How Much Does a Kiosk Cost?

Kiosks are exploding in popularity in restaurants and other retail businesses. Many operators see them as a way to weather labor shortages or redeploy valuable workers to other important jobs. They also see the value in having a tool that consistently upsells, which adds to top-line revenue. In addition, consumers are becoming more comfortable using them, and some demographics even prefer them to having to order from the counter. So, putting in self-ordering kiosks is very attractive, but how much will it cost? 

You should pay attention to three components of a successful kiosk deployment:

1. Hardware
2. Software
3. Ongoing Expenses

The kiosk includes touch-screen monitors, media players, accessories like printers and payment terminals, housing for these components, and electrical and data infrastructure. Many kinds of kiosks exist, including countertop, floor-standing, hand-held, and even outdoor ones. Consider how your restaurant's orders currently flow and whether adding kiosks will streamline it (hint: they probably will).

Screens

There are many options available for touch-screen monitors, so be certain to do your homework.

• • How big is the screen? What is the resolution? 
  • What are the connectivity options, and does my operation support them (Wi-Fi, Bluetooth, HDMI)?
  • What is the monitor's expected lifespan? What kind of regular maintenance or software updates must be performed, and how often? How do I get tech support if I need it? How long is the warranty, and what does it cover? 

 Housing

A few questions to ask about the housing:

• • Do you have space to add floor-standing units? If so, where will you place them to maximize their use without disrupting customer traffic? How will you connect them to electrical and data? 
  • If you are thinking about a countertop unit, do you have sufficient counterspace? What will you have to move to make room, and how much will it cost to create a new spot for those things? Can you swap out a cashier spot for a kiosk with little or no disruption?
  • If you have sit-down service, how many hand-held kiosks will you need to cover your busiest times? Will any of your guests refuse the device and ask for a live server? Do you need to budget for lost or damaged devices?
  • If you are putting a kiosk outdoors, the biggest question is whether it can withstand the weather in your area. 

The kiosk hardware for most restaurants costs about $2,000-$3,000 for floor-standing or countertop installations. Handheld devices start at around $300 apiece and can cost as much as $800. Outdoor systems are considerably more expensive, starting at around $4,000 and going as high as $15,000. 

Site Prep and Installation

As noted above, your site might need to be reenvisioned to make room for the kiosks. Since every location is so different, it is difficult to give estimates of how much this will cost. You will need to have access to electrical and data. Will that require tearing up some flooring? Or will you be able to run it to the ceiling? If you think placing the kiosk units next to a wall is a perfect idea, you might save on the site setup costs but not maximize their potential use if they are tucked out of the way. Although this is extremely variable, expect to spend between $500 and $1,500 for electrical and data setup. If the site is properly prepared, installation of the units should range between $150-$300.

2. The Software

When choosing software, two main considerations are whether it integrates with the POS and how easy it is to set up and update. 

Integration with the POS could be the biggest expense, but if you are using one of the most popular POS systems, it is very likely the integration has already been built, and the cost will range from $0 to $10,000. With some POS, it is like turning on a switch. For others, some work may be needed to integrate with your system. If the integration is not already built, that's when you'll be hit with a big number. In that case, it could be up to $50,000.  

Most kiosk vendors work with their customers to set up the menus just the way you want them, including helping you figure out how to maximize the tool's effectiveness by creating upselling opportunities. Some vendors discount this heavily in order to get you on board. Others put a lot of effort into setting your system up for success. Because of these variations, you may not pay anything for the initial setup, or you may pay up to $10,000.

3. Ongoing Expenses

You will have a SaaS fee. Some vendors charge it by software license (ie per unit), and some offer discounts for putting in multiple units at a single location. You can expect to spend around $50-$200 per month, mainly depending on how many kiosks you have. 

Some software companies charge a small per transaction fee, perhaps a percentage or perhaps in the neighborhood of $0.10 per transaction. Don't forget that you will still have the credit card processing fees. 

Finally, the upkeep of the devices will run around $300 per year. If that seems surprising, consider how much use they will be getting and the fact that you are in a restaurant environment. 

Adding all of that up, you should budget at least $7,000 for one-time charges to install and get your kiosks up and running. However, depending on your site and the tools you use, the cost could be considerably higher. Depending on how many units you install, expect about $2,500 per year in ongoing costs.

Is it worth the investment? Studies repeatedly show that kiosks contribute to increased revenue - enough that many operators recoup their initial investment in a matter of months! Kiosks are proven to generate higher average tickets by always suggestive selling and by giving the customer "freedom" to take their time and order what they want with no pressure from a cashier waiting for them to decide or a growing line of people behind them. 

In the end, you should not focus so much on how much a kiosk will cost. Rather, you should speak with a kiosk partner who can help you turn your kiosk program into a revenue machine! With a well-designed program, many operators have seen more than 25% increases in revenue (kiosks will ALWAYS upsell), often recouping the initial investment in months!

If you are curious about some of the measurable benefits of adding kiosks, give us a call. We can assemble a complete package of menu boards and kiosks designed to help you grow your top-line revenue.