How will tech and AI disrupt franchising
Advice & TipsAsk an ExpertSeptember/October 2022

Q: Why should I use digital signage in my quick service or fast casual restaurant?

A: The restaurant business is tough. With so much competition, thin margins, and uncertainty throughout the supply chain today, fast casual and quick service restaurants (QSR) must do everything they can to get the most out of each guest. Like any retail business, driving traffic to your restaurant is critical. Increasing the average sale from guests is equally as important. This is where digital menu boards can help your business thrive.

Did you know that 70 per cent of purchase decisions at QSRs are made at the checkout counter? This provides franchisees with an opportunity to influence guests as they decide what to order. Some retail industry experts refer to this as the “moment of truth”—the precise moment when a guest is in position to buy. In this moment, the guest looks to the menu board for inspiration on what to eat.

Put yourself in their shoes. You’re standing at the QSR counter, stomach rumbling. You scan the menu for something tasty. Suddenly, the menu board screens are taken over by cheese stretching from a hot slice of pizza as it’s pulled from a pepperoni pie. A cup of creamy ranch dressing and an ice-cold drink roll into frame. A bubble pops onto the screen next to the meal, offering “The Perfect Pizza Combo – Only $5.99.”

Now compare that scene to one with a static print menu. Which menu do you think would entice her to order the $5.99 combo rather than the $2.99 slice? Of course, the mouth-watering video footage. The appetite appeal gained from digital menu boards leads to higher average sales.

When used effectively, digital menu boards lead to a three-to-five per cent sales increase on average, compared to print menus. For a restaurant that generates one million dollars in revenue, that’s a $30,000 to $50,000 lift. Restaurants with digital menu boards also receive higher satisfaction scores from guests, a 35 per cent perceived reduction in wait time, and a 33 per cent increase in repeat visits. Digital menu boards allow QSRs to increase profits for minimal additional costs.

As a franchisee, you have a lot to manage. Staff, ingredients, supply chains, point-of-sale systems, and more. Adding another technology element to your operation may seem daunting, but it doesn’t have to be. You can find a reliable company to partner with and take this load off your plate.

Investing in the right digital menu board platform empowers you to run your restaurants more efficiently and effectively. Some platforms connect to your point-of-sale system, so pricing and product updates are automatically reflected on your menu boards. This is even possible on a site-by-site basis, so each store’s menu can reflect what’s in stock, sold out, or on sale at that specific location.

Promoting the right items at the right time becomes easier with digital menu boards, too. You can set your menus to automatically trigger relevant promotional content to your menu boards in real time based on a guest’s order. For example, when a clerk enters an order for a cheeseburger, a refreshing ice cream sundae ad instantly pops up on your promotional menu board screen with a message enticing the guest to add dessert to her combo.

If you need to drive more traffic to your restaurant, there are other smart marketing tools you should consider. Outdoor-facing digital signage in your storefront window is one impactful way to capture the attention of people passing by. Dynamic video content drives attention and builds appetite appeal more effectively than a static poster. Consider trying this at your sites and see how it increases your traffic count.

These are just some of the benefits of digital menu boards and examples of how digital signage can help drive traffic and increase sales. Making the most of every touchpoint with your guests and measuring the impact it makes on your business is essential in helping your restaurant thrive.

Alex Walderman
Director of Business Development, Avida
www.avida.ca