The global kiosk market is growing at an unprecedented rate, and is showing no signs of slowing. By 2024, it is expected to reach $30.8 billion, with a significant portion of that coming from food & beverage kiosks*. Consumers love them too. In fact, Tillster's Self-Service Kiosk Index found that 60% of QSR & Fast Casual customers would visit a restaurant more if self-service kiosks were offered.**
Restaurants may be feeling the pressure to jump on the kiosk bandwagon, but it's important to weigh all factors before deciding if a kiosk program is right for your locations. You need to think about how to optimize or if you are better suited for a different digital solution. To help with this, we've created a list of questions that can help determine whether kiosks are right for your business.
1. How much of my traffic is in-store?
First and foremost, for a kiosk solution to deliver strong ROI, your restaurant should have enough foot traffic. If 70-80% of your traffic is drive-thru, an in-store kiosk may not be the right solution. Instead, it may make more sense to focus on other digital solutions, such as online and mobile ordering or delivery. Kiosks make the most sense for restaurants with high in-store traffic, where lines are likely to get long and consumers are open to additional ordering options.
2. What upfront program costs should I expect?
Prior to deploying a kiosk strategy, it’s important to know and understand what your upfront program costs will be, since it is a sizable investment. These costs can include the initial build, menu and order flow customizations, hardware and software costs, and any payment and POS integrations that are needed. Don’t be dissuaded because the returns can be significant. Restaurant operators often see a lift in throughput, POS terminal and labor savings, and some restaurant operators have seen as much as a 30% increase in average check size. For this reason, it’s important to understand what your total investment is before determining if a kiosk strategy will yield the ROI you are anticipating. Tillster also offers an ROI calculator where you can adjust the variables and determine how long until breakeven.
3. Does a kiosk solution fit my restaurant operations?
In the restaurant world, operational efficiency is key. It is important to select a kiosk program that works with and enhances all aspects of your operations. This can range from POS and payment integration options, to finding the optimal placement for kiosks so customers know they are available. Prior to implementation, it’s important to get your staff on board and make sure they are given enough training and education so your kiosk program is a success.
Kiosks offer consumers convenience and help restaurants drive incremental sales. However, weighing all the factors involved in rolling out this technology is a critical step that all restaurant brands should take.
Need help deciding if kiosks are right for your brand? Contact one of our restaurant kiosk experts.
*2017 Transparency Market Research Study **Tillster 2017 QSR & Casual Dining Survey