KFC attributes their phenomenal transformation of basket size and customer experience to the introduction of Kiosks
We had the pleasure of interviewing Jatin Chandwani, Chief Technology Officer at KFC UK & Ireland.
As a thought leader, he has kindly shared his insight into KFCs experience with kiosks and how they have transformed the Chicken, Chips & Clicks business.
Key highlights from the video
Jatin is a technology leader with extensive experience in solutions conception, enterprise architecture and global implementation. Recognised by industry executives for improving functionality, streamlining business operations and digital transformation. Uniware are grateful to Jatin for sharing the below insight with us, we hope you find this information insightful.
Before Kiosks
In our restaurant, we used to have two to four front counter registers. Customer dynamics revealed that when patrons place orders at the front counter, they often feel pressured due to waiting in a queue and interacting with an individual who may not always attempt cross-selling, a practice not always welcomed by all customers.
We’ve had kiosks for about 6-7 years now, and when we started the journey, we went through some pilots and we realised that if you do it right, it can increase your basket size value, it can help save labour costs and improve your customer experience.
Significant increase in basket size
In the past seven years, we have successfully optimised our system with four, six, or eight kiosks per restaurant. Customers utilising the kiosks have demonstrated a tendency to spend up to 20% more.
This is attributed to the fact that they have more time to make choices in their own space without external pressure.
Demand is high, everyone wants a kiosk
The advantages of implementing kiosks in our restaurants became evident to our franchisees rather quickly. Currently, the demand for kiosks is substantial, with almost 88% of our restaurants in the UK equipped with this technology.
The few exceptions where kiosks are absent are either due to space limitations or planning permission issues. However, we have addressed the latter by introducing counter-top kiosks as a workaround. The integration of kiosks has played a pivotal role in significantly boosting sales for our franchisees.
Personalisation
A crucial aspect of personalisation lies in customising your order, a task that becomes notably simpler with the use of kiosks. Unlike face-to-face interactions where misunderstandings or errors may occur, the kiosk allows you to tap and select your preferences visually, providing a clear and accurate representation of your order.
This enhanced accuracy in orders translates to fewer complaints, reducing both waste and staff time that would otherwise be spent addressing issues.
Smarter Loyalty
Another advantage of using kiosks is that, unlike ordering at the till where loyalty card scanning may be inconsistent, we aim for all customers to scan their loyalty cards at the kiosk. This allows us to better understand our customers, their preferences, and behaviour.
Choosing and redeeming offers becomes a smoother process at the kiosk, eliminating the need to convey this information face to face. In the past, explaining redemption preferences at the front counter consumed valuable time. Now, customers can effortlessly select and redeem offers based on their accumulated loyalty rewards or available discounts.
What about cash customers?
We’ve initiated several pilot projects offering customers the choice to place orders at the kiosk and then proceed to the till for cash payment using the order ticket.
Interestingly, this approach has successfully introduced cash customers to the kiosk experience. Notably, such sales methods have resulted in a 15 to 20% increase in basket size for these customers too, compared to traditional face-to-face counter orders.
Labour Saving
With fewer customers heading to the front counter, the demand on the front counter has decreased, we no longer need to deploy as many staff to the front counter as before. Although some counter staff are still necessary for cash sales, their presence is no longer constant.
We have strategically relocated these personnel to the lobby to assist customers. When it’s time to handle cash transactions, they can seamlessly return to the counter. This restructuring not only results in cost savings but also enhances the overall customer experience with staff available to assist customers more efficiently.
Move to Mobile
Our kiosk experience closely mirrors the functionality of our mobile app. While our ultimate expectation is a transition to mobile usage, we’ve observed a faster adoption of mobile technology in developing markets compared to developed ones.
The layout, menu structure, and overall journey in our mobile app align seamlessly with the familiar kiosk interface. During peak times when kiosks are occupied, customers can easily resort to using their mobile devices within the restaurant to place orders. For instance, if all kiosks are occupied, customers can swiftly use their phones to navigate the ordering process just as they would on a kiosk.
Brand Experience with the digital channels in mind
Before COVID-19, our digital sales constituted less than 10% of our overall sales.
Fast forward to the present, and our digital mix has surged to 60%, encompassing various channels such as kiosk, mobile app, click and collect, and delivery services. This shift in the channel mix has added complexity to our operations as we strive to accommodate the diverse channel preferences of our customers.
A visit to one of our modernised restaurants reveals a redesigned journey leading customers towards the kiosk. And in some restaurants we have a separate entrance for delivery service because we do not want those to be clouding the restaurant along with people who are ordering at kiosk – that’s our brand experience.
Insight for confident operational decisions
Through the utilisation of kiosks, we can efficiently track the time customers allocate to the ordering process. By determining the average time customers take to place orders, we can anticipate and plan for peak queue lengths.
Kiosks also give us the insight to track the customer journey, understanding the sequence of clicks and interactions. This detailed insight enables continuous improvement, identify bottlenecks and friction points, allowing for easy adjustments to enhance the overall purchasing experience.
We also have the capability to analyse how add-ons are performing and make adjustments based on the observed customer behaviour. This flexibility allows us to continuously refine and optimise the add-on experience.
This strategic approach ensures efficient utilisation of resources and enhances the overall customer experience.
