Fast food chains in the US are increasingly implementing digital order kiosks in their restaurants as a way to increase profits. These kiosks are designed to encourage customers to spend more by suggesting additional items such as drinks, sides, and larger meal portions. According to Shake Shack CEO Randy Garutti, customers who use kiosks tend to spend nearly 10% more on average than those who order through cashiers. Additionally, kiosks have the ability to promote certain menu items based on the time of day, season, and weather, such as offering iced drinks in the summer.
By eliminating the rush of ordering through a cashier, customers have more time to browse the menu and explore customization options on the kiosks. Some kiosks even allow customers to scan their loyalty app for points, allowing the system to offer personalized recommendations based on the data it collects. Major fast food chains such as Burger King and Shake Shack are planning significant expansions of their digital kiosk systems due to the positive results they have seen. Burger King’s parent company, Restaurant Brands International, reported that over half of BK’s non-US locations already have kiosks and they plan to install them in all locations.
Shake Shack has also seen success with their digital kiosks, with CFO Katie Fogertey reporting that they make up a significant portion of in-store orders and are the most profitable channel for the company. Taco Bell, KFC, and Pizza Hut, all part of the Yum! Brands umbrella, are also focusing on implementing digital order kiosks in their restaurants. These kiosks are designed to not only streamline the ordering process but also to encourage customers to spend more by suggesting additional items.
As customers have the opportunity to browse the menu and access customization options at their own pace, they are more likely to add on extra items and increase their overall order amounts. Analysts suggest that kiosks have a higher success rate in upselling customers compared to cashiers, who are often focused on quickly processing orders. With the convenience of kiosks and the potential for personalized recommendations based on customer data, fast food chains are looking to capitalize on the trend of digital ordering systems to drive profits and increase customer spending.
