Everything You Need to Know about Restaurant POS Systems & Technology
Implementing a point-of-sale system into your restaurant: what does it take?
Gone are the days of being able to run your restaurant with pen and paper and still be successful. Today it is most important to ensure your restaurant has a point-of-sale system established in the business from the beginning. With rising food and employee costs, you need to be able to accurately track anything and everything.
We have put together a quick guide to help you through all the ins and outs of choosing the perfect point-of-sale system for your restaurant. From things to consider to the must-haves, download this free guide to learn what you should be looking for and the questions you should be asking when deciding on a point-of-sale system for your restaurant.
A few of the items covered in our FREE guide are:
- Tips to defining your restaurant needs: what is imperative to have in the business? What features can you live without?
- Essential features: ensuring the system offers items like timed events, discounts, special menus, and more to keep the cash flow coming in strong.
- Your most important asset: why your customers matter and how to reward them within the system.
- Tips for getting the most out of your system: making sure your restaurant point-of-sale system doesn’t become just a glorified cash register.
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Impacts of a good POS system
How would implementing a point-of-sale system in your restaurant change the life of a chef? A server? A manager? Even you? The decision to move forward with implementing a system affects more than just the person who purchases the system. There is a lot to consider and a lot of people to consider when making the decision.
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Front of the house
When you walk into your restaurant this will be the first area your customers will notice. It will be the first impression spot and the area your customers will remember and recommend to their friends and family. This first impression experience is something you probably always thinking of, from having a friendly staff, to smooth turnovers, and to drinks and food arriving on time and in a presentable manner. How do great restaurant point-of-sale systems assist with all of this?
Well, probably in more ways than you’ve even thought about. A restaurant POS system can give your servers the power to commit to complex orders without errors, take down special requests on the fly, and ensure everything is correct by using an iPad to view the order before sending to the kitchen.
All of this accuracy allows your servers more time to interact with your customers, versus time fixing orders and repairing the experience for an order entered incorrectly, or even walking across the room to enter the order at a stationary terminal after it’s already been written down with pen and paper… why do this twice?
Questions you should ask yourself when choosing a system, based on your wait staff:
- Does the system have a user-friendly interface?
- Is the system easy to learn?
- How many iPads might you need to run smoothly and efficiently?
- How easy is it to change floor plans for the hosts?
Back of the house
This is the area which is unseen to your customers, but probably the most important. Kind of like behind the scenes of a movie. We know a lot happens but all we see is the finished product. This is exactly how you want your restaurant to run.
Instead of waiting for servers to move back and forth to deliver orders to the chef, dealing with incorrect orders due to non legible handwriting or language barriers, with a restaurant point-of-sale system, orders are easily delivered electronically to the kitchen, or designated area, in an instant, without someone having to personally deliver it.
Things to consider in your research of restaurant POS systems to help the back of the house:
- How quickly can orders move from the table to the kitchen or bar?
- Is there a way to transmit orders to a dedicated work area, such as salad prep, hot kitchen, cold kitchen, or bar?
- Is there a multi-language function to eliminate language barriers among staff members?
Aside from actually being in the restaurant on a regular basis, you as the owner are probably wondering the questions you need to ask to benefit yourself as well. You will need a clear view of what is happening in the establishment to be able to make informed decisions moving forward.
Some things to consider
- Is the system cloud-based allowing you access from anywhere and at any time to check on sales, busy times, menus, and more?
- Can the system manage happy hours, special menus for events, food trucks, etc.?
- Can the system grow with your restaurant, as in can you add delivery or take-out services later on?
- Can you update the menus yourself without having to call someone?
Ultimately, you can see why it is important to ditch the pen and paper system and adopt cutting-edge technology within your restaurant. In your research of restaurant POS systems, the process should also include your staff as they are a vital part in the POS system actually working versus just collecting dust within your restaurant.
If you are looking for more information on the questions you need to ask when shopping restaurant POS systems, please fill out the form and download the full 17-page version of this guide. We promise, you, your restaurant, and your staff will all be glad you did!
Restaurant POS Technology: What Is It, and How Does It Work?
Restaurant point-of-sale technology has become a necessity for food and beverage operations all over the U.S. No matter what size a business is, there is a POS system tailor-made to suit that business’s demands.
A restaurant POS system is comprised of both software and hardware. The one you choose will involve your payment terminals, touch screens for order placement, customer-initiated tableside terminals, or any combination of these. Your software can be based in-house, or it could be a cloud-based system, depending on the one that you choose.
The idea of a system that can manage your sales is one thing, but one that can integrate every part of the business is quite another. Point-of-sale systems for restaurants can do so much more than simply process sales. They are used every day, by businesses of all sizes to streamline day-to-day operations and improve each customer’s experience.
Keeping an eye on the bottom line is what concerns most business owners and managers. This is as true in the restaurant business as it is in any other industry. It’s true that you have to spend money to make money, but there’s a fine line where spending too much on any one thing – inventory, labor, outside services – can put you over the edge when it comes to incoming and outgoing cash flow. A restaurant POS system can help you maintain those tight margins and run a successful business.
Today’s integrated POS system can offer a restaurant many things, including all of the following:
- Produce reports and provide helpful analytics
- Track and manage inventory
- Track and manage employee time
- Allow for gift and loyalty programs
- Reduce theft, waste, and inaccurate orders
- Provide a table reservation option
The Benefits of a Restaurant POS System
There are many reasons to employ a point-of-sale system into a restaurant of any size. Even the cost of the system itself can’t be seen as a drawback since the business is paying in advance for future savings. Plus, the owner or manager is getting unmatched peace of mind knowing that everything needed to run the business effectively is at his or her fingertips.
Improves Customer Experience
When a business is looking for a POS system, there are probably many things that have necessitated this need. However, above all else, the business is probably looking for a way to improve the overall guest experience. It is the customers, after all, who bring cash flow that keeps the restaurant in business. A great POS system can help a restaurant and its employees provide the service that guests have come to expect. From customized ordering to fast service, a POS system can improve every aspect of the food service process.
Maximum Control of Menu and Promotions
Have you ever had this experience? You go to a certain restaurant because they are offering a special on your favorite dish, only to find out that you’re too late. The promotion already ended, although you only heard about it days before. If so, you’ve fallen victim – not to some sort of scheme – but of poor advertising and promotional strategies.
This and many other situations can be avoided when a restaurant has a real-time POS system that allows the staff to add or remove items as soon as they go on promotion. The pricing of these items and any additional pricing considerations such as buy one, get one free or happy hour discounts can be automatically set, making menu control easier than ever. It’s even more important to have this control when the same owner or manager is managing more than one location and needs to keep the menu and pricing consistent.
Food Will Be Higher Quality and More Consistent
Once a restaurant POS system is in place, it will integrate orders and track the kitchen’s overall performance. A restaurant will be able to do these tasks on the spot, so everyone in the restaurant has up to the minute information, from the house staff to the kitchen. The right system can help keep food prep areas moving and can ensure that every recipe is prepared the same way every time utilizing graphics projected on convenient overhead monitors.
Save Money and Create More Cash Flow
It’s a well-known fact that a restaurant POS system can make things run more smoothly, but many people don’t make the connection that a more organized system can save a lot of money. The reporting and analyzing features of this software will keep the kitchen from wasting food or having too many staff members on hand that are unnecessary when the right members of a restaurant’s staff have access to these reports and when they know how to use the information correctly.
Maximize Revenue with Loyalty Programs
Loyalty and reward programs will increase your business among customers that are semi-regulars. It will also target potential customers who are looking for their next favorite place! More than half of consumers in the United States utilize at least one loyalty program, and there is a strong tendency toward ones that are easy to use and offer something that the clients really want. The only way to make these determinations is to first analyze what customers are buying anyway and then capitalize on that in the loyalty or reward program.
The Earliest POS Technology
The first versions of this kind of technology went by the acronym POS, which, at the time, stood for point of sale. However, as the technology grew it came to include so much more than a simple interaction in which the customer pays for goods or services at the end of an exchange. The same acronym today stands for point of service, which is much more accurate considering the difference between those earlier ones and today’s. But more on that in a moment.
Basic cash registers constituted the true ‘first restaurant POS systems.’ These mechanical units were employee driven and incredibly simple. The invention of the electronic cash register in 1970 changed the game completely. IBM was the first company to produce such a product, and the idea of a computer-based system was as novel to patrons as it was to employees.
Because of this technology, wait staff could send orders to the kitchen quickly and consistently. Orders were wrong less often than with the older hand-written system, and customers could clearly read their receipts to ensure that they were charged for the correct items, and they could easily see sales tax and figure gratuity.
Restaurant goers were thrilled that they could plainly see these figures, and owners now had the ability to look back at receipts when there were inaccuracies at the end of shifts. Owners and managers could also begin to tell how much money should be left in the drawer for the beginning of the next shift. This also decreased errors in calculations, and it ensured that they always had enough cash on hand. These things may seem common sense now, but back then, they were the wave of the future.
These first POS systems had limitations, as one might imagine. They were not capable of processing credit cards. A credit card transaction had to be done over the phone or carbon copied and run at a later time. Both of these methods slowed down service at the point of sale terminal (the cash register).
The 1980s saw the rise of the internet, and with it, everything changed, including POS restaurant technology. Transactions moved faster and were getting ever-closer to real time. Everything from order taking to daily operations improved during this decade.
The reporting side of restaurant POS benefited owners in several ways. Arguably the most popular improvement was that credit card transactions could be balanced through the POS system rather than having to run the numbers against a credit card machine. Managers and owners could now see their overall sales with a breakdown of cash versus credit transactions.
In 1986, the industry saw the first touch screen POS technology for restaurants. It offered the user brightly colored icons and graphics to visually track sales and other pertinent information with just a glance. Improvements continued for the next several years, with each company trying to outdo the others and put their unique spin on POS software and hardware – features that they hoped would be attractive and useful for their clientele.
By 1992, Microsoft Windows had gotten in on the act, debuting its own brand of POS system software. From there, the market for internet-based software capable of automating an entire restaurant seamlessly was increasingly more common and in high demand. Restaurant owners were seeing what an effective POS system could do for their restaurants, and they were demanding higher and higher functionality.
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POS Features through the Years
Since those early days, much about the restaurant business has changed. As POS systems developed and became more specialized – retail versus restaurant – owners began to show preference for systems that had the newest and most helpful features. What seems today like a simple task was groundbreaking when restaurant POS systems first emerged.
For example, the ability to split the check among separate parties at the same table was an amazing feature that made life easier for everyone. By simply dragging and dropping appetizers, entrees, and desserts, wait staff could make everyone at the table happy, and no one had to worry about making change or IOU’s!
Giving customers the ability to customize their meals was a much simpler, more consistent process as well. It was no longer necessary for the staff to remember how much each addition cost, and restaurants suffered less loss because customers were being charged the same amount for the same items each time. This also provided an easy way to differentiate between who got which side items and which kind of bread they wanted for a sandwich.
Finally, restaurant owners bought in to the loyalty card programs that POS systems could offer them. Not only did customers benefit from them, but the restaurant could also keep up with how often the customers visited and what they ordered. Restaurant POS technology also made gift cards even easier to purchase, distribute, and redeem.
The Future of POS Systems
Up to this point, we’ve been referring to POS technology in terms of its old usage, point of sale. However, currently and in the future, this acronym will mean point of service. The distinction to be made is this: POS technology isn’t just used at the end of the customers’ shopping or dining experience. Instead, it is integrated into every part of their visit, from the moment they arrive until they check out.
In the future, it’s expected that restaurant POS technology will undergo changes that are just as significant as past ones.
Trend Toward Cloud-Based Technology
Not long ago, all restaurant POS systems were managed and maintained on-site. This required more investment up front by the restaurant owner for items like large, expensive servers. In addition, each individual restaurant had to maintain their own system, updating, upgrading and securing the system perpetually. This upkeep was also costly because practically no one had an on-premises expert, so expensive tech support was also needed on an ongoing basis.
Therefore, cloud-based technology is readily taking over the market. A striking distinction of cloud-based POS systems is that they are mobile-enabled, making it possible for restaurant owners and managers to follow the business no matter where they are. It also gives the wait staff freedom to move around the dining floor without being chained to a stationary terminal for order entry.
In addition to mobility, cloud-based technology is the future of restaurant POS systems for several other reasons:
Instantaneous Updates – With a system that is maintained off-site by a professional team, it’s possible for restaurants to receive instant updates, upgrades, and technical support versus having to wait for a technician to visit them on site. This increases productivity and streamlines the use of the POS system’s features.
Less Expense – The initial cost of a cloud-based POS system is lower because you there is very little on-site equipment to install. Plus, the IT complexity of installing updates, security patches, and optional upgrades is reduced, meaning that your cost is reduced as well.
Better Security – With cloud-based technology, restaurants are guaranteed more protection from hackers than they would ever be able to supply on their own. This benefits both the restaurant and its guests.
Of all the benefits of modern, cloud-based POS systems, possibly the most attractive is the ability of restaurants to connect with their customers as never before. In the future, even the most casual restaurants will be able to determine who their regulars are, what those people are ordering most often, how much they are spending on each visit, where they live, and the frequency in which they visit.
These facts allow restaurants to tailor their menu and service to these patrons, developing brand loyalty in those customers. It also benefits the customers since they don’t have to remember to bring gift cards or even pull out their debit card to pay for their meal. Comprehensive restaurant POS systems are getting smarter and more secure every day.
What Restaurant Owners Are Looking For
It’s no great feat to find a POS system for a restaurant of any size or type. Now that so many products are on the market, the real job is sorting through them to find the one that will best benefit the specific business. Restaurant owners have the luxury of being picky, with every POS company fighting to be the best.
Here are a few of the traits that restaurant owners consider necessary these days:
Cloud-based Technology – As we have just seen, a cloud-based system is the most cost effective, safest option for POS technology.
Data Security – The ability to protect the customers’ information while also protecting the business’s sensitive information is not something owners are willing to compromise on.
Analytics – Restaurant owners have gotten used to the real-time data offered by past POS systems. In the future, they will only want more specified reports and customizable options.
Mobility – As an on-the-go professional, a restaurant owner needs to be able to access the restaurant’s system anytime, anywhere.
Loyalty – It’s a proven fact of business that remembering a customer by name and offering up a favorite dish or drink makes the customer feel appreciated and creates a sense of loyalty. Owners appreciate tools that make it easier for their staff to remember these things.
Payment Options – Having more than one way to pay is another good way to develop trust with customers. To accomplish this, restaurants must have a POS system that integrates several different payment options.
Engagement – Keeping the customer engaged in the dining experience – with interactive table POS hardware, for example – is an excellent feature of the newest POS restaurant technology and something that cutting-edge owners want in their restaurants.
In the future, you will see these features affect the modern restaurant industry in two distinct ways.
First, service will improve. Because the ordering system has become so streamlined, wait staff and kitchen staff will produce a steady stream of excellent service and quality. Employees are on the floor more and are more attentive to the needs of their tables. Customers will begin to expect this higher level of customer service wherever they go, so every restaurant, regardless of size, type, or location, needs to be ready with the right POS system.
Second, restaurants will use labor more efficiently. It will be much easier for restaurant owners to tell if they have too many servers for a given shift or if a bar assistant is really necessary. When labor costs go down, the business benefits. But more than that, the owner can definitively determine which of their staff is giving customers the best experience, upselling the most effectively, and making the most of their time and money.
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Best Brands in the Business
There is no shortage of brand names in the restaurant POS industry. No one-size-fits-all option exists, unfortunately. Choosing a POS system for your business will involve a lot of research to make sure you find the best fit. Getting a product that is too big or too small for your business could be as detrimental as not having a POS system at all.
Here are some of the most popular POS brands in the restaurant business. Some cross over into retail, while others are strictly restaurant specific. Depending on the size of a restaurant and its individual needs, one or several of the products below may be a good fit.
Revel Systems is one of those brands that works well with both retail and food service establishments, including fast food and sit-down restaurants. It’s powerful enough for medium to large businesses but may be too much product for small operations.
Owners like Revel because it is extremely customizable and offers boatloads of features. It integrates well with Quickbooks, and it provides real-time inventory stats, even during a busy shift. Multiple payment options such as Apple Pay and PayPal are accepted thanks to Reveal’s open API design.
TouchBistro Restaurant POS
TouchBistro has enjoyed much popularity because it easily fits businesses of any size. It is solely for restaurant use, which makes it much more customized than other products straight out of the box. It’s analytics focus directly on improving the restaurant’s bottom line. The product also boasts an amazing support department that will go above and beyond to keep a restaurant running smoothly.
The proof is in the pudding, they say. TouchBistro was voted ‘Best Restaurant POS’ in both 2015 and 2016, and there is no indication that the company intends to let that title fall to another POS company in the near future.
Harbortouch’s 24/7 customer service is ideal for restaurants that are open 24-hours a day or those that keep unusually early or late hours. It is a great system for a business that has never been on a POS system before or has not made use of their current system because Harbortouch devotes a large portion of the setup process to training employees.
It’s also one of the brands that offers a risk-free trial. After 30 days, the restaurant can cancel the service with absolutely no commitment. Businesses appreciate its easy integration with electronic cash registers, wireless card swipers, and near-field communication that they may already have.
As the name would suggest, Upserve’s main goal is to improve service through menu items. The menu can be customized via a mobile device, and customer profiles – including real-time notes about food allergies or special events – can be stored for improving the customer experience and creating customer loyalty.
The fact that Upserve is exclusively compatible with Apple products doesn’t seem to damper its popularity. The brand’s detailed reports offer some of the most specific analytics available, while the product remains user-friendly and easy to operate.
Toast provides up-to-the-minute analytics and quick table-side payment, two features that make this product extremely effective in turning tables over faster. The summary report feature includes everything from net sales to guest counts, with the ability to look closer at each item if needed. For at-a-glance reporting, Toast is one of the best.
The initial startup and monthly fees are a little steeper here, but the restaurant gets an unlimited number of features included at no extra charge, and no extra charges will be applied for additional technical support or future updates.
Lightspeed is geared more toward the retail business, but it is still useful for mid-sized restaurants, although it is one product to offer varying contracts and hardware based on the size and type of the business. To be sure that it’s the right product, restaurants are welcome to try Lightspeed for free for 14 days.
Lightspeed can be set up by the restaurant owner with an easy-to-follow online wizard, or they can call the toll free number and get help there. Live chats are also available on the home page, so help is never far away.
Epos Now was designed with small to mid-sized businesses in mind, and it continues to cater to this demographic in both price and services. Customer management is simplified, and inventory can be managed no matter how much or how little the kitchen likes to keep on hand.
It’s also very easy to integrate financial elements like creating purchase orders, managing payroll, and tallying a general ledger with Epos Now. It is cloud-based and compatible with practically every operating system available, including Apple, Windows, and Android.
Breadcrumb offers several attractive features, like the ability to split a check, keep up with available tables, and serve as a time clock, all at the same time. There are levels of access so that no one changes anything accidentally, which is excellent for a business that may have different managers on each shift.
This is one of the only products that utilizes an employee-centered ‘Bulletin Board’ which can quickly and conveniently make them aware of items the restaurant is no longer offering, weekly specials, or special considerations for the day, shift, or hour.
NetSuite uses Oracle to support a powerful product that can be an amazing marketing tool. Based on purchase history or a slew of demographic settings, a restaurant can run promotions that will bring in customers in droves.
NetSuite is one of the more expensive restaurant POS systems, but it comes with a slew of features, and it is supported by both Apple and Windows systems. Suitable for any size business, NetSuite has a range of services that will be beneficial to the business without getting in the way.
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POS Pricing and Average Costs
There’s no way to say there is a ‘best value’ in the restaurant POS market. It all depends on the features the restaurant owner needs and the allowable budget. Once those two things have been decided – and they definitely should be decided before the shopping process begins – then it will be possible for each owner to gauge true value for himself or herself.
The most important thing to remember about restaurant POS systems is that every restaurant doesn’t need the most powerful tool. Paying for something you don’t need will only cost the business unnecessarily.
There’s more to consider than just the price of the equipment or the monthly fees. An owner will also have to think about the future of that particular system. What license fees will be needed? Are there additional fees for technical support beyond the setup? Asking these questions can make a big difference in advertised cost versus actual cost.
In the last five years, the overall cost of a quality restaurant POS system has dropped by nearly $5,000. This number includes initial setup, hardware, additional training, everything. This is proof that customers are getting exactly what they want for lower prices. It’s recommended that all restaurant owners in the market for a POS system keep looking until they find one that offers the functionality they need and want at a price they can afford. It’s out there!
Below is a basic breakdown for the two types of restaurant POS systems:
On-site (or Locally-installed) Software
These guys are pretty inexpensive, considering that the license fee is usually a one-time thing. That will set you back between $1,000 and $2,500, which isn’t too bad, but you’ll be at the mercy of a technician to come out and fix any IT issues that arise. Monthly support typically only runs from $25 to $100, depending on the brand. The hardware could cost anywhere from $2,000 to $4,000.
The least expensive POS system, web-based POS depends on your internet connection to handle daily tasks and transactions. There usually isn’t a licensing fee for web-based systems, but you’ll pay anywhere from $50 to $200 a month for the service. The hardware tends to be less expensive than locally-installed systems, running from $450 to $1,500 on average.
With all the products available, it’s entirely possible to find one that doesn’t ask for a long-term contract and doesn’t charge cancellation fees. When you have this kind of flexibility, you can really focus on what’s best for your business rather than the fine print of your contract agreement.
Case Studies: Restaurant POS Done Right
To understand how a POS system can help a restaurant increase profits and shrink those margins, let’s look at a couple of examples.
Consider Rich Shellene, who left a profitable and well-known chain restaurant to open his own place, Rich’s Burgers-N-Grub. His simplistic idea to create delicious hamburgers wasn’t enough to ensure that his new venture would be a success.
Shellene faced some challenges when he started his business in Salt Lake City. A shallow pool of qualified, motivated applicants and lots of competition from quick-service establishments made him wonder what would make customers pay a little more for his high-quality food.
He also needed a way to increase productivity so that customers could get in and out quickly. This would, of course, benefit the customer – a quick bite but the amazing quality that they’d usually only get at a fancier establishment. But Rich knew that getting customers in and out would also free up tables and allow him to serve more customers in the same amount of time.
He began his POS technology journey knowing what he wanted, but it seemed no one had the right fit for his business until he found the Tavlo RMS application from Cirra Systems. The built-in printers and easy-to-read kitchen display systems made his kitchen prep and cooking area work faster and more efficiently than ever, getting Rich’s Burgers closer to the 6-minute service time that Rich desired.
Because tickets are printed and the order is sent to overhead monitors simultaneously, there’s no need for confusing chatter between servers, cooks, and prep line. This reduces the amount of mistakes made in the kitchen and helps the process go even faster.
And because the displays are everywhere, one person can operate the kitchen on their own when things are slow. This saves a ton of money in labor costs, as long as Shellene keeps tabs on when his busiest and least popular times are.
Fortina Italian Restaurants
The same needs can be found in businesses large and small. Rob Krauss wanted to take his Italian eateries to the next level, but he couldn’t have imagined that there were products available to his restaurants that were both multi-functional and user friendly.
Krauss wanted several things from a restaurant POS system: server-hostess communication, tableside ordering, and a kitchen that was efficient and well organized.
His first idea was to have special software designed for his exact needs, but then by chance, Krauss was introduced to Lavu, a cloud-based POS system that can be customized for any food and beverage service.
From the hardware to the software, Krauss was pleased with the Lavu system from the beginning, and he had the distinct advantage that some other restaurants may not. His POS system was in place before he opened his first restaurant. This allowed him a lot of flexibility to tweak the system as the business grew, and it ensured that all his staff were well trained before having to interact with the system and customers at the same time.
Once the system was in place, Krauss was able to replicate the success of his system in other locations, but the open interface of the system also gives his staff, in all locations, the ability to collect meaningful data about customers, including their names, frequent orders, and birthdays. This database is accessible to all the wait staff in a given location, but not to servers in other locations in order to maximize customer privacy.
Krauss is very happy with Fortina’s ability to serve its customers with confidence in a chaos-free setting.
- Restaurant POS Systems
Read more about Point-of-Service Technology:
- POS Technology
- Restaurant POS Technology
- Quick Service POS
- Table Service POS
- Restaurant Inventory Software
- Restaurant Inventory Systems
- iPad POS
- Mobile POS
- Restaurant Management Software
- Restaurant POS Software
- Restaurant POS Advice
- Restaurant POS Equipment
- Restaurant POS Setup
- Restaurant POS Trends
- Restaurant POS System Reviews
To find out best practices and things to consider when getting ready to choose a POS system for your restaurant, enter your information into the form and download the full version. We promise you won’t be disappointed!