6.18.2004
Kiosks coming to a McDonalds near you
McDonald's cuts out the middle man
From the article:
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From the article:
- Outside Chicago in St. Charles, Illinois, longtime McDonald's Corp. franchisee John Lardas has reconfigured his restaurant, replacing three ordering stations manned by employees at the front counter with one traditional station and four stand-alone computers, or kiosks.
"You see no lines because people are spreading themselves out," said Lardas, who estimates that 70 percent of customers now opt to use the technology.
McDonald's, which only recently admitted its service problems and vowed to fix them, is ironing the kinks out of technology some believe will transform fast food the way similar systems have revolutionized bank transactions and airport check-ins.
Each kiosk allows a customer to place an order directly with the kitchen, using a touch screen with pictures of food, English or Spanish text and verbal prompts.
Have a Big Mac the regular way with special sauce; customize it without cheese or pickles; or, if feeling particularly Atkins-friendly, lose the bun.
- Privately held Burger King Corp., McDonald's largest hamburger-making rival, is also testing kiosks in a handful of stores. A representative for the Miami company declined to provide additional details.
Ordering kiosks have already found a permanent home in convenience stores such as WaWa, an East Coast chain that lets customers use them to order deli sandwiches. Many groceries use similar technology to let customers handle their own checkout.
- "That's partly because staffing restaurants with well-trained employees willing to work for low wages remains an increasing challenge for fast-food operators who run on tight margins and have seen the price of commodities like beef move steadily higher."
- "Once perfected, the technology will likely lead to shorter wait times, labor cost savings, and ultimately, higher average checks, analysts said."
- "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."
- "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."
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