Restaurant owners know that sales can make or break a restaurant. Most businesses in the restaurant industry use a POS system to input orders. However, savvy restaurant owners leverage their POS system to manage inventory, schedule staff, and improve their restaurant’s operation efficiency.

What Are POS Systems?

POS stands for point of sale, and it tracks when and where a sale happens. Restaurant POS systems let you know when (during service, before you opened) and where (online, in the dining room, at the bar) the sale happened.

Restaurant POS systems consist of two main parts: the hardware and the software

Restaurant POS Hardware

Hardware is the physical pieces of a POS system that help make the sale happen. While you can choose which hardware to include in your POS system, the main components are:

Terminals. The terminal is what the system operates on. That can be a tablet or computer, like a laptop or desktop.
Kitchen display system. These displays keep the back of house in the loop. It shows the kitchen which table has ordered what and where those orders are. A kitchen display system can replace printing the orders on paper.
Payment terminal. The way customers pay or how servers process payments.
Printer. Many customers still want paper receipts, so you’ll need a way to print them.

Restaurant POS Software

Software makes things run, and most restaurant POS systems use an operating system you’re familiar with: iOS (Apple), Android, or Windows. While you may want to select an operating system you’re familiar with and integrate with your other software (like inventory or bookkeeping), the POS system software must be compatible with the POS system hardware. You can’t use an iPad terminal with a Windows-based software system.

Cloud-Based Restaurant POS

Another popular option is cloud-based POS systems. While you still need to select an operating system, a cloud-based POS hosts everything remotely, so you can access information from the POS system from almost anywhere with an internet connection. The advantage is that you may not need special or additional hardware to run the POS system, and it’s often less expensive than other POS systems.

Mobile POS

Some restaurants prefer a mobile restaurant POS system. These POS systems use handheld devices that allow the server or the customer to place and pay for the order right at the table. Many mobile POS systems also print receipts, making cashless and contact payments simple.

What You Can Do With a POS System

While a point-of-sale system streamlines ordering and payments, a modern POS system also helps you increase efficiency and improve restaurant operations.

Inventory Management

Some POS systems include an inventory management function. As orders are placed, you can track what is and isn’t selling to help you adjust your menu and reduce food waste. The inventory management function also helps you track what you have in stock so you only order what you need and can even help you predict when you’ll need to place a reorder.

Add Kiosks

Depending on your concept, a POS system enables you to add ordering kiosks. Kiosks can lighten the load on your staff and help you improve scheduling. POS system kiosks are also a great option for diners who prefer contactless ordering and payment solutions.

Standardize Orders

Between the dining room, bar, online ordering platforms, and third-party apps, you can have a lot of orders coming through multiple channels. And while this can increase sales, if every channel has a different way of placing the order, you could make costly mistakes.

Restaurant POS systems standardized orders, ensuring appetizers, drinks, and desserts are all in the same place. This helps the kitchen work faster and more efficiently so they can get orders out quickly and minimize the likelihood someone makes a mistake.

Improve Marketing Tactics

Marketing your restaurant can boost sales, but it’s difficult to know who to market to, how to position your restaurant, and if your marketing efforts are paying off. However, most POS systems include functions that help you design your marketing plan.

For example, the POS system can track customer data, such as the kind of smoothie they order. You can use this information to send that customer information about which smoothie are being featured this month and offer them a discount code when they make a purchase.

Schedule Staff

Some POS systems also have an integrated scheduling function. When combined with data about sales and your peak service time, you can more efficiently schedule your existing staff and decide if it’s time to hire more. What’s more, staff can punch in and out for their shift on a POS system, letting you get rid of the separate time clock.

Improve Safety

A POS system can also improve restaurant safety. For starters, you can add information about common allergens that a dish may contain that customers may ask about. If you have frequent diners or a loyalty program integrated into your POS system, you can record allergies specific to that customer and steer them away from potential problems.

The inventory management function helps you track when things are close to their expiration date so you can use them up and ensure you know when something is expired, and you should toss it.

Benefits of a Restaurant POS System

In addition to all the things you can do with a restaurant point of sales system, there are additional benefits that can help you increase sales and reduce operational inefficiencies.

Make Data-Driven Decisions

Point-of-sale systems capture sales data you can use to make informed decisions that improve operations.

For example, you can use sales data to identify high and low-performing dishes to improve your menu engineering and decide if it’s worth keeping something on the menu. POS systems will also help you analyze your void rate and identify which servers may need more training. The sales data will also help you determine the best way to schedule employees so you’re consistently staffed during peak times and not overstaffed when it’s slow.

Dining Room Management

In addition to inventory management, a POS system can help you with dining room management.

You’ll be able to see which tables are occupied and for how long, helping you predict when the table will turn over. And because the system tracks which tables are open, you’ll know exactly which tables can be pushed together to help you improvise in a pinch.

Over time, you’ll be able to analyze turnover rates to identify and eliminate service bottlenecks and improve your turnover rate.

Add Takeout, Delivery, and Order-Ahead Options

The restaurant industry and customers have embraced takeout, delivery, and order-ahead options. A restaurant point-of-sale system can help you add these options or improve your existing menu of options to enhance customer satisfaction.

Loyalty Program

Loyalty programs are an excellent way to increase the odds of customers returning to your restaurant. While a stellar experience and top-notch offerings are required, a loyalty program that’s easy to use and keep track of is equally essential.

Most POS systems include loyalty program options that are intuitive for customers and staff to use and make tracking and redeeming rewards simple.

What To Look For When Choosing a Restaurant POS System

When it comes to choosing a POS system, there are a range of options and add-ons you can include. Here are some of the things to consider when choosing a POS system for your restaurant.

Cost

The first thing to consider is cost. However, POS systems have two kinds of costs.

The first kind is the upfront costs. This generally includes the point-of-sale hardware and a software license, but you may need to install additional wiring or upgrade your internet to ensure the system works. And some items you consider important, like backing up data, may cost extra.

The second kind is ongoing and recurring costs. For example, if you go with a cloud-based POS system, you may need to subscribe to a monthly or yearly plan. Likewise, locally installed software may require an annual license renewal.

Security Features

While a point-of-sale system can improve your business, the reality is that a restaurant POS system is a computer. Just like your personal laptop, your POS system is vulnerable to hacks and attacks, which could compromise sensitive customer data and your financial information.

While nothing is 100% guaranteed, choose a POS system with robust security features and that provides regular updates to keep your system and data safe.

Cash Drawer

Payment processing is a crucial part of your business’s success. In most cases, that means accepting credit cards. However, some customers believe cash is king, and if that’s any of your customers, look for a POS system with a payment processing system that includes a cash drawer.

Scales With Your Growth

Finally, a good POS system is one that scales as you grow. More importantly, it’s one that helps your business grow. Whether you open more locations, hire more staff, or add a lunch service, the right POS system can expand and support your plans without much hassle.

A Restaurant POS Can Power Your Growth

A restaurant POS system is a powerful tool that helps you better manage staff and inventory, make data-driven decisions that support your goals, and ultimately support your business goals.

For expert guidance and tailored solutions that will elevate your business and drive success, Contact eatery-experts today No matter the concept or which part of the restaurant industry you’re in, we can help you streamline performance and boost sales.

How to Choose a Restaurant POS System