The Rise of Self-Ordering Kiosks in Quick Service Restaurants: A Win-Win for Customers and Businesses

ByDavid Hernandez | 22 May 2024

15 minutes read

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The landscape of Quick Service Restaurants (QSRs) like McDonald's has been transformed by the introduction of self-ordering kiosks. These innovative systems are becoming the preferred method of ordering for many customers, significantly altering the traditional dining experience. As a technology enthusiast and a frequent QSR visitor, I've experienced firsthand the benefits of these kiosks. From skipping long lines to enjoying more personalized and private ordering processes, the advantages for customers are substantial. But the benefits extend beyond just the consumer experience—businesses, too, are reaping significant rewards.

Why Customers Love Self-Ordering Kiosks

When you walk into a McDonald's today, you might notice that more and more people are bypassing the traditional counter and turning to self-ordering kiosks instead. The reasons for their popularity among consumers are numerous:

1. Queue Avoidance: No one enjoys standing in long lines, especially when hungry. Self-ordering kiosks practically eliminate this issue, allowing customers to place orders quickly and efficiently.
2. Controlled and Relaxed Ordering: Kiosks give customers the freedom to browse the menu at their leisure without the pressure of a growing line behind them. This relaxed environment encourages customers to explore menu options thoroughly.
3. Immediate Payment and Enhanced Service: With features like direct payment at the kiosk and entering a table number for table service, establishments like McDonald's are enhancing customer service, making the dining experience more convenient and enjoyable.
4. Language and Communication: Especially in Europe or in places with hight tourist presence, where language barriers can be an issue for travelers, self-ordering kiosks provide a straightforward and error-free way to order food, as customers can select their meals visually and avoid miscommunication.

Business Benefits: Enhanced Efficiency and Increased Sales

From a business perspective, the implementation of self-ordering kiosks addresses several key operational challenges while boosting profitability:

1. Reduced Missed Sales Opportunities: According to a report by the National Retail Federation (NRF), 97% of consumers will abandon a purchase if they encounter inconveniences. With kiosks, the likelihood of customers walking away due to long lines is significantly diminished. Research shows that a majority of customers will leave if there are more than seven people in line, and nearly all will seek alternatives if the line extends to ten. Kiosks effectively keep customers in the restaurant and ordering.
2. Increased Order Value and Size: The impersonal nature of a kiosk can lead to higher sales per order. McDonald’s, for instance, observed a 20% increase in the average order size and a 30% rise in average order value after introducing kiosks. This is partly because kiosks can reliably upsell — suggesting drinks, desserts, and other add-ons — without the variability that might come from human cashiers.
3. Operational Efficiency and Labor Optimization: With kiosks taking over the ordering process, staff can be reallocated to more critical areas such as food preparation and customer service. This shift not only improves operational efficiency but also enhances the overall customer experience with added services like table delivery.
4. Increased Revenue: Following the rollout of self-ordering kiosks, we estimated McDonald's potential increases in revenue ranging from 20% to 40%, while maintaining the same level of staffing. This revenue boost is attributed to more efficient service, higher transaction values, and the ability to reallocate labor to where it's needed most.

Exploring the Cost of Self-Service Kiosks

The investment in self-service kiosks varies widely, influenced by factors such as kiosk type, features, durability, customization, and the services required for deployment and ongoing support. This comprehensive overview details the costs associated with different types of kiosks, along with a new addition to the market:

Types of Kiosks and Their Cost Range:

• Basic Kiosks (Countertop, Limited Features): These tablet-based kiosks are the most economical, ranging from $1,500 to $3,000, and are designed for light use.
• Medium Kiosks (Freestanding, Basic Features): Costing between $3,000 and $5,000, these kiosks provide greater versatility and durability.
• Mcdonald's' Kiosks (Custom Design, Multiple Features): Starting at $5,000 and potentially exceeding $20,000, these kiosks are custom-designed and include multiple functionalities such as receipt printing, card reading, or scanning.
• Do Your Order Kiosks (advanced functionalities): For $580, businesses can set up a kiosk using an iPad, a SumUp Air Credit Card reader for credit card payments, an iPad holder, and a Star Micronics/Epson printer for customer receipts.

Alongside hardware, software solutions significantly affect kiosk setup costs:

• Toast: Monthly POS software fees range from $0 to $165+, with hardware up to $1,234.
• Do Your Order: The monthly fees for Do Your Order are as low as $35 for seven kiosk licenses, which include access to Kitchen Display Systems (KDS), POS, inventory management, people management, and automatic menu translation in 22 languages. No set up fees or long contract.
• Lightspeed Restaurant: Monthly software fees are $69 to $399+.
• Square: Fees for POS software range from $0 to $89+, with hardware potentially up to $1,500.

Low-Cost, Efficient Alternatives to Traditional Self-Service Kiosks: QR Code Ordering

As businesses explore more economical and efficient ways to serve their customers, QR code self-ordering systems have emerged as a compelling alternative to traditional self-service kiosks. This method eliminates the need for expensive hardware such as credit card readers and tablets, offering a streamlined setup that is both faster and easier to implement. Here’s an exploration of the benefits of QR code ordering and how it compares with traditional methods.

Advantages of QR Code Self-Ordering Systems:

• Cost-Effective: QR code systems require minimal investment compared to traditional kiosks. There is no need to purchase significant hardware like tablets or credit card readers, reducing upfront costs dramatically.
• Ease of Setup: Implementing a QR code ordering system can be as simple as printing and distributing QR codes at tables or on menus. The simplicity of the setup process allows businesses to launch or update their ordering systems quickly without technical complications.
• User-Friendly: While some may struggle with using tablets, ordering via a QR code scanned by a customer’s own smartphone introduces a familiar technology that many find intuitive and accessible.
• Hygiene Benefits: With QR code ordering, customers handle only their personal devices, making it a cleaner and more hygienic option. This aspect is particularly appealing in a post-pandemic landscape where hygiene remains a top concern for diners and staff alike.

Integrating QR Code and Kiosk Ordering Systems:

A hybrid approach that combines QR code ordering and traditional kiosks could cater to diverse customer preferences and accessibility needs. This mixed model allows businesses to provide the self-service convenience of kiosks along with the streamlined, touch-free benefits of QR codes.

Service Providers and Pricing:

• Do Your Order: This platform supports QR code ordering as part of its standard service package, which costs as low as $35 per month for up to seven kiosk licenses. This fee also includes access to a full suite of features such as KDS, POS, inventory management, and people management, along with automatic menu translation in 22 languages.
• Toast, Lightspeed, and Square: Unlike Do Your Order, these companies typically charge additional fees for integrating QR code self-ordering features. This can lead to higher operational costs for businesses that opt to use their platforms.

Versatility of Self-Ordering Kiosks Across Restaurant Types

Self-ordering kiosks offer versatile solutions that cater to a variety of restaurant types, each with distinct operational needs and customer service goals. Fast casual restaurants benefit immensely from kiosks by speeding up the ordering process, managing high customer traffic, and offering enhanced order customization, which improves the dining experience. Quick Service Restaurants (QSRs) also thrive with kiosks, as they help maintain the essential fast-paced service, manage large order volumes efficiently, and reduce order inaccuracies. Cafés and coffee shops find kiosks advantageous for allowing detailed customizations without slowing down the service line, thus increasing both order accuracy and customer satisfaction.

Casual dining establishments can use kiosks for placing initial orders or processing payments, freeing up staff to focus on enhancing guest interactions rather than managing transactions. Buffet restaurants, often overwhelmed during peak hours, can deploy kiosks to streamline customer flow and handle special orders or upsells effectively. In space-constrained environments like food courts and food trucks, kiosks maximize operational efficiency and customer throughput without the need for extensive staff.

Even in unexpected settings such as fine dining restaurants, kiosks can add value by managing reservations, presenting digital wine lists, or facilitating touchless payments, all while maintaining the upscale atmosphere. Bars and pubs can simplify order processing for drinks and snacks with kiosks, improving service delivery and allowing staff to engage more with customers. High-traffic venues like theme parks and entertainment areas benefit from quick service and reduced wait times provided by kiosks, enhancing guest satisfaction. Lastly, Cafe Shops, corporate cafeterias and university dining services can greatly streamline their operations with kiosks, allowing diners to quickly customize and process their meals, fitting their tight schedules and reducing crowded lines. Thus, self-ordering kiosks are proving to be a beneficial integration into the modern restaurant landscape, meeting a broad spectrum of needs across various dining formats.

Conclusion: Revolutionizing the Quick Service Restaurant Experience with Self-Ordering Kiosks

The advent of self-ordering kiosks has marked a significant shift in the quick service restaurant (QSR) landscape, offering profound benefits for both customers and businesses alike. Customers are increasingly drawn to these kiosks for their ability to streamline the ordering process, reduce wait times, and offer a more personalized and private ordering experience. For businesses, the strategic deployment of these systems addresses multiple operational challenges, significantly enhancing service efficiency and profitability. The National Retail Federation highlights how self-ordering kiosks minimize missed sales opportunities by keeping customers engaged even during peak times, while McDonald’s reports substantial increases in average order sizes due to the effective upselling capabilities of kiosks.

Further exploration into cost-effective solutions like QR code ordering systems presents an even more accessible option for businesses, cutting down on initial hardware investments and facilitating easier setups. These systems are not just cost-efficient but also align with contemporary hygiene expectations, which are crucial in the post-pandemic era.

Ultimately, the integration of self-ordering technologies, whether through kiosks or QR codes, provides a flexible approach that can be tailored to a wide range of restaurant types and customer needs. This versatility ensures that from fast casual to fine dining, every sector can harness the power of digital ordering to optimize their operations, enhance the customer experience, and drive greater revenue. As these technologies continue to evolve and adapt, they are set to redefine the future of dining, making the QSR experience more efficient, enjoyable, and economically viable.