What could be the ROI of Digital Menu Boards?
Enhance restaurant efficiency, boost revenue, and foster positive customer interactions
The restaurant Industry is currently experiencing difficult times. Traditional restaurant concepts are experiencing a decrease in sales both at home and abroad. Consumers are changing their spending habits, and the rise in labor and commodity costs is creating challenges for operations. In today's competitive landscape with tight margins and rapidly changing markets, Restaurants need to innovate and implement new strategies to increase sales and profits.
digital menu board technology enhances customer experience, boosts sales, and enhances the efficiency of restaurant operations. The influence of D technology is evident across various types of Restaurants, including quick-service, fast-casual, and traditional family-style establishments, affecting both customers and overall profitability. For a better understanding, consider incorporating digital menu boards and signage in your store to boost your return on investment (ROI).
There are various ways to calculate the return on investment (ROI) for a digital menu board
Restaurant owners prioritize maximizing sales of food, beverages, and desserts. Changing how customers behave at the point of sale has a significant impact on their purchasing decisions. Engaging customers in unique ways creates a connection with your brand, establishes credibility, and sets your restaurant apart from competitors.
The interactions your customers have from the moment they walk into your restaurant present various opportunities to influence their buying habits and loyalty to your QSR or fast-casual establishment.
Operations need to be efficient in addition to generating financial gains and improving customer experience. When considering an investment in technology, it should be user-friendly, trustworthy, adaptable to your specific requirements and clientele.
In this brief guide, you will discover how implementing a digital menu board strategy can generate substantial returns on investment.
- Increase in profit margins due to higher sales volumes by making the most of seasonal and long-term opportunities
- Encouraging spontaneous and additional sales, with a dynamic digital marketing approach
- Enhancing brand The elements of power, influence, and connections
- Furnishing sales and campaign data in real-time tTo comprehend what is functioning effectively and what is not
- Reducing the expenses associated with the fixed menu related to creativity, printing, distribution, and placement
- Retrieve your own instruction manual before proceeding
There are various ways in which return on investment for a digital menu board can be measured
Networld Media Group conducted a study on digital menu boards and their return on investment. After speaking with various sources on both sides of the digital menu boards debate, including both providers and end-users, it was found that there is typically a 3 to 5 percent increase in sales.
The efficiency increases significantly when scaling up to a 10-store deployment, as updates to a digital menu board can be managed from a single point. Thus, a single-store system would typically have similar operating costs to a 10-store system, making digital menu boards a viable and expandable option compared to traditional static boards.
- A single-store system generating $1.2 million in annual sales is projected to see a $24,000 increase in sales
- A ten-store system with $1.2 million in annual sales would see an estimated increase of $24,000 per store, resulting in a total of $240,000
Compare the cost savings of one person changing menus at 10 stores with a few clicks on a computer versus 10 people climbing ladders at 10 stores to swap out menu translations on five different boards.
Synthesize information to optimize Premium versus Value Offers
Value propositions By analyzing menu mix reports, a store may find out that sales of premium items are decreasing. To solve this quickly, a store can introduce a new monthly promotion digitally that showcases premium items with a more cost-effective average food cost.
The key to this process is ensuring that digital menu boards are used effectively to promote limited-time offer items, as they have the potential to influence at least 20% of customers to make positive changes in their purchase decisions. digital menu boards have the ability to shift sales from lower-priced items to higher-priced items, ultimately boosting revenue and profit margins while also reducing food expenses.
digital menu boards attract ten times more attention than traditional static menus
"It is accurate." Even a small movement can attract customers more effectively than static Menu Boards. Vibrant animated visuals, symbols, food pictures, and more offer ways to strengthen your brand, interact with customers, and improve their experience in situations where they have previously shown little interest.
Did you know that.
- Seventy percent of customers make their purchasing decisions at the checkout counter
- 30% of people who watch videos end up making purchases without planning to do so
- Effective marketing that is appropriate and delivered at the right time can prompt consumers to make additional purchases on impulse
- digital menu boards can decrease the perception of waiting time by more than 15%
- Video menus are designed to attract and engage various audiences simultaneously
How digital menu boards can help you save money
- 70% of customers make their purchasing decisions at the checkout counter
- 30% of viewers who watch videos end up making purchases without planning to do so
- A well-timed and relevant marketing strategy can encourage customers to make additional purchases on impulse
- digital menu boards can decrease perceived wait time by more than 15%
- Video menus are attractive to a diverse range of viewers simultaneously
Being able to update content digitally during several promotional periods saves money by eliminating the need to print and ship promotional translites to each restaurant.
Easily showcase LTOs (limited time offers) or special items on our Menu Board for a brief period of five to ten seconds before switching back to the regular menu. The list of capabilities with digital menu boards just keeps growing compared to static ones.
Implementing a digital menu board solution can quickly reduce costs and lead to future strategic cost savings. You can enhance your experience by replacing fixed menus, content, and manual procedures.
- Reduce or minimize expenses related to producing, delivering, and implementing fixed menus
- Cut down on expenses related to updating and changing manual static Menu Boards by lowering capital costs and payroll
- Achieve greater efficiency by utilizing a centralized management platform to accomplish tasks with minimal resources
- Reduce the amount of time and money lost by making adjustments to seasonal, promotional, and daily menus
A quick-service restaurant (QSR) with 10 locations that run monthly promotions can expect to see savings on fixed menu costs in various categories.
- Printing menus will cost $24,000 for 10 stores with 12 offers each, at a rate of $200 per store
- The total cost for shipping for 10 stores at $75 per store for 12 offers is $9,000
- The cost of deploying labor is $6,000 for 10 stores, with each store being charged at $50 per offer
The total savings for static printing, shipping, and deployment costs for 10 stores is $39,000 per year.
digital menu boards save money just by reducing printing costs. Furthermore, it is important to factor in the expenses for translite for Menu Boards. On average, a translite costs around $100 each. Therefore, a menu system consisting of four boards with four changes annually would amount to a minimum of $1,600.
Additionally, numerous Restaurants incur additional costs for rush printing or shipping when they need to make quick changes to their menus. Multiplying those expenses across numerous stores leads to a significant bill that can harm return on investment.
digital menu boards offer franchisees the opportunity to advertise products they want to sell quickly and remove items that are out of stock, resulting in savings on printing and shipping costs for static menus.
If a franchisee has $500 worth of beef product remaining for the week but sales have been sluggish, they may start to feel anxious that the beef will spoil before it is sold. The franchisee can quickly advertise burgers and other beef products on their digital menu boards to sell these items before they expire. On the other hand, if they run out of chicken, they can substitute their chicken sandwiches with burgers to avoid missing out on sales.
Surprising advantages provided by digital menu boards
The primary advantage of using World VDS is the ability to easily change menu content to showcase a new item or promote a new limited-time offer. Since the restaurant owner is responsible for creating its own digital menu board content and displaying it in-store, he has full control over the content being shown, as well as when and where it is displayed. The use of digital menu boards has enabled Restaurants to respond more promptly to operator requests.
digital menu boards have a considerable influence on all areas of a company, not just sales and marketing departments. The technology partner you choose is evident in your brand's reputation and image.
Customers perceive a digital restaurant as modern and well-kept, which motivates them to come back. Restaurants have the ability to connect advertising messages to online, printed, and televised platforms instantly.
The capacity to emphasize national advertising messages can enhance brand recall and customer loyalty. A digital menu board solution helps maintain a consistent brand message and schedule, ensuring 100% brand compliance.
Improve your brand -
digital menu board deployments will elevate all store rebranding and expansion efforts
Empower customers - to make clearer and faster decisions, enhancing their overall experience
Update your store - with
digital menu boards instantly gives off a more modern, clean, and positive aesthetic when compared to static menus
Save time and money - by using
digital menu boards to achieve consistent branding and promotions across the nation without the need for a large team to implement
Engage with customers - shoppers feel more connected to
Retailers that showcase dynamic
digital menu board content with personalized, relevant, and seasonal options
Encourage franchisee autonomy - franchisees are provided with a new way to showcase menus in their establishments and interact with customers, along with the flexibility to adjust pricing and update limited time offerings as approved by the marketing team
New Restaurants are adopting digital menu boards, and existing ones are also updating their image. Therefore, it is important to have a system in place to regularly update and maintain 200 Restaurants, with the number continuously increasing.
Utilize the opportunities offered by digital transformation in your restaurant
digital menu boards offer benefits that go beyond just financial returns. They allow multi-unit restaurant chains to improve operational efficiency and enhance customer experiences.
In this research, we discovered the following essential points:
- The return on investment for a digital menu board can be quickly realized through improved customer experience, cost savings, and increased revenue
- digital menu board break-even points can often be reached within 9 months
- The return on investment of a gentle digital menu board can vary in form and have a broad impact that lasts over time
- digital menu boards help Restaurants become more adaptable and quick to increase their profits per sale.