Redeem now - Burger King execs say the chain is planning to speed up the rollout of digital order kiosks.
- "The US is ready for kiosks now," RBI's CEO said, following the "tremendous" results of trials.
- Digital kiosks mean restaurants save money on labor and customers typically order more.
Burger King will double-down on digital order kiosks, which bosses say are better for both staff and customers – and also lead to bigger orders.
"We're starting to make some progress figuring out kiosks," Josh Kobza, the CEO of Restaurant Brands International, Burger King's owner, told investors Friday.
Digital kiosks are large touchscreens where diners can order and pay in-restaurant instead of ordering from a staff member at a counter.
Kobza said Burger King had started piloting kiosks in more company-owned restaurants with "tremendous results." The "vast majority" of orders in these restaurants were placed using kiosks, he added.
The chain had already rolled out the tech more widely in its international markets, more than half of which have been "converted" to kiosks, Kobza said.
Consumers had become more accepting of kiosks since it started installing them a few years ago, in his view: "I think the US is ready for kiosks now and we're likely to see a faster rollout of those around the world."
Kobza said the technology eliminated "stressful interaction" for both customers and staff at counters, generally led to larger orders, and let staff spend more time to preparing food.
"So I think this is a great thing for the business," he said, while RBI executive chairman Patrick Doyle called them "a win on every single front."
Digital kiosks can also mean restaurants save money on labor, increase order accuracy, and adjust menus – and prices – in real-time.
There are a few reasons why diners might spend more at digital kiosks. The kiosks can recommend add-ons to customers based on what they're ordering, like adding a drink, and make it easier for diners to personalize orders with extras, such as putting avocado on a burger.
They can also promote items likely to sell well based on the time of day, season, and weather, such as showcasing iced drinks on hot days.
Kobza said that 14% of Burger King's orders were placed digitally in the quarter, up more than 40% year-on-year, but the figure was 28% at company-operated restaurants with kiosks.
"My point of view is we need to get this business to 100% digital," Kobza said. "We should have all of the order-taking done through digital ordering channels over time … that's sort of our North Star of where we want to go with the business."
Burger King posted systemwide sales growth of 10.3% to $7.06 billion in the quarter to September 30 compared with the same period in 2022. Global comparable sales were up 6.6% in the US and 7.6% in international markets.
The number of US outlets dipped due to the closure of some older and under-performing locations.
Burger King is in the middle of a $400 million rebranding plan called Reclaim the Flame, which includes pumping money into advertising, digital investments, kitchen technology, and restaurant refits.
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