Know Your Food Cost Percentage. Know Your Restaurant Profits.
Calculate Food Cost Percentage
Are you wondering why more and more businesses are adopting self-service kiosks?
The answer is simple. Self-ordering kiosks improve efficiency, enhance customer experience, and reduce operational costs. On top of it, your customers love self-serve kiosks—84% of the Americans at least!
This love is because self-serve kiosks are easy to use, extremely convenient, and super quick. In fact, the global self-service kiosk market size is said to reach USD 43.65 billion by 2028. That's a compound annual growth rate of 8.71%.
Let's explore what exactly self-serve kiosks are, their benefits, and how to buy one.
Also called self-serve kiosks or self-checkout kiosks are standalone devices that enable customers to navigate through menus independently, customize orders, and complete transactions—without staff needing direct assistance.
The hardware of the self-serve kiosks is a screen mounted to a wall, counter, or stand. The kiosk management software handles everything from inventory management to reporting and performance analytics. That's not it. Your customers can browse menus, customize their orders, and make payments—all by themselves. This ease of experience results in faster order processing, reduced wait times, and increased customer satisfaction.
A cold slice of pizza and waiting in long queues ruin your customers’ experience. Fortunately, modern self-serving kiosks are your gateway to increased traffic and better restaurant operations. Let's explore more benefits of self-serve kiosks.
Making the kiosk immersive and interactive becomes a valuable tool for enhancing the dining experience. Menu customization options available on these kiosks allow customers to edit their orders. The suggestive selling (complementary recommendations) also allows customers to add extra items, leading to increased order size and more sales.
Waiting in queues is tedious and can frustrate customers. But with self-serve kiosks, waiting is no longer a problem. Customers just walk up, choose their order, pay quickly, and that's it! They spend less time waiting and more time enjoying their food. It's a smooth and effortless experience that turns the old waiting ritual into a fast and fun dining adventure. This improves the overall dining experience and boosts operational efficiency during peak hours.
When you choose self-serve kiosks, you don't need to hire and train additional staff to take orders or process payments. Since everything is digitized and customers place orders, you need fewer resources to streamline orders, reducing order errors and food wastage. Besides, self-serve kiosks create upsell opportunities which can further increase margins.
About 73% of consumers today prefer self-checkout over staffed cashier lines. Self-ordering kiosks provide your customers the autonomy to give orders at their own pace. They can select whatever they like without pressure or having someone wait to take their order. They can also customize their selections without any inhibitions. This independence improves their experience and ultimately improves your restaurant's bottom line.
Modern self-serve kiosks seamlessly integrate into existing restaurant operations and POS systems without disrupting customer experience. They come in various installation options. You can select from a countertop, stand-mounted, or wall-mounted self-ordering kiosk as per your restaurant size and layout. OneHub self-ordering kiosks seamlessly integrate with your existing point-of-sale system to ensure your customers a quick and improved dining experience.
Undoubtedly, self-serve kiosks improve customer service and make restaurant operations more efficient. But how do you buy one? Consider a few essential factors below before making a selection.
Self-serve kiosks can be a significant initial investment. Therefore, weighing the initial expense against the long-term benefits is crucial. Choose a kiosk that fits your budget and gives you a good return on investment.
Kiosks with basic features start at approximately $1,500 to $5,000. The cost of the kicks can vary as you choose additional features, higher-quality materials, and advanced capabilities.
Select a kiosk that offers features that can help you boost customer experience. The features you select will make your restaurant more competitive, and customers will want to return. Here is a summary of features you should consider:
Picture a scenario where your customers struggle with a kiosk, requiring constant assistance from restaurant staff – a potential fiasco. Your self-serve kiosk should be user-friendly, with simple instructions that a diverse audience can understand. You can also test it out with users to ensure it's easy to navigate. A kiosk that's easy to use will encourage more people to use it and leave positive reviews.
The software of the kiosk you choose should be able to handle more orders as your restaurant grows. A scalable POS system ensures a hassle-free transition and keeps up with demand without slowing down. Considering this factor is essential as kiosks are a long-term investment, and they should be able to adapt to the changing needs of your customer base.
Your kiosk should be in a place that's convenient for the customers. It should be visible and accessible from all possible spaces of your restaurant. We also recommend not placing the kiosks in places that can cause havoc. High-traffic areas like entrances or order pickup points are ideal kiosk spaces. Additionally, your kiosk should fit in with the rest of your restaurant's layout.
Apart from the above factors, researching the vendor is equally important. You can look for customer reviews, testimonials, and case studies. Reviews and ratings can help you gather first-hand feedback from the restaurants that have already used the kiosk.
Self-service kiosks are winning the restaurant industry. As technology evolves, embracing innovations like self-serve kiosks can be strategic for your business. They meet evolving consumer expectations and future-proof your restaurant for sustained growth and competitiveness.
Check out OneHubPOS, get started at $1, and launch your Kiosks today!
Federal law allows including only employees who customarily and regularly receive tips. This typically excludes back-of-house staff like cooks and dishwashers. However, some states might have different regulations.
Tips are typically collected throughout the day and pooled at the end of the shift. The pool is then distributed among eligible employees based on the chosen method.
In some states with allowed tip credits, employers can take a portion of the minimum wage based on tips received by employees. This essentially allows employers to pay tipped employees a lower base wage.
Non-compliance can lead to fines and penalties from the Department of Labor, wage-and-hour lawsuits from employees, and employee morale issues.
Tip sharing is voluntary. An employee might choose to share some of their own tips with colleagues. Tip pooling is a mandatory system where all tips are collected and then distributed among eligible employees based on a predetermined method.
No, managers and supervisors cannot participate in the tip pool.
There are no standard percentages by law. However, 15-20% is a common tipping range for good service in the USA. Tip pooling eliminates the need for individual tip calculations.
Tip pooling can be beneficial for restaurants of all sizes. It can foster teamwork, ensure everyone benefits from good service, and simplify tip distribution.
Yes, tip pooling is legal under federal law (FLSA) with some key restrictions. However, some states might have additional regulations. Always check your state's Department of Labor website to ensure compliance.
Pricing is a balancing act! You need to cover your costs (including the food cost per portion) while offering a price point that feels valuable to your customers. Consider factors like competition, target audience, and the overall dining experience you create.
Food cost calculators are great for initial estimates, but consider restaurant management software for ongoing success. This software tracks inventory, automates cost calculations, and generates reports to identify cost-saving opportunities.
Absolutely! Many online food cost calculators can handle various cuisines. Look for tools that consider ingredient types, portion sizes, and even regional pricing variations.
Consider your food cost percentage your restaurant's financial fitness tracker. It's the total cost of recipe ingredients divided by your total menu sales. Ideally, calculate this regularly, like weekly or bi-weekly, to monitor profitability and adjust pricing or portions as needed.
The standard costing model is like a recipe for consistent pricing. It uses historical data and market trends to predict ingredient costs, allowing you to budget, purchase, and maintain profit margins even when prices fluctuate.
Food cost per portion is the actual cost of creating a single serving of a dish. It considers all ingredients, including spices, garnishes, and even waste! This number helps you understand your profitability and set menu prices effectively.
Diksha, a seasoned content marketer, brings hands-on experience in website management, social media marketing, and branding. Her expertise drives efffective and results-driven digital strategies.
