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Contrary to common goals, Shake Shack's kiosks did not reduce labor costs. Instead, the company reinvested potential savings into higher-touch hospitality, like table-side food delivery. This enhanced the customer experience, justifying the larger order sizes that digital channels encouraged.
Shake Shack intentionally adopted a 'fast-follower' approach to kiosks. This allowed them to learn from competitors' R&D and implementation mistakes (like obtrusive designs), ultimately deploying a more effective and less costly solution without the risks of being a technology pioneer.
Instead of using aggressive pop-ups, Shake Shack boosts order value by removing default selections on its kiosks. Forcing customers to make an active choice (e.g., single, double, or triple patty) bypasses inertia and leads them to upgrade their orders naturally, without feeling pressured.
Despite technology being available, Starbucks rolled back in-store automation after finding it was a mistake. Management discovered that human touches like handwritten notes and more baristas drove higher customer satisfaction and longer stays, demonstrating a clear market preference for human experience over mechanized efficiency.
Shake Shack's leadership avoids making decisions in a vacuum by requiring every corporate employee to work in a restaurant for several days. This practice ensures strategic choices about technology are grounded in a deep, empathetic understanding of the frontline employee and customer experience.
Rising labor costs are forcing restaurants to abandon the middle ground. They must now choose to either excel at high-touch, in-person service and hospitality or optimize for efficiency as a pure food production and manufacturing facility for takeout and delivery.
Shake Shack concluded that large, imposing kiosks feel like they are replacing human staff, which undermines hospitality. Their design principle is to make kiosks visually unobtrusive tools that assist the experience, rather than dominate it and create a barrier between guests and staff.
Getting customers to order and pay via an app does more than improve their experience. For McDonald's, it fundamentally shifted resource allocation inside restaurants. Employees were freed from taking orders to perform other valuable tasks, boosting operational efficiency across dozens of new transaction channels.
Shake Shack found digital kiosks improved employee experience by removing the high-pressure, repetitive task of order-taking. This freed staff for more fulfilling hospitality interactions, like delivering food or offering recommendations, ultimately enhancing the guest experience.
Todd Graves anticipates a future where competitors use "friendly robots" for service. He sees this not as a threat but an opportunity. As the industry automates, having real, happy people cooking and serving food will become an even stronger competitive differentiator, reinforcing their brand's focus on culture.
Steve Ells's automated restaurant concept, Kernel, revealed a crucial insight: efficiency isn't everything. While some customers were fascinated by robots, others were put off, wanting people to make their food. The pivot to a more traditional model validated the importance of the human touch in hospitality.