How is Self Service Technology Changing Consumer Behaviors and Expectations? Self-ordering kiosks are revolutionizing the hospitality industry as an increasing number of operators embrace technologies that can help them automate recurring tasks, improving both customer experience and business margins. Restaurant and retail owners in particular can now streamline operations via self service technology, which in turn is permanently altering consumer expectations. According to a survey by Retale , nearly 50 percent of customers prefer a self service checkout option at brick-and-mortar stores, and 20 percent would like to have a mobile payment option. This study demonstrates not only a tangible shift in the checkout experience, but also an overall shift in how customers want to pay. We’ll take a closer look at how self service technology is influencing consumer behaviors on a wider scale.

What are examples of self service technology and how does it even work? Examples of self service technology have infiltrated practically every public space we visit. Whether it’s check-in ticketing kiosks at the airport, self-checkout stalls at the grocery stores, or the increasingly common restaurant kiosk at your nearest quickservice establishment, self service technology is on the rise. One of the most popular pieces of self service technology, self-ordering kiosks, are free-standing touchscreens commonly found in restaurants that display menu items and allow diners to make their orders and pay without the assistance of a waiter or cashier. The rapid adoption of this technology, particularly amongst popular food chains, is enabling customers to access goods, services, and information. By 2028, Statista projects that global sales processed through interactive self-ordering machines will have doubled from its 2021 levels. This makes self-ordering kiosks one of the fastest growing technologies in the hospitality sector.

A deep dive into the changes in consumer expectations

The normalization of self service technology More than 1,000 adult men and women across the U.S. were polled for a study, showing that 85% of consumers have used a self-service kiosk. Even more significant, over 91% of millennials have already used a kiosk at some point with 20% of millennials going so far as to declare a particular dislike for interacting with cashiers as the main reason for their checkout selection.

Although 41% of the respondents admitted that their self ordering experiences could have been improved, the rising trend in kiosks is here to stay. Another study projects that from 2020 to 2025, the self-service kiosk market is expected to grow by 2.97 billion dollars (with most growth occurring in the North American market). Must Read: Are Self Ordering Kiosks the Future of Fast Food

Customer are spending more Customers think and act differently at self service kiosks. In 2004, the introduction of self service shops in McDonald's presented customers with the opportunity to personalize their burger orders on "Create Your Taste" screens. About 20 percent of the customers who initially did not include a drink in their order, ended up purchasing a drink by the end of the checkout process. The average check size increased by 30 percent. The McDonald’s kiosk rollout has all but confirmed that the add-on and up-sell technologies enabled by kiosks are driving incremental spend. The "faceless" onscreen technology can convince customers to consider enhancements or upgrades to their orders and can accommodate these changes during checkout.

Customers are demanding reduced wait times

The digital age has ushered in an era of consumers getting what they want and getting it faster. As a result, transaction speeds strongly influence customer satisfaction (in any environment), and present and future purchases are threatened by long wait times. Kiosks are solving for what is now a customer requirement to order and receive their meal quickly and accurately. According to NCR Corporation , long wait times represent the number one pain point in the checkout experience. Queue management systems are valuable for reducing wait times and enhancing the shopping experience. With the help of this technology, staff members can respond to client requests as promptly as possible, ensuring a seamless checkout experience and happy customers.

Positive correlation between self ordering technology and customer satisfaction According to Taylor and Francis's research, "self ordering technology and service quality, loyalty, and behavioral intentions are positively and significantly correlated." Customers are often pleased as a consequence and are more likely to try the service again, which increases revenue. Brands in the modern marketplace universally seek to prioritize customer satisfaction, and these kiosks significantly reduce friction in service delivery. Not only do the kiosk solutions serve as crucial insight portals for business intelligence, but they also work as feedback channels for savvy restaurateurs. Must Read: Pros and Cons of Implementing a Restaurant Kiosk

An investigation into the shifting priorities of restaurant operators Growing fears of inflation and recession impacting small businesses The food and beverage sector had a labor deficit even before Covid-19 sent everyone (employees and patrons) home. 15% to 25% of the cost of an item is laborrelated. Since digital kiosks are self-sufficient in handling peak hours, restaurant owners do not need to expand their service staff. As a result, there is no need for operators to hire incremental employees and stomach their wages, benefits, or perks. By using self-ordering kiosks, owners and managers can more efficiently mobilize their resources—financial and human.

With nearly 20% of small businesses shuttering within their first year of existence and roughly 50% of businesses failing in their first 5 years, reducing overhead costs and increasing the profitability margin is as important as ever. Already feeling the effects of macro-economic inflation and with increasing fears of an economic downturn heading into Q1 of 2023, small businesses are tackling these headwinds by either increasing prices or cutting costs.

Increased emphasis on operational efficiency and employee satisfaction With automated digital ordering and payment procedures, quick-service restaurants aim to improve the customer experience. The kiosks enable consumers to place their orders quickly, operate at peak efficiency at busy times, and boost restaurants' capacity to take more orders, generating more money. Once self-ordering kiosks are operational, staff' productivity increases since they are under less stress, especially during high-traffic hours. Self-ordering kiosks eliminate errors by sending orders straight to the kitchen display screen, cashier, and notifier. A large number of people may be divided up into multiple shifts thanks to digital automation. Without sacrificing the customer experience, you may reduce the cost of extra employees.

The reality is that restaurant operators have been dealt a curveball by the epidemic and labor shortages, which have fundamentally changed consumer expectations and raised customer demands. The increasingly mainstream self ordering tech options are seemingly solving the many needs and challenges that restaurant owners are facing currently. Restaurants are already considered to be difficult businesses to run both operationally and fiscally. In some ways, owners are almost forced to entertain labor saving systems just in order to keep competitive in an increasingly unpredictable economy. The trend toward automation isn't going away, even if some institutions are still apprehensive of self service options and presumably will stay so until this kind of technology acquires universal adoption. Kiosks, when implemented properly, are hopeful examples of solutions that are successfully assisting business to enhance client retention, promote growth, and improve productivity - particularly at a time when competition is fierce and differentiating oneself from the competition is becoming more and more difficult.