McDonald's using kiosks to make fast-food faster

McDonald's using kiosks to make fast-food faster
June 20, 2004

CHICAGO — McDonald's is utilizing kiosks to shorten lines and give consumers more control over ordering, according to an article on CNN.com.

St. Charles franchisee, John Lardas, has replaced three ordering stations manned by employees at the front counter with one traditional station and four stand-alone kiosks.

Each kiosk allows a customer to place an order directly with the kitchen, using a touch screen with pictures of food. The kiosks offer English or Spanish text and verbal prompts.

According to the article, the technology will likely lead to shorter wait times, lower labor costs and ultimately, higher average checks.

"It's about time and lines," said Harry Balzer, vice president with food market research firm NPD Group Inc. "We are looking for the easiest way to feed ourselves."

With more than 70 percent of customers using the kiosks, some believe they will transform fast-food the way similar systems have revolutionized bank transactions and airport check-ins.

"The customer perception is that it's a better experience," said Christa Small, the McDonald's director heading the test. "It's the perception that you have control over the process."

Having a machine consistently remember if you want french fries with your sandwich, as the McDonald's kiosks do, can boost the value of a transaction by 10 to 20 percent, said Kate Delhagen, a Forrester Research analyst who has studied kiosk technology.

She estimates that installing stations in a typical restaurant costs $10,000 to $20,000 for the hardware -- with software, training and maintenance an additional expense.

Within a few years, benefits will outweigh those costs, Delhagen said. For instance, before an order is sent to the kitchen at the St. Charles' McDonald's, the computer verifies that it's correct, providing a rolling total, so virtually nothing is lost in translation.

Kiosks are also being used in the kid-friendly Play Place. There the customer takes a number after placing an order; soon Happy Meals are delivered directly to the table, eliminating the burden of watching children while standing in line.

Customers like Tom Schwagart, a 61-year-old grandfather visiting the McDonald's with his granddaughter, said he's been converted. "I like it because I don't like to stand in line," he said.