Fast food chains are tricking you into ordering more food – and you probably don’t even realize it.
In the United States, major chains are adding more digital ordering kiosks to their restaurants, which ultimately brings in more money.
While kiosks can provide customer convenience, they also tend to entice customers to spend more than they otherwise would.
In fact, Shake Shack CEO Randy Garutti told investors in February that people who ordered at kiosks rather than at the register spent almost 10% more on average, according to Business Insider.
Kiosks encourage the customer to add drinks or sides, implement customizations at a cost, and upgrade to a larger meal portion. They are also able to promote menu items based on time of day, season and weather, such as frozen drinks in the summer.
Digital ordering kiosks would “100% try to sell you a larger item or ask if you want to add fries or chips and guacamole,” while cashiers might not do so “because there are a group of people trying to do it.” get over the line as quickly as possible,” Andy Barish, an analyst at Jefferies, told Business Insider.
Without having to force people to order quickly, customers have time to browse the menu and all of their customization options. Some kiosks even allow you to scan your loyalty app for points, allowing the digital system to extract data and provide personalized recommendations.
Major fast-food chains are planning major digital kiosk expansions thanks to the “tremendous results,” Josh Kobza, CEO of Burger King parent Restaurant Brands International, told investors in November.
More than half of BK’s locations outside the U.S. have already set up kiosks, and Kobza said the brand plans to continue installing them until the company is “100% digital.”
Shake Shack also has kiosks in “nearly all” of its company-operated restaurants in the United States, and they account for “well over half” of orders at restaurants in those locations, Chief Financial Officer Katie Fogertey told the investors in November.
Fogertey also told investors last August that kiosks were Shake Shack’s “most profitable channel.”
Taco Bell, KFC and Pizza Hut — all under the Yum! Umbrella brands are also emphasizing digital ordering kiosks.
New York Post
