Form-Fitting and Functional By Regina Ciardiello, Editor, VSR
Think back to the origins of self-service technologies. Believe it (or not) self-service, at least as it relates to food service, dates back to 1912 when the first Automat fast-food restaurant opened in Philadelphia by Horn & Hardart. For the time, the model was considered brilliant and convenient. It was a fast-food restaurant where simple foods and drinks were served by coin- and bill-operated vending machines. Diners would insert the required amount of coins and then once accepted, they could slide open a window to remove the wax-paper-wrapped meal. The format then arrived in New York City, eventually giving way to the popularity (especially in the suburbs) of the drive-thru window, which became mainstream in the 1960s and 1970s. The last Automat type restaurant shut its doors in 1991.
However, times have changed, and so have technologies. With customers now wanting more for less, and with the frequent "hustle and bustle" of daily life, the average diner does not have time to wait. In fact, according to a survey conducted last year by the National Restaurant Association, the chief complaint of diners surveyed was that they had to wait too long for the check. Even more so, with today's current economic status, restaurant operators, specifically in a quick-serve setting, are looking for ways to save dollars and manage efficiencies. Therefore, many of the popular, well-known chains, such as Hardee'sArby's and Carl's Jr., are going the route of the self-service kiosk. While this technology is a far cry from the days of the glass-encased automat, the self-service kiosk, at least as it relates to QSR franchises, offers myriad benefits.
One such company that is actively responding to this trend is EMN8, a San Diego-based software provider which, for the past five years has been designing, building and delivering customer-facing self-service platforms for the restaurant industry.
In fact, this past March, while attending Epson's Envision Partner Conference, VSR had the opportunity to sit in on a presentation given by Todd Price, EMN8's director of Materials and Logistics, who discussed the company's recently introduced product -- the OrderM8 K4000 hardware/software platform.
Because many VAR partners are now being asked by their restaurant operator customers to provide important services related to in-store technologies related to hardware and point-of-sale (POS) applications, they have already begun, [or are looking toward] extending their service offerings [as well as revenue sources] to include customer support of self-service systems.
To further answer this market trend, EMN8 launched its channel partner program earlier this year; the first VAR partner working with EMN8 on the OrderM8 solution is Scott Henson, president of POS Technical Services, Inc., based in Anaheim, Calif. Henson, who established his company in 1993, has been involved with the POS area of the channel for his entire adult life. POS Technical Services focuses heavily on top-notch customer service. Likewise, EMN8's customer-centric philosophy makes for a good partnership, notes Henson. "I never do a 'burn and turn,' when I conduct business," Henson says. "We always keep up relationships with clients indefinitely, and have been successful at doing this. We are always evolving toward our customers and looking at advanced technology that is specific to the POS hospitality arena."
Henson first met EMN8 about five years ago through a franchisee customer of his that ran a Carl's Jr. Restaurant. When he saw that EMN8, like POS Technical Services, bases its business model on "looking toward technologies that could move operators' businesses forward and reduce overhead," he felt that the company would provide a solid offering to his established customer base. "I really appreciate [EMN8's business model] and what their product offers," Henson says. "Their engineering staff is unbelievable, and they are very open-minded in terms of what I can bring to the table for them due to my knowledge in both the POS and QSR segments-- I can therefore help guide EMN8 to let them know what technologies will be most important to the franchisee."
Easy Ordering
As it relates to OrderM8, Henson reiterates what EMN8's Price mentions about the solution's convenience and seamless integration. "EMN8 can expand what we do with MenuM8 to make the job easier for the end user customer, or anybody that's doing their own menu updates so that they don't have to use multiple tools to update the kiosk and menu boards," Henson says. "All of the pieces tie together, especially the maintenance portion, which could become overwhelming for a potential buyer."
Henson also notes how his partnership with EMN8 has made his job easier, especially as it relates to added value and customer support. "Having a tool like OrderM8 is essential to my success in this area," he says. "As a VAR, the biggest value we bring is by working well together, and knowing that my opinion counts, which is important, because as a value-added reseller, I have to make sure that I am working with the best providers out there to satisfy my customers' needs."
Currently installed in popular chains such as Carl's Jr. and Jack in the Box, OrderM8 is also convenient for franchisees because of its seamless installation, menu management and training. During his presentation at the Epson conference, Price discussed the program's "cinema-quality-like" menu graphics and branding, as well as its multi-lingual text and audio components. "The OrderM8 solution really opens up the full menu at a restaurant, so that the customer can choose their own combinations, and ensure that their order is processed accurately and effieicently," he says.
Price also noted that franchisees using OrderM8 have typically experienced a higher ROI as it relates to customer upselling and return users. "Operators [using OrderM8] are seeing an increase in the average sell ticket from customers who are using the kiosk, and they are also returning to the restaurant because they like the self-service functionality, and therefore use it each time they go in." He is referring to the idea that, when consumers are inputting the order on the kiosk themselves, they are more likely to opt for "add-ons" to their meals, which they typically would not do if they were dealing with an employee. This could be because, they like the "do-it-yourself" aspect, or because the message on the screen will ask them if they want to add fries or a larger drink, for instance.
Price also notes that OrderM8's menu management function is another area that helps franchisees as it relates to accurate "change-overs" regarding menu items that are only offered at certain times of the day. "Through the POS synchronization, users are able to create a graphic environment that not only represents the depiction of the menu items, but also has an accurate display that changes from breakfast to dinner," says Price.
The Printer Connection
It's no secret that kiosks, especially in the hospitality arena, are on the move. In fact, Bruce Wilhelm, Epson's strategic business manager, noted at the company's partner conference that "Everyday, 275 kiosks are installed in North America. They are no longer considered an expense, and even more, they improve customer satisfaction, decrease lines, offer faster service and useful information," says Wilhelm.
But of course, with any new technology, there are bound to be occasional issues, and while the number-one cause of kiosk failure is its printer, EMN8 knew that they had to partner with a manufacturer that was not only reputable within the VAR community, but also offered a solution that prided itself on its overall reliability with kiosks. EMN8 took this under much consideration when looking to replace its printer functionality on its kiosk design. "We had deployed kiosks in many locations, and had problems with the printer solution," Price says. "Being that we're a software company, we of course had to always be up and running to enable customers to realize the full potential of having the software, which of course could not be realized if the printer was failing."
Price says that EMN8 actively surveyed the kiosk market, and looked at several printer manufacturers, but didn't have a specific company in mind at the start. They did, however, know that they wanted to partner with a printer manufacturer that had the "electro-mechanical qualifications and form fit and function that could work well in the design they were contemplating." Eventually, EMN8 decided on Epson mostly because, according to Price, "one of EMN8's software engineers suggested them because their drivers are easy to understand and operate due to their seamless integration and most programmers' familiarity with the product." It was then decided that EMN8 would go with Epson's EU-T400-series/mechanisms, which implemented in the EMN8 kiosks in the middle of 2007. And so far, the results have been positive, according to Price.
"The Epson printer has received high marks for performance," says Price. Operators now enjoy, few, if any, disruptions during the business day and peak hours due to paper jams and receipt printer failures with the new workhorse printer, allowing them to focus on other areas that continue to drive overall guest satisfaction."
Channel Community Roll-Out
Since launching its channel program in January, EMN8 has taken on, in addition to Henson of POS Technical Services, about five partners who are currently working with the OrderM8 solution. Trevor Chong, who is EMN8's vice president business development, works to recruit potential reseller partners for the company. He views the company's new partner program as more than just an avenue to expand OrderM8's offerings. "We feel that one of the best ways to service the QSR industry is through VARs, mainly because some of the brands we work with have up to 80 percent of franchisees as operators, and the VARs already have existing relations with these franchisees that run very deep," Chong says. "We can see [through these relationships] how the customer wants to be serviced, especially because a lot of times, the VAR also serves as the franchisee's internal IT department."
Chong adds that what it really comes down to is that the VARs that will service EMN8's customers can provide the utmost in customer satisfaction, which at the end of the day, is at the top on the company's agenda. "VARs handle a lot of the franchisees, and that's how they are most comfortable buying technology, and VARs such as Scott [Henson] have a history of introducing new technology within this space, and therefore we want these types of partners to work with us."
On the distribution side, EMN8 has been, for the past year, working exclusively with Metropolitan Sales, a Lynbrook, N.Y.-based distributor, which already has a solid relationship with Epson. Metropolitan Sales hopes that it will be able to help EMN8 further its channel partner program with its already established group of resellers.
"We have already evolved the relationship with EMN8 as a customer by introducing them to our strong hospitality partnership base," says Dave Tawil, who is the distributor's vice president of Sales and Marketing. "They [EMN8] have demonstrated to us how they have added value, and they also have a strong relationship with Epson, and that goes hand-in-hand, because a lot of our customers are already working with Epson -- we will help them as best we can in expanding their channel program."
Think back to the origins of self-service technologies. Believe it (or not) self-service, at least as it relates to food service, dates back to 1912 when the first Automat fast-food restaurant opened in Philadelphia by Horn & Hardart. For the time, the model was considered brilliant and convenient. It was a fast-food restaurant where simple foods and drinks were served by coin- and bill-operated vending machines. Diners would insert the required amount of coins and then once accepted, they could slide open a window to remove the wax-paper-wrapped meal. The format then arrived in New York City, eventually giving way to the popularity (especially in the suburbs) of the drive-thru window, which became mainstream in the 1960s and 1970s. The last Automat type restaurant shut its doors in 1991.
