Technology

How restaurant POS innovation puts guests in the driver’s seat

Restaurant POS systems are no longer just for cashiers. Guests are now using them to access menus, order and pay at the table, order and pay at the kiosk, pay at the drive-thru and curbside pickup, and more.

Image provided by iStock.

June 28, 2021 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

The growth of order and payment technology is nothing short of a revolution, creating a proliferation of challenges and opportunities for restaurants. And while the revolution has been brewing for years, the coronavirus pandemic has exacerbated it.

Brian Whitney

Brian Whitney, senior vice president of hospitality at Appetize, an enterprise commerce platform for food, beverage and retail, gave an overview of how restaurants can prepare for the increasingly contactless and cashless era during a webinar titled, "Your POS Isn't Just for Cashiers Anymore. It's For Customers Too!"

Elliot Maras, editor of Kiosk Marketplace, served as moderator.

COVID exacerbates change

Whitney began the presentation noting that in the post-COVID environment, customer expectations are changing, new labor challenges have emerged and POS now applies to both sides of the counter.

"We see the recovery," Whitney said. "Restaurants are opening, and the customers are following." He cited the following recent statistics:

78% of customers are keen to return to the restaurant experience.
48% of customers want to reduce wait times by ordering ahead on mobile.
66% of customers prefer to order directly from the restaurant.
73% of customers prefer cashless payment.

"When they get there they want to have the same transactional experience they experienced during COVID, those contactless, frictionless experiences," Whitney said. "But they're looking to be able to order that from you as a brand."

Many customers today are more interested in interacting directly with the restaurant when they order ahead rather than through a third party.

Contactless expands

One of the biggest impacts of the pandemic was the 40% growth Mastercard experienced in contactless transactions, the most significant adoption rate since contactless technology was introduced several years ago.

"It took a pandemic to shift the consumer into understanding that this is an easy way to transact," Whitney said. "What we're seeing now is that 40% lift has not been eroded.

"When they (customers) come in, they want to be able to use those transactional capabilities they saw during the pandemic," he said. Customers have learned that it is an easier and more secure way to transact.

Mobile ordering in particular boosts the order size, he said. Mobile orders are 20% higher than in-restaurant purchases.

Facial recognition as a way to authorize contactless transaction was not successful when people wore masks, he said, but now masks are coming off.

"Facial recognition for security for payment becomes easier and more important to adopt contactless payment across your brands," he said.

QR codes expand

Another technology that Whitney cited as especially promising is QR codes.

"QR codes are here to stay and in fact they're going to expand," he said. Research indicates 54% of casual dining, 48% of family dining and 50% of fine dining restaurants launched QR codes in 2021.

When it comes to QR mobile, customers are choosing mobile web over mobile apps. A QR mobile web can support mobile menus, self-order kiosks, virtual waiters in-store and virtual drive-thrus.

"There's a lot you can do with QR codes besides putting them on a table to show a menu," he said.

Kiosks, delivery growth continue

Kiosks also continue to be popular; 44% of diners prefer to use kiosks at their favorite restaurants, and 71% would rather use a self-service kiosk at QSRs than engage with staff.
The pandemic has also augmented food delivery, evidenced by a 70% lift in meal delivery spending.

"Again, this has been a learned behavior by folks during the pandemic," he said.

In addition, 40% said they will use these methods even after the pandemic ends.

Labor challenges rise

The biggest challenge facing restaurants today, Whitney said, is the labor shortage, a challenge that preceded the pandemic but has exacerbated it.

"What tools can we give our guests to transact with us that will require less labor?" he asked.

One of the goals of technology is to give customers more control of the guest experience, he said.

Tools empower guests

Whitney offered several ways to give guests more control over the guest experience.

End-to-end cloud POS is an important tool. "Today's guest wants to transact the way they want to transact," he said. This can be online, mobile app, mobile web, grab-and-go and kiosks.

Inside the location, the guest may choose to transact at a fixed POS terminal, a portable POS terminal, a tablet or a handheld.

A POS today should include the following functions: omnichannel experience, integrations and extensions, frictionless checkout, contactless EMV payment and data reporting.

Order management needs

The order management system should include a kitchen display system, an order status board, text alerts and a QSR automation interface. The tablets in the back of the house that rekey orders are disappearing.

"In a world where your kitchen staff can be very portable at a high wage level, we need to make sure that their quality of life and their experience is good," he said.

With orders coming in from numerous difference channels, how are these channels prioritized?

"A good kitchen management platform should be able to aggregate all of those orders," Whitney said.

System integrations critical

The business integration system should include the following: third party delivery, back of house, digital signage, ticketing, stored and loaded value, loyalty, payments and financial systems.

Integration of different technology providers is a challenge that many restaurants now have to face, he said. "The key here is to have a broad set of integrations and APIs that bring all of these tools together," he said.

He posted the following quote from Joe Taylor, CFO of Brinker International:

"Technology enhances our digital guest connectivity, supports our virtual brand growth and improves our in-restaurant dining experience."

To download the free webinar click here.

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