QSRs and fast-casual restaurants are turning to digital menu boards to stay competitive.

These electronic display boards feature your menu, prices, and promotions, providing real-time updates across multiple locations. Additionally, integrating them with your restaurant's system is as simple as a few clicks.

While the initial investment may seem significant, these dynamic displays offer both short and long-term benefits.

They enable instant menu updates, improve operational efficiency, and contribute to upselling and customer satisfaction over time. All in all, marking its place as a worthwhile consideration for modern food service businesses.

What Is a Digital Menu Board?

A digital menu board is an electronic display system showing your restaurant's menu, promotional offers, and other real-time content.

Like traditional printed menus, these displays showcase your entire food and beverage assortment along with relevant details (like pricing and visuals).

But unlike traditional printed menus, digital boards are easily updated through a centralized software system, making them incredibly flexible and responsive to the needs of fast-paced environments.

How Does a Digital Menu Board Work?

Digital menu boards function through a centralized content management system (CMS), which allows you to control what’s displayed on the screen.

The CMS lets you update menu items, change prices, and push new promotions, all from one platform.

The L Squared Hub also integrates with your POS system through Olo, ensuring that changes like pricing or availability sync instantly. This means that if your QSR runs out of an item, it disappears from the menu immediately.

No more apologizing to frustrated customers with menu boards as up-to-date as your chef’s signature dish.

How This Would Look on the Shop Floor

For example, say you run a busy burger joint.

Breakfast ends at 11 a.m., and lunch begins immediately after. Using a digital menu board, the switch from the breakfast menu to the lunch menu happens automatically, without anyone lifting a finger.

At 10:55, the board can display a message letting customers know that breakfast is ending soon. At 11:00, the lunch menu takes over, featuring images of burgers, fries, and combos.

You’ve also scheduled a promotion to start at 3 PM, offering a 2-for-1 deal on milkshakes during the afternoon slump. The CMS handles all of this in the background, so you can focus on running your restaurant.

What are the Benefits of Digital Menu Boards?

Digital menu boards solve complex operational challenges like inventory management, menu accuracy, and customer engagement. Plus, they can be customized to showcase your branding and differentiate yourself.

Customers can enjoy the convenience of up-to-date menus with interactive media through digital boards. It also speeds up decision-making with easy-to-read layouts and mouth-watering visuals of featured dishes.

Benefits for Customers

Real-time Updates

Digital menu boards keep customers informed. As soon as something sells out or a price changes, it’s reflected on the board.

For instance, if a fast-casual restaurant runs out of chicken wings during a rush, those items are immediately removed from the menu, reducing confusion and frustration.

Enhanced Visual Appeal

Using high-resolution images and videos, you can showcase your best items. These visuals can influence ordering decisions and make the menu far more engaging.

Convenience and Clarity

Large, clear displays make it easy for customers to read and navigate the menu. This is especially important during busy times when quick decisions lead to smoother service.

Interactive boards also allow for a more personalized browsing experience, letting customers customize orders without the pressure of long lines.

Ok, now, what are the benefits for the people who install these digital boards?

Digital boards offer diverse benefits that directly impact a business's bottom line. It covers all, from short-term benefits such as one centralized dashboard for making updates across multiple screens or locations to long-term goals like reduction in company costs.

Benefits for Business Owners

Increased Sales Through Upselling

Digital boards make upselling easy. For instance, when a customer orders a combo meal, the display can suggest adding a dessert or upgrading to a larger drink. These subtle prompts lead to bigger ticket sizes, driving more revenue.

Cost Efficiency

Digital boards let you update items instantly, whether you’re running out of ingredients or launching a new promotion. No more waiting for new menu prints. You also save on printing costs over time.

Centralized Control for Multi-location Businesses

If you run multiple locations, digital boards allow you to manage all your menus from a single dashboard.

You can ensure consistency across locations, with the ability to push updates to multiple stores with just a few clicks.

Revenue from Ads

Some restaurants use their digital boards as ad space, either for in-house promotions or by partnering with local businesses. This offers an additional stream of revenue, with minimal effort involved.

Types of Digital Menu Boards

There are different types of digital menu boards, each suited to specific use cases. Static boards are great for straightforward menus, while dynamic and interactive boards offer more flexibility for promotions and customer engagement.

Static Digital Boards

Static digital menu boards display fixed content that doesn't change often. These are ideal for restaurants with stable menus and minimal daily changes.

For instance, a café offering the same breakfast all week long can benefit from a static display that doesn't need to be altered frequently.

Benefits of static digital menu boards

• No need to constantly update. Once the menu is set, it stays up.
• Less need for regular maintenance or updates compared to dynamic boards.

Dynamic Digital Boards

Dynamic menu boards rotate content and are capable of showing timed promotions, daily specials, or different menus for different times of day.

These are perfect for fast-paced environments where menu offerings change regularly. Restaurants with breakfast, lunch, and dinner menus, or those offering time-sensitive deals, will find dynamic boards particularly useful.

Benefits of dynamic digital menu boards

• Easily switch between menus for different times of the day or show promotions on the fly.
• Highlight high-margin items and rotate through featured items, boosting visibility for high-profit items.
• Show offers that are tied to seasons, holidays, or limited-time events.

Interactive Digital Menu Boards

Interactive menu boards let customers interact with the menu, browse different sections, and even place orders.

These work best for self-service environments where customer engagement is key. They’re often used in self-service kiosks or for customer-driven ordering processes.

Benefits of interactive digital menu boards

• Customers can explore the menu, customize orders, and place them directly.
• For fast-casual and QSR environments, these boards reduce the need for manual order-taking and speed up service.
• Customers can customize their orders, giving them more control over their dining experience.

You might also be interested in reading about the rise of outdoor digital menu boards.

How to Set up a Digital Menu Board

The first step before setting up a digital menu board is to set up the preferred type of screen(s) in your restaurant. Consider factors like viewing angles, ambient lighting, and customer flow when positioning your displays.

It's also important to have a reliable internet connection, especially if a cloud-hosted CMS is in the frame.

After installing the CMS, these are what the usual next steps will look like to set up your digital menu board.

• Sign-in: Sign in to your CMS to start designing your digital menu board. In case you don’t have the credentials, reach out to your CMS software support team.
• Screen Selection: For multi-screen setups, your CMS will provide you with the option to select the screen that needs updating or editing. 
• Data Entry: Input essential information for all your outlets, including opening hours, phone numbers, and special details such as discounted prices or meal deals.  
• Frame Layout: You can divide your frame into screens to update each with relevant content. Your CMS might also provide you with the option to run each screen on its own schedule. 

💡Pro tip: While deciding on a layout, it is essential to consider the size of your frames to ensure the content (font and size) is readable and has some breathing space.

• Content Creation: If you have dynamic and interactive menu boards, you can populate your layout with engaging content like high-quality food pictures and limited-time offers.
• Preview and Adjust: Before going live, make sure to preview your content. This way, you’ll be able to avoid any misalignments, typos, or design issues.
• Testing Phase: Here you go! Run your digital menu board in a test environment first to ensure all scheduled content changes occur correctly.
• Go Live: It's time to launch your digital menu board to all customers. We’d recommend you monitor closely in the first few days to quickly address any issues that arise.

Key Software and Hardware Considerations for Digital Menu Boards

Choosing the right software and hardware is critical to setting up a digital menu board system that works well.

Most of this comes down to the basics: your software should be easy to use and scalable, while your hardware must be durable and reliable.

Software Considerations

• Ease of Use: The CMS software should have a user-friendly interface. It should allow your staff to quickly create, edit, and schedule menu content without overcoming a steep learning curve.
• Remote Management: Opt for a cloud-based CMS that allows you to access the system remotely. This is especially important for multi-location businesses, as it lets you control the menu across all your restaurants without being on-site.
• Customizability: Your CMS should offer enough flexibility to accommodate different layouts, schedules, and promotions. Look for features like drag-and-drop design, automatic scheduling, and template options.
• Integration with Other Systems: Make sure your CMS can easily integrate with your POS system and inventory management software. This synchronization ensures that menu prices and availability are accurate in real time, reducing the chance of customer dissatisfaction.
• Scalability: As your business grows, your CMS should be able to scale with you. Ensure that the software can handle the addition of more screens and locations without becoming too complex or costly.
• Security Features: Since a CMS often stores sensitive business information, it must offer strong security measures such as password protection and data encryption to prevent unauthorized access.

Hardware Considerations

• Display Durability and Quality: Invest in commercial-grade screens designed for heavy use in high-traffic environments. Consumer-grade screens may not be able to handle the constant operation required in a restaurant setting, leading to costly replacements.
• Brightness and Resolution: Choose screens with high brightness and sharp resolution to ensure the menu is clearly visible even in bright, sunlit areas. The screen’s resolution should be high enough to make text and images look crisp and professional.
• Touchscreen vs. Non-Touchscreen: If your restaurant has a self-service element, such as kiosks, opt for touchscreens. For static displays, a non-touchscreen option will suffice and may be more durable in high-use environments.
• Connectivity: Ensure reliable and stable internet connectivity, especially if you’re using cloud-based CMS software for real-time updates. Wired connections tend to be more stable, but Wi-Fi is an option for flexibility.
• Mounting Options: Depending on the layout of your restaurant, you’ll need to consider where and how to mount the screens. Ceiling mounts are common in fast-food environments, while wall mounts may work better for smaller cafés.
• Power Management: Choose displays that have energy-efficient features to reduce long-term operational costs. Some screens come with built-in power-saving modes, turning off or dimming the display when not in use.

L Squared collectively takes care of both the software and hardware requirements of restaurants to give you end-to-end signage set up support.

We are a cloud-hosted digital signage company that manufactures plug-and-play software and partners with LG, Samsung, Lenovo, and other top-tier hardware providers.

Also read: The Best Digital Signage Software on the Market in 2024

Cost Considerations for Digital Menu Boards

Your total cost of ownership (TCO) for digital menu boards boils down to the following factors.

1. Hardware

The most obvious upfront expense is the hardware itself, but the choice of screens, mounts, and related components can significantly impact your budget.

• Displays: High-quality, commercial-grade screens are more expensive than consumer-grade models but are designed for long-term, continuous use. Screen size, resolution, and brightness all influence the price.
• Touchscreen vs. Non-Touchscreen: Touchscreens are pricier than static displays, but if you’re offering a self-service option or customer interaction, they are essential.
• Mounting Equipment: Depending on your restaurant’s layout, you may need specialized mounts for ceilings, walls, or counters. This adds to the installation costs, especially if custom mounting solutions are required.
• Backup Power Supplies: Some businesses opt for uninterruptible power supplies (UPS) to ensure that their digital menu boards remain functional during brief power outages. This adds another layer of hardware cost.

💡Expert tip: To save yourself the hassle of hardware sourcing, installation, and maintenance coordination, pick a software vendor (like L Squared) that can manage all of this for you while also bringing you best-in-class displays at your required scale.

2. Software

While some CMS providers may come with one-time costs, many modern platforms operate on a subscription-based model.

• Subscription Fees: The majority of CMS platforms operate on a subscription model, charging monthly or annually. The costs will depend on the complexity of features offered, such as multi-location management, real-time updates, and cloud-based access.
• Licensing Fees: Some software providers charge per-screen licensing fees, meaning the more screens you operate, the higher the total cost. It’s important to assess how this scales as your business grows.
• Site License Fees: Some providers charge a flat fee per location rather than per screen, which can be more cost-effective for venues requiring multiple displays at a single site. This typically includes management capabilities for all screens within that location.
• Integration with POS: If you want your CMS to integrate seamlessly with your POS system for real-time updates, there may be additional integration fees or custom software development costs.

3. Installation and Setup

Setting up digital menu boards requires professional installation, especially for businesses with complex needs or multiple locations.

• Installation: Depending on the number of screens and their placement, professional installation can add significantly to the upfront cost. This includes mounting the screens, setting up wiring, and ensuring proper network connectivity.
• Network Setup: Digital menu boards require a stable internet connection, especially if they use cloud-based CMS systems. For multi-location businesses, setting up secure, stable connections across locations will require more extensive network infrastructure.
• Initial Configuration: The cost of setting up the CMS, integrating it with your POS, and designing the initial menu layout are often overlooked but are key cost drivers during the implementation phase.

4. Maintenance and Support

Keeping your digital menu boards running smoothly involves regular maintenance, software updates, and troubleshooting. These ongoing costs contribute to the TCO over time.

• Maintenance: Regular cleaning, hardware checks, and repairs (if needed) add to your operating costs. Ensuring the durability of screens and their components is critical, especially in high-traffic environments like QSRs.
• Software Updates and Support: CMS platforms often include ongoing support and updates in their subscription packages, but some advanced features or troubleshooting may come with additional fees. Be sure to check whether 24/7 support or on-site assistance is included.
• Warranty Extensions: Some businesses choose to extend warranties on their screens and hardware for peace of mind, which adds to the overall cost.

5. Energy

Digital menu boards consume power continuously, so the cost of electricity needs to be factored into the TCO.

• Displays: Commercial-grade displays are designed to handle prolonged usage, but they can be energy-intensive. Brightness levels, screen size, and usage patterns all affect energy consumption.
• Power-saving Modes: Many systems include energy-saving features as standard, such as automatic dimming during off-hours or turning off when the restaurant is closed. These scheduled power management settings can significantly reduce electricity costs over time.

6. Replacement and Upgrades

Over time, technology will evolve, and you’ll need to consider the cost of upgrading your hardware or software to keep your system competitive.

• Hardware Lifespan: Even with high-quality commercial-grade displays, you may need to replace your hardware every 5-7 years. Factor this into your long-term budget planning.
• Software Upgrades: As your business grows or as technology evolves, you may need to upgrade your CMS or integrate additional features, such as AI-based menu personalization or mobile app integration. These upgrades can contribute to long-term costs.

7. Training

To maximize the ROI on your digital menu boards, your staff needs to be trained to use the CMS and troubleshoot common issues.

• Initial Staff Training: You’ll likely need to train your staff on how to operate the CMS, schedule updates, and make minor adjustments. This training can either be handled in-house or through professional training services.
• Ongoing Training: As new software features or updates roll out, additional training sessions may be necessary. These ongoing training costs should be factored into the TCO, especially for larger, multi-location businesses.

How much do digital menu boards cost?

As much as we’d like to give you a straightforward answer here, given the number of variables involved, there isn’t one.

It comes down to the software you choose, the number of software licenses you need, the type and size of displays you pick, the number of units to be purchased and installed, and any add-on overhead you incur. You also have to factor-in costs of scaling up or down.

Our recommendation: Start with one or two restaurant locations, and see what impact you see in terms of waiting times, table turnovers, labor costs, and margins. Once you realize ROI, you can begin to scale up your digital signage network.

Best Practices for Digital Menu Boards

At the outset, digital menu boards as a concept are straightforward—you display a menu, the customer looks at it, and orders what they need.

But there are many ways friction can adversely slip into customer experiences and operational workflows—the simplest example being a cluttered menu board layout with stale content (or even inaccurate information).

It’s a good idea to keep the following best practices in mind to ensure both you and your customers benefit from having menus displayed on a digital screen.

Design and Layout

Your digital menu’s design is crucial for both visibility and customer engagement. Poorly designed menus can overwhelm or confuse customers, leading to longer decision times and decreased sales.

• Keep the Layout Clean: Simplicity is key. Avoid cluttering the screen with too much information. Each section of the menu should be well-defined and easy to navigate.
• Use High-Resolution Images: Visual appeal is one of the biggest advantages of digital menu boards. High-quality images help showcase your best products and promotions.
• Consistent Fonts and Colors: Stick to a consistent font style and color scheme that aligns with your brand. Ensure the text is large and clear enough to be read from a distance.
• Highlight Best Sellers and High-Profit Items: Make sure high-margin or frequently ordered items are more prominent on the screen.
• Limit the Number of Items Displayed at Once: Avoid overwhelming customers by limiting the number of items shown on the screen at any given time. Group items into categories for easier browsing.

Content Scheduling and Updates

Digital menu boards allow for real-time content changes, which is a major advantage over traditional menus. However, timing and consistency are key to maintaining a smooth operation.

• Pre-schedule Menu Changes: Use your CMS to schedule menu updates based on the time of day. For instance, schedule breakfast to switch to lunch seamlessly at 11 a.m. without manual intervention.
• Real-time Inventory Management: Integrate your CMS with your POS so items that are sold out are automatically removed from the menu. This prevents frustration for both staff and customers.
• Seasonal and Promotional Updates: Rotate content based on holidays, seasons, or promotional events. Highlighting limited-time offers creates urgency and can boost sales.
• Regularly Refresh Content: Even if your core menu doesn’t change, update imagery and messaging periodically to keep the content fresh and engaging.

Customer Engagement

Digital menu boards are more about actively engaging your customers, rather than simply displaying information.

• Dynamic Customer Flow Management: Adjust menu board content based on queue length and service speed - highlighting quick-serve items during rush hours and promoting higher-margin items during slower periods to optimize both customer experience and revenue.
• Interactive Elements for Customer Choice: In fast-casual or self-service environments, incorporate touch screens that allow customers to explore the menu and customize their orders.
• Leverage Data for Targeted Promotions: Use customer data from loyalty programs or past purchases to display personalized promotions. For example, suggest a dessert to customers who previously purchased a combo meal.
• Incorporate Social Proof: Display real-time customer reviews or social media posts related to your restaurant. Highlighting popular dishes through customer feedback can influence ordering decisions.

Maintenance and Performance

Ensuring the longevity and performance of your hardware is essential for reducing downtime and maintaining consistent service.

• Regular Screen Cleaning: Keep your screens clean to ensure they maintain a clear, crisp display. Dirty screens can not only look unappealing but also hinder readability.
• Routine Software Updates: Ensure your system is up-to-date with the latest software patches. An outdated CMS can result in slow performance or even system crashes.
• Monitor Screen Performance: Regularly check that all screens are functioning correctly and are displaying the intended content. A screen that goes blank or flickers can disrupt the customer experience.
• Plan for Backup Solutions: Have a backup system in place in case of technical failures, such as internet outages or hardware malfunctions. Ensure you have alternative methods for displaying the menu if needed.
• Proactive Monitoring: Heat and temperature monitoring of TVs used in digital signage is important for ensuring optimal performance, extending the lifespan of the devices, and preventing damage from overheating. Here are some key methods and tools used for monitoring heat and temperature in digital signage systems. 
• Built-in Sensors: Many modern digital signage TVs come equipped with built-in temperature sensors. These sensors monitor the internal temperature and can trigger automatic cooling mechanisms or shut down the TV if temperatures exceed safe levels.
• Remote Monitoring Systems: Remote monitoring systems, often part of larger digital signage management platforms, allow administrators to track the performance and temperature of digital signage screens from a centralized location. Alerts can be set up for abnormal temperature readings, enabling preemptive action to avoid overheating.

Regulatory Compliance

When setting up digital menu boards, it’s important to comply with any relevant regulations, such as those related to calorie counts, pricing transparency, or advertising restrictions.

• Accurate Price Display: Ensure that the prices shown on the board match what’s charged at the register. This prevents confusion and legal issues related to price misrepresentation.
  Nutritional Information: If required by local laws, make sure your menu board displays calorie counts or nutritional information clearly.
• Allergen Information: Consider adding allergen markers on your menu items to help customers quickly identify dishes they need to avoid. This can be added in small icons or footnotes.
• Display Timed Promotions Properly: When running time-sensitive promotions, ensure that they begin and end at the correct times. Misleading or expired promotions can lead to customer dissatisfaction or legal challenges.

Software Best Practices

Your CMS is the backbone of your digital menu board. It’s essential to optimize its use for smooth and efficient operations.

• Automate Routine Updates: Automate as many processes as possible, such as time-based menu switches or automatic price adjustments based on stock availability.
• Train Staff to Use the CMS: Ensure that your staff is trained on how to make updates to the CMS, so they can troubleshoot issues or make last-minute changes when necessary.
• Use Cloud-Based Systems: Cloud-based CMS solutions allow you to update content remotely, which is crucial for multi-location businesses. You can also monitor your menu boards from anywhere, ensuring consistency across all locations.
• Test Content Before Publishing: Preview any content updates in the CMS before publishing them live. This ensures that any design or text errors can be fixed before they’re visible to customers.

Visibility and Readability

Ensuring your digital menu boards are easily readable from anywhere in the restaurant is essential for a smooth customer experience.

• Position Screens Strategically: Place screens where customers naturally focus their attention. This may be above the counter in QSRs or near the entrance in fast-casual setups.
• Adjust Screen Brightness: Set the brightness level based on your restaurant’s lighting conditions. Screens should be bright enough to be readable, even in direct sunlight, but not so bright that they cause glare.
• Consider Viewing Distance: Choose screen sizes and text fonts that are easy to read from typical viewing distances. A screen that is too small or text that is too dense can frustrate customers.
• Ensure Consistent Visibility: Test screens from various angles to ensure all customers—whether sitting or standing—can easily view the menu.

Energy Efficiency

Digital menu boards offer an opportunity to reduce your environmental footprint when used wisely.

• Use Energy-Efficient Displays: Opt for energy-efficient screens that reduce power consumption without sacrificing brightness or quality. Many commercial displays have power-saving modes that can automatically dim when not in use.
• Turn Off Screens After Hours: Schedule your digital menu boards to power down when your restaurant is closed. This can reduce electricity costs and extend the lifespan of your equipment.
• Minimize Printing Needs: Take full advantage of the flexibility of digital boards to eliminate the need for printed materials. For instance, showcase seasonal menus or special offers digitally instead of printing temporary signage.

Next Steps: Implementing Digital Menu Boards

Digital menu boards represent a significant leap forward for the restaurant industry while offering numerous benefits.

L Squared's digital signage software is purpose-built to provide these benefits for restaurants of all sizes.

• Cloud-hosted intuitive SaaS platform for easy access and management from anywhere
• System on Chip (SoC) displays to simply connect to the internet and install the software 
• Plug-and-play integration with 100s of in-built apps like PowerBI & social media
• Diverse template library to design custom frames or choose from existing layouts for menu boards
• Scalable solution suitable for a single location or large multi-location chains
• Content scheduling capabilities to match your business hours and promotions by never missing an upload
• Real-time updates with POS integration through Olo for accurate menu and pricing information

To learn more about L Squared and its offerings visit www.LSquared.com or reach out to us at info@LSquared.com.