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It’s not a secret that starting a restaurant business is not a simple job. The real challenge comes when you’re engrossed in running a restaurant and thinking about the best way to make it a success. Everything from the front to the back of the house has to be done, including staff and inventory management, daily restaurant operations, and so on.
A reliable restaurant POS or point-of-sale solution is not just the core of any modern-day business but also the solution to your operational problems and much more. The right restaurant POS system lets you achieve more from accepting payments to streamlining the restaurant’s operations and automating the tasks of a restaurant.
This brings us to our next and crucial question: What is an effective Restaurant POS? Finding the best restaurant POS system isn’t easy, especially when you’re starting a new restaurant. Here’s an overview of the points to consider about POS systems and how to select one that is suitable for your restaurant!
A restaurant’s Point-Of-Sale (POS) is a computer system used to streamline and manage its operations. POS refers to the date and location where a transaction is concluded.
POS systems available on the market today can do more than simply accept payment from customers. Restaurant employees can utilize mobile POS systems to transfer requests to a Kitchen Display System (KDS), allowing chefs to prepare food in a timely manner and efficiently. The modern POS system tracks sales data and helps managers keep track of inventory and make orders only when required.
We’ve created an inventory of what we believe to be the most essential features in an advanced Restaurant POS system. This guide can be used to evaluate possible POS choices in accordance with your restaurant’s requirements.
This pandemic of COVID-19 has made ordering online especially crucial for restaurants. It lets customers place orders online for their food, reduces the chance of mistakes, improves customer experience, saves your restaurant money, and will cut down on in-person interactions to decrease the risk of transmitting disease.
POS systems with online ordering capabilities will allow customers to place orders on your website, regardless of whether they’d like to take it home themselves or have it delivered.
The top POS programs also allow you to create and organize your restaurant’s menu according to your preferences, alter its appearance, name sections, and highlight dishes.
If you own several locations, a reliable POS system can allow you to make changes across them at once or modify each location’s menu.
If your restaurant provides delivery (or plans to do so soon), it is important to ensure you have a POS system designed to handle this.
POS systems could integrate with third-party delivery apps like DoorDash or be equipped with internal delivery options. In-house delivery options include driver tracking and guidance, updates for customers (such as estimates of the time when food items will be delivered), and notification to the customer that their food has been delivered (which allows delivery to be inaccessible to the customer).
Inventory functions are vital for restaurant efforts to minimize food waste, make intelligent buying choices, and keep essential ingredients in stock.
When inventory systems are integrated with POS functions, restaurant owners have access to real-time information on what’s available in stock and which meals are most profitable.
Many POS platforms have distinct inventory systems, additional features that can substantially increase the cost of the system. It is best to choose systems that have inventory capabilities that are already built in.
One of the major benefits of cloud-based POS systems for restaurants is the ease with which they record information as customers leave. If you’ve gained their contact info and information about their eating habits, you can contact them proactively by offering them deals they’ll be delighted to. A reliable restaurant POS should be able to communicate to customers based on factors like their buying patterns, their place of residence, or their regular dining routine.
Proactive marketing plays a major part in restaurants’ ability to maintain a consistent revenue volume each month.
In certain cases, email marketing is included in the standard cost of the POS system. In other instances, you can connect your restaurant’s POS with email marketing software.
Certain POS systems come with built-in functions that track customer purchases and allow them to earn reward points or other rewards depending on how often they eat at your restaurant. Other systems allow you to connect to third-party apps, which can make this kind of point generation feasible.
Restaurants with well-defined and implemented loyalty and referral programs generally experience a 20% increase in re-orders and revisits.
Your POS system will allow you to alter the price and promotion at any location or run these promotions on a local or regional scale.
Restaurants can increase their profits annually by making purchasing gift cards in-store or online easier for their patrons.
POS systems must allow easy tracking and even accept gift cards after purchase.
While gift cards are an important instrument for increasing revenue and marketing, many POS systems view them as an added-on feature that isn’t included in the system’s basic cost.
Certain restaurants might have the advantage of letting customers use tablets to place orders for their own food at tableside. Self-service ordering works well for fast-casual eateries with basic menus.
Some restaurant managers might provide servers with handheld devices (some systems utilize proprietary hardware made for use in restaurants while others are designed to work with normal tablets, such as iPads) to accept orders instead of a pen or paper.
The POS system can direct servers through the ordering process with tableside ordering. The order is automatically entered into the system and immediately updates the financial report (and the inventory report, should you have this feature) without the need to input manually.
The kitchen display system makes paper-based order tickets a thing of the past.
If your POS system is enabled with the kitchen display system, food order information appears on the kitchen display for the back-of-house staff when they are brought into the kitchen from the front of the house. If your system supports self-service or tableside ordering, the order is immediately transferred directly from the table into the kitchen, removing the requirement for servers to waste precious time commuting between the tables.
If you’re using an electronic kitchen display system, it’s unnecessary for the cashier or barista in a fast-casual eatery to shout orders to the staff at the back of the house. There’s also less chance of error since Kitchen display units are usually created to help consistently highlight important information, such as changes in orders or allergies.
Additional KDS features, like timers, could help the kitchen team assess how long customers are waiting to get their meals.
Certain POS systems come with specific features that make curbside pickup more convenient. In particular, certain restaurants have implemented food lockers to ensure that customers receive the correct order and discourage theft. Some restaurant POS systems work with food locker systems. So, make sure to include food lockers in your program for contactless pickup.
When paired into your restaurant POS, all external, vendor, or third-party applications serve as an additional benefit. This system-wide capability can enhance one of the numerous aspects of the administration or service.
The absence of manual data transfer between systems saves time. Transferring sales numbers to accounting software or HR spreadsheets or selling items to the inventory management system is time-consuming.
Money is saved by reducing the cost of labor, increasing efficiency, improving customer satisfaction, and a host of other cost centers within connected restaurants and kitchens. The bottom line benefits in the long run through reduced costs and increased sales.
Human beings are prone to making mistakes. Specific errors are harmless, but some are cruel, inexpensive, and costly. When data flows through systems without the human element, companies can count on the data without second thought.
Customers want quick, personal, efficient service, especially in the delivery and food service business, where anyone is at risk of being hungover. From ordering online to cashless transactions, loyalty, and delivery, all of these can be connected via API to a point-of-sale, offering a seamless experience.
The industry’s razor-thin margins, coupled with the perishability of products, the high cost of food, and, in addition, more expensive labor costs, have owners enticed to cut costs and boost profits at every turn.
Analytics aid in implementing cost-saving initiatives and increasing the number of customers across all areas through marketing and loyalty strategies that increase average checks or referral business. Integrating with POS systems for Analytics and reporting software is essential in this competitive market.
Staying in the right place with the market is common sense. The same goes for using the full range of tools to help your business compete against the other bunch.
Many businesses close due to red flags going unnoticed for too long, eventually leading to bankruptcy.
If a food service company is equipped with a reporting and analytics tool integrated into its POS systems, it’s simple to spot emerging negative trends and identify changes in patterns to promptly solve any issue, whether it be food costs, scheduling, or even inventory management.
If you’re considering a custom POS system or a vendor-provided restaurant POS system, it is crucial to comprehend the pros and cons and the suitability of each for your restaurant’s specific requirements. This decision will have a significant impact on the efficiency of your operations, costs, flexibility, and potential for growth. Let’s look at how these two choices compare.
A custom-designed POS system lets you develop a system tailored to the specific needs of your restaurant’s processes, needs, and functions. This flexibility is among the main benefits of designing your custom POS system.
Restaurant POS software development solutions from vendors come pre-built off-the-shelf solutions made to meet the demands of most restaurants. Although many vendors provide a degree of customization, this is often insignificant compared to the capabilities a custom-built solution can provide.
Creating a custom POS solution from scratch may cost more in the beginning than buying a vendor-supplied system. The costs of an individual solution usually include the development of software testing, hardware integration, and regular maintenance.
Vendor systems can be more affordable, particularly for smaller to medium-sized eateries, due to the lower initial cost and the option to select among a variety of pricing options, such as monthly subscriptions or one-time purchases.
Creating an individual POS software from scratch could be long and time-consuming. Depending on its level of complexity, the procedure of designing, creating, deploying, and testing the system could take anywhere from a few months to a whole year.
Vendor POS solutions are faster to implement. Because the software has already been designed, you can install a vendor-based solution in just a few days or weeks, depending on the complexity of the system and the size of your establishment.
If you create your own custom POS, you can have complete control over security features. This allows you to create a system that meets your particular security and compliance needs. However, it is also your responsibility to implement and maintain these security features.
Vendor POS systems usually have solid security features and built-in compliance features because they are designed to manage sensitive payment and customer information on a large scale.
If you have a custom-designed system, maintenance and updates are with your own IT team or your contracted restaurant management software development company. You are free to make changes as needed; however, this requires ongoing investment in technology resources.
Vendor systems typically offer customer support and automated software upgrades as part of their offerings, which makes them simpler to manage and maintain over time.
Making the custom POS requires significant technical knowledge, either on-site or through an outside development team. This complexity creates a challenge, particularly for restaurant owners who lack technical knowledge.
Vendor POS solutions are designed to be easy to use and require only a few technical skills to operate. The majority of them are plug-and-play solutions, which allow restaurant managers to concentrate on running the business instead of managing technology.
The price of a restaurant’s POS system depends on various factors, from hardware and software to support, setup, and other charges specifically associated with point-of-sale systems.
Here are a few expenses you should consider.
Most POS software choices range from $29.99 to $200 a month. Costs don’t necessarily correspond with the quality of features or functionality in the POS field. Don’t think a pricey POS system has features that cheaper systems don’t.
POS hardware for a basic setup could cost as much as $1000 or more for a workstation. This typically includes the essentials like the POS countertop terminal, cash drawer, and receipt printer. The cost could increase with the addition of additional accessories like kitchen displays, displays for customers, and handheld gadgets.
Finding companies that include hardware in their monthly costs is an effective and efficient method of reducing the burden of large upfront costs associated with buying hardware.
So, you can be confident in selecting this method. You can select a POS hardware system that fits your business’s needs and budgetary needs without having to worry about the initial price. This method is more practical and economical, allowing you to begin your business without spending a fortune.
While certain POS service providers offer setup support in their pricing plans for standard services, others may provide it as a remote option or an add-on option for an additional cost.
This cost can differ based on factors like the size of your business, the number of POS terminals installed, and any integration or customization requirements. In certain instances, the cost of installation can range up to $1000 per day and could include additional charges for travel or non-standard working hours.
Thus, companies must know what’s included in the contract to avoid unexpected installation expenses.
The same applies to post-installation support costs. Support and maintenance for the ongoing period are usually included in the cost of POS software subscriptions. However, certain providers might provide different levels of support, such as premium support paid for by more demanding customers.
In addition to the expenses mentioned above, transaction costs related to processing payments via the POS system should also be considered.
The exact amount charged will be determined by various factors, including the type of credit card used, the number of transactions, and the average ticket cost.
Some payment services offer a variety of price options and POS configurations that help restaurant owners increase expenses. For instance, you could offer a discount on cash transactions or charge a fee for additional transactions made using credit cards, which are becoming more popular in a wide range of establishments.
It’s important to consider these charges when determining the price for your services or products since they can have a major impact on your profit.
The cost of integrating additional functions or third-party apps depends on the company and the degree of integration. For high-end POS integrations, costs can range from a single setup fee to ongoing subscription charges.
The overall cost can differ dramatically based on factors such as features, size, and personalization. Restaurant owners should carefully analyze their needs and budgetary limitations to choose an organization that can provide the most comprehensive service for a reasonable cost.
Balancing the costs of a POS system is likely an actual problem. But there are methods to maximize your investment and make savings over the long term.
Here’s how to keep your costs under control:
Follow these guidelines, and you can choose a POS system that is not only suited to the immediate requirements but also in line with your business goals over the long term and will set the stage for success in the highly competitive restaurant business.
No matter what method they choose, restaurants should prioritize the security of their data and comply to safeguard their customers’ information and ensure their trust. Regular security assessments, employee education on best practices for security, and incident response plans are essential to the POS system’s implementation and continuous management.
Choosing between a pre-made or custom-designed POS system is carefully evaluating many elements. Here’s a quick cheat sheet to help you choose:
Select a POS system from a third party. If you:
You should consider investing in a customized POS solution if you:
The most effective restaurant management software development solution matches your restaurant’s specific requirements and helps you reach your goals. With all the information discussed in this blog, you’re now at a point of knowledge to select the right component to create your POS system successfully.
Various software integrates with your current restaurant management program, including KDS, the kitchen display system (KDS), and the customer relation management (CRM) system.
The procedure for setting up POS is different for each service. Initially, you’ll select a vendor and then review the hardware and software options. Once you’ve decided on your hardware, the service provider usually offers a formal onboarding or training process to help you set up and get started at your establishment.
There are three kinds of POS software: cloud-based, server-based, and cloud-hybrid. Modern POS systems come with a POS touchscreen terminal tablet or mobile device that can process transactions (for front-of-house at hospitality establishments) and a back office for configuration and overseeing the system.
Nearly 9 out of 10 restaurants (87%) utilize POS systems. However, the majority of them are still using an old system. Only 6% use cloud-based POS systems. The use of other software products, including loyalty programs, accounting platforms, or employee management software, is at 25% or less.
