“We have an extensive menu that would be difficult to relay over the phone,” Ensign says of Papa John’s toppings variety. “When customers order via the Internet, they can see all of the toppings, beverages, and dessert items we offer.”
Web-based and kiosk-ordering systems also record customers’ buying habits (including favorite modifiers such as cream and two sugars with coffee or no pickles on the burger) and consistently upsell higher margin and additional items.
Since launching a test of kiosks from provider EMN8 in three of its Rocky Mount, North Carolina, and Richmond, Virginia, units last February, Boddie-Noell, the largest Hardee’s franchisee with 345 units in four states, has found that check averages are higher among customers who use the technology.
“They are ordering up and adding more items,” says Boddie-Noell Senior Vice President of Marketing Jerry Allsbrook.
Introducing POS-integrated kiosk technology into his restaurants’ operations was a pretty simple matter, Allsbrook says. To get things going, the provider spent a couple of days training the units’ management teams.
Tomorrow’s Challenges
Alternative ordering not only increases check size and frees up the counter staff to tend to customers in the dining room, but also takes money handling out of the service equation.
Online and text services require customers to give their credit card numbers (these numbers may also be stored to make the process for placing future orders even faster and easier ). Kiosks can also be equipped to accept cash as well as to swipe credit cards and debit cards. But not all customers are quick to take to this technology.
Operators and providers agree that probably the biggest hurdle to overcome with launching alternative ordering capabilities is persuading customers to enter and store their credit card numbers for streamlined prepayment. Allsbrook explains that some guests are also initially hesitant to forfeit their place in the usual ordering line to try the technology.
“We find that after they use the kiosk about three or four times, they become really comfortable with it,” he says.
To encourage consumers to use their kiosks, the Hardee’s units offer daypart-focused incentives such as a free Cinnamon ‘N’ Raisin Biscuit for breakfast and a free apple turnover for lunch or dinner. Mooyah Burgers & Fries offers a 15 percent discount for the first month a customer orders online or via text.
For consumers, there is no charge for using alternative ordering services, although standard text messaging rates apply. For operators, online, PDA, and mobile service providers charge a per-transaction fee, a percentage, or a flat monthly rate. GoMobo, for example, charges 25 cents per transaction for its POS-integrated clients and 10 percent for off-POS clients. Restaurants using LiveOntheGo.com can pay a flat monthly fee that ranges from $69 to $99 or 10 percent commission plus credit card processing, while Onosys costs $60 a month with no set-up fee for eight or more units.
Kiosk projects, including hardware and software, from NCR generally range from $2,700 to $7,000, although they can go as high as $20,000 for projects that require more peripheral complexity and other customized requirements. CBORD hardware runs anywhere from $5,000 to $10,000, and software fees are 25 cents to $1 per transaction.
Looking ahead, American Express says that just as self-swipe credit and debit card scanners have become the norm in most retail spaces, the same will be true of self-service ordering because “the more frequently consumers see and use these technologies, the more consumers will expect their presence.”
And there is even more advanced technology on the horizon. The next step is likely to be the migration of self-ordering kiosks to the drive-thru, Holman says. Consumers will also be able to place orders through their car GPS systems, which will determine which restaurant in a chain is closest and most convenient for pick-up. Glass has already announced that GoMobo plans to pilot a GPS program with some automotive companies later this year.