Apple Pay Headed Directly to Restaurant Tables With 'PrestoPrime EMV' Terminals

[0970373]

This is anecdotal, but I've had abysmal service at virtually all the restaurants I've been to that have those mini terminals on the table.

You would think having the terminals would result in better customer service because in some restaurants, at least, the server doesn't have to take your order or take your card when you're ready to leave. Literally, all they have to do is bring you your drinks and food and make sure your drinks are refilled.

The flip side to having these screens (and one of the reasons, I suspect, that my experience in several restaurants with these screens has been abysmal) is that corporate sees the screens as a way they can reduce their bottom line (payroll) so the staff that's left is stretched very thin. That's also likely to affect tips, I think. The volume of tips will go up due to the staff working more tables, but the average amount of the tips could very well be substantially less than a restaurant without screens. One would hope that the increase in the volume of tips would make up for the average tip amount going down, but I'm not sure it would.

I love tech but I'm just not convinced that these screens will be a success. A lot of restaurants like Applebees and Chilis are already having a difficult time attracting customers right now...or so I've read. Throw consistently bad customer service into the mix and I bet some of these chains could be in real trouble.

Lower service seems like a natural consequence, actually. The servers pay less attention. They come when the system tells them there's something to bring to the table. But I otherwise agree with your statement about tips, which is just a really scummy way to treat the employees, IMO. I'd skip restaurants that had these, not that I was going to Applebees or Chillis or Outback Steakhouse anyway.

 

[Return Zero]

Eh, restaurant POSes make that not too big of a deal these days. Swiping also takes like less than a second per card. (I'm not convinced most restaurants want to switch to chip, to be honest.)

Well, even if it's minor time savings for the server, the customer can often leave sooner, meaning the next customer could get seated sooner as well. I can't tell you how many times I've been ready to leave a restaurant only to have to wait for the server to stop by with the check or bring back my card, because they're busy running around to other tables. Of course this only matters during peak lunch and dinner hours, but I still think it could make a big enough difference over time to justify getting the machines.

 

[tmiw]

Many credit card processors/banks offer them for less or free w/ a service contract. And there are systems like Square which are affordable and are seen in newer restaurants, food trucks, hipster coffee bars. But you are right, there is a lot of short-sightedness in the US.

Square is useful for a certain subset of businesses. A fair number will never consider them, however, because most can get much lower processing rates by going with someone else.

You're really, really, really trying too hard. It's pretty simple. This is not a solution for every business, be it mom and pop or corporate chain. That is a decision for each business. Your assertion that would be a hard justification for most restaurants in America isn't based on any facts.

From a customer perspective it's great. It's ecosystem agnostic, convenient, and your financials never leave your possession.

Most restaurants are the mom and pop, 1-20 location type though. And for those, the tablets don't really make good business sense. Even the wireless handheld ones are questionable for some of them.

Also, I actually think a fair number of customers don't want pay at the table--in the form of what Europe and Canada have at least. It's probably at least partly why the tablets seem to be used much more often here and why nearly every single sit-down restaurant in the US that I've been to that supports the chip still takes cards away and brings them back.

It's how customers want to pay. Keep customers happy, and they keep coming back.

Of course. It's just that tablets/handheld terminals might not be the best approach for some/most businesses. As I mentioned above, something like OpenTable may be a better approach: little/no upfront investment on the part of the restaurant and you have pay at the table for those who want it.

 

[69Mustang]

It is convenient, and someone's card never leaves their possession, which is good. However, I think the staff at these restaurants will come to hate these screens. Here's why...

These screens basically turn the wait staff into robots that carry orders to tables and refill drinks. That's all. They have no real interaction with the people they're serving. The fact of the matter is that I'm less likely to leave a generous tip for someone if I place the order myself and all they do is bring it to me and refill my drink.

While I love tech, I think these screens may be a bust in the long-term. I think staff will be unhappy because the average amount of each tip will go down; and customers will be unhappy because while the system is quick and convenient, they won't be served in the same way they've grown accustomed to being served when going out to eat. Unhappy staff and unhappy customers is a lose-lose scenario for these restaurant chains.

I'd consider that a training issue, not a technology issue. You also make a few assumptions that could easily be changed with a different perspective.

For instance; a less rushed staff could be a more personable staff. A simple smile, or recommendation of trying the new shrimp appetizer can go a long way. Why would tipping go down? Don't people typically tip the predetermined amount they're accustomed to tipping? I tip 30% standard. There are edge case that can make that go up or down, but those are edge cases. Couldn't that unhappy staff and customer relationship just as easily turn out happy because the staff has more time to interact with customers in a positive fashion?

There's nothing definitive about either scenario. Depends on your perspective.
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Most restaurants are the mom and pop, 1-20 location type though. And for those, the tablets don't really make good business sense. Even the wireless handheld ones are questionable for some of them.

Also, I actually think a fair number of customers don't want pay at the table--in the form of what Europe and Canada have at least. It's probably at least partly why the tablets seem to be used much more often here and why nearly every single sit-down restaurant in the US that I've been to that supports the chip still takes cards away and brings them back.

True, most restaurants are the smaller variety. But you don't know if tablets make good business sense for smaller businesses. But you're presenting as if you do. You've stated nothing factual. As I said previously, each business can decide if the use case makes sense. A blanket statement like " And for those, the tablets don't really make good business sense" ignores what the business sells, how it's run, and the goals of the owners.

 

[avanpelt]

I'd consider that a training issue, not a technology issue. You also make a few assumptions that could easily be changed with a different perspective.

For instance; a less rushed staff could be a more personable staff. A simple smile, or recommendation of trying the new shrimp appetizer can go a long way. Why would tipping go down? Don't people typically tip the predetermined amount they're accustomed to tipping? I tip 30% standard. There are edge case that can make that go up or down, but those are edge cases. Couldn't that unhappy staff and customer relationship just as easily turn out happy because the staff has more time to interact with customers in a positive fashion?

There's nothing definitive about either scenario. Depends on your perspective.

You tip 30% standard?! Wow. I suspect you're the exception in that regard. I also suspect that you have wait staff that often tell you to ask for them by name when you're being seated.

The problem with your hypothesis is that I don't think the people in corporate that are making these decisions about screens are doing it because they want to give their staff more of an opportunity to chat with the customer. I suspect (and I would be happy to be wrong) that corporate sees screens as a way that they can get more customers to do for themselves what a waiter/waitress used to do. What does that mean? They can reduce the number of waiters/waitresses on staff, thereby increasing each restaurant's bottom line. If you take three people off the payroll at a few restaurants, that's not a big deal; but if you take three people off the payroll at thousands of restaurants, that's a big deal in terms of lowering costs.

The staff that's left will likely be stretched thin, will be rushed, and may only come to the table to check on you and refill drinks when they're summoned by the tap of a button. Thus, we may just end up turning once helpful wait staff into little more than Pavlovian robots.

 

[69Mustang]

You tip 30% standard?! Wow. I suspect you're the exception in that regard. I also suspect that you have wait staff that often tell you to ask for them by name when you're being seated.

The problem with your hypothesis is that I don't think the people in corporate that are making these decisions about screens are doing it because they want to give their staff more of an opportunity to chat with the customer. I suspect (and I would be happy to be wrong) that corporate sees screens as a way that they can get more customers to do for themselves what a waiter/waitress used to do. What does that mean? They can reduce the number of waiters/waitresses on staff, thereby increasing each restaurant's bottom line. If you take three people out off the payroll at a few restaurants, that's not a big deal; but if you take three people off the payroll at thousands of restaurants, that's a big deal.

The staff that's left will likely be stretched thin, will be rushed, and may only come to the table to check on you and refill drinks when they're summoned by the tap of a button. Thus, we may just end up turning once helpful wait staff into little more than Pavlovian robots.

I worked in a couple of restaurants when I was putting myself through school. I have an appreciation.
My hypothetical was irrelevant. It was only there to point out that your less than enthusiastic reception to the tech is but one possible outcome. No more or less correct than mine. I just realize the picture you paint isn't the only way to look at the pros and cons of the tech.

It's just an opposing point of view, not necessarily my point of view.

 

[tmiw]

True, most restaurants are the smaller variety. But you don't know if tablets make good business sense for smaller businesses. But you're presenting as if you do. You've stated nothing factual. As I said previously, each business can decide if the use case makes sense. A blanket statement like " And for those, the tablets don't really make good business sense" ignores what the business sells, how it's run, and the goals of the owners.

Fair point. However, restaurants tend to have fairly low margins as-is, so it is possible to at least predict some trends based on that (and the observations I've seen thus far).

 

[AdonisSMU]

You tip 30% standard?! Wow. I suspect you're the exception in that regard.

He's really not the exception in that regard.
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I worked in a couple of restaurants when I was putting myself through school. I have an appreciation.
My hypothetical was irrelevant. It was only there to point out that your less than enthusiastic reception to the tech is but one possible outcome. No more or less correct than mine. I just realize the picture you paint isn't the only way to look at the pros and cons of the tech.

It's just an opposing point of view, not necessarily my point of view.

I too have worked as a waiter for awhile before going to college.

 

[aristobrat]

These screens basically turn the wait staff into robots that carry orders to tables and refill drinks. That's all.

Maybe that's regional... that's definitely not been the case in my area.

Red Robin, Chili's, Applebee's, Olive Garden, etc in my area have all had Ziosks for years now. None of those restaurants allow you to place you main order with them. So waiters around here are still waiters, not food runners, and I haven't noticed any change in service levels.

IMO, their main purposes (at least how they're implemented around my area) seems to be:

1) promotion -- the pictures on the screen do a better job of showing what's new than the usual menu inserts
2) loyalty program -- easy to sign-up, view your status, and automatically redeem when paying
3) pay when you're ready -- (if you want, ... you can still give your card to the waiter if you don't want)
4) gather feedback -- they make it extremely easy to rate your experience at the restaurant

 

[AdonisSMU]

Fair point. However, restaurants tend to have fairly low margins as-is, so it is possible to at least predict some trends based on that (and the observations I've seen thus far).

They'll buy it one time under some kind of bank deal or contract and get service updates and what not as needed.

 

[aristobrat]

I suspect (and I would be happy to be wrong) that corporate sees screens as a way that they can get more customers to do for themselves what a waiter/waitress used to do

Maybe, but why?

Squeezing labor in traditional restaurants (where the waiters get paid US$2.13/hour) makes little sense to me.

In fast food restaurants, where minimum-wage employee cost 5x more an hour, it makes sense.

 

[bommai]

BJs restaurant has a different approach. They have app. I can get a table or do mobile pay with Apple Pay from within the app. No extra hardware required from restaurant. Only customers mobile Phones.

 

[doelcm82]

Maybe, but why?

Squeezing labor in traditional restaurants (where the waiters get paid US$2.13/hour) makes little sense to me.

In fast food restaurants, where minimum-wage employee cost 5x more an hour, it makes sense.

There's more to the cost of employing a waitstaff than the hourly wage. There is also training and weekly scheduling.

 

[dontwalkhand]

These still aren't used in the US. I don't get the aversion to this in the States.

We have them in some restaurants. Very small mom and pop restaurants use them

 

[lunarworks]

I wish the U.S. followed Canada's example in that regard; but we're nowhere close to that -- if we ever even get there. As someone from the U.S., I remember the first time a waiter brought the POS machine to the table in Montreal years ago and I was momentarily confused. It truly is the way sit-down restaurants in the U.S. should work.

Yes, it's really convenient. They even have cellular models for delivery. If I call Pizza Pizza or Swiss Chalet to order food, they bring a handheld POS machine right to my door. It's also a lot safer for the drivers than cash.

 

[aristobrat]

There's more to the cost of employing a waitstaff than the hourly wage. There is also training and weekly scheduling.

Those are relatively fixed costs, no? If a waiter works a few hours less each week (should the kiosks make them more efficient), they still need training, right? And the weekly schedule still needs creating, whether it's got 75 people on it, or 50? I don't see how the kiosks help with those costs.

 

[avanpelt]

Maybe, but why?

Squeezing labor in traditional restaurants (where the waiters get paid US$2.13/hour) makes little sense to me.

In fast food restaurants, where minimum-wage employee cost 5x more an hour, it makes sense.

Yes, but fast food employees usually don't earn tips, hence the reason why they make more than the $2.13/hour base that waiters and waitresses make.

Maybe I'm in the minority here, but I don't tip someone just brings me the food I ordered myself and perhaps refills my drink one time (or not) the same amount that I tip the person who takes my order, makes menu recommendations, brings me the check promptly, generally goes out of their way to make sure I enjoy the experience, etc.

My point was that the screens could be essentially turning the waiters and waitresses who depend on the tips they earn today into little more than glorified fast food employee robots who bring you the food that you ordered yourself and they might refill your drink. I have a feeling that it might result in the waiters and waitresses still getting paid $2.13/hour and also getting less money in tips because the level of service they provide to the customer may be less than what they provide today.

 

[tmiw]

They'll buy it one time under some kind of bank deal or contract and get service updates and what not as needed.

That only helps for the first few years after purchase. A lot of places keep their POSes/terminals for a very long time.

 

[aristobrat]

Yes, but fast food employees usually don't earn tips, hence the reason why they make more than the $2.13/hour base that waiters and waitresses make.

Your made the point that taking a few of these $2.13/hour people off of the payroll could make a big difference to the bottom line. I just don't see that happening.

Maybe I'm in the minority here, but I don't tip someone just brings me the food I ordered myself and perhaps refills my drink one time (or not) the same amount that I tip the person who takes my order, makes menu recommendations, brings me the check promptly, generally goes out of their way to make sure I enjoy the experience, etc.

I've never been in a restaurant where I placed the order myself but was expected to tip the food runner for bringing the food out to my table. I think most people understand the difference between a waiter and a food runner.

My point was that the screens could be essentially turning the waiters and waitresses who depend on the tips they earn today into little more than glorified fast food employee robots who bring you the food that you ordered yourself and they might refill your drink. I have a feeling that it might result in the waiters and waitresses still getting paid $2.13/hour and also getting less money in tips because the level of service they provide to the customer may be less than what they provide today.

If that becomes the case, I think you'll find that what currently happens today (where good waiters figure out they can make more money at nicer restaurants, so they move on) will continue to happen. The places that just want food runners will have lower-caliber employees doing that, while the real waiters move on to restaurants that actually want real waiters.

 

[Mac 128]

These still aren't used in the US. I don't get the aversion to this in the States.

Cost.

 

[Larry The L]

How is this different from handheld wireless POS machines that already support tap-to-pay? Restaurants around here have had those for a few years.

Are you seriously unable to see the differences? Re-read the article and compare the pictures. They are very different.

 

[QuarterSwede]

I think the benefit of these is it seems like it would increase orders. If I have an easy way to order extra stuff without having to wait for a server, I'm probably more likely to spend more money.

Gotta admit that that's exactly what I've done before. Loved that I didn't have to wait for the server to come by and get their attention to order a dessert or drink.

 

[lunarworks]

Are you seriously unable to see the differences? Re-read the article and compare the pictures. They are very different.

The headline says "Apple Pay headed directly to restaurant tables with..."

I was just saying that wait staff can already bring an Apple Pay capable device directly to your table.

 

[lartola]

How is this different from handheld wireless POS machines that already support tap-to-pay? Restaurants around here have had those for a few years.

I think the only difference is that this tablet style device can let you see the menu, place your order and let you see your bill right there in addition to paying for it. By the way, restaurants in Mexico have the wireless POS machines too, just like in Canada, and usually the waiters will bring it to the table when the customers are ready to pay. The only difference between Canada and Mexico is that the waiters here don't usually know how to handle the tap-to-pay, and I've had to show many of them the procedure. Most of them only know to start a transaction on the machine by dipping in a chip card or swiping the magnetic stripe, but not via the menu to allow for tapping. I believe the wireless terminal should be a cheaper option for most restaurants since they can do with only two or three for the whole place instead of one per table. Plus, I doubt fancy restaurants will want to put the E La Carte tablet style devices on all their tables.
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Another product that most restaurants in America are going to have a really hard time justifying. (Notice how it's only the bigger chains that buy the tableside tablets?)

I'm telling you: pay at the table is going to be relatively uncommon in the US compared to elsewhere. Why should most places spend the extra money on even the handheld terminals mentioned above when tip adjust is still possible and PIN isn't mandatory with the chip? Restaurants that want to accept Apple Pay are almost better off doing so via an app like OpenTable, as at least they won't have to buy anything new that way.

(Note: this is based on my experience with chip at US restaurants so far, which admittedly isn't all that many places. My card was still taken away and brought back at nearly every single one, however.)

Because at a lot of US restaurants, especially in the south, they don't even have chip readers but only the outdated magnetic stripe readers. That's why. They need to at least upgrade to EMV. And while they're at it, why not go for wireless POS machines like other countries?
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Are you seriously unable to see the differences? Re-read the article and compare the pictures. They are very different.

I see the difference, but still think the wireless POS machine is more cost effective. They'd need to buy only two or three versus one per table of the other. It's got to be cheaper.
[doublepost=1489537340][/doublepost]

Eh, restaurant POSes make that not too big of a deal these days. Swiping also takes like less than a second per card. (I'm not convinced most restaurants want to switch to chip, to be honest.)



Say you're a restaurant owner and it's time to replace your equipment. You just got a new credit card from your bank with one of those new "EMV" chips on it. You've already had to use the chip at a couple of places and realized that the only thing that's really changed is how the terminal reads the card; you don't have to enter a PIN and some of the places where you've used the card still have a tip line on the receipt.

A vendor then comes by and offers the following options:

1. A wired terminal/card reader that attaches to your existing POS for $300. Think something like what Subway uses.
2. One of those handheld terminals that restaurants in Europe use. This isn't attached to the POS so you have to manually reconcile at the end of the night, and on top of that it costs $500. And you'll need to buy at least a few for the number of waitstaff you have on duty at any given time.

Considering all of that, which is the "better" business decision? Most likely it's #1. Unfortunate, but yeah.

EDIT: by manually reconcile I mean closing out checks, not necessarily tip adjust (which you may have to do regardless of the solution the restaurant goes with).

And why would they want to hang on to outdated technology? swiping has been around for 50+ years and it is very obsolete, besides it makes credit card fraud easier. Even more so if they have to take away the customers card instead of doing the transaction at the table. That's why restaurants in Europe, Canada and Mexico made the investment and switched to the wireless terminals. And I bet buying a few of those is still less costly than buying a tablet style device for each table.
[doublepost=1489537679][/doublepost]

Cost.

No there seems to be an aversion to EMV chip technology in the US, especially in the south, like Texas. Many businesses there already have EMV and even nfc/contactless capable POS terminals but still disable those features and stick to swiping only.
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It's still a multi hundred dollar per table investment (or possibly more) just for the hardware, let alone any required maintenance agreements. I'm not seeing a typical mom and pop restaurant buying these, even if they do get marginally more sales as a result.

Smaller restaurants, and the fancy ones too, would be better of buying just one or two wireless terminals. At least that's what they do in Mexico, Canada and several European countries.
[doublepost=1489538329][/doublepost]

Every time I go to the US, I'm always amazed at how far behind they are with payment systems. I end up swiping my credit card and signing for everything, which just feels so outdated. Everything should be chip and PIN or tap to pay at this point.

Yeah. Even in some places where they already got newer terminals, they have both the EMV and contactless turned off and stick to swiping only.
[doublepost=1489538711][/doublepost]

I wish the U.S. followed Canada's example in that regard; but we're nowhere close to that -- if we ever even get there. As someone from the U.S., I remember the first time a waiter brought the POS machine to the table in Montreal years ago and I was momentarily confused. It truly is the way sit-down restaurants in the U.S. should work.

And it's not only Canada; they've been doing the same in Mexico for years, which should be an embarrasment for the U.S. considering how uncivilized many americans think Mexico to be.

 

[doelcm82]

If that becomes the case, I think you'll find that what currently happens today (where good waiters figure out they can make more money at nicer restaurants, so they move on) will continue to happen. The places that just want food runners will have lower-caliber employees doing that, while the real waiters move on to restaurants that actually want real waiters.

Yep. And customers who want real waiters will go to those restaurants, while customers who prefer table service at the tap of a screen will gravitate to restaurants with terminals like these.

There are many kinds of restaurants and many kinds of customers. Not everyone wants the full waiter experience, and not everyone who enjoys it sometimes wants it every time they eat out.