Self Service Kiosks vs Traditional POS: Which is Better for Your Restaurant?

Brands like McDonald’s reported that customers have higher checkout sizes at self service kiosks than at the front counter. As there is no fear of judgment, customers are likely to order their guilty pleasures, which results in a surprising 30% increase in order price. Increasing sales and upselling are key for survival as restaurants face a triple threat of rising wages, rents, and labor shortages. With traditional POS, the restaurants have to pay employees 15$+ by the hour regardless of how many orders come in. Self service kiosks can handle 1 order or 100 orders in an hour and still cost the same hourly rate in the form of electricity and ROI.

These are just some of the many advantages that self service kiosks have over traditional POS. This article is designed to familiarize readers with traditional POS and self service kiosks. Explain how self service kiosks can improve restaurants' finances in comparison to traditional POS.

What is a Traditional POS?

The Traditional Point of Sale (POS) system is also known as the legacy system. It requires a human interaction that connects the kitchen with the customer to complete the workflow. In this setup, the employee is responsible for resolving complex customizations in orders, upselling, and handling payments.

While the younger generation prefers the speed of self service kiosks there is still 10% of customers in the U.S. who have not transitioned to the 90% contactless payment majority. The transition state requires a solution that caters to all demographics, which we will discuss later.

What is a Self Service Kiosk?

Mesmerizing displays with colorful menus, mouthwatering images, quick contactless payments, and smaller queues are the highlights of the self service kiosk. These are customer-facing digital terminals for automated ordering and payment processes. Unlike the traditional POS, it simplifies the ordering process and puts the power of transaction directly in the hands of the customer.

Intelligent Software

Self service kiosks run on Windows or Android operating systems. Alongside attracting younger demographics, these devices provide advantages like inventory management, upselling, multilingual support, and valuable insights for restaurant owners. The kiosk software can issue alerts for exhausting inventory for the kitchen and track micro-interactions to see where the customer hesitated in the menu. It can tell which images led to the most sales. In traditional POS systems, these insights were nearly impossible to gather with authenticity.

Durable hardware

These devices are largely dependent on the display. Typically, 21.5 to 32-inch high-definition displays are utilized with fluid 10-point capacitive touch technology. These are key to creating the high-resolution images that trigger cravings. They come in freestanding, wall-mounted, or desktop designs, which restaurants can utilize depending on their workflow. They come equipped with modular components like thermal printers 58mm or 80mm, QR/barcode scanners, and high-fidelity speakers for audio guidance.

Why Kiosk Increases Sales?

Industry data shows that the self service kiosk never forgets to upsell and succeeds 100% of the time. The shift from the human-based counter to self service kiosk is a fundamental change in sales psychology. The removal of anxiety and social friction from the order interaction makes these visual canvases outperform traditional POS systems. As mentioned earlier, customers typically spend up to 30% more on screens, which translates to an increase in sales.

Menu Design as a Revenue Engine

A high-definition 32-inch display triggers craving effectively, rather than just plain text and a static menu. Rotating ads and subtle introduction of the most popular items within the customer's viewing angle can lead to higher impulse purchases.

A Malaysian QSR study involving 263 respondents found that menu design is the strongest indicator of customer satisfaction. A well-organized, easy-to-navigate, and colorful display doesn't just look better; it translates into sales.

Throughput and Efficiency

Customers avoid restaurants with large lines and slow service. 49.4% of kiosk users choose them for speed. Through their use, restaurants can accommodate more customers in less time, which means they can focus on kitchen staffing and expanding product rather than investing in installing more traditional POS counters.

Comparing Costs

While the initial price tag may startle some restaurant owners, it's important to realize that the long-term benefits favor automation. Considering the labor shortages and reducing margins, consider self service kiosks as a valuable investment. They are already a preferred restaurant interface for the Gen Z and Millennials, who are the biggest market consumers. Moreover, the future demand for kiosks is ever-increasing.

Labor Savings and ROI

The way savings work with self service kiosks is a reduction in monthly payroll. The need for front-of-house (FOH) staffing, as in traditional POS, reduces. In a restaurant with moderate traffic, these savings can offset the setup costs in 12 to 18 months. The time reduces as the volume of customers increases in combination with upselling.

Efficiency of Payment

While most restaurants might not consider it a cost, handling cash in traditional POS is expensive. It costs restaurants 4.7 to 15.3% of the cash value to count, reconcile, and transport cash. By offering numerous cashless payment options like QR codes and digital wallets like Apple Pay, Google Pay, and Samsung Pay, these costs are avoided.

Maintenance

In the case of self service kiosks, their maintenance costs are predictable. There are the software maintenance costs, which can be $50 to $200 per month, depending on the software house. It will ensure that your menu is updated and that upselling remains intact. In traditional POS, high employee turnover with rising trends of labor shortages can cost thousands of dollars. Moreover, the productivity and administrative fees are also borne by the restaurant.

The Human Connection

Restaurants are more than just a transactional interface. These are places where human connections are made. Some customers keep coming back to get the chance to talk to their favorite server. While future self service kiosks may feature AI-based interaction for a truly customized experience, human warmth for off-menu requests like dietary explanations and an apology for the kitchen delay with a heart is lacking in a digital screen.

New Labor Reality

Data from the Korean market shows that kiosks reduce the need for unskilled part-time help. However, they often lead to higher wages for skilled, full-time staff who remain. The staff is now focused on increasing the experience of the customer rather than managing nuances that hinder their ability to focus on being more productive and ensuring quality control.

Kiosks and Human Interaction

Adapting to the changing global dynamics for restaurants. Utilizing kiosks with hospitality experts is the ideal solution to target the demographics that still prefer the human element in their restaurants. While the machine takes the main order, reserves a table, and gathers valuable insights, hospitality experts can add the element of human interaction that some customers need. Moreover, the use of a hybrid POS that combines both systems can also be utilized.

Which One Should You Choose?

There are compelling reasons why one should choose a self service kiosk over traditional POS. The familiarity of modern customers with digital interfaces is resulting in Gen Z and Millennials preferring faster transactions over human interaction. For restaurants, these kiosks provide the following advantages at a glance:

• Savings on Cashless Payments
• 100% Upselling Results
• Real-Time Data Insights
• Targets 90% U.S. Demographics
• Quick Service
• Labor Relocation and Savings
• Hygienic Low-Touch Interfaces
• Reduction in Order Errors
• Optimized Throughput

Conclusion

Selecting self service kiosks over traditional POS can be a leap for some restaurants. However, the data is promising, and some of the largest food chains have already started adapting self service kiosks in their operations. The technology connects with the younger generations, and its hybrid POS implementation ensures that the market demand for human connection is still met.

Ultimately, self service kiosks transform restaurant staff from data-entry clerks to hospitality experts. In a competitive business, using kiosks will ensure that you are conforming to the modern requirements, but in fact leading in the competition.

As a leading self service kiosk manufacturer, Hongzhou Smart has over 20 years of experience delivering high-quality, customizable solutions for restaurant automation. Specializing in OEM and ODM services, the company offers turnkey hardware and software. It includes self-ordering kiosks with seamless POS integration, multilingual interfaces, and cashless payment support. Hongzhou Smart has produced over 4.5 million units globally, boosting restaurant operations and customer satisfaction. Visit Hongzhou Smart to explore how their kiosks can transform your business.