Article

Digital menu board basics, Part 1

In this three part series, we look at the ROI, branding, advertising and technology of digital menu boards versus static ones.

November 23, 2008 by Scott Sharon — CEO, START

One of the first questions I receive when discussing digital menu boards is "what's the ROI?" Although it's the most important question to ask before making any large purchase or investment in equipment, it's not easy to answer. Your ROI depends on how the equipment is used. In this article, I will give some examples of how digital menu boards can be used that may make the ROI question easier to answer.

Since digital boards have so many more capabilities than traditional boards, a better question should be "what's the ROI on the additional capabilities?"

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To understand the difference in cost between traditional and digital menu boards you should determine the total cost of ownership of each system over at least a five year period. The cost of each should include all hardware, content (including packaging, distribution, freight and labor to change or insert in the boards), software, connection cost and maintenance. 

If you determine the cost of digital boards to be higher, is it worth the extra investment for the increased features and capabilities? If you don't use the extra capabilities to increase short and long term sales the answer is simply no. In order to answer this question you need to know the capabilities of digital boards and how to use them.

There are many advantages for digital menu boards over static ones. How much would each of these aspects increase your sales?

Day parting

• Digital boards or kiosks can up sell better than your employees. • Make higher margin items stand out with movement. • New products can be introduced much more quickly & effectively. Plus, it will be easier and less expensive to do it by regions or test markets.

Instant changing of content

• Prices can be changed more quickly and easily based on cost and supply. Prices can be different for each day part. Many companies have learned they can charge more and offer different portion sizes for each day part? • Prices can be lower during low traffic times of the day to increase the effectiveness of store capacity and to reduce wasted food. • Items for sale could change quickly and more effectively based on weather conditions, inventory, season, holidays and current events.

Appeal to customers

Scott Sharon is president of Vertigo Group USA. To comment on this story, contact theeditor.

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