As retail channels vie for foodservice customers, the implementation of technological advances such as digital kiosks and self-checkout stations are making convenience stores even more competitive.
By David Bennett, Senior Editor
The story of how Ray Kroc grew McDonald’s into an assembly line service model—a mass producer of cheeseburgers and milkshakes—is the crux of the new movie “The Founder.” Since its beginnings, the quick-service restaurant (QSR) has gained international popularity based on the assurance that customers know exactly what they are going to get when they go to a McDonald’s—no matter where the restaurant is located.
The fast-food giant is making headlines again—this time skirting its legacy by promoting personalized food orders through touchscreen kiosks, which are now being rolled out in different U.S. regions.
Not to be outdone, it was recently reported that Wendy’s will add touchscreen kiosks in 1,000 locations (about 16% of its restaurants) by year’s end, according to the Columbus Dispatch.
Richard George, professor emeritus of food marketing at Saint Joseph’s University’s Haub School of Business in Philadelphia said the two power QSRs are realizing what a growing number of convenience chains already know: that food ordering kiosks allow customers to accurately order food in a speedy manner, while enjoying more customized control.
Moreover, such automation will eventually be the rule, not exception, George said. Other automated innovations such as self-checkout stations—a regular sight in grocery stores—and mobile-wallet technology tied to payment tools such as Apple Pay, Samsung Pay and Android Pay are sure to attract even more followers.
“The future is going to be more of this—global ordering and global paying,” George said. “This is the way the world is going.”
Zebra Technologies Corp. recently released the results of its “2017 Retail Vision Study,” which addressed anticipated retail automation trends, including:
• To speed check-out lines, retailers are planning to invest in mobile devices, kiosks and tablets to increase payment options. At least 87% of retailers will deploy mobile point-of-sale (MPOS) devices by 2021, enabling them to scan and accept credit or debit payments anywhere in the store.
REMEMBER ME AT RUTTER’S
York, Pa.-based Rutter’s Farm Stores in the last few years has been honing its corporate vision for the level of foodservice it can deliver to include speed, reliability, quality and personalized service. The last attribute is reflective in its unique Remember Me program.
For almost two years, the convenience store chain has offered select customers a unique food ordering kiosk system that combines convenience and customization at the touch of a finger.
Customers designated as VIP Club members can enter their phone number, ID and passcode into the food order kiosk. By pushing the Remember Me button, the digital kiosk will then show them the last 12 orders they’ve chosen to have remembered. These same customers can reorder their favorite orders any time.
Remember Me kiosks are available in 53 of 66 Rutter’s locations in Pennsylvania.
Derek Gaskins, chief customer officer for Rutter’s, explained it’s an innovative step toward the c-store’s strategic theme of “mass-customization.”
“Oftentimes people ask: ‘What are you famous for?’ We’re famous for letting customers choose what they want,” Gaskins said. “If you want pastrami on your pizza or shrimp on your pizza, we have created a way that you can do that and then we have a loyalty platform that will remember those orders so the next time it’s easier to pull up, building on the speed and convenience aspect.”
The company’s app and rewards programs are tied to the system, recognizing VIP patrons and will add any rewards or discounts applicable to any transaction.
Ryan Krebs, director of food service at Rutter’s, said not only have the customized kiosks bolstered Rutter’s pizza program, they have spurred a higher degree of diversity and innovation at the c-store chain, which has revamped how Rutter’s approaches foodservice, by rethinking its various offerings and how they lend to even more customized service.
“It allows us to cross-utilize items that create a different experience for each customer. I can take a cheesesteak and make a breakfast item out of it, a dinner item, an appetizer, a quesadilla, and because it’s on the kiosk, I don’t have to limit myself on a menu board that says ‘here are the 12 options in their final form that you have to choose from,’ similar to a McDonald’s or a Wendy’s.”
Even for just a regular burger, customers can choose from 50 different toppings, eight different breads and eight different cheeses. As promised, the VIP kiosk system remembers those preferences for next time.
Of course, Rutter’s also relies on human capital. The company recruits employees at Chipotle and Panera Bread because the c-store wants individuals who can come in with restaurant experience.
More and more, the Rutter’s is assimilating its mobile strategy to include apps and kiosks, supported on smartphones. Marketing, loyalty and customer engagement efforts tied to such devices will eventually link to almost all facets of the chain’s retail operation, Gaskin said.
“We are also rolling out NCR optic kiosks to our pumps,” Gaskin said. “Our thought is: our omnichannel is to be able to deliver a consumer experience and quality food that (patrons) can order through all of those interfaces when they want, wherever they want; so our technological roadmap clearly has those milestones on it and whether it’s adding mobile ordering and payments, in-car ordering and payments and at-the-pump ordering and payments—all of these are paths that we are boldly going down.”
LOUISIANA PURCHASE
Not all c-stores that have installed food ordering kiosks boast a large geographic footprint.
St. Romain Oil Co., which operates 10 Y-Not Stop locations throughout central Louisiana, has enjoyed a high degree of success and increased sales with its touchscreen devices.
Annie Gauthier, chief financial officer and co-owner of St. Romain, said the automation upgrades have enabled the c-store chain to meld its capacity for speedier service and its employees, pointing out that a human face is also an essential ingredient of the overall customer experience.
“We are committed to pioneering a friction-free environment for our team members and guests, so the kiosk is a key component for us,” Gauthier said. “However, we operate in the rural south, so we also allow guests to order at our registers by speaking with our associates.”
Six of St. Romain’s 10 stores currently have kiosks, while two more remaining locations will have them added in the next year. According to Gauthier, the ordering kiosks offer numerous benefits.
“It’s much easier to offer more options to our guests and to upsell more easily and be a focus for customization in this have-it-your-way world,” said Gauthier.
CHECK IT OUT
Adding kiosks is a major convenience for customers. Getting them out the door after their order is filled is another consideration. To accomplish this, some c-stores have invested in self-checkout stations that can speed up the time that customers have to stand in line.
QuickChek, a Whitehouse Station, N.J.-based convenience chain that operates 148 stores in New Jersey and New York, has been using self-checkout terminals since 2008.
John Schaninger, who until last month was vice president of sales and marketing for QuickChek (QC), explained that implementing a self-checkout system is a large investment for retailers. In order for there to be a suitable return on investment, self-checkout terminals should be intuitive and user-friendly. If the equipment meets those customer needs, speedier transactions aren’t far behind.
“We know that speed is one of the most important attributes of a great convenience retailer. The Fast Lane self-checkouts were installed to offer time-starved customers the opportunity to check out faster,” said Schaninger. “We also continue to offer staff-manned registers for those who like our typical, QC hospitality.”
Currently, 40 QuickChek locations are equipped with self-checkout stations. Similar terminals will be featured in future QuickChek sites as well, Schaninger said.
Because of its self-checkout offering, QuickChek has enjoyed speedier check-out times at those locations in addition to another unexpected operational improvement—reduced merchandise shrinkage at some locations.
“When you think through it, if a customer plans on stealing, they would probably do that in a more hidden area of the store, not by a traditional manned register,” said Schaninger.