Welcome!

News Feed Item

Hot Diggity! NEXTEP Kiosks Offer Alternatives to Rising Minimum Wage

"Server-free" restaurant also chops long lines and streamlines orders

TROY, Mich., Aug. 7, 2014 /PRNewswire/ -- Diggity Drive Up, a new restaurant featuring gourmet hot dogs and sandwiches coupled with a craft beer bar, recently opened their doors in Coon Rapids, Minnesota, on July 17 amidst a touch of controversy. Some local residents and journalists have voiced criticism over the apparent replacement of traditional restaurants servers with kiosks. Local news even reported that Diggity had come up with a brand new concept, a "server-free restaurant," sparking heated debate about jobs in the local economy.

Photo - http://photos.prnewswire.com/prnh/20140806/134172
Photo - http://photos.prnewswire.com/prnh/20140806/134171

Reports are missing one key concept, however. Instead of utilizing traditional full service, Diggity has adopted the Fast Casual model similar to other industry giants – Qdoba, Panera and Five Guys, to name a few – where servers are not needed in the cafeteria-style atmosphere. Fast Casual diners are looking for a higher quality of food not offered by QSRs (fast food) without the time commitment found in traditional, full service restaurants.

Critics are right about one fact: Diggity has opted to eliminate cashiers in favor of self-order kiosks coupled with remote ordering. Customers perform the data-entry for orders themselves, formerly the role of the counter workers at most fast food establishments. Self-order options promise to be faster and more accurate for guests as they eliminate miscommunication between the customer and the employees, and restaurants see benefits from increased customer flow and less food waste due to incorrect orders.

Minimum wage has recently become a controversial topic, with fast food workers nationwide striking to bring attention to the question of what constitutes fair compensation in the industry. Demanding a $15 per hour "liveable" wage – more than double current federal minimum wage – poses problems for restaurant owners who operate in what is widely considered a narrow profit margin industry.

For Fast Casual and Quick Service Restaurant business owners in a competitive niche, rising food costs coupled with other factors in a still-struggling (and still-inflationary) economy force them to consider alternative means to keep operational costs down while delivering an affordable meal featuring quality food paired with a great experience for guests.

Anoush Ansari, managing partner for Hemisphere Restaurant Group and Diggity, simply wanted to deliver great American food with a technology-driven experience. Hemisphere wasn't seeking to operate a full service restaurant with this particular concept as Ansari understands the costs associated with operating one. The main goal, Ansari explained, was to deliver great food in a Fast Casual atmosphere to keep costs low and deliver competitive prices for their guests.

"This is one way we can keep margins where we want them to be, with the use of technology," said Ansari. He continues to acknowledge that the rising cost of minimum wage affects the costs of dining, often passed on to the guest. In response to an online article criticizing the use of technology in place of servers, a representative of Hemisphere rebutted:

"Classics like dogs and beef sandwiches aren't usually served up table side by legions of the much appreciated, skilled service professionals working in full service establishments. The important questions are: how do customers benefit from the integration of affordable, scratch made food, service and technology? And how many new jobs exist as a result of this new restaurant?"

Customers interviewed by local news stations seemed to prefer the kiosks and didn't miss having a server, comparing it much to a typical experience using self-checkout at the local grocery store, or to experiences at similar Fast Casual concepts. Another leading concept, Panera, recently spent $43 million to develop a new system with self-order and mobile ordering playing central roles, similar to the system provided by NEXTEP SYSTEMS (http://nextepsystems.com) for Diggity.

Tommy Woycik, President of NEXTEP SYSTEMS based in Troy, Michigan, says that self-order options aren't replacing people, and are going to become more prevalent at the behest of guests, not just owners who want to lower operational costs.

"Self-order kiosks allow business owners to repurpose their labor to food production and customer service," said Woycik. "When you streamline the order process, you increase throughout, resulting in more orders and improved speed of service. The staff that were formerly standing at the counter just to enter orders are now free to help on the line, maintain appearances in the restaurant or give guests with questions their undivided attention."

But what about the guests? "From what we've experienced, once they try it, most guests prefer ordering online or from a kiosk, especially when we have features that remember their favorite orders," Woycik continues. "Self-order kiosks paired with mobile ordering eliminate two of the things people dislike the most about fast food – long lines and inaccurate orders. With our solution, guests get the personalized experience they want in less time, and the kiosk gets the order right every time."

"It's a win-win for guests and owners alike."

Media Contact:
Brett Duncan
Email
866.654.8730 x132

SOURCE NEXTEP SYSTEMS

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platfor...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-securit...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...