The deployment of outdoor digital menu boards at drive-thru locations both increases profits and reduces expenses for quick-service restaurants (QSRs), according a new total economic impact (TEI) study by Forrestor Consulting, commissioned by Samsung Electronics America.
The study examined the technology’s potential return on investment (ROI) for QSRs by evaluating the benefits, costs and risks associated with real-world deployments. Forrester surveyed more than 150 restaurant professionals and interviewed existing Samsung customers with multiple years of experience using outdoor digital menu boards across major QSR chains.
The study found a composite organization enjoyed a revenue increase of nearly US$2.5 million over a five-year forecast period, as follows:
- US$1,047,504 from reducing labour, administration and expenses.
- US$693,201 from increasing the volume of drive-thru customers by 9.1 per cent, thanks to a 5.75 per cent reduction in average wait times.
- US$578,297 from improving the conversion rate on promotional products by two per cent.
- US$166,442 from increasing average order values by 2.5 per cent.
- US$12,295 from reducing food waste costs by five per cent.
The investment, meanwhile, cost the composite organization US$841,432 over the forecast period, comprising the following categories:
- US$455,697 for the digital signage hardware, media player, warranty, enclosures, mounts, cables, content management system (CMS) software, maintenance and support.
- US$317,535 for ongoing management, bandwidth and creative content.
- US$68,200 for the site survey, installation, testing, system integration and internally related project management, information technology (IT), marketing and operational resources.
“This study shows the real business benefits of digital signage technology, driving an increase of more than US$1.4 million in profits,” says Ron Gazzola, Samsung’s senior vice-president (SVP) of marketing for visual displays and memory. “With the simplification of outdoor display solutions, QSRs are able to deploy digital menu boards in their drive-thrus very cost-effectively.”
