Tuesday, February 19, 2008
Digital TV screens remotely controlled
By Alex Davis
The Courier-Journal
When Eric Murphy walked into the KFC restaurant in Fern Creek, the menu board behind the cash register did a couple of unusual things.
A picture of a chicken bucket appeared to be sending a curl of steam into the air, and just seconds later a Snacker sandwich in the middle of the board seemed to expand, then contract.
Murphy, who lives nearby, soon learned that his eyes weren't playing tricks on him. The changes are part of a pilot project at KFC and its Louisville-based parent, Yum! Brands. The fast-food chain is taking a hard look at digital menu boards -- basically a series of high-definition television screens displaying menu items, prices and much more.
Controlled from a remote location, the content on the screens can change automatically to emphasize lunch or dinner items, or limited-time offers. They can play videos, display moving graphics, or make that chicken bucket a little more inviting with a few wafts of steam.
"It just catches your attention," said Murphy, 21, who recently ate lunch at the restaurant with two friends. "It makes you want to come back."
That's just the kind of reaction that KFC wants. The store on Bardstown Road got the high-tech boards about four months ago, and similar screens are now operating at more than 30 locations in Louisville, Houston, Boston, Dallas and Orlando, Fla.
It's too early to say how many of KFC's other locations -- 5,400 in the United States alone -- eventually will get the screens. Company officials declined to comment on whether the signs are boosting sales, but James O'Reilly, KFC's chief marketing officer, said in a statement that they could have "the flexibility, functionality and reliability KFC is looking for."
Similar digital screens are already used by casinos, banks, automakers and others to showcase their products. They haven't swept through the fast-food industry yet, but experts say that could change in the next couple of years.
"It's kind of one of those things that's on the verge of happening," said Bill Yackey, editor of Digital Signage Today, an online newsletter.
Digital signs have been tested at McDonald's and Subway, but Yackey said it could be years before the restaurant industry makes widespread use of the technology.
The biggest challenge so far is price. Yackey, who is based in Louisville, said a single 40-inch commercial-grade monitor can cost $2,500. Tack on $1,750 for hardware and mounting equipment, and additional costs for software, technical support and an Internet connection to download the menu content.
KFC is partnering with Wireless Ronin Technologies for its digital signs. The Minneapolis company wouldn't disclose how much it is charging KFC for equipment and other services, but Scott Koller, executive vice president of sales and marketing, said cost is a key factor in deciding how many of the signs will be installed.
Because all the menus are controlled from a single location, store employees don't need to spend time making minor changes to the old magnetic boards. KFC also wouldn't have to mail menu updates to its restaurants, and stores could place a greater emphasis on lunch, dinner and late-night food items depending on the time of day.
Some of the menu screens can be reserved for commercials or other video content, allowing the chain to promote its brand to a captive audience. And while the advertisements only last a minute or two, Koller said customers feel like their wait in line doesn't take as long if they're being entertained.
Most of the digital signs at KFC are located inside restaurants, although some locations also have some near drive-through windows.
There are a few limits to digital signs. Officials at KFC and Ronin said they don't want to confuse customers by having too many videos and moving graphics next to the prices and menu descriptions. For now, most moving graphics appear on a separate screen called the "beverage board" to the right of the registers.
Lorene Colson, another recent customer at the Bardstown Road restaurant in Fern Creek, said the digital signs weren't confusing to her at all. The 85-year-old Mount Washington resident eats at KFC at least once a week, and she said the new screens seemed brighter and more appealing than the old ones. But while the menu board was an improvement, Colson said the screens weren't the main reason she came to the restaurant.
"If the food wasn't good, I wouldn't be here," Colson said. "The displays wouldn't matter."
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