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Insight of the Day: Phygital dining and the rising demand for self-service kiosks

  • Phygital experiences are the way of the future. Customers want the flexibility of digital ordering options blended seamlessly with the in-person dining experience.

  • Self-service is here to stay.  Self-ordering kiosks are increasingly prevalent, and customers expect them as a standard option.

  • Personalization is king. Customers gravitate towards kiosks because they allow for exploring the full menu, custom orders, and less social pressure.

  • Cross-channel consistency matters. Customers expect ordering through the restaurant's website, app, or in-store kiosk to be the same, including loyalty programs and payment options.

  • Curbside is still important. Even with a focus on in-person dining, customers love the convenience of curbside pickup.

  • Work dynamics are changing the rush. Restaurants need to adjust their marketing to entice diners throughout the day since typical lunch rushes might be spread throughout the workday as people take advantage of remote/hybrid work options.

Additional Considerations for Restaurants

  • The "Two Types" of kiosk users. Restaurants should design their kiosk experience to cater to both those who know what they want ("beeliners") and those looking to explore the menu and create custom orders ("explorers").

  • Ease of use. The kiosk interface should be intuitive and easy for all customers to navigate.

  • Strategic Placement and Signage:  Kiosks and clear signage will guide customers and ensure a smooth flow between the ordering process and picking up their food.

  • Integrate with loyalty programs: Kiosks should connect with loyalty programs to personalize recommendations for customers and encourage repeat business.

  • Data Analytics: Kiosks can collect valuable data on customer preferences, which can help optimize menu offerings and promotions.

The Opportunity

The rise of phygital dining provides restaurants with a fantastic opportunity to:

  • Increase efficiency: Kiosks can streamline the ordering process, leading to shorter lines and reduced wait times for customers.

  • Boost sales: Customized options and upsell suggestions can drive customers to spend more.

  • Improve customer experience: Personalized recommendations and a seamless ordering experience enhance overall customer satisfaction.

***Phygital dining is a trend in the food and restaurant industry that blends the best aspects of the physical dining experience with the convenience and personalization of digital technology. Here's a breakdown of what defines phygital dining.

Key Elements

  • Digital Ordering: At its core, phygital dining revolves around the ability for customers to order food using digital channels:

  • Self-ordering kiosks: Touchscreen kiosks inside the restaurant allowing customers to browse menus, customize meals, and place their orders without interacting with staff.

  • Mobile ordering: Apps that allow customers to order from their smartphones, either for delivery, curbside pickup, or to dine in.

  • Website ordering: Online platforms integrated into the restaurant's website for convenient ordering.

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