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Grocers Boost Sales With Deli-Ordering Technology Touch screens allow customers to make buys and avoid lines
Touch-screen ordering systems, such as Nextep Systems' Deli Express, allow customers to order deli foods and shop while they wait. Nextep says grocers have reported an increase in sales of up to 20% by using the technology. Industry experts call it a deli blowby -- it's what happens when customers see long lines around a grocery store's deli counter. Rather than wait, shoppers ignore the deli section -- a profitable outlet for grocers -- and buy prepackaged meats or cheeses. That costs grocery stores money and customers.
Enter Troy-based NEXTEP SYSTEMS. The company developed an innovative self-order touch screen system for the food-service industry, and its use in Metro Detroit has gained the attention of retailers, casinos, international airports and sporting arenas across the nation.
Conveniently located near a store's entrance, the kiosks allow customers to punch in their deli order, which is processed while they shop. A series of screens allow customers to select an item, slice thickness and the like. They can enter a cell phone number to receive a message when their order is ready. The meat, cheese and other deli items wait at the counter for pickup.
"It's a no-brainer. Deli Express saves our customers' time while expediting the deli operation," said Kirk Taylor, president of Nino Salvaggio, a gourmet grocer that put in three systems after a pilot program in 2008 proved successful.
Thanks to projects like this, NEXTEP has grown more than 100 percent annually since its founding in 2004. Now, it has more than 1,000 self-order kiosks throughout the United States and Canada.
By starting locally, growing carefully and developing its brand thoughtfully, NEXTEP has become a major player in its niche market, said Tommy Woycik, company president and co-founder.
NEXTEP has three primary products, Woycik said. There is the self-order kiosk, a digital menu board and online ordering services. The company has chosen to focus on this trio of products rather than chase the technology of the week, Woycik said.
To that end, its first project in 2004 focused on MotorCity Casino. Its touch-screen kiosks were an ideal match for the casino environment, Woycik said. The deli, barbecue and buffet areas had relatively simple ordering needs, and the kiosk eliminated long lines for a seat or a patron's order.
"Hungry guests don't want to wait in line, and casinos don't want people waiting in line rather than playing the slots," Woycik said. "Eliminating those lines through technology benefits everybody."
NEXTEP took that success and shopped it to other casinos. The company promoted it at trade shows. Officials also asked MotorCity to be part of a case study about the kiosks.
The result was additional orders from nearby casinos -- and a few visits from casino leaders from Atlantic City and Vegas. These in-person tours resulted in new orders and wider success in those key casino markets, Woycik said.
"MotorCity was happy to talk about its success because it showed it as the thought leader" in its industry, Woycik said.
Casinos, grocery stores and deli-style restaurants that used the self-ordering system reported extraordinary results. MotorCity said the system paid for itself in one year, and its lines were reduced up to 80 percent, Woycik said.
NEXTEP says its grocery retailers have reported sales increases of 10 to 20 percent. That is due in part to the reduction in deli blowby and the kiosks suggesting complementary products, which boosted a customer's overall order. So if you ordered some salami, the kiosk might recommend a nice havarti to go with it.
Ditto with its digital menu boards. Its success in the two Detroit airport terminals resulted in jobs at New York's John F. Kennedy International and Boston Logan airports -- and interest continues to grow as more states mandate these easily updated boards, Woycik said.
Woycik said NEXTEP is excited about its growth potential within national markets, primarily because there is huge room to expand.
The restaurant industry is worth an estimated $150 billion and there are plenty of spaces to sell.
Woycik said there is a less than 10 percent market saturation of similar products in NEXTEP's core areas of airports, casinos, grocery stores, restaurants and sporting venues.
"It is possible in this recession to start and grow a business profitable," Woycik said.
"I wouldn't say it is easy but as the economy improves we only expect things to get easier for us." Story sourced from