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Steak 'N Shake Introduces Facial Recognition Payment System, Sparks Customer Outrage

Apr 23, 2024 12:23 AM EDT | By Jep Collins

Sliced Steak

(Photo : Pexels/TerjeSollie)

Customers at Steak 'n Shake are upset over a new feature recently introduced at some of its locations.

The fast food chain has added a new payment system to at least 300 of its restaurants, sparking disappointment among some patrons.

Steak 'n Shake Shifts to Self-Service Model

In 2023, Steak 'n Shake made a significant change by transitioning from a full-service restaurant to a self-service format, as reported by Restaurant Dive. Now, almost all of its locations are equipped with digital kiosks where customers can place their orders themselves, instead of waiting to be seated and served by a waiter.

These kiosks have been enhanced with new technology to simplify the payment process for customers, a recent press release from the company revealed on April 15. Initially, Steak 'n Shake collaborated with tech firm PopID to pilot a "biometric facial recognition check-in and check-out" system at one location last year.

After successful initial tests, this technology expanded to 25 kiosks across five different Steak 'n Shake restaurants in the United States, as Sean Olson, CFO of PopID, informed Restaurant Dive. The full rollout began in January and is expected to be completed by the end of this month.

Steak 'n Shake claims to be the first fast food chain to adopt facial recognition software for payment purposes. According to its press release, the brand aims to streamline kiosk operations to make them faster, easier, and more personalized.

PopID collaborated with Acrelec, which supplies both drive-thru and kiosk hardware to Steak 'n Shake and other brands, to integrate the facial recognition payment functionality. Olson noted that it takes about two weeks to implement this feature at each location.

John Miller, CEO of PopID and chairman of Cali Group, commented that this innovative approach could enhance customer loyalty and increase revenue for the Steak 'n Shake brand.

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Steak 'n Shake Introduces Facial Recognition Payments

Group of people eating at a restaurant

(Photo : Pexels/fauxels)

According to Miller, the company representative, customers at Steak 'n Shake will no longer need to use cards or cash for payments, and employees will be freed from processing these transactions. This change comes as the company introduces instant check-in and check-out using facial recognition technology.

Miller stated, "Similar to the kiosks, biometric check-in can boost loyalty and increase revenue at the drive-thru while also cutting down on payment processing costs."

He also mentioned that biometric payments at the order confirmation screen would allow staff members to focus on other tasks instead of handling card and phone payments at the order pick-up window.

Sean Olson from PopID added that the entire check-in and check-out process would take just two to three seconds, he told Restaurant Dive. This efficiency, however, has not won over all customers.

A significant number of customers have expressed dissatisfaction with the new technology. One customer stated on Facebook that they would stop visiting Steak 'n Shake due to the mandatory use of cards and the lack of human interaction, exacerbated by the facial recognition at kiosks.

They criticized the automation saying, "Well the woke crowd has ruined my favorite fast food place to go steak and shake. Can't use the money you have to have a card there's nobody in the place everything is done by automation... I mean this place is going to crap I'll never be back...the kiosk to order performed facial recognition."

They further accused Steak 'n Shake of implementing facial recognition without proper authorization. Another customer lamented the changes, calling it a "sad ending of a beloved eatery."

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