Technology

Newk’s Eatery tests ‘hardwareless kiosk,' plans to add vending coolers

Adam Karveller of Newk's Eatery thinks order habits will change long-term as a result of COVID-19. He thinks curbside pickup, delivery, online ordering and even vending will play a bigger role long-term.

June 24, 2020 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

COVID-19 has given new importance to digital channels as most physical stores have restricted in-store traffic. And while many restaurants have expanded online orders, pickup and delivery, Newk's Eatery, a Jackson, Mississippi based fast casual chain, has gone a step further and introduced what it calls a "hardwareless kiosk."

While the chain has reopened most of its in-store dining in recent weeks, Adam Karveller, vice president of information technology, sees digital channels playing a bigger role in the long-term. Hence, the company is moving forward with its "hardwareless kiosk," a web app that allows guests to order and pay using their own devices on-premises.

"Customers resistant to using digital channels before are starting to adopt digital ordering channels because of the level of convenience," Karveller told this website in a phone interview. "With the development of COVID, we found the need to find a solution that's a little bit more flexible."

The "Grab N Go" was one of the company's first self-service concepts.

How it works

A mounted placard positioned near the entrance invites guests to scan a QR code which downloads a web app, allowing them to order and pay without speaking to a server. They can pay using a credit card, Google Pay, Apple Pay, and eventually, a gift card. Once the order is ready, staff can deliver it to the guest at their table or at the takeout section.

"Essentially it's tableside ordering through a 'personal kiosk experience' with a customer's own mobile device by scanning a QR code at either the point of entry outside the building or at the table," Karveller said. "And it allows us to effectively integrate with our point-of-sale system and our kitchen."

The company originally planned to deploy traditional self-order kiosks, but changed course following COVID-19, at which time it closed the dining rooms in all of its 117 stores.

The company had also tested curbside pickup, delivery and a "virtual drive thru" lane prior to COVID-19.

In search of self-order

Since opening in 2004, Newk's Eateries have featured "Grab n Go" coolers offering fresh items customers could pick up and pay for at the cashier or add to a "to go" online order.

"We've been looking for a long time at how to improve our in-store dining experience … without the need for a mobile app that's often a barrier," Karveller said. "There's a limit to the number of apps you're willing to put on the phone."

The company originally planned to use Bite Kiosk software in the Zivelo (now owned by Verifone) and NCR self-order kiosks it was planning to deploy.

COVID-19 changes plans

Adam Karveller sees digital channels playing a bigger role long-term.

COVID-19 put those plans on hold when the company decided to close its dining rooms.

By the time most of the stores reopened, Karveller realized it was possible to allow customers to simply download the menu and order platform created for the kiosk in the Bite Flash web app.

"It's through the same kiosk software we would have been using, just optimized for personal devices rather than a large, 21-inch screen kiosk," he said. "Folks just don't want to touch community hardware right now."

The franchisees, which account for all but 21 Newk's Eatery stores, wanted the company to guarantee that the costs for the kiosks would be offset by labor savings. Several were waiting to see the results of the pilot before they were willing to invest.

"If we see that this (kioskless option) is heavily adopted, there might not be a need for hardware kiosks," he said. "I'm sure we'll test them (traditional kiosks) as we get further away from the pandemic."

Karveller isn't sure how the hardwareless kiosks will affect staffing, but he expects some cashiers will be reassigned to other roles.

Vending on the way

A rendering of Newk's proposed Bite Fridge.

While the self-order kiosks are on hold for the time being, the company plans to move forward with a vending concept it was studying prior to COVID-19.

The company is in the early stages of testing a refrigerated, self-service merchandiser offering its freshly made "grab and go" menu items. Karveller sees a place for these vending coolers in high traffic locations such as airports.

Customers will be able to swipe their credit card at the machine, take the product from the cooler, after which the door will close automatically. The system then automatically updates the available inventory.

"It's something we've been waiting to get off the ground for some time," Karveller said. "We absolutely intend to do it. We're waiting for business to return to normal; it's part of the business model we're excited about, and we feel like we'll gain some traction."

One of the restaurants will prepare the food for the self-service machines, he said, but as the business progresses, a dedicated kitchen is possible.

The company soon plans to test Byte Technology's refrigerated cooler in with a customer.

The glassfront merchandiser features an Internet-connected touchscreen that displays the menu and other information. Each item has an RFID tag in its packaging that automatically charges the payment card once the customer removes the item from the machine.

Karveller thinks order habits will change long-term as a result of COVID-19. He sees curbside pickup, delivery, online ordering and even vending will play a bigger role long-term.

For an update on how the coronavirus is affecting the kiosk industry, click here.

Photos courtesy of Newk's Eatery.