In an intriguing examination of McDonald’s self-order terminals (SOTs), Jonas from the YouTube channel fern reveals how these machines are designed to maximize customer spending. With strategic design and subtle manipulation, SOTs are a crucial component of McDonald’s financial success.
The Rise of Self-Order Terminals
Jonas explains that self-order terminals have become ubiquitous in McDonald’s restaurants worldwide. These large touch-screen devices resemble giant smartphones and are integral to McDonald’s “restaurant of the future” concept. McDonald’s began testing SOTs in Europe in 2008, and they are now a standard feature across its global locations. The terminals have been credited with increasing profits significantly, with an insider reporting a 15% profit boost in Germany alone. Former McDonald’s CEO Steve Easterbrook confirmed that these terminals have positively impacted profits, as they encourage customers to spend more time placing their orders.
Design and Influence
The design of SOTs plays a crucial role in influencing customer choices. Jonas notes that the user interface is carefully crafted to guide customers toward more expensive items. When customers approach the terminal intending to buy a simple item like a double cheeseburger, they are immediately presented with eye-catching images of more expensive menu options. This creates a “reference value,” causing customers to perceive the cheaper items as more affordable by comparison. The placement of these images at eye level, akin to strategic product placement on supermarket shelves, subtly encourages customers to choose pricier options.
The Power of Nudging
The concept of “nudging” is central to the effectiveness of SOTs. Nudges are subtle design elements that influence behavior by presenting options in specific ways. In the case of McDonald’s terminals, the more expensive items are prominently displayed, while cheaper options require scrolling down to find. This nudging technique is akin to placing higher-priced items on supermarket shelves at eye level, ensuring they attract more attention.
Upselling and Dark Patterns
Jonas explains how SOTs are designed to upsell customers during the ordering process. The terminals suggest additional items like fries, drinks, and desserts, enticing customers to increase their order size. A colorful animation accompanies each addition to the cart, providing positive reinforcement and encouraging further purchases. The terminals also use “dark patterns” to obscure the total price, displaying it in a small corner of the screen to downplay its significance. This tactic minimizes the perceived impact of the cost compared to the appealing product images.
Cashless Transactions and Impulse Buying
Jonas highlights how the SOTs encourage cashless transactions, with a smaller button for paying in cash and a larger option for card payments. This strategy aligns with research showing that customers are more likely to make impulse purchases when paying with a card. Additionally, the two-sided terminals allow more customers to order simultaneously, reducing the likelihood of abandoning the purchase due to long lines.
The Psychology of Menu Design
The psychology behind McDonald’s menu design is crucial to maximizing profits. Jonas explains that while the margin on a single burger is relatively low, adding items like drinks, fries, and desserts significantly increases profitability. The menu is structured to encourage bundling, with combo meals appearing as better value than individual items. Cross-selling is also prevalent, with the terminal suggesting complementary products that customers may not have initially considered.
Data Collection and Optimization
Jonas suggests that McDonald’s terminals likely collect vast amounts of data daily, allowing the company to optimize its user interface through A/B testing. By experimenting with different button sizes, colors, and product placements, McDonald’s can continuously refine its SOTs to maximize customer spending. Although McDonald’s Germany claims not to conduct A/B testing locally, the potential for such optimization exists across its global operations.
Balancing Convenience and Manipulation
While SOTs enhance the customer experience by streamlining the ordering process and reducing social pressure, Jonas cautions that they are explicitly designed to encourage excessive spending. The techniques used are not unique to McDonald’s but are highly effective in influencing customer behavior. Despite awareness of these tactics, many customers still fall prey to their subtle manipulation, making SOTs a valuable tool for McDonald’s.
“Ordering Less at Screens”
People in the comments shared their thoughts: “I actually find myself ordering less food at these screens. When I’m face to face with an employee, I want to order as quickly and concisely as possible to not cause confusion or waste their time. When I’m at the screen, I can play around by adding or removing things from my order, and do the math on what upgrades are worth the price, etc.”
Another person said: “One good thing about fast food is that I know exactly what I want when I walk in the door, regardless of which restaurant in the chain I’m going to. It’s not often that I change my order, and I know that what I get will be what I can eat”
A Blend of Design and Psychology
McDonald’s self-order terminals represent a sophisticated blend of design and psychology aimed at increasing customer spending. By leveraging nudges, upselling, and strategic menu design, these terminals have become a significant profit driver for the company. While they offer convenience and a tailored ordering experience, they also highlight the potential for consumer manipulation in modern retail environments.
Impact on Spending Habits
What are your thoughts? How do self-order terminals at fast-food chains impact consumer spending habits, and what ethical considerations arise from their design? In what ways do digital interfaces in retail environments influence our purchasing decisions compared to traditional human interactions? What role does data collection play in optimizing self-order terminals, and how might this affect consumer privacy and choice?
For an in-depth look, view the complete video on fern’s YouTube channel here.
