! The recently renovated 10th Ave. McDonald’s here in Great Falls has just added self-serving kiosks to their menu. Instead of 3 places to order, there are now 8 in the newly designed restaurant.
In an effort to offer a better guest experience, McDonald’s is allowing their customers to have the opportunity of ordering everything themselves.
The staff that was once stuck behind the counter, are now making the experience more personable by helping out on the floor.
For many, the new service is great!
The good news is that these self-serving kiosks won’t be taking jobs away from the fast food industry any time soon. In fact, they’ve created some!
The new kiosks have allowed the opportunity for labor to be directed elsewhere, such as in the kitchen or helping customers on the floor.
One of these new positions is known as GEL, or Guest Experience Lead. This position is designed to help customers understand the new kiosk and order process.
It’s also important to note the new self-serving kiosks are just an option You can still order your meal the traditional way or through the drive-thru.
Overall these kiosks have drastically helped with efficiency and customer interaction.
Frank Mayer and Associates, Inc.’s self-ordering kiosk delivers an interactive dining experience that offers expediency and order process efficiency to both customers and store employees.
GRAFTON, WI – Frank Mayer and Associates, Inc. announces the launch of Approach32, a self-service kiosk designed to meet the quick service restaurant industry’s demand for customer convenience, order accuracy, and faster service by enabling consumers to browse a digital menu, customize an order and pay at the kiosk.
Outfitted with a 32-inch touchscreen monitor, the kiosk also features a payment terminal and printer, assistive technology and a software package option to integrate with various POS systems.
The enclosure marries smart design with a small footprint, offering an array of customization options and brand personalization – all while being backed by Frank Mayer and Associates, Inc.’s trusted name in delivering experience and unsurpassed quality in the interactive kiosk market.
“With our history of serving the kiosk market, designing Approach32 to fit the distinct needs of quick service restaurants and fast casual dining was a logical step,” says Mike Mayer, President of Frank Mayer and Associates, Inc. “The Approach kiosk is the answer to the growing movement toward self-service.”
Approach32 is also available as a smaller unit, containing a 22-inch monitor and tailored for restaurants with less floor space.
In addition to operating within quick service and fast casual restaurants, Approach32 also offers functionality for a variety of other markets including wayfinding, product selection, self-service checkout, and registration check-in.
Frank Mayer and Associates, Inc. is a leader in the development of in-store merchandising displays, interactive kiosks, and store fixtures for brands and retailers nationwide. The company helps retailers and brands utilize the latest display solutions and technologies to create engaging customer experiences. Visit www.frankmayer.com/approach for more information about Approach32 and Approach22.
CONTACT: David Anzia, Senior Vice President of Sales Frank Mayer and Associates, Inc. 1975 Wisconsin Ave., Grafton, WI 53024 (855) 294-2875 | firstname.lastname@example.org
MORE SELF-ORDER KIOSK IMAGES
Self-Order Kiosk Approach Announced by Frank Mayer was last modified: April 3rd, 2018 by News Editor
Steve EvansAccount Manager for the World’s Fastest Drive Thru™ Kiosk Solution at NEXTEP SYSTEMS
Hello folks! Please help me congratulate Tara Hill and her staff for her implementation of our World’s Fastest Drive Thru™ Solution at her brand new Fresh Forward SUBWAY® Restaurant located in Lower Sackville, Nova Scotia, CA. What a beautiful location that she has there! This is our third Canadian location with our solution(with more to come) and Nova Scotia is definitely a hot zone for Drive Thru for SUBWAY®. With the new generation of consumers, this type of technology is needed and creates one of the most positive experiences(and very profitable) for Drive Thru ordering! Please, if you’re in the area, please stop by for breakfast, lunch, and dinner!
In The Wild – Drive-Thru Kiosk Self-Order Subway was last modified: September 16th, 2019 by News Editor
That’s a belief driving the startup Bite, which creates facial recognition kiosks for quick service restaurants (QSRs). Using a combination of iPads, proprietary software and machine learning, Bite’s tablet kiosks can recognize your face to unlock loyalty programs, bring up food preferences and provide opportunities for restaurants to upsell.
Jack in the Box CEO, Leonard Comma, made news this week when he said “it just made sense” for his fast-food chain to consider switching from human cashiers to machines. To be sure, there are big societal implications if every restaurant made such a shift, but what if automated kiosks provide a better customer experience?
Bite Says Face-Recognizing Kiosks Improve Customer Experience was last modified: January 15th, 2018 by Kiosk Industry
On Thursday, McDonald’s announced that it would expand the service to all 14,000 of its American restaurants.
The Wall Street Journal reports:
McDonald’s Chief Executive Steve Easterbrook, speaking at a McDonald’s in New York’s Tribeca neighborhood on Thursday, said the company has long expected customers to adapt to its business model of ordering at the counter and then waiting to collect their own food. Now, he said, “we’re adapting our business around customers.”
The Journal also reports that “test runs at more than 500 restaurants…showed an increase in foot traffic and contributed to a mid-single-digit percentage increase in restaurant sales, lifting the $5 to $6 average check by $1, on average.” Customer satisfaction scores also increased “because families, in particular, appreciate having their food brought to them.” (The company also announced rollout of a new mobile order-and-pay app, which would allow customers to order and pay for food from their smartphones.)
McDonald’s USA in tech push plans self-serve kiosks, mobile ordering
The cost of installing kiosks is between $50,000 and $60,000 and the company is willing to help with money or financing, McDonald’s executives said. Eastbrook has said that equipment is not expected to reduce the number of workers in restaurants, since traditional order takers would be redeployed to help customers learn to operate kiosks and to deliver food to tables.
Demonstrating returns is key to convincing franchisees to make the switch, executives said. In a video, one UK executive said sales grew 8 percent in downtown London as a result of the initiative.
McDonalds Kiosk – Table service, touch-screen order kiosks coming to all U.S. McDonald’s was last modified: September 14th, 2018 by Kiosk Industry
When it comes to mobile apps vs. kiosks in the restaurant field, here’s why some experts give the edge to using a self-service ordering device over a mobile app:
What has made kiosks particularly enticing to consumers is their efficiency.
Customers want to buy products that are easily available, within their budget and present the required information pertaining to ingredients, product details, nutritional value and others. Products and information provided at kiosks quickly cater to those demands.
“When kiosks first came along, there was a learning curve for users,” Vasa said. “It took them some time to figure them out. As time has gone on, kiosks are everywhere. Exposure has helped people understand the technology and become more comfortable with it. Kiosks no longer are seen as potential obstacles, but rather as necessities.”
Juke Slot develops automated technology designed to facilitate faster service and provide entertainment for consumers in the casino, hospitality and restaurant industries. Its Android-based kiosks’ sole purpose is to provide faster service and entertainment to the everyday public environment, with customized application capabilities based on customer needs.
The company’s device provides a tableside ordering, custom designed EMV-certified hardware solution that enables secure transactions. Juke Slot’s lineup also features a standup touchscreen kiosk aimed at the quick service industry.
Juke Slot focuses on giving its customers more control of their operation — over their customer ordering process, over their onsite marketing and over their business processes.
For more information or to purchase Juke Slot’s software or kiosks, email email@example.com.
Kiosks vs. Mobile Apps: A Face-Off of Restaurant Tech was last modified: October 18th, 2017 by Kiosk Industry
Excerpt: Birdcall, a contemporary take on a retro chicken restaurant is the third restaurant concept and venture for the group that is lead by chef Jean-Philippe Failyau along with his partner Peter Newlin. The first location opened its doors in August at 800 E. 26th Avenue in Denver. Known by Failyau and Newlin and the staff as smart hospitality, their goal is to revolutionize the way restaurants take care of their guests. Starting immediately, customers witness the birdcall experience by ordering from custom designed kiosks. Built from the ground up, Newlin and his team have developed their very own user-friendly, customer facing, POS system that allows the guest to feel completely immersed in the brand experience from start to finish.
When Birdcall opens in the spring, a manager who plays much more Apple Store genius than restaurant maitre d’ will oversee the staff-free dining room set where Tom’s Home Cookin’ operated for 17 years. The team behind the upcoming fried chicken sandwich spot, who also owns the Park Burger mini chain and two locations of Homegrown Tap & Dough, has a modern goal in mind: Using technology to be able to serve quality food at an affordable price.
Birdcall will be a modern fast-casual restaurant where design and a high-quality food program will aim to be the core of the new age restaurant experience. There will be affordable (think $5) all-natural Colorado-raised chicken sandwiches, a variety of them that includes Cordon Bleu, Nashville Hot, Kimchi, plus all sorts of flavors of hash browns, and plenty of beverages, alcoholic and not.
Instead of sitting down and ordering from a server or going up to a counter to do the same, guests will walk up to a high-tech kiosk developed uniquely for Birdcall and enter what they want. The software will be able to retain customer information so that next time a guest comes a swipe of a card will automatically pull up previous orders, which can be duplicated, or a menu of favorites, which one can choose from skipping the larger menu. Here’s what to expect:
Here is Feb article that shows main area + wireframe of kiosk
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017. The technology upgrades, part of what McDonald’s calls “Experience of the Future,” includes digital ordering kiosks that will be offered in 2,500 restaurants by the end of the year and table delivery.
“MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery,” Charles wrote in a note to clients Tuesday. “Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].”
Multichannel ordering and payment leader targets growing trend for in-store self-service ordering
Edinburgh, UK – March 22, 2017 –QikServe, the multichannel ordering and payment specialist, today announced that has rolled out a new solution for hospitality businesses that are looking to implement kiosk-based ordering and payment systems. The QikServe Kiosk Application is latest addition to QikServe’s suite of ordering and payment solutions, which also includes mobile, tablet and web-based applications.
The QikServe Kiosk Application gives operators a flexible, customizable platform for building their own self-service system. Operators combine brand logos, colors and images with QikServe’s intuitive user interface to deliver a unique self-service kiosk customer experience. Adding and updating product images, food and drink descriptions or relevant up-sell and cross-sell options, can all be easily managed by operators within the app.
In 2016, several restaurant giants made significant commitments to the implementation of self-order digital kiosk initiatives. Many hospitality operators view kiosks as the first step towards full mobile ordering, with no need to download an app or check in via mobile, customers are often more ready to engage via kiosks.
The QikServe Kiosk Application allows operators to capture guest data insights to intelligently optimize in-house operations, such as number of visits, most popular locations and kiosk positions, typical order spend, most ordered meals or successful upsells, peak self-service hours by day, week or month and more. This data can help operators optimize menus for greater spend and to provide enhanced experiences and services based on usage data.
“Kiosks offer hospitality operators more than just a new ordering option – they support operational efficiency by helping reduce queues and can provide eye-catching digital signage opportunities,” said Daniel Rodgers, CEO, QikServe. “Adding to our existing applications in mobile and web-based ordering our Kiosk Application provides operators with a fast, cost-effective way to implement self-service ordering using our purpose built screen flows and interface design that are designed to deliver great user experiences.”
QikServe’s Kiosk Application can be installed on any kiosk hardware running the widely used Universal Windows Platform, enabling secure, PCI-compliant payments via an integrated card-reading terminal that can be configured to accept payments types including Android Pay, Apple Pay, Chip and Pin, mag stripe and NFC Contactless.
QikServe’s patented technology allows hospitality operators to provide the ability to order and pay for food and drinks directly from any device. Using QikServe, guests can use mobile devices to order exactly what they want, when they want it. QikServe is available as a standalone, customer-branded app or can be fully integrated into hospitality operators’ existing mobile apps and POS platforms. It makes use of technologies such as in-store beacons or QR codes to alert customers to download and use the app. Once logged into the application, guests can open their check, add to their order, customize meals or room-service orders and pay for them from within the app. With Gold Partner status in Oracle PartnerNetwork (OPN), QikServe is fully integrated into Oracle Hospitality’s Point of Sale (POS) platform; therefore customers who use Oracle’s POS solution can quickly deploy a fully-branded mobile order and payment service for their diners. www.qikserve.com
Good point on the oversize smartphone. Writer says the units are expensive but never notes a cost. Looking at them with the Verifone “wart” I personally think they are in the B- range when it comes to design, which usually equates to cheaper.
They are gigantic touch screens that let you customize your burger with toppings like guacamole, grilled mushrooms, onions, and bacon and sauces like sriracha mayo. But the kiosks have drawbacks, like not working in the drive-thrus that provide 70% of McDonald’s revenue and being relatively expensive.
Order Kiosk – Review of McDonalds Kiosk Burger Ordering at SXSW was last modified: September 14th, 2018 by Kiosk Industry
Here is a personal opinion letter/piece that I wrote for rebuttal to Andy Puzder and Rensi. I was deliberately ruthless and demonstrative for effect. I also sent to the Washington Post and may send to some more. I also published as personal letter on the Kiosk industry group site.
Letter to Washington Post Job Killing Kiosks
I am the executive director of a kiosk industry group association that specializes in self-service in all industries.
This is in response to the recent news items by Secretary of Labor nominee Andrew Puzder and Ed Rensi, former president and CEO of McDonalds declaring that self-order automation in fast food industry is a “consequence” and a matter of time if we “foolishly” increase the minimum wage.
That is simply not true.
Neither one of them has, to any degree, or wants – to implement modern automation for customers. What they want is to maintain the status quo and use self-order automation as a bully club of sorts. Almost a threat.
The status quo? It is generally lowest paid minority and immigrant (legal and illegal) workers, not unlike field workers in early California days. Hispanic and black predominantly. Virtual slave labor to be harsh. That is the model for their fast food restaurants which the majority they franchise and franchisees factor for their ROI.
Both minimum wage increases and automation “disrupt” that model and make waves for them. They are protecting that model. Not unlike Hearst protecting the paper mills when hemp was shown to be a superior newspaper print medium than cutting down trees. Outlaw hemp and the mills made money.
Meanwhile small business gets left behind, again. They cannot afford the investment for self-order and an high minimum wage is difficult at best for them.
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. Those jobs and skills do require training and education.
Has McDonalds in Europe, in their corporate-owned restaurants, seen a reduction of labor due to self-order? No. They have increased employment.
Puzder and Rensi are change-agnostics. They like it the way it is. The old way. McDonalds is changing for the good. CKE may be glad Puzder is leaving.
There is indeed a shift towards more automation in the public space. That certainly redefines workers in the public space as well.
I’m from the south and when I was 14 in 1969 my mother took me to the Arkansas bottomland near Fort Smith and had me pick peas and cut cabbage for $5 a day. We did it one week in the summer. That was a lesson in minimum wage I never forgot. I went to school and that is the best thing minimum wage can do.
Open Letter to Washington Post – Job Killing Kiosks was last modified: December 31st, 2016 by Kiosk Industry
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.
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.
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.
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.”
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.
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.
We at the Kiosk Industry Association have seen the news media running controversial headlines and opinion pieces by CEOs and ex-CEOs decrying the minimum wage increase and attributing loss of jobs to self-order. Nothing could be farther from the truth. Here is a very nice piece from Fast Casual and Elliot Maras providing an accurate counterpoint. Thanks Elliot! — Editor
President-elect Donald Trump’s nomination of Andrew Pudzer as Secretary of Labor has helped push the “kiosk as restaurant job killer” theme into the nation’s consciousness. Pudzer, CEO of CKE Restaurants, is an advocate of automation.
The high-profile Pudzer nomination directs attention on automation as restaurant chains continue to introduce self-order kiosks to improve customer service. It comes on the heels of the “Fight for $15” wage campaign, which is placing unprecedented pressure on restaurants, particularly limited-service concepts.
Late last month, Ed Rensi, a former president and CEO of McDonald’s USA, penned a column in Forbes reminding readers that businesses in 2013 warned that the labor-union-led “Fight for $15” would force companies to replace full-serve employees with self-service alternatives.
Rensi’s main point was that businesses cannot absorb the higher wages that labor unions are advocating. But for people less familiar with the restaurant industry, the controversy over the $15 wage has muddled the full story about why foodservice chains are introducing self-service kiosks and what impact kiosks really have on restaurant labor.
Shortly after stories broke claiming McDonald’s was planning to roll out self-order kiosks in all of its 14,000 U.S. stores, The Gateway Pundit, a political website, carried the following headline: “Congrats Minimum Wage Protesters! McDonald’s Unveils Job-Replacing Self-Service Kiosks Nationwide.”
Both the restaurant industry and the kiosk industry now find themselves forced to defend their actions, which in reality are not killing jobs.
Kioskmarketplace in May reported that many restaurant chains were deploying kiosks before the $15-minimum wage push had gained steam. The Digital Screenmedia Association in 2011 reported that 21 percent of all QSRs were planning to introduce self-ordering kiosks. Also, in 2011, McDonald’s installed 840 kiosks across Europe with the goal of improving customer service.
Robotics researchers, restaurant executives, industrial engineers, consultants and economists have all said automation in the restaurant and fast-food sectors is not as simple as installing automatic tellers in banks or employing robots to assemble cars, according to Reuters.
Several chains are using kiosks and other technology that allow orders to be placed more rapidly and efficiently. Such efficiencies are serving to reallocate labor from the front to the back of the restaurant and in some cases, add jobs.
Labor moves to the back of the house
During McDonald’s shareholders meeting in May, company CEO Steve Easterbrook was asked if he expected to see kiosks taking the place of workers and causing people to lose their jobs. “It may change the nature of the jobs in the restaurant, because frankly technology is something that our customers are embracing,” Easterbrook said. “We can just reapportion that labor into more service orientated roles that we think the customer will benefit both ways.”
According to Panera Bread’s 2015 second quarter earnings call report, digital utilization efforts reduced order input labor but increased labor hours. Panera’s new business model, introduced in 2014, includes fast lane kiosks for dining in and ordering to go. Under this model, called Panera 2.0, the company actually added labor hours to meet the demand driven by multiple points of digital access and to ensure the ability to serve with greater accuracy in an environment where about 70 percent of orders are customized.
“This extra labor is necessary to drive a better guest experience consistent with operating clarity,” the earnings report said.
CEO Ron Shaich indicated as early as October 2014 that same-store sales from 2.0 stores outpaced traditional cafes, according to FastCasual.com. With 5 percent of all company sales placed through web, mobile or kiosk, Shaich said he was encouraged by the potential for the 2.0 model.
Saladworks, a fresh salad franchise chain that is also revamping its stores, does not expect labor hours to decline as it installs self-serve kiosks, according to Pat Sugrue, president and CEO.
“We didn’t do this for labor purposes; we did it for throughput and also capacity,” said Sugrue. “We’re going to have more people making salads. From an hours perspective, hours should go up, not go down.”
Sugrue pointed out that the kiosks could impact labor costs in a positive way for the company that is not synonymous with fewer hours worked.
Self-order kiosks change labor metrics
“If the sales go up faster than the net hours, then our labor as a percentage of sales will come down,” Sugrue said. “I think we’re going to add hours, but we should be able to increase throughput, and therefore, sales, and our labor percentage could come down.”
The objective of the kiosk is recognizing that how you want to be served and how I want to be served can be very different, Sugrue said.
“Increasingly, millennials and millennial-minded people don’t necessarily need that interaction with someone. For those who order off the kiosk, that will shorten the queue for those who don’t order off the kiosk, and it will provide better service to either group,” he said.
Fast Food Kiosks long-term impact not known
This is not to say that some jobs won’t be eliminated in some situations. The long-term ramifications of self-order kiosks are hard to determine, given the newness of self-order restaurant kiosks. Transitioning to kiosks will require companies to continue serving those customers who still want personal service.
“During slower times, brands still need the appropriate number of counter staff because the kiosk is a customer service option, not a requirement,” said Jodi Meryl Wallace, chief marketing officer at Acrelec America, a provider of customer experience technology. The company’s European operation has been involved in numerous restaurant kiosk deployments. “There’s also the need for front-of-house team members to assist customers who are new to using the kiosks,” Wallace said. “Because of kiosks, brands have begun to offer table service delivery of orders so staff is redirected to that task as well.
Because kiosks increase the speed at which orders are taken, brands have found that there’s an increased need for back-of-house/kitchen staff during peak periods when kiosks are used, Wallace said.
“Kiosks grow revenue by increasing throughput and by providing consumers with ‘order privacy’ which results in customers adding more side items, beverages and desserts, and more frequent upsizing of menu items,” she said.
Meeting customer needs
Ultimately, restaurants must meet expectations of all their customers, and 64 percent of millennials prefer self-service, according to an MHI Global report.
“Add to that kiosks can present a menu in multiple languages…and they’re fun to use,” Wallace said. “In France, 90 percent of consumers will use the kiosk option when it’s available. “Brands have reported that the average check size at the kiosk is 30 percent higher than at the counter.”
Reducing restaurant labor has a little bit to do with it, but it’s not the driving force, said Tom Radtke, vice president of sales at Keyser Retail Solutions, a retail technology integrator.
“You’re going to continue to have that kid at the counter,” he said. “There’s a group of people who won’t go to the kiosk.”
Radtke agrees with those who predict self-order kiosks will improve restaurant sales.
“The kiosk can lead you through the process and do suggestive selling, and that kiosk does it better than a 13-year old crew kid,” said Radtke. “Typically that (kiosk) order is a higher ring than it is at the counter.”
Another factor is that consumers today, especially millennials, are more appreciative of businesses that use technology. Hence, there is a customer perception factor involved.
Is a groundswell underway?
The controversy won’t be going away soon. If McDonald’s deploys kiosks nationally, it marks one of the country’s most significant restaurant kiosk developments.
Given how long limited-service chains have been testing kiosks, one can’t assume that McDonald’s action — regardless of what’s motivating it — signals a groundswell movement, however.
“If your customer doesn’t embrace it, you’ve got a huge expenditure for something that doesn’t have much of a payback,” said Radtke. “How do you incorporate another layer of ordering, transaction processing into the inside of the restaurant?”
He noted that it took a long time for bank customers to embrace ATMs.
Some observers do think a groundswell is in the making, however.
“The QSRs are starting to understand the ROI on this,” said Charles Lewis, director of business development at Elite Manufacturing, a kiosk hardware manufacturer.
The speed and order accuracy that kiosks deliver are creating higher profit margins, Lewis said.
Fast Food Kiosks Creating Jobs and Increasing Revenues – Counterpoint was last modified: August 12th, 2019 by News Editor
McDonald’s took one giant leap into its digital future this week, saying it’s switching to self-serve order stations and table delivery for all U.S. in-restaurant dining, and will soon roll out a new mobile order and pay system for the drive-thru.
The huge burger-centric chain said it piloted the new in-store system at 500 revamped U.S. restaurants in New York, Florida and Southern California over the course of about 44,000 orders and apparently liked what it saw. As a result, the new “justforyou experience” will now put vertical tabletop ordering touchscreens at tables, all but eliminating the order counter that has graced the Golden Arches locations’ since day one. Instead, McDonald’s crews will hand-deliver orders to customers tables in their restaurants, thus all but eliminating that much-abhorred line at the counter that has greeted customers all these years, simultaneously turning off millennials everywhere, according to research.
The “justforyou experience” is already in more than 2,000 restaurants elsewhere around the globe as well as the aforementioned 500 U.S. pilot sites. It will now start at locations in Washington, D.C., San Francisco, Seattle, Boston and Chicago, according to McDonald’s. The roll-out for all locations around the U.S. is less date-specific, since most locations are franchisee-owned and McDonald’s said the start-up cost of the new system falls on individual franchisees.
And change is coming for you in drive-thru, too
Of course, most McDonald’s customers never step foot inside the ubiquitous restaurants, but for them a change is also coming in the form of a new mobile ordering and payment system. In fact, the chain said on a new justforyou experience website today that it’s just plain ol’ “raising the bar on everything we do. … offering new ways to order and pay, table service and premium menu choices. Here are some of the potentially game-changing moves underway under the golden archs:
The “justforyou experience” and the audacious promise to “make ordering fun”: This includes the previously detailed tabletop touchscreen self-order kiosks with features allowing for individual order customization galore.
Higher end quality of food: This includes initiatives to make menu items more healthful, like “switching from margarine to butter” in that breakfast staple, the Egg McMuffin, as well as adding more trendier menu items, like guacamole, Sriracha mayo and even “premium” desserts.
Mobile, electronic, kiosk-based, Apple or Android and every other way available to pay: Kiosk payment? Check. Mobile pay? Check. Hands-free pay options? Check … maybe, after testing.
Table-side delivery service: With self-ordering kiosks in the restaurant, the food now comes to you and that line at the counter goes away.
New bolder, hipper look: Not many details on this one, but a promise that the chain is doing a decor refresh, featuring more up-to-date everything, as well as digital menu boards.
The digitization of drive-thru: The chain is currently testing digital drive-thru menu boards that change with the time of day, day of week, and month of year, for that matter plus … (drum roll please) … double lane drive-thrus all around.
In fact, on the new justforyou experience website, focused on all these new initiatives, there’s actually a virtual reality experience visitors can immerse themselves in as part of the all-American chain’s customer introduction to the whole new McDonald’s reality for a digital age.
Shelly Whitehead / Award-winning veteran print and broadcast journalist, Shelly Whitehead, has spent most of the last 30 years reporting for TV and newspapers, including the former Kentucky and Cincinnati Post and a number of network news affiliates nationally. She brings her cumulative experience as a multimedia storyteller and video producer to the web-based pages of Pizzamarketplace.com and QSRweb.com after a lifelong “love affair” with reporting the stories behind the businesses that make our world go ‘round. Ms. Whitehead is driven to find and share news of the many professional passions people take to work with them every day in the pizza and quick-service restaurant industry. She is particularly interested in the growing role of sustainable agriculture and nutrition in food service worldwide and is always ready to move on great story ideas and news tips.
World watches while McDonald’s promises to ‘make ordering fun’ was last modified: November 23rd, 2016 by News Editor
Nice article by ZDNet. Restaurants such as McDonald’s and Panera Bread are leading the charge toward automation in the quick-service food industry, which offers an important example of how the labor market is transforming.
Frank Olea of Olea Kiosks is quoted in the article extensively. Frank makes the point that brands can see the ROI. The $15 per hour minimum wage coming also began the thought process on cutting head count and how to deal with labor costs.
Why retail automation is finally revolutionizing quick service restaurants and what it means for jobs | ZDNet was last modified: January 7th, 2017 by Kiosk Industry
The locking experts at Camlock Systems Ltd are proud of their long-standing relationship with Evoke Creative Ltd. Recently, Evoke has designed and manufactured self-order kiosks for the world’s largest chain of fast food restaurants. Camlock was involved in this project from the early stages. Following careful evaluation, Evoke chose the Series 31 cam lock to secure the kiosks.
Evoke’s touchscreen kiosks allow customers to browse through the menu, to order and to pay for their food.
Camlock’s experts investigated where the lock will be used and carefully analysed the security risks the kiosks will be exposed to. Camlock learned that Evoke required two locks for each kiosk; one to protect the door of the ticket printer that gives easy access to the printer roll, and another one to protect the components inside the kiosk.
During the consultation, different types of locks, security levels and prices were considered. Camlock Systems provided CAD files and samples to enable Evoke to test the lock.
Eventually, Evoke decided on the Series 31 die-cast 10 disc tumbler cam lock. The strong keys of this lock are ideal for heavy usage and easy to insert due to the double-entry design. Camlock also supplied a master key that opens all locks on the kiosks.
Since the start of the cooperation between the two companies in 2008, Camlock Systems has provided on-going support to Evoke. Neil Clark, Commercial Director at Evoke, says: “Camlock’s expertise was essential throughout the entire process of finding a suitable locking solution for our kiosks. Camlock understood our requirements, during the development process as well as after the installation.”