Technology
Phygital dining and the rising demand for self-service kiosks
The 2024 Phygital Index Report by Tillster unveils rising demand for phygital dining experiences, emphasizing self-service kiosks and consistent ordering methods. Customers seek menu exploration, customization and streamlined processes, while restaurants adapt to shifting consumer behaviors, integrating curbside pickups and flexible work dynamics.
May 7, 2024 by Sandra Carpenter — Editor, Networld Media Group
Phygital, the combination of digital services to deliver physical products or services, continues to expand consumer choices and create clear opportunities for retailers and restaurants to expand their offerings while increasing sales.
In 2023, Tillster identified an emerging trend in customer behavior: the desire for phygital dining experiences that blend table service and self-service ordering kiosks. Hope Neiman, CMO at Tillster, joined us for an email interview to discuss this trend, exploring the growth of customer demand for kiosks, alongside their rising expectations from the technology.
Tillster, a digital ordering and engagement platform, provides restaurants with online ordering, delivery management, and marketing solutions to enhance customer service and drive sales. In February of this year, Tillster surveyed 1,005 U.S. based diners who had ordered food from a quick service restaurant or fast-food chain within the previous three months. The questions focused on the customers' ordering habits, experiences and preferences.
The results of the survey can be found in the 2024 Phygital Index Report. The report offered two important insights in particular: increasing demand for personalization and customization ordering methods within kiosks and heightened expectations for consistent and interoperable ordering methods.
Increasing demand for personalization and customization
According to the report, Tillster observed that two types of kiosk users: "beeliners" and "explorers." Beeliners' main objective is to use kiosks to bypass lines and expedite their transactions efficiently. Explorers, on the other hand, use kiosks to browse the menu and discover new items and customizations without being rushed. The report found that explorer tendencies are on the rise, as many customers have become comfortable with using this technology.
Hope Neiman, CMO of Tillster, shared three main reasons why this demand is increasing. "The first is that [customers] can explore more of the menu compared to what is on the display menus," Neiman said. "In fact, we saw a 10% increase in the number of customers listing this as their top reason for using kiosks compared to last year!"
Neiman cited customers' preference for more time and less pressure during ordering as a second reason customers rely on the personalized experiences of self-service kiosks.
"Customers feel less rushed than perhaps ordering from an employee. This could be due to a few reasons, including the social pressure of keeping up a line if they want to make modifications/customizations to their food or having to work with an employee who is having to take orders while potentially preparing food or drinks," Neiman said. "However, with a kiosk, they have all of their options easily available at the touch of a screen."
The third reason for growing customer expectations is the fact that self-service kiosks offer more and easier customizations for people's orders. "In 2023, 5% of customers ranked this as their #1 reason to use a kiosk—in 2024, that number is now 30%," Nieman said. "As we discussed in the report, customization and personalization are huge trends for customers in their ordering experience, and quick service restaurants (QSRs) are working to add this capability."
The kinds of personalization that customers are excited about include the ability to log into their loyalty program from the kiosk for rewards along with the ability to have access to previously ordered items for an easier re-order.
Heightened expectations for consistent and interoperable ordering methods
Tillster found that the physical location of the kiosk itself is critical to its success. "Kiosks need to be placed directly in the path to the counter while not being in the way, so guests aren't confused as to where they can place their orders," Neiman said. "Similarly, effective signage and order-status tools, such as 'order read' boards, are essential in a guest's experience with a kiosk."
Tillster also found that while the experience with the physical kiosk itself is a key factor in launching a successful kiosk system, consistency across all phygital ordering channels is just as important. "In fact, customers we surveyed said that the most important factor across a successful technology stack is that the experience is consistent across disparate tools." Neiman said. "Inconsistency greatly impacts a customer's experience, which can then negatively impact a restaurant's brand and reputation."
Because customers are reducing their usage of third-party ordering websites and apps, more diners are relying on consistent ease of ordering within restaurant-specific websites, apps and kiosks. Customers expect that the ordering interface, loyalty programs, and payment processes will all function nearly-identically across all platforms.
Additional findings
Some additional key findings in the report include customers' increased interest in curbside and pickup offerings. In 2024, 89% of guests said they would visit a quick service restaurant if curbside pickup was offered compared to 69% in 2023.
Neiman offered another important insight for QSRs navigating this ever-changing phygital landscape.
"The prevalence of hybrid and flexible work plans has upended the pre-pandemic expectation of a lunch rush as more people choose when to go into the office—if they are [going in] at all," Neiman said. "Restaurants can counteract this by using messages to drive customers back into their locations during their new 'off hours' or when they plan to work from home/not in the office.
"From mobile ordering and personalized recommendations to digital loyalty programs and advanced self-service kiosks, these touchpoints create cohesive, integrated experiences that earn customer loyalty, kudos and dollars."
As the use of these blended phygital ordering experiences increases, so do customers' expectations for consistency, personalization and ease of use.
About Sandra Carpenter
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