Fast-food chains like Burger King, Taco Bell and more are looking to add more digital order kiosks in restaurants nationwide. The latest initiative follows in the footsteps of Panera Bread's and is projected to help boost profits, Business Insider reported.
Burger King will speed up the rollout of its digital order kiosks following a pilot with “tremendous results,” Josh Kobza, CEO of parent company Restaurant Brands International (RBI), told investors in November. Kobza said he thinks “the US is ready for kiosks now and we're likely to see a faster rollout of those around the world.” Burger King previously rolled out the technology across its international markets, more than half of which has been “converted” to kiosks, Kobza added.
In the same vein, Shake Shack said in February that it had added kiosks to "nearly all" of its nearly 300 US company-operated restaurants. Kiosks make up “well over” half of the company’s in-restaurant orders at these locations, CFO Katie Fogertey told investors in November. Management also noted that over 50% of restaurant sales are now coming from kiosks, which is a significant increase from previous quarters, per a 2023 Seeking Alpha report.
Digital order kiosks are also available at all of Taco Bell's US restaurants. KFC introduced kiosks in approximately 500 US restaurants at the end of 2023 and plans to have them in the “vast majority” of its non-China restaurants by the end of 2026, Yum! CFO Chris Turner told investors in February.
The planned implementation of more touchscreen kiosks is part of an ongoing effort by restaurants to increase overall revenue. As explained by Business Insider, kiosks help businesses save money on manual labor. Restaurants can hire fewer staff at counters, since their jobs have become digitized, or they can utilize them in other areas of the business.
In Burger King’s case, kiosks eliminated “stressful interactions” for both customers and staff and allowed staff to spend more time in the kitchen preparing food. Additionally, many restaurants found that kiosks increase order accuracy and allow businesses to easily adjust menu items along with their prices in real-time.
The technology also encourages customers to spend more money. Burger King said its kiosks prompted customers to place larger orders. Same with Shake Shack, which said that customers who ordered digitally rather than in-person at cashiers spent “on average nearly 10% more.” That makes sense considering that customers have more time to browse the menu when using a kiosk. They also feel less rushed to make a decision promptly and are more inclined to tack on extra sides or drinks, switch to larger portion sizes or add more expensive customizations. Shake Shack, in particular, recently introduced new technology to “drive increased attach rates and customization,” meaning its kiosks are programmed to push customers to make more costly orders.
Some restaurants were initially hesitant about introducing digital kiosks because it felt pointless at the time to spend extra money on technology that customers readily have at their disposal (i.e. online restaurant loyalty apps on computers and phones). The pandemic, however, made customers more comfortable with digital ordering, in turn making them more comfortable with using kiosks once they became more widespread in the US.
Patrick Doyle, executive chairman of RBI, which owns Burger King, Popeyes, Tim Hortons, and Firehouse Subs, told investors in November that digital ordering channels are the “North Star of where we want to go with the business.” Similarly, Shake Shack called kiosks a “key tool” that will heighten total digital sales.
