Why it matters:
- Consumers have become accustomed to self-service kiosk technology in a range of venues, from ATMs to movie theaters to restaurants.
- Many large quick-service and fast-casual chains, such as McDonald’s, Taco Bell, and Shake Shack, have rolled out self-service kiosks.
- PDQ Chicken restaurants increased their average order by 25% and drove a 100% increase in kitchen throughput during busy times using self-ordering kiosks.
PDQ Chicken is boosting sales and speeding up service with new self-ordering kiosks that the fast-casual restaurant chain installed last year.
Consumers are often seeking fast meal solutions, and the kiosks help satisfy that demand, said Bryan Groc, Senior Vice President of Data Analytics at PDQ Restaurants, in an interview with CO—. In addition, the kiosks have helped the chain meet certain operational objectives, such as reducing wait times at traditional cash registers.
PDQ (which stands for People Dedicated to Quality) was founded in 2011 by Bob Basham, Co-Founder of Outback Steakhouse, and Nick Reader, former Chief Financial Officer of the Tampa Bay Buccaneers. The chain specializes in fried chicken sandwiches and chicken tenders served with a choice of dipping sauces. It has 52 locations in Florida plus a handful of restaurants in North Carolina, New Jersey, and New York.
Although some members of the PDQ leadership team were hesitant about deploying kiosks because they feared the technology would detract from the “personal touch” that the restaurants seek to provide, the company eventually decided that it was a technology whose time had come. Consumers have grown comfortable using self-ordering kiosks and now expect to encounter kiosk-based self-service as an option everywhere from movie theaters to sports stadiums. In addition, many of the larger quick-service and fast-casual restaurant brands have rolled out self-ordering kiosks during the past few years.
“In some regards, hospitality is not just person-to-person interaction, but it’s satisfying needs like speed of service,” said Groc. “We felt that kiosks could satisfy that aspect, especially during our busy periods.”
After testing Samsung Kiosks that feature ordering technology from GRUBBRR in 2023, PDQ last year rolled out the technology to most of its locations (two franchised stores have elected not to use the kiosks).
The payoff of PDQ’s self-ordering kiosks: 25% increase in average ticket size
Although self-ordering kiosks have been widely touted as a labor-savings solution for restaurant operators at a time when cost efficiencies have become paramount, Groc said PDQ didn’t approach its kiosk rollout with that in mind. Instead, the company views the devices as a way to help customers avoid lines at the traditional registers and give them an option for quicker service. All locations continue to have cashiers on duty to take orders in person from customers, and the company also does a robust business at its drive-thru windows, Groc said.
In some regards, hospitality is not just person-to-person interaction, but it’s satisfying needs like speed of service. We felt that kiosks could satisfy that aspect, especially during our busy periods.Bryan Groc, Senior Vice President of Data Analytics at PDQ Restaurants
Early results showed that the PDQ kiosks had a 40% adoption rate, and generated a 25% increase in average ticket size, as 1 in 5 customers — 20% — opted in for upsell offers, according to a case study published by kiosk and digital ordering solution provider GRUBBRR. PDQ restaurants also had a 100% increase in order throughput during peak times.
The kiosks appear to be driving more efficiency, because they are sending orders back to the kitchen more quickly, Groc explained. Kitchen workers can now get started on order production as soon as the orders are placed at the kiosks rather than waiting until the customers who are standing in line at the cash registers place their orders. Each store has two kiosks and at least one cashier.
Groc said he thinks the kiosks have also helped reduce the number of customers who may have gone elsewhere when they saw long lines at the cash registers.
[Read more: Digital Shelf Labels Light Up Big and Small Retailers' Bottom Lines]
Self-ordering kiosks are gaining traction in the restaurant industry
The use of self-ordering kiosks in the U.S. restaurant industry began gaining traction a decade ago — McDonald’s first started rolling them out in 2015 — but their deployment has accelerated in the last two or three years. Burger King, Taco Bell, KFC, Shake Shack, and El Pollo Loco are among the chains that have recently embraced the technology, which several restaurant companies have said increases speed of service and helps drive sales.
The global self-service kiosk market is projected to reach $28.4 billion this year and grow at a compound annual rate of 10% through 2029, according to a report from The Business Research Co.
Consumers’ increasing adoption of contactless payment, along with advancements in the personalization and user experience that the kiosks can provide, will help drive kiosk adoption, the report concludes.
“While kiosks won’t eliminate the need for employees, they can allow you to reallocate staff to more high-value tasks, such as food prep or providing more personalized service to guests,” said Angelo Esposito, CEO of restaurant inventory technology provider WISK.ai, in a recent blog post. “Kiosks are most effective when they complement your team rather than replace them entirely. Successful implementation often means using kiosks for efficiency while still offering staff support for tech assistance or customer interaction.”
PDQ’s Groc said the kiosks have been most attractive to lone diners placing orders as opposed to larger groups.
“It really helps with the lunch hour demand for individual meals,” he said.
Kiosks drive up customer loyalty members at PDQ
Groc said the kiosks have helped drive new members to PDQ Rewards, the chain’s loyalty program that enables members to earn points that can be redeemed for free food, discounts, and other items. He attributed the increase in loyalty sign-ups to the consistent prompts that the kiosks provide and the ease of signing up via kiosk, where customers can enter their information to join the program rather than dictate it to a cashier.
The company has also been considering ways to encourage use of the kiosks, perhaps by offering a secret menu or personalized offers for customers who use the devices. PDQ is also continually exploring how to leverage customer data to create more personalized experiences for customers, which includes suggesting menu items to customers who are using the kiosks.
Other innovations potentially on the horizon include voice-based ordering technology, Groc said.
“Maybe that's the way of the future of ordering within a kiosk,” he said.
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