Birmingham Alabama, March 14, 2017 (GLOBE NEWSWIRE) -- The minimum wage is rising – or set to rise in the next few years – all across the country. Faced with escalating staff costs that threaten to squeeze profit margins, restaurant owners and managers not surprisingly are searching for ways to minimize the financial impact.
Some will freeze hiring. Some will downsize.
And some will turn to other means – namely technology – for help.
Kiosks that allow customers to essentially control their experience from start to finish are considered the next wave in restaurant evolution.
But critics have described the technology as a facade, disguised as mechanical replacements for minimum-wage workers poised to benefit from state-mandated increases. Rather than accept the payroll increase, they can use the kiosk as a permanent, stable member of the staff that comes at a fixed cost, the critics contest.
But that’s simply a popular position by some who have never managed or owned a restaurant, some industry experts say. Detractors don't fully understand the motivation behind incorporating kiosks into the daily fold.
Kiosks will impact staff in one way or another. There’s no guarantee that some owners won’t shake up their workforces. Whether the technology’s impact will be detrimental, however, depends on a restaurant’s standing.
Nevertheless, the technology represents restaurant growth, according to developers and manufacturers. Like any other industry, the food service sector sees opportunity for driving revenue – now and into the future – with such units online.
"Of course, all technology is designed to help businesses improve the customer experience and control costs," said Jegil Dugger, Sales Representative of technology firm Juke Slot. "I can't tell you that there will not be businesses that view kiosks as worker replacements, but the overwhelming majority of owners and operators see this as a chance to realign their internal functionalities and to better position staff members in spots where they can make the operation more effective.”
Perhaps fueled by concern or savvy, sales of Juke Slot’s tabletop kiosk have spiked in the last couple of months, with purchases jumping 40 percent. While clients haven’t necessarily indicated the reason for buying – one prospective customer cited a labor shortage – company officials believe those new clients are looking to incorporate the technology as a means to shore up their future financial position, regardless of the operational challenges they may face.
A study by the Digital Screenmedia Association found that 21 percent of all QSR restaurants are planning to deploy self-ordering kiosks. But most customers (70 percent) won’t use them – they use the drive-thru instead, researchers say.
As far as using technology to replace workers, a survey of restaurant companies found that kiosks are not designed or intended to decrease jobs. The goal, according to those including McDonald’s , for instance, is to increase customer service.
"Front counters remain a focal point of service where we have installed self-order kiosks, and customers can decide whether they wish to place their order at the counter or through kiosks,” a spokesman told Kiosk Marketplace . “Staff are on hand in the dining area to assist customers using the kiosks."
Development of the Juke Slot kiosk comes as the self-service technology market is booming. A recent study shows that the industry is expected to reach a value of $39.07 billion by 2022, with kiosks – a solution that has become more intuitive and user-friendly in recent years – representing some 21 percent of the market.
Driving demand, the report by Grand View Research Inc. says, are businesses increasingly seeking to provide convenience to customers, offering the technology in sectors from food and beverage to retail to health care to banking. Juke Slot sees additional opportunities in entertainment and gaming.
Pale Eddie’s Bar currently operates tabletop kiosks at its Birmingham, Ala., location as well as many other restaurants around the U.S. Because customers can use the machine to place and pay for their orders, the solution has enabled the bar to sale food without an actual kitchen, increasing the locations overall revenue.
Roly Poly Sandwich shop operates table top kiosk at several of their locations. and plans to add more in the days to come. Using Juke Slot's automated technology has enabled the restaurant to move one of their seven workers from the front counter to the kitchen, where additional help was needed and the production process has sped up tremendously!
Customers taking charge of the ordering process through kiosks, deployers say, also minimizes errors, as diners clearly see what they’re requesting. The device is built to function as a portable point-of-sale system, allowing customers to use the machine from the start of their visit to the finish. Customers can make secure electronic payments – by swiping their card, keying in their card’s numbers and even scanning their smart phone – and receive a printed receipt.
The devices also become a necessary revenue generator. Businesses can use the display to promote specials or new products to help drive additional sales. Macke eventually plans to incorporate coupons customers can receive electronically to keep them coming back.
The device’s versatility positions it as a key solution in how business is conducted effectively and efficiently in a host of applications.
At high-traffic times, they can be used to allow customers to order and pay through the machines, creating shorter line waits.
At other fast casual eateries, the units allow diners sitting at tables to place their orders through the device, which connects wirelessly to the restaurant’s main point-of-sale system and kitchen displays, sending their request directly to the cooks. That enables employees to spend more time assisting customers and less time running orders.
“Fast food, dine-in and carry out – any restaurant – within the next five years will look at switching to this,” Roly Poly owner Matt Macke said.
www.jukeslotselfservice.com
Grace Vasa Email: sales@jukeslot.net website: www.jukeslotselfservice.com
