Point-of-Sale Advertising Goes High Tech

(Originally Published in BusinessWeek)

New in-store digital ads are using the latest technology to target messages to individual buyers, boosting sales and even helping to manage inventory

When you order a morning coffee at a café owned by Israel-based Aroma Espresso Bars, an image of a croissant may suddenly appear on a digital display next to the cash register. Stop by for a sandwich or salad later in the day, and the display could flash a picture of a suggested beverage.

Aroma Espresso says sales of desserts and drinks featured on the screens have increased as much as 68% in outlets where it has installed the display systems, starting about a year ago. The company has about 100 cafés in Israel, the U.S., Canada, and Romania. Besides boosting sales, the system aids inventory control—for example, by encouraging customers to buy Danish sweet rolls when muffins are running low.

Welcome to the future of point-of-sale retailing. In-store digital ad displays have been around for a few years already. But stores and restaurants are now starting to use the technology for real-time promotions, instantly tailoring their sales pitches to match individual customers' selections or variations in product availability.

SCANNING SHOPPERS

Some retailers are starting to experiment with even more advanced tools. Merchants can now, for instance, install tiny cameras that scan shoppers' faces to determine their sex, race, and approximate age, and then flash appropriately targeted ads. YCD Multimedia, an Israeli company that sells digital-display systems, is already integrating such technology in some of its systems and is discreetly testing them in some U.S. retail outlets, though it won't say where.

In-store digital displays are set to become "the most effective media channel" for advertisers, mirroring the success of targeted online ads, predicts YCD Chief Executive Barry Salzman, a former president of DoubleClick's global media business.

These new capabilities are attracting not only retailers, but also consumer-goods makers seeking more bang for their marketing buck. Spending on in-store digital ads will grow as much as eightfold over the next four to five years, to $3.5 billion annually in the U.S. and $600 million in Britain, predicts Foluso Laguda, a senior consultant at Frost & Sullivan.

It's no secret why: Even as major TV networks and other traditional media outlets suffer a decline in audience share, the retail business is consolidating, with more and more people shopping in big chain stores. Some 140 million Americans shop at a Wal-Mart (WMT) store each week, compared with the average 23 million who watch American Idol or the 80 million who tune into the Super Bowl once a year.

BUYING DECISIONS

"All of my clients are looking at what digital in-store advertising means to them and how it can affect the brand relationship with consumers," says John Paulson, the New York-based president of G2 Interactive, a digital marketing arm of ad giant WPP Group (WPPGY), whose clients include Coca-Cola (KO), Heineken (HEIN.AS), Kodak (EK), Kraft (KFT), Pfizer (PFE), and Procter & Gamble (PG). "It is certainly on everybody's agenda."

Moreover, marketing experts say it's more effective to target customers inside stores than in their living rooms. "Some 70% of [purchase] decisions are made in-store. You can have a huge impact," says Peter Hoyt, executive director and founder of the In-Store Marketing Institute, an industry association based in Skokie, Ill.

YCD Multimedia, whose clients include Aroma Espresso Bars, British fast-food chain Wimpy's, and European clothing retailer New Look, is among several companies supplying technology for in-store digital ads. Another is the Salt Lake City-based In-Store Broadcasting Network, which counts Kroger (KR) grocery stores and the Duane Reade drug store chain among its clients.

The first in-store digital ads, introduced about four years ago, were sometimes ineffective. But advertisers are getting better at grabbing shoppers' attention. For example, they're now making shorter ads, after discovering that most people stopped watching anything that ran longer than about 7 seconds. They're also targeting locations where shoppers are more likely to pay attention. New Look, for instance, has put digital-ad screens in the waiting areas outside dressing rooms at some of its stores in Britain and France.

As advertisers get savvier at using this new technology, they may give a whole new meaning to the term impulse buying.

Schenker is a BusinessWeek correspondent in Paris.

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PAR Technology Subsidiary Announces $15.1 Million U.S. Army Contract Award
Thursday May 15, 7:30 am ET

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--Rome Research Corporation (RRC), a subsidiary of PAR Technology Corporation (NYSE:PTC - News), was awarded a $15.1 million contract to operate and maintain a Department of Defense standardized tactical entry point/teleport system at the Global Information Grid (GIG) facility, Camp Roberts, California. The performance period of the contract is 4 years.

The Global Information Grid is the globally interconnected, end-to-end set of information capabilities, associated processes, and personnel for collecting, processing, storing, disseminating, and managing information on demand to warfighters, policy makers, and support personnel. The GIG supports all Department of Defense, National Security, and related Intelligence Community missions and functions (strategic, operational, tactical, and business), in war and in peace. The GIG provides capabilities from all operating locations (bases, posts, camps, stations, facilities, mobile platforms, and deployed sites), and also provides interfaces to coalition, allied, and non-DoD users and systems.

We appreciate the confidence the Army has in RRC and the entire PAR team by awarding this follow-on effort to the Company. The initial effort at Camp Roberts was the first Army I/T facility support contract ever won by the RRC, commented Steve Lynch, President of PARs Government Operations. Based, in part, upon the fine performance of RRCs dedicated personnel at Camp Roberts, the Company has expanded its business in this market segment with the Army and is in a position to remain on that track.

ABOUT RRC

Rome Research Corporation, headquartered in Rome, New York, is a growing Information Technology and communication services company that has provided support to the U.S. Department of Defense for over 30 years. The Company has over 650 employees in more than 25 offices throughout the United States, the Pacific, Europe and the Caribbean. Rome Research is considered a leading provider of communications I/T support services to the United States Department of Defense. For more information, visit www.romeresearch.com.

ABOUT PAR TECHNOLOGY

PAR Technology Corporation creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. PAR has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years. Today the Company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by PAR's global service network. The Company has over 45,000 installations in 105 countries worldwide. PAR is also a leader in providing computer-based system design and engineering services to the Department of Defense and Federal Government Agencies. PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PTC. For more information visit the Company's website at www.partech.com.

Large Hardee's Franchise Selects Par's Total Integrated Solution for Their Restaurants
Wednesday April 16, 9:31 am ET

-- Paradigm Investment Group, LLC will install PAR hardware, software, and utilize PAR's complete service offerings for their stores

-- PAR will also integrate existing in-store self-service kiosks into new point-of-sale technology solution

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--ParTech, Inc., a wholly owned subsidiary of PAR Technology Corporation (NYSE: PTC - News), and a leading provider of technology solutions to the hospitality and retail industries, today announced that Paradigm Investment Group, LLC has selected PAR as their next generation technology provider for their restaurants. Paradigm will install PARs integrated solution in all of their restaurants.

Paradigm Investment Group, LLC is one of the largest franchise operators of Hardees quick service restaurants with nearly 100 stores in 4 states.

Paradigm Investment Group has selected PARs InFusion software for restaurant management. InFusion offers fast and cost-effective restaurant-to-enterprise Point-of-Sale (POS) solutions for hospitality operations of all sizes. The software suite is a true multi-concept, multi-service POS software system, functioning equally well in quick-service, full-service or even in delivery operations. The hardware platform emphasizes a fully-open architecture design. Paradigm has selected PARs ViGo terminal with its integrated 8.4 customer display. The display allows Paradigm to deliver Point of Purchase (POP) Marketing. When the terminal is not in use, the 8.4 touchscreen can display POP messaging: when it is in use, it acts as an order confirmation display. PARs hardware platform features an ergonomic design and has one of the most reliable operating performance standards in the industry. ViGo is designed for high-level performance in the harshest of restaurant environments.

Paradigm has also integrated an innovative self-service solution to enhance the customer experience, increase the average check and improve speed of service. Completing the solution is PARs dedicated service offering that includes professional implementation, 24x7 Call Center and on-site field support.

"We set out to find the best integrated point-of-sale solution available for the restaurant industry -- one that would allow us to enhance our operations management, improve service to our customers, and present a single view of the entire customer relationship at our restaurants, said Greg May, Chief Technology Officer at Paradigm Investment Group. Not only are PARs software and hardware products among the industrys best, featuring the latest technology innovations, but we have also been able to benefit by working with the experienced individuals at PAR with their vast experience in restaurant technology/in-store requirements and have played an integral role in helping us meet our needs.

The selection of PAR by Paradigm represents yet another endorsement of PARs ability to deliver integrated technology to one of the elite restaurant organizations in the industry, commented Greg Cortese, CEO & President of ParTech, Inc. A mark of distinction for PAR is that we provide the knowledge acquired of nearly 30 years of restaurant technology experience, as well as powerful business solutions that allow our clients to operate their businesses more efficiently and effectively. In turn, customer service is considerably enhanced, and customer retention is improved. The result is a technology solution designed to give organizations like Paradigm enhanced customer service, improved business practices and provide access to data at the point of sale.

About PAR Technology Corporation

PAR Technology Corporation creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. PAR has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years. Today the Company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by PARs global service network. The Company has over 45,000 installations in 105 countries worldwide. PAR is also a leader in providing computer-based system design and engineering services to the Department of Defense and Federal Government Agencies. PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PTC. For more information visit the Companys website at www.partech.com.

McDonald's USA Names PAR Technology as First-Ever U.S. Technology Supplier of the Year
Wednesday January 30, 10:42 am ET

OAK BROOK, Ill., Jan. 30 /PRNewswire/ -- McDonald's today announced it has awarded the inaugural U.S. Technology Supplier of the Year Award to ParTech Incorporated, an international provider of Point-of-Sale technology and related products and services. ParTech is a wholly owned subsidiary of PAR Technology Corporation (NYSE: PTC - News). McDonald's unveiled the award at its recent U.S Technology Supplier Summit, an annual gathering of key U.S. McDonald's technology suppliers, held at its Oak Brook, IL headquarters.

The McDonald's U.S. Technology Supplier of the Year Award will be presented annually to the technology product supplier that makes the most significant impact on, and contribution to, McDonald's USA. The award recognizes criteria including Impact on the McDonald's System, Innovation, Quality, Partnership, Customer Satisfaction and Value.

"PAR has consistently provided McDonald's with a superior level of technology innovation and ongoing support services," said David Grooms, Vice President and Chief Information Officer, McDonald's North America.

In presenting PAR with the award, Grooms praised the company for its wide range of significant contributions to McDonald's in 2007, from its day-to-day work in support of our restaurants to its innovative work in introducing new products and services to the system. "From the sales and support staff, to the manufacturing team, McDonald's appreciates PAR's contributions to our successes this year. We appreciate their energy and expertise and look forward to working with the Company in the future," added Grooms.

"PAR is very proud and excited to be the recipient of McDonald's inaugural Technology Supplier of the Year award," said Greg Cortese, CEO & President of ParTech, Inc. "PAR prides itself on providing McDonald's and all of our clients, high level restaurant technology products and services in facilitating the efficient operations of their hospitality businesses."

About ParTech, Inc.

ParTech, Inc. creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. As the hospitality subsidiary of PAR Technology Corporation, ParTech has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years. Today the company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by ParTech's global service network. For more information on ParTech, Inc. visit http://www.partech.com.