Explore KFC Sweden's digital transformation by implementing an omnichannel solution with channels like online, app and self-service kiosks. Discover practical challenges, innovative solutions, and valuable insights for businesses.
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Starting in the US in 1930, KFC was one of the first fast food chains to expand internationally. Today, it is one of the most prominent players in the global QSR market. The first attempt to launch KFC in Sweden was made in 1982, but it was in November 2015 that KFC successfully established its presence in Sweden through its franchisee Nordic Service Partners.
With a digital-first approach, KFC opened with self-service kiosks. However, the current kiosk solution was inefficient and not developed to match their needs. Additionally,the kiosk provider did not offer a mobile app, which was the next digital channel that KFC planned to introduce.
Moreover, KFC required a solution that aligned with its global sustainability strategy. With ever-growing menus and a wide range of campaigns, predicting demand became increasingly challenging. KFC required a solution allowing customised menus across restaurants to minimise food waste and contribute to its commitment to a more sustainable world.
KFC Sweden's strategic choice to implement self-service kiosks reflects a broader trend towards digital advancement in Sweden, positioning the country as a frontrunner in the digital landscape compared to its European counterparts. The Nordics are considered world-leading when it comes to digital adoption within QSR. Experience is that if a digital platform succeeds in the Nordics, it will, with high probability, thrive in other, less developed markets.
Today, KFC Sweden has 90% of its orders placed via kiosks, contributing to increased margins with a higher check average in the kiosks. Through upsell, cross-sell, and personalised suggestions, KFC can capitalise on high-margin products, contributing to increased profit margins. With the implementation of kiosks, KFC sees an uplift in check, which works wonders on the profit margin.
KFC needed a solution that would address the shortcomings of its existing kiosk setup, providing faster, more efficient, and feature-rich software.
Aiming to enhance its digital presence by adding app/online and QR code ordering, KFC needed an agile partner eager to listen to its ideas and work together to create the future of customer interactions. KFC emphasised that an omnichannel platform would enable consistent experience across channels, where unified management would save labour and increase efficiency. The goal was to find a vendor offering a comprehensive omnichannel solution with pre-built integrations.
Running a QSR chain involves coordination between various parties, such as first-party channels, third-party channels, loyalty and POS. KFC aimed to reduce complexity with an omnichannel provider while also supporting a continuously evolving offering and sustainability strategy.
Today’s self-service kiosk experience goes beyond increasing efficiency and profit; it empowers customers to tailor their orders to their preferences. The ability to customise orders contributes to an improved customer journey, creating a positive and personalised experience for each guest.
Beyond financial gains, the installation of kiosks has led to operational efficiencies. Promoting upselling and allowing customers to add condiments and customise their orders have positively affected the check average. For example, introducing customisable options, like having a milkshake with or without cream, has resulted in an uptake in the ' without cream' option. This represents cost savings and, more importantly, contributes to an enhanced customer experience.
With Future Ordering, KFC has significantly improved its operational efficiency by reducing the administrative burden and providing a sense of tranquility. This has resulted in better control over various aspects of the business, such as having the right functions and features in place, integrating with other systems, and consistently monitoring key performance indicators across channels.
With a scalable omnichannel concept, KFC proactively optimises operations, increasing guest experience, profit margin, and long-term shareholder value. Based on a strong foundation, KFC is now focusing on the next phase of its digital transformation. These next steps involve enhancing loyalty/CRM, exploring next-generation drive-thru innovation, and bringing 3rdparty delivery to their own digital channels.
In essence, the results achieved through Future Ordering's solution extend beyond operational efficiencies, setting the stage for an evolved and future-proof digital landscape with elevated customer satisfaction and sustained business growth.
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