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Digital signage on the menu at National Restaurant Association Show

As funding streams increase, could that result in a flood of new digital menu board orders?

May 23, 2013 by Alicia Kelso — Editor, QSRWeb.com

A renewed sense of confidence and optimism pervaded the show floor at this year's recent National Restaurant Association Show in Chicago — which could mean big things for the digital signage industry.

DigitalSignageToday.com sister site QSRWeb.com reports that, while mobile is king of the new technology hill now and for the foreseeable future in the restaurant industry, digital signage may be getting close to finally reaching the boiling point.

A renewed confidence

A majority of the attendees QSRWeb.com spoke with confirmed that restaurant operators are investing more in their businesses.

"There is a renewed confidence in restaurant industry. Before, there was uncertainly because operators needed cash for their day-to-day survival and operations," said Sarah Puls, business unit manager for commercial kitchen equipment provider Hobart. "Now they're reinvesting in their business. They're replacing equipment, not just fixing it like they have been doing the past few years."

The difference is noteworthy even from just last year, let alone two to three years ago when the industry was still in the grip of the recession.

"Last year was fabulous; this year is exceeding that," said Scott Deschetler, from Ice-O-Matic. "Although there are pockets in the market that are still slow, overall the industry is up and it's solidifying, particularly in QSR and c-stores."

Not only was the consensus that there was more booth visits this year, but quality booth visits.

Joy Capps from People Matter said her company had "much more" in the way of leads this year. "Operators are ready to spend now. They weren't last year," Capps said.

Mohamed Makawi, from Vito Oil Filtration, added that his company received 17,000 leads in three days. "It's been a really good show with quality traffic; a really good show," he said.

Digital signage heyday on the way?

In addition to the restaurant industry's major upsurge in interest in mobile technologies and equipment investment, digital signage seems to be experiencing its heyday.

"Last year, people were cautiously optimistic and tentative about spending. They were on the floor getting information mostly, but not really making a commitment. This year, it's been full optimism and investment. They're more confident," said Sarah Erdman from QA Graphics. Her digital signage/kiosk-focused company experienced double the traffic on the first day it did during the entire show last year.

Rich Ventura, from NEC Display Solutions, echoed that observation, claiming the company had "three times as much traffic" compared to last year.

Dave Rattan, with STRATACACHE, predicts digital menu board saturation will be a slow process, becoming the standard about four or five years from now. But now, customers "expect them," he said. And restaurant operators don't have the sticker shock about purchasing them like they did two to three years ago.

Tosh Akhgar, from ViewSonic, opined that interest in digital signage may be increasing because operators finally realize an ROI; whereas they didn't really have that quantifiable information a year or two ago.

And Stacy Moore, from Panasonic, said operators are well aware that they should be exploring digital menu boards in-store. The next trend, she said, will be growth of digital menu boards at the drive-thru, where limited-service restaurants experience the bulk (about 70 percent) of their business.

Blue skies on the horizon?

Restaurant operators' optimism stems from the increase in funding, the technology-influenced opportunities, and the customer sentiment.

"This is a bigger show with more energy," said Marley Hodgson, CEO and cofounder of Colorado-based salad chain Mad Greens. "Funding has opened up. Last year was a trickle after about four years. The flood gates opened this year. Banks are in it."

Learn more about digital signage in restaurants.

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