Digital Menu Boards

Transcription

Digital Menu Boards

GUIDE
Digital Menu Boards
Digital menu boards are helping restaurant operators keep pace or stay ahead
of their competition. The technology allows restaurateurs to incorporate
full-motion video into their menu displays, and instantly update content to
account for last-minute product and price changes for a single location or
multiple locations, from anywhere in the world. Learn how to choose the right
type of display, which content is most effective and how to maximize ROI.
Developed and published by
Sponsored by
Contents
Page 3
About the sponsors
Page 4
Introduction
Page 6 Chapter 1
|
The benefits of digital menu boards
Not just for displaying prices
Menu boards move outside
Page 11 Chapter 2
| The components
Indoor
Outdoor
Page 15 Chapter 3
|
Return on investment
Page 18 Chapter 4
|
Best practices
Make systems redundant
Use professional-grade equipment designed for the environment
Take extra care outdoors
One size doesn’t fit all
Page 22 Chapter 5
|
On the horizon
Kiosk ordering
Ordering by mobile
Anonymous video analytics
© 2012 Networld Media Group | Sponsored by NEC
2
About the sponsors
NEC Display Solutions innovates, produces and delivers display
products and complete digital signage solutions for a wide range
of vertical businesses, specialists and lifestyle applications. The
company is wholly owned by NEC Corporation, one of the world’s
leading providers of Internet, broadband-network and enterprise
business solutions, employing more than 150,000 people.
DigitalSignageToday.com, operated by Louisville, Ky.-based
Networld Media Group, is the leading online publisher of news
and information on the emerging world of digital signage, dynamic
messaging and cutting-edge business communication technologies.
The content, which is updated every business day and read by
professionals around the world, is provided free of charge to readers.
Published by Networld Media Group
© 2012 Networld Media Group
Written by Richard Slawsky, contributing editor, DigitalSignageToday.com.
All images courtesy of NEC Display Solutions, unless otherwise noted.
Tom Harper, president and publisher
Joseph Grove, vice president and executive editor
Courtney Bailey, publications editor
3
Introduction
D
igital signage technology is moving into the restaurant industry at
a rapid pace. More companies are
looking to this new technology to replace
their current menu boards and promotional materials inside and outside of their
restaurants. Operators are increasingly
realizing how effective digital menu boards
can be in lifting their bottom line while
increasing their overall marketshare.
What can be difficult to determine, however, is how long it will take for a restaurant to show a return on investment when
deploying these digital systems compared
to the traditional menu boards that are
currently being used. Restaurants also are
analyzing how this investment in technology will aid in meeting the upcoming menu
labeling requirements.
Over the years, menu boards in restaurants
have assumed many different forms. Some
have used chalkboards with daily specials
updated in bold swaths of dusty whites,
blues and other colors. Others favored
plastic letters slid laboriously into place,
one after another.
Eventually, what many considered to be
state of the art became a backlit panel that
allowed for graphics, rotating numbers for
prices and convenient slots where whole
items could be swapped out at a time.
With all of these solutions, restaurant
operators struggled with getting the right
information into the right place as well as
making sure that the manual updates were done in a timely manner. If operators failed to achieve
those goals, the business itself
was in jeopardy of losing revenue,
and the opportunity to promote
goods and services would be lost.
Out of this came the introduction
of static promotional boards and
quarterly menu board replaceBy Richard Slawsky
ments. However, the opportunity
Contributing editor,
to capture new sales by maximizDigitalSignageToday.com
ing daily promotions and specials
would remain manual. Further, with a
growing focus on different breakfast, lunch
and dinner menus, the restaurant would
need to either increase the size of the
menu board or use two-sided flip boards
— both of which possibilities required additional manual labor.
Evolving computer and display technologies have moved forward in recent years,
offering the restaurant industry a modern
alternative to old-school modes of communicating products, pricing and promotions.
This advancement has come in the form
of digital signs. The benefits are numerous
and include:

The ability to use automatic
dayparting of menu boards.

The ability to remotely update menus and make instant,
preprogrammed changes.
Digital menu boards and promotional boards allow messages to be dynamic, clear and
interactive, as well as integrate static or full-motion content. This also allows the operator
to incorporate cross promotions with vendors, partners and suppliers.
4
INTRODUCTION

Centralized control of marketing, promotions and menu board content.

The ability to tie in inventory levels and point of sale (POS) to change marketing and pricing on the fly.
Digital menu boards and promotional
boards allow messages to be dynamic, clear
and interactive, as well as integrate static
or full-motion content. This also allows the
operator to incorporate cross promotions
with vendors, partners and suppliers.
Ready or not, digital menu boards are
quickly becoming a major part of the
quick-service and fast casual restaurant
environments. In the following pages, take
a look at what operators need to consider
when deciding whether a digital-menu
board system is right for them.
5
Chapter 1
W
hen the founders of the fast
casual restaurant chain The
Cereal Bowl opened their first
restaurant, digital menu boards were
beyond their means. At the time, prices for
the emerging technology was simply too
high to justify.
Now they say prices of digital menu board
systems have fallen to the point where it’s
hard to justify not purchasing one.
When the founders launched their concept
in Miami in 2006, they deployed static
vinyl foam menu boards.
“If we want to promote something in the
morning and then promote something
different in the midday and let people see
what we have, the system allows us to do
that,” he said.
And because the company’s growth is occurring via franchising, corporate officials
wanted a way to maintain control of the
brand, even as The Cereal Bowl opens
restaurants as far away as Qatar.
“We wanted something that we could
control the changing of prices and so forth
from outside the franchise,” Glassman said.
“In terms of brand control a digital menu
board system is a no-brainer.”
CoffeeHero
“As a growing brand, we were continuously tweaking things here and there,” said
Michael Glassman, chief technology officer
of The Cereal Bowl. “When you have a
static board of any type you are continually
replacing parts of it and it gets to be very
expensive.”
Digital menu boards allow for easy dayparting, Glassman said.
Today, the company operates three stores
and has 44 in development. Digital menu
boards are now standard in its operation.
“We’ve always been very tech-savvy, and
we wanted to have a menu board that
would integrate into other technologies
that we had in our restaurants,” Glassman
said. “There are so many things you can do
with digital menus that you can’t do with
static menus.”
For example, if a restaurant is running low
on a particular item, the store manager can
easily remove it from the menu. Likewise,
if a restaurant is overstocked on a particular item, the manager can discount or
promote that product to keep it from going
to waste.
Static menu boards, such as the one seen above, used to be favored because
of their cost-effectiveness. The maintenance and human capital required to
keep the board up to date and accurate, however, is leading many operators
to consider digital menu boards.
6
CHAPTER 1
Although the most basic use of a digital
menu board system is to display a restaurant’s menu and prices, the boards can be
programmed to serve a number of other
functions. Other uses of menu boards
In addition to displaying prices, digital menu boards
can help an operator:
“Restaurants are able to cross market
promotions, programs and services to the
consumers while they are in a queue line,”
said Richard Ventura, director of sales —
vertical solutions for Itasca, Ill.-based NEC
Display Solutions of America, a provider
of digital signage solutions. “By using the
screens for additional services, restaurants
are able to educate and inform the customers about new products that are being sold,
special promotions and similar items.”
 Promote products that are in high inventory
Jeff Levine, founder of the Margate, Fla.based fast casual restaurant Salad Creations, is testing a digital menu board
at one of the chain’s locations in South
Florida.
 Communicate corporate messaging and training materials
“Through the Internet, we can change our
message on a daily basis,” Levine said. “It’s a
neat tool for us as far as running quarterly
promotions and so forth.”
Content includes promoting the various
salads the chain sells, as well as new store
openings. The company also uses the board
to educate new customers about Salad Creations and the restaurant’s ordering process.
“We have a whole program running on the
menu board that walks you through the
steps on how to create your own salad,”
Levine said. “We have 40 different salad
toppings, and it’s a little intimidating for a
first-time customer coming through our
door.”
 Add new items to the menu
 Run special promotions
 Cut costs, including printing and shipping menu board inserts
 Maintain brand consistency throughout multiple restaurants
 Display required nutritional information
 Share information and entertainment with clientele in the dining room
Not just for displaying prices
Rising costs and changing consumer tastes
mean that menus and prices aren’t liable
to remain stable for any length of time. If
the price of a particular ingredient rises
dramatically, operators need to have the
flexibility to adjust prices accordingly. Restaurant operators also need the ability to
promote products that are in high inventory so they can decrease the amount of
waste and increase their overall sales.
Maintaining customer interest often means
adding a new item to the menu or running
a special promotion every few weeks. In
those cases, operators need to have the
ability to change the menu board quickly
and seamlessly.
7
CHAPTER 1
Although a backlit board with plastic inserts
may offer those abilities, the results can
be less than optimal. Multiply the changes
over a number of units and chances are that
at least one manager won’t get the memo.
That’s not to mention the costs associated
with printing and shipping new menu board
inserts for each new promotion.
And front-lit signs may be even more
difficult to change. While the boards may
be set up for easy price changes, they still
require printing of new inserts for special
promotions.
Those issues simply don’t exist with a digital menu board.
“Digital menu boards supply the added
benefit over traditional static boards in
that the operators can update the menu at
every location in seconds from a centralized location,” Ventura said.
Because digital menu boards can be
updated at a moment’s notice, particular menu items can be highlighted if the
restaurant is overstocked, while others can
be removed from the menu if stock is running short. Centralized control means that
brand messaging remains consistent from
store to store.
With menu labeling legislation being
enacted across the country, digital menu
boards may help make the most effective use of precious real estate. With the
requirement of having a food item’s caloric
details listed alongside it on the menu
board, utilizing digital technology allows
a restaurant to seamlessly incorporate this
data. Many software providers also have
tools that can incorporate data pulls, which
will update the caloric details as the restaurant changes suppliers and recipes.
“When someone goes into a restaurant,
they want to have a nice dining experience,” said Tim Tang, a marketing director with Hughes Network Systems. “They
want to see clean walls and a contemporary environment. What they don’t want
to see is wall-to-wall bumper stickers with
different messages, some of them being
promotional and some regulatory.”
During off times, menu boards can serve
as a secondary asset for the organization.
Many restaurants are using them to display
training materials and corporate messaging. There are opportunities for operators
to advertise local businesses, events and
supplier messaging to their audience. Some
companies have introduced music videos
and news feeds into the dining area as well,
focusing on infotainment to increase the
dwell time of the clientele.
Restaurants generally operate under three
dayparts: breakfast, lunch and dinner. The
flexibility of a digital menu board system,
however, allows for as many dayparts as
the operator chooses. “I know stay-athome moms are going to come in midday and they are going to be more health
conscious, so I can target them with salads
and healthy food messages,” Tang said.
“The high school kids are going to be coming in after school hours, so I ought to be
hitting them with quick snacks and highenergy foods,” he said. “The professionals
are going to come in during the evening
hours, so I ought to be giving them a blend
between the two; something healthy but
also something fun to help them relax after
a hard day at work.”
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CHAPTER 1
Menu boards move outside
If there’s one thing that may have kept
restaurants, particularly quick-service
restaurants (QSRs), from considering
digital menu boards, it’s the perception
that outdoor digital boards aren’t reliable
and are too expensive. Such a perception is
important when as much as 80 percent of
a QSR’s business is done at the drive-thru
window, and many operate them well past
the closing of their dining areas. The drivethru is a golden opportunity to market to
a captive audience and increase sales of
higher-margin, low-selling goods that are
generally purchased on a whim.
Placing LCD displays outdoors has always
been unreliable. Outdoor installation
means the organization must deal with
unpredictable weather elements (i.e., direct
sunlight, wind and precipitation) as well as
other hazards, such as animals. There also
is the human element: vandals could damage the boards and bring the operation to
a halt. Lastly, as with indoor deployments,
what happens if the LCD or computers fail,
causing the menu board to go black?
Those issues can be minimized with the
menu board solutions that NEC makes
available to the QSR market.
“The digital menu board system we supply for outdoor systems are extremely
durable and designed for the rugged
drive-thru environments,” said Ventura.
“The protective glass on the front of the
enclosure is designed to take on the elements and protect our high-bright LCD
displays. Further, the enclosure itself
is designed to prevent buildup of heat,
which can also damage the display. Our
partnerships with enclosure companies
have allowed NEC to deliver a solution
Choosing a rugged digital menu board for a restaurant’s drive-thru, such as
the one from NEC (seen above), is important to ensure that unpredictable
weather elements, animals and vandals don’t harm the signage.
that is built for the needs of the QSR market as well as deliver peace of mind for
the restaurant operator.”
Scott Koller, president and CEO of Minneapolis-based Wireless Ronin Technology, a
digital signage software provider, was once
reluctant to predict that outdoor digital
boards would have a place in the drivethru. But with lower costs, better warranty
options and higher manufacturing standards that allow the technology to endure
harsh weather elements, he has changed
his outlook.
“As many restaurants are incorporating
digital menu boards inside their stores, we
should also expect them to do the same
at drive-thrus within the next six to 12
months,” he said. “You used to not be able
to find an outdoor digital menu board with
more than a one-year warranty. Considering 60 to 80 percent of QSR clientele use
9
CHAPTER 1
the drive-thru, it didn’t make sense to
invest $50,000 on equipment that was in
the elements and that just had a one-year
warranty. Now, most options are at least
three years and many are five-year warranties; it’s a total game-changer.”
As the cost of the technology drops, its
appeal has increased. Because of this, Chip
Willcutt, copywriter/marketing specialist
at Eden Prairie, Minn.-based QSR technology provider WAND Corp., believe the
move to digital isn’t about “if,” but rather
“when,” comparing it to the Apple IIe
computer, which sold for more than $2,000
new in 1983.
“Today, a computer can be purchased for
under $1,000 with 62,500 times more bytes
of RAM,” Wilcutt said. “The future is for
optimists with a firm grasp on how fast
technology is moving.”
College Station, Texas-based Texas Digital Systems, a provider of digital signage
solutions, already has incorporated outdoor digital menu boards into its product
offering.
“We see extending digital menu boards to
the outdoors as a natural progression of
the technology,” said Melissa Lewis, marketing manager for Texas Digital Systems.
“Whether used as a pre-sale tool or for
the actual menu board, the technology of
digital signage can be very powerful for any
QSR brand, regardless of size.”
10
Chapter 2
The components
Indoor
Although indoor digital menu board
systems have evolved tremendously over
the past few years, the basic layout has
remained the same. The major components of a digital menu board system are
hardware (screens and computers/media
players), software, content, method of connection and implementation.
Hardware. The price of screens and
computers is changing quickly. Operators should avoid purchasing a technology
that may be out of date in the near future.
Although some operators still use plasma
screens, LCD screens truly are the way
to go. With the content primarily being
static, the use of commercial LCD displays
have become the norm. Unlike plasma
displays, LCDs do not suffer as badly from
image burn-in and have a much longer life
expectancy. Deployers should make sure
the screens and computers are industrialgrade and guaranteed to run 24 hours a
day, seven days a week. The majority of
restaurant operators are looking for a solution that will last for up to five years and,
in some cases, even longer.
Deployers also should make sure that all
screens share the same cabinet design and
specifications, ensuring consistent branding and saving on content costs throughout
the store and across multiple locations.
Software. Software is used to create,
download, manage, schedule and play
content, as well as manage proof-of-play
reports and confirm when content is
played. Many software packages also allow for remote monitoring of the system’s
health and alert service personnel when
there is a problem. In many cases, this
LCD screens have a longer life expectancy and do not suffer from image burnin, as plasma screens do. However, it’s important to choose an industrialgrade screen that can withstand heavy usage.
will happen before even the store personnel know there is an issue. Some software
companies will offer this functionality over
the Internet as part of their package, while
others may require external tools to help
support the reporting functionality. Several
software packages should be tested to see
which would serve the operation best and
be easiest to use. There are many available, and most major companies license
their software to other suppliers. Because
no one can know what changes may need
to be made after installation of a system,
deployers should be sure to get a software
program that is adaptable to new technologies and allows for further scalability.
If the content does not engage
the customers and motivate them to perform
an action, the value of a digital system will be lost.
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CHAPTER 2
The components
Content. Since this is what the customers
will see when they enter the restaurant,
many industry experts claim that “content
is king.” Such an attitude is where many
organizations fail. Several digital signage
companies offer content design services,
but it may be better to look to the restaurant’s ad agency and internal marketing
department for content. When neither is
able to support digital signage content,
a restaurateur should look to companies
that specialize in content creation services.
Many companies ask about streaming video content to the digital menu boards. This
is something that is not recommended as it
can bog down the network of the store.
The most important thing to remember is
that if the content does not engage the customers and motivate them to perform an action, the value of a digital system will be lost.
Method of connection. Broadband connectivity has proven to be the preferred
method within restaurants; however, many
stores will still only use dial-up. Some
locations also use satellite or cellular connectivity. The key point to remember is
that it’s important to have the ability to
download and control large digital files of
content remotely to the media players.
Implementation. There are a number
of ways to mount a digital menu board
system. Using a professional installation
management company is the preferred
method. Make sure that the walls and
ceilings that the displays will be mounted
on are designed to support the weight the
digital menu boards will bring.
Outdoor
Outdoor digital menu boards, on the other
hand, are a relatively recent phenomenon.
In addition to the components listed for an
indoor system, outdoor boards have some
special considerations:
Enclosures. Protecting menu boards
from the elements is the primary concern
of a restaurant operator deploying outdoor digital signage. In a QSR drive-thru,
screens are exposed to direct sunlight,
which causes LCD displays to go black
Solar load is caused by the heat buildup on
the surface of the LCD display due to direct sunlight. When a display goes isotropic, customers are no longer able to read
the display and the display will become
damaged over time.
If the enclosure is not properly designed for air flow,
there is no opportunity to make sure that the entire
cabinet is properly protecting the displays, computers,
sensors and other sensitive electronic equipment.
Outdoor menu boards need to be protected from other outdoor elements as well. If
the enclosure is not properly cooled, the
internal electronics will be damaged by
excessive heat and humidity. Also, if the
enclosure is not properly designed for air
flow, there is no opportunity to make sure
that the entire cabinet is properly protecting the displays, computers, sensors
and other sensitive electronic equipment.
Furthermore, if the enclosure is not sealed
properly, the cabinet will not be protected
from infestation of insects and other pests.
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CHAPTER 2
The components
Rejinshino
In addition, the enclosure itself needs to
be designed to protect against physical
damage and theft. The system needs to be
anchored into the ground well enough to
absorb an accidental bump from a car or
group of rowdy high-school students looking to take the menu board home with them.
ITS Enclosures, a manufacturer of outdoor enclosures for digital signage screens
based in Mt. Pleasant, Penn., has been
testing and rolling out a new proprietary
cooling system for its ViewStation products that has gotten the attention of one of
the nation’s largest restaurant chains.
The ViewStation QSR uses a closed-loop
cooling system which re-circulates cooled
air and exhausts heat to “create an environment” inside each enclosure that keeps the
electronics cool even in extreme conditions. This is different from air-to-air
cooling methods, which take in hot air and
blow it on electronics at high speeds in an
effort to cool them down.
Displays. Similar to indoor installations,
the LCDs that are used for outdoor applications need to be professional-grade
quality, designed for continuous operation
and have high-brightness capabilities to
overcome the high levels of ambient light
found outdoors. They also should have
some form of ambient light sensor that will
adjust their brightness based on the outdoor environment. There is no reason for
a restaurant to be lighting up their parking
lot at late in the evening with its digital
menu board.
As technology advances, there are new
products coming to market that will aid
in increasing the efficiency and brightness of outdoor digital menu boards. The
In addition to being bright enough to be read in sunlight, outdoor digital menu
boards should sense ambient light and adjust accordingly, so the menu is not
overly bright at night.
latest technology being looked at is using
LED backlights within the LCD displays.
Currently, there are some outdoor systems
using this technology; however, they are
custom systems that are more expensive
than off-the-shelf equipment. There also
are still concerns with the longevity of the
LED lights and how they will be able to
meet the needs of a five-year warranty. As
advancements in LED design continue, this
technology will become more palatable
from a cost perspective as well as from a
service and support perspective.
Order confirmation system. The order
confirmation system is the last opportunity
for the QSR operator to not only confirm the
customer’s order, but to upsell them as well.
Order confirmation systems offer the
opportunity to promote complementary
items such as fries or a drink, inform the
customer of new menu additions or display
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CHAPTER 2
The components
promotions. Typically located in the drivethru and before the menu board, order
confirmation systems use a small LCD
screen to provide visual feedback of the
customer’s order.
Rochester, Minn.-based Subway franchisee Mary Jeanne Jernberg implemented a
drive-thru order confirmation system from
Delphi Display Systems at her store and
has experienced double-digit sales gains.
The system allows customers to see the list
of toppings on their sandwich and reflects
their customized order as well as the running total of the order. The system also
allows the store to feature any advertised
promos as well as community successes,
such as a big win by a local school team. “
“They don’t get any of that with a speaker
post,” Jernberg said.
Jernberg said the system met her store’s
needs for speed and accuracy, and drivethru sales have increased by as much as 15
percent.
14
Chapter 3
A
ccording to NEC’s Ventura, the
investment in a digital menu board
system can range from $5,000 per
store for an indoor system to as much as
$35,000 or more for a system that includes
both indoor and outdoor boards.
Considering that a QSR typically does 70
percent of its business at the drive-thru, outdoor boards are an important consideration.
However, there is plenty of evidence that operators see an immediate sales lift simply by
deploying digital menu boards. Steve Sharon,
president of the Naples, Fla.-based digital
menu board deployer Vertigo Group, worked
with a restaurant operator who wanted to see
a certain sales lift in a pilot test before they
would commit to deploying digital menu
boards throughout the company.
“Their criterion was that if their sales lift
was at least 5 percent, they would roll it
out throughout their system, and they beat
that 5 percent sales lift,” Sharon said. “That
seems to be kind of a magic number; if an
operator can get a 5 percent sales lift, then
they will use it in their system.”
But the return on investment of a digital
menu board system goes beyond simply
dividing the cost by the sales uplift. There
are a number of other factors that need to
be added to the equation.
Included in the 2,000-page health care reform bill passed by Congress in early 2010
was language mandating that chain restaurants with 20 or more locations will have to
display nutritional and caloric information
on their menus.
Menu labeling laws are already on the
books in New York City, California and
several other states.
For companies operating multiple locations in multiple states, digital menu
boards may be the answer to managing the
costs associated with menu labeling.
“This is where the added benefit of digital
menu boards comes into play,” said NEC’s
Ventura. “Due to the new labeling requirements and concerns on fat, sodium and
caloric levels, restaurants are being forced
to find better ways of communicating this
information to the consumer. Further, with
the new focus on healthier eating habits,
brands are able to use digital menu boards
to convey how healthy the food is as well as
the freshness of the ingredients. Add in the
variability of ingredients and regional foods,
by going digital a brand is able to truly
deliver multiple menu boards globally while
still maintaining their brand message.”
With requirements for the displaying of
nutritional information changing on a
regular basis, not to mention menu price
changes dictated by fluctuating commodity costs, an operator needs to calculate
the cost of changing a static menu board
several times a year versus the one-time
cost of a digital menu board system.
Menu boards can also serve as an additional
revenue stream through vendor partnerships.
“Chains are able to cross market multiple
product partners and strategic partners
within the confines of the store environment,” Ventura said. “This can include
marketing suppliers of soda, bread and
condiments, as well as strategic marketing
partners such as the NFL and NBA. Restaurants have that unique benefit in that
they can increase revenue by marketing
their products, goods and services while
also being able to sell advertising space to
multiple partners and brands. In the end,
15
CHAPTER 3
the consumer wins by getting information
on products and services; the brands win in
increasing their advertising and exposure;
and the restaurant wins by increasing sales
and bringing in new forms of revenue.”
“A less obvious benefit of a digital menu
board system is that with print signage
a restaurant needs to make sure that the
right message is placed at the right time
and right location,” Ventura said. “Generally
you are at the mercy of an hourly employee
who may have little interest in the job. The
result can be lost sales due to the customers not being made aware of a promotion
or lost money because the restaurant is still
advertising a promotional item that was no
longer available. In the end, this could be a
lose-lose situation for the store.”
In addition, there is the cost of printing and
shipping the print material to the store.
“If a promotion was scheduled to start on a
particular date, how do you know the materials were put out properly, and if it was
scheduled to end on a particular date, how
do you know it was pulled down?” Ventura
said. “With digital menu boards you can
control promotions from the corporate
office. You are also able to modify prices,
promotions, bundles, etc. without having to
step into a store. Being able to roll out those
promotions at the flip of a switch can mean
huge savings on both hard and soft costs.”
Case Study: Pei Wei Asian Diner
Headquarters: Scottsdale, Ariz.
Challenge: Replace static signage with LCD
displays for menu boards and promotional content
Solution: 46” NEC MultiSync LCD4620-2-IT
Pei Wei Asian Diner is a more casual take on parent
company P.F. Chang’s China Bistro, with a menu
that includes wok-seared, contemporary dishes
from five Asian countries and a strong dedication
to quality and attention to detail. Established in
2001, this rapidly expanding franchise has more
than 150 locations in more than 15 states. In 2007,
Pei Wei was named Sandelman & Associate’s
Highest Rated Fast Casual Chain, as well as
Nation’s Restaurant News Hot Concept in 2003.
Before incorporating digital signage, Pei Wei
utilized printed menu panels that worked as
one big static sheet to display menu items. Not
only did it drain finances, but adding new dishes
resulted in expensive printing fees. The static
signage sometimes took up to a month and a half
before the restaurant would see a change.
“There were two major drivers for us to switch to
digital technology,” said Terry Haley, brand director
for Pei Wei. “The first was to lower barriers to
increasing menu innovation and pricing flexibility,
including the expense and time required to
print new menus. The second was to open up a
channel to communicate with our guests in an
environment where they are most open to Pei Wei
messaging ... our restaurants.”
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CHAPTER 3
Additionally, Pei Wei wanted the ability to build
awareness of general brand facts, announce
national menu/concept initiatives relative to
consumers and merchandise local activities. The
ability to do these things in a timely matter was
even more crucial for Pei Wei.
Pei Wei wanted to work with a display company that
offered three key components: durable products,
high-definition screens and a network of partners
to help build an integrated solution comprised of
both hardware and software. Knowing that NEC is
a leader in commercial-grade, large-format displays
and has a variety of digital signage partners made
the decision easy for Pei Wei.
“NEC built our confidence with this new endeavor
because this is their specialty, and therefore we
fully trusted them to make a solution that would
truly work for Pei Wei,” said Haley. “They really
helped us get the project moving in the direction
we needed it to go.”
After two months of running demo tests in early
2009 with three NEC displays and a three-month
pilot test in Arizona, Pei Wei went national with
their digital signage in June and finished their
deployment in October. Altogether, Pei Wei
purchased 486 displays, three units at each of
its 162 nationwide locations. The displays are
installed in portrait mode near the entrance of the
dine-in area of each restaurant.
Several departments were involved in the
deployment of Pei Wei’s new digital signage. Maria
Johnson, director of facilities management for Pei
Wei, handled the scheduling and coordination,
shipping logistics and restaurant design, an
incredibly crucial part to the installation puzzle.
Not only did Pei Wei want consistency for the
brand, it also had to make sure that each location
had a smooth transition from static signage to
digital menu boards.
“Designing a universal plan that suited every
location became a huge task,” said Johnson. “We
discussed the challenges and came up with a
concept for the demo. Using suggestions from
that point on, we were able to create a long-term
solution that allowed us to retrofit the existing
cabinetry of all our locations. We also incorporated
screen protection to secure the displays in the
event customers mistake the menu boards for
interactive signage.”
Carrie Siegfried, user experience designer for
Pei Wei, and Marjorie Mangone, the company’s
graphic designer, provided the creative services
required to run the new digital signage content,
which uses Flash files with RiseVision software,
saving time and helping to lower costs. Siegfried
built content for the trial digital menu boards
during the initial testing in January and has
continually made changes since then. Mangone
laid out the initial menu items for each display
using merchandising zones, which are now
created in Adobe After Effects.
“Initially, we worked solely with Flash animation,
which was somewhat limiting, but since our
demo testing we’ve had huge improvements in
the content we are able to run,” said Siegfried.
“An advantage of NEC’s displays that is incredibly
beneficial for our purposes is their ability to let us
manage everything remotely, which comes into
play for me in scheduling content. I’m able to set
up templates in a playlist and work on them while
the displays are running.”
“The digital menu boards allow us to customize to
exactly what we need, whether it’s a small initiative
or a nationwide promotion, and we’re able to do
so without printing costs each time we make a
change,” said Haley. “NEC’s displays provide us with
a lot of flexibility, which we need for our operation.
Working with them has simplified the process for us
and enabled us to truly work to our full potential.”
17
Chapter 4
Best practices
*This section written by Rich Ventura, North American sales manager of vertical solutions for NEC Display Solutions. He can be reached at [email protected]
Q
uick-service restaurants have
always been known for their dynamic environments. Orders are taken quickly, payment is
made, and the food is prepared, wrapped,
bagged and handed over all in less than a
minute or two (ideally). It’s a fast-paced,
ever-changing world. With one notable
exception: the menu boards.
Many QSRs are still using the same basic, static menu concepts that have been
around since a certain milkshake machine
salesman opened his first hamburger
stand. Even that is changing now, though,
with the move to digital menu boards.
Unlike the printed materials that have to
be designed, produced and delivered from
corporate to the stores — a process that
can take anywhere from a couple of weeks
to a month — digital menu boards allow
QSRs to react instantly to market pressures, easily comply with caloric labeling
regulations that vary from state to state
(not to mention the new federal mandate
for restaurants with 20 or more locations),
allow for dayparting of menu items and
pricing and feature particular food and/or
promotional items on a rotating basis.
If screens suddenly go blank, the whole
operation comes to a standstill. That’s bad
enough inside the restaurant. But in the
drive-thru, which represents 70 percent of
QSR revenue, it can be a disaster.
In a standard installation, every menu
board is connected to a PC. But what if
that PC has a problem? It’s important to
have a back-up on every board, with a
failover that activates instantly should a
problem arise. Make sure that the media
players also are designed so that they can
support the type of content the operator wishes to run. Just because today he
doesn’t want to run video doesn’t mean
tomorrow he won’t.
The same is true for the signs themselves.
If one digital menu board in a four-board
display goes out, the content and software
needs to be dynamic enough to shift critical information immediately to the three
remaining boards. It may not be ideal, but
it will keep things running.
With all that going for them, it would seem
like deploying digital menu boards should
be as easy as asking, “Would you like fries
with that?” Yet there’s more to it than
hanging a display where a static board used
to be. Following are three things resellers
need to keep in mind when bidding for and
designing a digital menu board project.
Make systems redundant
The menu board is the information lifeline between customers and the QSR.
Digital menu boards can save a QSR money and react more quickly to market
pressures, but it’s important to use the proper equipment and carefully plan
the installation to ensure success.
18
CHAPTER 4
Best practices
Everyone is concerned with keeping costs
down, especially in competitive bid situations, but redundancy is not the place to
cut costs. Be sure to have a plan in place,
and during the bidding process, explain to
the owner why it’s important.
Use professional-grade equipment
designed for the environment
The interiors of QSRs tend to be hot,
greasy and even dusty places with lots of
airborne contaminants flying around. This
“hostile” environment can wreak havoc on
the electronics and other components if
the screen isn’t built to take it.
When choosing a display to place in a
restaurant, look for products with a sealed
module design to prevent particles from
getting in and contaminating the LCD.
They also should be able to withstand temperature extremes, particularly heat, while
operating around the clock. That’s not
something that can be found at the local
big box retailer.
It’s important to have a back-up on every board, with a
failover that activates instantly should a problem arise.
the height of dinner hour for some emergency maintenance.
Take extra care outdoors
One of the keys to a successful outdoor
deployment is selecting the right enclosure
in which to place the menu board. It needs
to be weatherproof, built to withstand a
98-mile-per-hour fastball, and anchored so
solidly that if anyone tried to uproot one,
then they’d be more likely to tear the bumper
off their car than pull the sign out. It also
needs to be able to keep the screen readable,
even in direct sunlight. Yet those aren’t the
only considerations to keep in mind.
LCD signs generate a lot of heat on their
own, and during the summer, conditions
only get worse. The sign must have ad-
Another advantage to using professionalgrade equipment is the ability to lock out
video ports, such as an HDMI port. QSRs
don’t want their employees playing video
games or watching movies on their expensive digital menu boards. Yet that’s what
some will do if the capability exists.
When selecting products, be sure that
unused or undesired ports are disabled or
inaccessible to prevent unauthorized use.
That also applies to controls such as power,
channel or volume. The more tampering
can be prevented, and control of the operation kept in the back room, the less likely it
is that the operator will be called in during
The inside of a restaurant can wreak havoc on a digital sign, so it’s important
to use professional-grade equipment.
19
CHAPTER 4
Best practices
equate cooling for outdoor use, and the enclosure should be well-ventilated and able
to dissipate heat quickly. During the winter,
those same screens may be subjected to
extreme cold, and so must be able to withstand those temperatures without cracking.
Then there are the bugs. Not the computer-type — although those should be
minimized as well — but actual, physical
insects. Here again, a sealed system keeps
digital menu boards from turning into
large, expensive bug zappers.
Digital menu boards are the present and
future of the QSR industry. That creates
tremendous opportunities for resellers
who can deliver quality installations.
Don’t just give customers what they think
they want. Look beyond price and sell
them what they need. It’s the best bet for
long-term success.
Customer expectations are that the outdoor menu board will operate flawlessly on
a 24-hour-a-day, seven-days-a week basis
for five years. Taking these steps will help
meet those expectations.
One size doesn’t fit all
Different QSRs have different requirements for their menu boards. Some want
to include promotional or “keep the customers occupied during the rush” video.
Others don’t. Some have more limited
menus and need fewer boards and/or
less space. Some of the more advanced
may even want to use them to encourage
customers to send a text for a coupon for a
free food item, or vote on a new beverage
flavor. One size (or configuration) doesn’t
fit all those needs. Understand what customers want to do, and it’s easier to make a
more targeted recommendation.
20
CHAPTER 4
Best practices
The hidden costs of installation
When employed properly, digital signage can deliver
highly targeted messaging to customers, providing
a greater return on investment than more traditional
signage. However, if not planned properly, an
installation can cost businesses more money than
originally planned.
Proper placement of screens is a vital part of a
successful digital menu board deployment. But,
placing digital signage is not that simple. A poorly
placed screen can mean its message is lost.
When placing a screen, consider the following factors.
Visibility. If a customer can’t see the screen, the
digital signage won’t be effective. While that seems
obvious, there is more to visibility than meets the eye.
“There might be window glare or light glare or
glare from other units, and all of those things need
to be countered,” said Mike Litteral, who works in
the technical department of Oakland, Calif.-based
Lucasey Manufacturing Corp., a provider of mounting
solutions for digital signage.
displays, so the screens cannot be placed in any
area where the temperature will exceed 90 degrees
Fahrenheit. Extreme variations in temperature also
can have an impact on screen performance.
“A screen might need some type of weatherization
so it can withstand the environment in Florida,
California, Wyoming, Denver or wherever it happens
to be,” Litteral said.
Cabling. Delivering content from the media to the
screen requires cabling. However, businesses often
find that their cabling is not sufficient and they need
to spend more money than expected.
“The cost of adding the necessary cabling and A/V
transport devices is often overlooked in the planning
phases,” said Matt Schmitt, CEO of Dallas-based
Reflect Systems, a digital signage provider.
The amount of cabling required depends on where
the media player is placed. To keep media players
safe, many deployers place them in back rooms, a
sizable distance from the screens.
Power. Once the screens are in place, they’ll need to
be connected to a power source. If there isn’t a power
source nearby, one will need to be installed, which
creates an additional expense.
Such a placement requires extensive cabling or
an extender, which allows for greater separation
between the media player and the screen by allowing
the signal to be transmitted over a greater distance.
“It sounds like it’s pretty easy, but people often fail to
consider the electrical portion,” said Tim O’Connor,
professional services sales manager for the National
Service Center, a digital signage installer based in
Greenville, S.C.
Physical installation. Although it may be tempting
to try a do-it-yourself installation, there are several
variables that make choosing a professional installer
a better choice. Often, a screen may look light
enough to be lifted single-handedly. Screens can
be deceptively heavy, however, and do-it-yourself
installation can result in injury, either to the person
or the screen. A professional installation team will be
able to safely lift the screen.
Wall type. When mounting the digital signage,
the type of wall holding the hardware needs to be
considered. What type of wall will the screen be
attached to? How sturdy is the wall? Will metal studs
be hit when drilling begins?
Once the holes are drilled, the proper mounts must
be installed, ideally ones that allow for a 15- to
25-degree angle to improve visibility for customers.
Environment. Location is important, but so is the
environment around the screen. Heat damages
Also, screens need to be easily visible to customers,
but not accessible to them. When customers have
access to a screen, it leaves the signage vulnerable
to damage. Whether intentionally or unintentionally,
customers who have access to the screen can
damage the hardware, cause the screen to fall from
its mount or disrupt content.
21
Chapter 5
On the horizon
Kiosk ordering
Self-service technology has done a bangup job helping people get cash when they
are strapped, check in at airports and hotels when they travel, ring up carts full of
groceries when the cupboards are bare and
assist with myriad other tasks of various
complexity.
Consumers across just about every vertical
have come to know and love the benefits
provided by kiosks.
So why aren’t they being used more to sell
hamburgers and salads, Cokes and slices of
pizza?
Perhaps one of the reasons for the slow
adoption is that the foodservice industry prides itself on service. But here’s the
hard truth: Service at many restaurants, at
QSRs in particular, often is nothing to brag
about. Look at the hotel industry: Service
is very important to hoteliers, and yet
Hyatt, Hilton, Embassy Suites and others
are using kiosks for self-check-in and selfcheck-out.
Improves order accuracy. When a customer places an order on a kiosk, they use
the touch screen interface to custom-build
their order (e.g., no lettuce, extra ketchup,
etc.). Once the order is entered and paid
for, a ticket goes to the kitchen, where the
food is prepared. At the same time the customer is given a ticket to be used to pick
up her food at the counter when it is ready.
While that process eliminates the possibility of human communication errors
and dramatically reduces the number of
inaccurate orders, it does not eliminate
incorrect orders entirely. However, even
when an order is incorrect, the kiosks
make things easier on the restaurant. If an
error was made in a face-to-face order, a
customer may become angry and blame
the staff for placing the order incorrectly.
But when a self-service kiosk is used, the
mistake is undoubtedly the customer’s
fault (unless the kitchen failed to make it
properly), and customers are less likely to
leave angry as a result.
There are several reasons why kiosks — especially in the QSR, fast casual and carryout pizzeria segments — could change the
face of the restaurant industry.
Line-busting? Check. Upselling? Check.
Customers don’t mind filling and refilling
their own drinks, so why not automate a
routine ordering process?
Here some of the most significant benefits
of kiosks in a foodservice setting:
While restaurants have been slow to adopt self-service technology, it can improve order accuracy, shorten perceived wait times and increase check totals.
22
CHAPTER 5
On the horizon
Allows for more efficient use of employees.
Installing kiosks at Danny & Clyde’s, a
sandwich franchise in the New Orleans
area, initially was a matter of necessity.
The important thing with kiosks is that customers often
perceive that they are faster than a counter order-taker.
In the fall of 2005, when the area was reeling from the devastation caused by Hurricane Katrina, the store’s management
wanted to reopen the local franchises as
quickly as possible, but there was one big
problem: staffing. Many employees had
relocated after the disaster.
reality, and the important thing with kiosks
is that customers often perceive that they
are faster than a counter order-taker.
“We got [the kiosks] after Katrina because
we didn’t have employees,” said Strother.
Even cities that aren’t dealing with situations as challenging as Katrina have staffing problems.
“The number of jobs to fill is increasing,
and the age 16 to 25 labor pool is decreasing,” said Clyde Dishman, industry marketing director for hospitality at NCR Corp., a
global technology company.
In addition, fast-food restaurants typically
have high rates of employee turnover.
“It’s really hard to retain employees,” said
Karen Sammon, president for software
solutions at New Hartford, N.Y.-based
ParTech Inc. “On average, a crew person
stays three months.”
Shortens perceived wait time. For fast
food restaurants, speed in processing
orders is absolutely essential. Customers
patronize those restaurants specifically because they want their food served quickly.
It is up for debate how much self-service
kiosks actually increase order-process
speed. However, it’s said that perception is
“It’s really a line-buster,” said Madeleine
Pantalone, vice president of marketing at
San Diego, Calif.-based EMN8, a provider
of self-service solutions to QSRs and fast
casual restaurants. “Speeding up service
and eliminating lines is crucial for fast food
restaurants. Many lose business during
breakfast and lunch because customers see
a long line in the restaurant during these
peak hours and decide it’s not worth the
wait. They take their business elsewhere.”
Increases check average. Upselling is
something all fast food restaurants preach
to their employees. Employees are trained
to ask customers if they want a larger
drink, fries and so forth. But with the
human component involved, that doesn’t
always happen. In the heat of a lunch rush,
employees can forget to ask, or they can
choose not to ask. Customers may roll
their eyes at the upselling and view it as a
waste of time.
Just as with order accuracy, any number of
things can go wrong with upselling when
it’s done on a person-to-person basis. Upselling is one thing self-service kiosks do
especially well.
According to Jonpaul Leskie, president of
Geneva Enterprises and a Hardee’s franchisee, the average ticket price increases
by 18 percent when orders are placed at
a kiosk, as opposed to the counter. At his
23
CHAPTER 5
On the horizon
iStock
Hardee’s restaurants, Leskie noted an average increase of $1.82 per check.
When an employee tries to upsell, customers often find it to be pushy. A customer may refuse an in-person upsell
because something about the employee
rubs him the wrong way or just because
he feels pressured. Just as customers
perceive self-service to be faster because
of the inherent choice, they don’t mind
upsell from a kiosk because they don’t feel
it’s being forced on them.
Ordering by mobile
While text ordering on cell phones may
still seem like a novelty, it’s one of the
fastest-growing new segments in the fast
casual restaurant industry. Considering the
number of cell phones and restaurants nationwide, and the increased need for speed
and convenience, the growing popularity
of text messaging makes sense.
According to Noah Glass, founder and
chief executive officer of text-ordering provider GoMobo, the market is large. GoMobo services Dunkin’ Donuts, Papa John’s,
Popeyes, Quiznos, Subway and others.
“We believe the market for text-ordering in
the United States is in the range of 250,000 to
500,000 restaurants,” he said. “Mobile phones
are the most ubiquitous technology product
in history, with over 233 million active mobile phone accounts in the U.S. alone.”
Over the past several years, Papa John’s,
Pizza Hut and Domino’s have all launched
text messaging ordering,
And the growing popularity of smartphones has added an additional dimension
As more customers are using smartphones, they are looking to restaurants to
integrate mobile in the ordering process.
to mobile ordering. In fact, having a presence in the Apple “App Store” has become
almost as important as having a brick-anmortar location.
“As more of our customers are integrating the iPhone and iPod touch into their
everyday lives, Pizza Hut wants to be right
there with them,” said Brian Niccol, chief
marketing officer with Pizza Hut. “As a
longtime category leader in innovation,
creating an App Store application is just
one more way we are helping customers
place orders in a way that best fits their
mobile lifestyle.”
24
CHAPTER 5
On the horizon
Although TV and radio have Nielsen ratings and print has circulation numbers,
there hasn’t been a similar measurement
tool for digital signs. It’s certainly easy to
count passing traffic, but not everyone
passing a sign takes a look.
As digital signs become increasingly commonplace, network operators are incorporating a solution known as anonymous
video analytics (AVA) to more effectively
measure the audience viewing a sign.
Traditional audience measurement techniques for digital signage have usually
involved teams of people who physically
count the numbers of passersby. Although
such techniques may have their place, the
scope of the information they can generate
is limited.
“For example, if you take a metro area like
Phoenix where there is a population of two
or three million people, using traditional
sampling methodology you might get
feedback on a few households in the entire
metropolitan area,” said Jose Avalos, digital
signage director with Santa Clara, Calif.based Intel Corp.
Anonymous video analytics technology, on
the other hand, has the capability to count
virtually every viewer of a particular sign,
24 hours a day.
“With this type of data, each individual
record perhaps doesn’t have that much
meaning, but when you take a look at tens
of thousands or hundreds of thousands of
records, this drives great meaning because
we can start to see some patterns and
trends evolve,” said Haroon Mirza, director
of business development with Markham,
Ontario, Canada-based CognoVision Solutions, Inc.
technology has the capability to count virtually
every viewer of a particular sign, 24 hours a day.
For digital menu boards in a restaurant,
AVA could help determine what types of
content are most effective in attracting
eyeballs. AVA can also be linked to a media
player for real-time ad selection. It can
also help in the overall design of the menu
board with product placement.
“Lets say you are playing a 15- or 30-second
advertising spot and in the last few seconds
you can see that the audience in front of the
display is 70 percent female, so right before
I play my next ad I am going to pull an ad
meant for the female audience in order to
increase the relevancy,” Mirza said. “Essentially what that entails is being able to
respond in real time to understand the audience that is currently in front of a display.”
When a person looks at a digital sign
outfitted with AVA, the system generates a
computer log file about the incident. Information contained in that log file includes
the time that person started looking and
when they stopped looking, along with demographic information generation about
that viewer generated by the AVA software.
25

Digital Menu Boards

Transcription

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