Sponsored by GRUBBRR
Between supply chain shortages and the labor crisis, it is no secret that restaurants are struggling to bounce back post-pandemic. As a nation, we are settling into a uniquely new phase of the pandemic economy, one in which GDP is increasing but we are running out of everything-- from test kits, memory chips, semiconductors and shipping containers to workers. For many, but especially restaurants, this is the Everything Shortage.
According to the 2019 Restaurant Success Industry Report, in addition to high operation and food costs, restaurants’ greatest obstacles included repairing and updating equipment, renovating their restaurant, and franchising or opening new locations. Self-ordering technology directly addresses these obstacles, but given the current supply chain backup, accessing this technology is challenging due to availability and price.
The Problem
The Delta variant of the coronavirus has caused many factories across Asia to shut down, just as demand for goods and services has increased. For many restaurant operators, it is a painful lesson in basic economics: high demand plus low supply equals increased prices. And in this case, the prices are astronomical. Research from The Atlantic shows that before the pandemic, reserving a shipping container cost $2,500. Now it costs $25,000.
Beyond the high prices and supply chain challenges, restaurants are also directly impacted by the ongoing chip shortage when trying to implement self-ordering technology. And, what's worse, the chip shortage is predicted to affect the availability and price of kiosk hardware for the next year and a half, according to CEOs of major tech companies like Intel, IBM, Extreme, Cisco and Juniper.
The stakes of the supply chain backup are extremely high. For small and large restaurants alike, this backup impedes operators’ ability to access self-ordering technology, thus inhibiting their innovation and ability to adapt to the labor shortage and increased operational costs.
“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types,” said Kanishka Chauhan, principal research analyst at Gartner. “Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices.” In a time when it is needed most, restaurants cannot access the technology needed to help their business thrive in the post-pandemic economy.
The Solution
Nevertheless, as competitors delay orders or raise prices to expedite access to hardware, Samsung technology continues to be affordable and available. For restaurant operators looking to implement automation within their business, Samsung and GRUBBRR can have kiosks installed and ready-to-go within a matter of days, rather than months.
How is this possible? Samsung Electronics is the largest (highest grossing) semiconductor manufacturer in the world according to the McClean Report. At the Samsung Networks Smart Factory, located at the heart of Samsung Electronics headquarters in Korea, over 70% of the manufacturing process is automated in-house.
In other words, Samsung does not have to rely on third-party vendors to source microchips for their All-in-One Kiosk powered by GRUBBRR. Because they produce the chips in house, this kiosk is able to bypass the supply chain chip shortage to provide restaurants across the globe with an all-in-one kiosk solution that is a fraction of the price of competitors, and ready to be deployed at a moment’s notice.
The Value of the Samsung Kiosk
The value of self-ordering technology is threefold. First, they increase revenue. Consumers spend on average 12%-20% more when they order with their eyes and with touch from a self-service kiosk than when ordering from a cashier. This is because GRUBBRR software is designed to customize upsells throughout the order journey.
Second, implementing kiosks decreases operating costs. The one-time cost of a kiosk is a fraction of the price of carrying an employee. On average, a cashier at a quick service restaurant open 15 hours per day will cost more than $6,000 per month (with all associated carrying costs), whereas GRUBBRR self-ordering systems are a fraction of that price. In addition, kiosks always show up, don't call in sick, and are ready to work 24/7.
Finally, kiosks improve the customer experience. Implementing kiosks allows restaurants to streamline efficiency, leading to a reduction in average transaction time by 7 seconds. In addition, self-ordering kiosks also minimize human contact, eliminate ordering errors, and allow businesses to implement integrations, such as loyalty programs and discount codes, that reward consumers and enable the curation of a custom customer journey.
In a post-pandemic economy rife with labor and supply chain shortages, it is crucial that restaurants are able to access self-ordering technology to adapt and innovate. For operators looking to access this technology now, the Samsung Kiosk powered by GRUBBRR provides a solution that is affordable, available, and proven to help your business.
Learn more at grubbrr.com/Samsung
