Home Revenue Management Resturant 5 Ways Digital Signage Can Increase Restaurant Revenue

5 Ways Digital Signage Can Increase Restaurant Revenue

Feb 18, 2010  By 

In a 2006 study by McKinsey & Co., they forecasted that traditional TV advertising would be only one-third as effective in 2010 as it had been in 1990. According to McKinsey & Co. consumers are currently watching commercials 23% less and the impact for those that do get viewed has declined 37% due to market saturation. With the invention of TiVo and the inclusion of DVRs in a variety of cable television packages, it has become more and more critical for restaurants to begin focusing on in-store advertising.

A digital signage network can greatly increase sales, customer satisfaction, and loyalty. It can include television screens, POP displays, order confirmation boards, menu boards and more; displaying information such as menu items, ads, company info, upcoming events, news or entertainment.

In order to fully realize all the benefits of digital signage, the best content programming includes a combination of advertising/promoting, service information, and entertainment. But whether you use a full digital signage network with all the bells and whistles, or just one or two displays,

Digital signage can increase your restaurant’s revenue by:


  1. 1- Building your brand

    It’s important, now more than ever, to brand your restaurants so that consumers will associate you with the products, experiences, and services that your restaurant can offer. Through its dynamic nature, digital signage allows you to do that with impressive impact. Advertise on your own network, splash your logo across menu boards, and tell your restaurant’s story through short informational videos. Remind customers who you are and what you represent – good food, good service – so that they leave with your name uppermost in their minds.

  2. 2- Diminishing perceived wait time
    As implied by the name, speed of service is one of the number one factors in customer satisfaction and loyalty for quick service restaurants. Studies have shown that digital signage, whether an informational monitor or a menu board, can help decrease perceived wait time by entertaining and/or distracting consumers from the clock.

  3. 3- Increasing accuracy and speed, while reducing waste

    Order confirmation boards in the drive thru and point-of-purchase displays increase accuracy of orders, which not only reduces food waste but improves customer communications. This enhances customer relationships with increased accuracy and speed of service, two major indicators when assessing customer satisfaction.


4- Up-selling

With the right software, it is easy to use digital signage to up-sell during the order process. A good POS system will scan the customer’s order and suggest a complementary item through the POP display or drive-thru order confirmation board. Up-selling through digital signage can sometimes feel less intrusive; allowing the customer the option without the interrogative feeling that can manifest when staff is required to ask multiple questions at checkout. It will improve customer relations and solve any issues with staff who may not be as aggressive as required for up-selling.


  1. 5- Selling ad space

    An additional benefit to installing a digital network is the ability to sell ad space. In a study done by Arbitron on digital signage in malls, they found that 51% of people remembered seeing at least one ad on the screens, while 47% could name the advertiser. Digital signage ad space is fast becoming a premium location for advertising media. Taking advantage of this trend can result in a new revenue stream for your restaurant.
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