Why is McDonald’s Supercharging it’s Outlets with Self-serve Kiosks?
The Phenomenal Growth of the Indian Fast Food Industry
Fast-Food Chains in India are growing at a rapid pace with increased urbanisation. The Indian fast food industry is expected to grow at a CAGR of 11.19% from 2022 to 2028, reaching a market value of $79.65 billion by 2028. The organised segment of the Indian fast food industry is dominated by multinational chains such as McDonald’s, Domino’s Pizza, and KFC. However, the unorganised segment is still the largest, accounting for over 80% of the market with Indian brands like Rameshwaram Cafe, Asha Sweets, BigBite, A2B and many players making strong inroads.
The growth of the Indian fast food industry is being driven by a number of factors, including:
- Rising disposable incomes
- Increasing urbanisation
- Changing lifestyle preferences
- Growing acceptance of western food
- Increasing penetration of online food delivery platforms
As the Indian fast food industry is a becoming fiercely competitive market, players are constantly innovating to attract and retain customers. Some of the key trends in the industry include:
- Focus on healthy and nutritious options
- Expansion into tier II and III cities
- Adoption of new technologies such as Self-Serve Kiosks and online food ordering and delivery
- Collaboration with local brands to offer unique and authentic Indian flavours
Why McDonald’s is a Role-Model for Adopting Self-Serve Kiosks
According to a study by Tillster, a company that provides self-service technology to restaurants, 65% of customers prefer to visit restaurants with self-service kiosks. The study also found that customers who use self-service kiosks spend an average of 20% more than customers who order at the counter.
Here are some salient statistics about the use of self-service kiosks at McDonald’s:
- In 2020, McDonald’s had self-service kiosks in over 14,000 restaurants worldwide.
- The company plans to have self-service kiosks in all of its restaurants by 2025.
- Self-service kiosks account for an average of 20% of all orders placed at McDonald’s restaurants.
- Customers who use self-service kiosks spend an average of 20% more than customers who order at the counter.
Impact on McDonald’s employees
The impact of self-serve kiosks on employees of McDonald’s has been mixed. On the one hand, kiosks have led to some job losses, as fewer cashiers are needed. On the other hand, kiosks have also created new jobs, as employees are needed to maintain and operate the kiosks, and to provide customer service to those who prefer to order in person.
A study by the University of Oxford found that self-service kiosks could lead to the loss of up to 30% of jobs in the restaurant industry. However, the study also found that kiosks could create new jobs in areas such as customer service, maintenance, and data analysis.
In the case of McDonald’s, the company has said that it will not lay off any employees as a result of the introduction of self-service kiosks. Instead, the company plans to redeploy employees to other tasks, such as preparing food and cleaning up. Moreover it helped for a massive Upskilling and training opportunities for employees in the field of customer service and engagement. Overall Self-Serve Kiosks have created new type of job opportunities in McDonalds.
The Evolution of Self-Service in the Fast Food Industry
The early adoption of self-serve kiosks in the fast food industry has had a significant impact on several aspects of the industry. Here are some of the key impacts:
Benefits of self-service for customers
1. Convenience and speed of service:
Self-serve kiosks have improved the overall customer experience by allowing customers to place their orders quickly and efficiently.The elimination of long queues and reduced waiting times has led to greater customer satisfaction.
2. Customization & personalization options:
Menu options are flexible and can be tailor made based on the type of food offered.You can have exclusive kiosks for beverages, starters, main courses in over crowded food outlets.
3. Reduced human error in order taking:
Self-serve kiosks minimise the chances of order errors caused by miscommunication between customers and staff. Customers can directly input their order preferences into the kiosk, reducing the potential for misunderstandings.
Benefits of Self-Service for Businesses
1. Increased efficiency and productivity: With customers placing their orders through kiosks, counter staff can focus on food preparation and other tasks, reducing bottlenecks during peak hours. This streamlined workflow allows for faster order processing, increased order throughput, and more efficient staff utilisation.
2. Cost savings in the long run: By implementing self-serve kiosks, fast food restaurants have the opportunity to optimise labour costs. With a portion of the ordering process automated, fewer staff members may be required at the counter to take orders manually. This can result in cost savings for businesses, especially in the long run, as the initial investment in kiosk implementation can be offset by reduced labour expenses.
3. Data collection and customer insights: Self-serve kiosks generate valuable data on customer preferences, order patterns, and popular menu items. Fast food chains can utilise this data to gain insights into customer behaviour, refine their menu offerings, and develop targeted marketing campaigns. By leveraging data analytics, businesses can make data-driven decisions to improve their overall operations and boost profitability.
How Aidio is Enabling Fast Food Restaurants with GoSelfServe Kiosks
Aidio pioneers the Self-Serve Kiosks manufacturing in India and is an OEM for Interactive Displays. With innovative and tailor made solutions we have garnered a huge market base in India. Majority of the Indian-based Fast Food Chains are our valuable customers.
GoSelfServe Addressing Self-Service Kiosks Challenges
Here are some of the challenges of self-service kiosks in the fast food industry and how GoSelfServe handles them:
- Initial investment: Self-service kiosks can be expensive to purchase and install. This can be a barrier for small businesses or chains with limited financial resources. Aidio with GoSelfServe addresses this challenge by taking kiosks-as-a-service models. Those restaurants who cannot afford the right purchase can go for this model.
- Training: Employees may need training on how to use the kiosks and troubleshoot any problems that may arise. This can be a time-consuming and costly process. As a player based in India, we have strong teams of technicians located in all major cities who can deliver hand-held training to staff members of your food outlets.
- Customer acceptance: Not all customers are comfortable using self-service kiosks. Some may prefer to interact with a human cashier. But Aidio GoSelfServe has an easy to user interface resembling smartphones and is available in vernacular languages to suit the diversified customers of the Indian sub-continent.
- Security & Robust concerns: GoSelfServe devices come with sturdy and robust panels that can handle wear and tear. Also Cloud based software has best-in-class security features implemented.
Customers who have Adopted GoSelfServe
We have a long list of clientele and to name a few Veena Stores Malleswaram, Rameshwaram Cafe Chain of Hotels, Asha Sweets, Big Bite, Hatti Coffee, A2B Chain, Ramoji Film City, Kabab Magic, Sagar, IDC, Biggies Burger are prominent ones.
Conclusion
McDonalds has pioneered the revolution of adopting Self-Serve Kiosks by taking a step towards faster technology adoption. This move by Food giant has led other players to embrace the self-serve kiosks and provide better customer service and at the same time streamline the food delivery process during peak hours. Moreover Fast foods can now measure footfalls and derive insights using the data available. In India Aidio GoSelfServe is fuelling faster adoption of this technology amongst all types of restaurants.
Reach us how we can help to set up GoSelfServe food ordering kiosks in your restaurants. Click here.