In Touch With Retailing

Self-Ordering Technology Ripe for QSR Market

After years of development and testing, self-service technology appears primed for an explosion across the quick-service restaurant (QSR) industry.

Introduced to the market more than 10 years ago, the self-ordering concept was ahead of its time. It was largely disregarded by restaurateurs for the lack of sufficient payment technology; little or no integration into the existing in-store POS system; and a low consumer acceptance of self-service devices in general.

Since then, the technology has evolved through implementations in industries where market conditions were more favorable. From automated teller machines (ATMs) at banks, to self-checkout units in grocery chains, to check-in kiosks at airports, self-service systems are now the norm in today’s society and are highly accepted among consumers.

Self-ordering systems are now more reliable and intuitive, and offer user-friendly interfaces that quickly guide consumers through the ordering process. Companies can easily integrate loyalty programs and even profit from the units by developing and displaying on-screen ads.

Considering the QSR industry’s high value on speed of service, coupled with bolstered kiosk functionality and the widespread adoption of electronic payment technologies, selfordering systems have become a more viable option for QSRs.

A Venture Development Corporation study says North American shipments of selfservice and interactive kiosk systems will achieve a compound annual growth rate of 20 percent from 2004 through 2007. Within the segment, self-service ordering ranked highest in the study, based on scoring criteria that included fast return on investment (ROI); high market growth rates; and high consumer adoption rates.

Self-ordering solutions let consumers experience a speedy, accurate transaction, as the restaurateur simultaneously monitors realtime transaction data and redeploys labor to increase productivity and service. Many industry leaders have already begun evaluating and testing self-service systems, and rollouts are expected to increase steadily within the next year.

The technology is here, the consumers are ready, and QSRs are stepping up to the plate.