What are restaurant point of sale systems?
A restaurant point of sale system is a digital network that connects all of the different elements of a restaurant in order to streamline the ordering and payments process. This can include anything, from online ordering and reservations, to table management and even payroll.
7 Ways Restaurant Point of Sale Systems Can Optimize Business Operations
What is a Restaurant Point of Sale System?
A restaurant point of sale system (POS system) is a computerized system that streamlines and automates various tasks associated with the running of a restaurant. These include taking customer orders, processing payments, managing inventory, and tracking customer loyalty programs.
A restaurant POS system can help increase efficiency and accuracy at the front of the house, while also providing valuable insights into back-end operations. In recent years, restaurant point of sale systems have become increasingly sophisticated, incorporating features such as online ordering and table-side payment processing that improve both customer service as well as business operations.
Parts of a Restaurant POS System
An efficient restaurant POS system strives to get different business operations to run smoothly. From managing orders to payment processing and inventory management, a POS system is equipped to handle almost all the operational needs of a foodservice business, of any size and scale. POS systems comprise of two components that help them do this POS software and POS hardware.
While the POS software is a single unit that drives the entire system, the hardware components can be several, depending on the needs of the business. Small businesses can make do with a single POS station or mobile POS unit and software, while large enterprises will need a number of different elements, such as kitchen display units, mobile POS units, POS stations, handheld POS devices, credit card swipers, etc. Let's dig deeper. . .
POS software-
POS software is typically cloud-based. By granting the user access to the restaurant's data and operations from any location, it allows them to remotely oversee and manage the smallest of tasks. They can get real time updates about every order and payment and inventory usage on their mobile screens even while away from the establishment. This helps restaurant owners gain better control over the management of their business.
POS software also sends out real time alerts about depleting inventory, order completion and payments to make sure nothing is missed during a busy day at work. Modern POS systems also support third party integration with other software solutions for accounting, customer support, and business analytics, moving data seamlessly between programs.
POS Hardware-
POS hardware can be of different kinds, depending on your oranization's needs. If you are a quick service restaurant, you might need more POS stations and self service kiosks instead of mobile POS while a fine dining restaurant would need more mobile POS, kitchen display units and payment processing units. Different service providers offer different kinds of hardware along with the POS systems, but the most common are POS stations, mobile POS, kitchen display units, self-service kiosks, credit card readers and printers.
Without a restaurant point of sale system, businesses may have a difficult time managing inventory and sales.
A restaurant point of sale system can help businesses streamline operations and keep track of customers.
7 Advantages of a Restaurant POS SystemNo. 1 - Inventory Management
Restaurant POS systems are no longer restricted to simply managing orders and payments like they once were. You can now use a POS system for Inventory Management as well, and this is perhaps one of the most important advantages of a cloud-based restaurant POS system.
POS software directly pulls in inventory data and tallies it with sales data to update stocks whenever an order is placed and inventory is used up. This helps restaurants build a better-optimized restaurant inventory that is updated in real time, according to stock usage. With an integrated inventory management tool, you can also get real time stock alerts when an essential ingredient is running out. You can even automate purchase orders to replenish your stocks.
No. 2 - Online & Tableside Ordering
In the past decade, online and tableside ordering has become increasingly popular in the restaurant business. Online ordering allows customers to place their orders directly with the restaurant through a mobile app or a third party aggregator. This eliminates the need for customers to call the restaurant on the phone, or queue up to place their orders on site. Online ordering is also often accompanied by the convenience of doorstep delivery. This has made online ordering a popular choice among customers today. A restaurant POS will help you set up an online ordering system that will keep track of orders placed, fulfilled, and pending.
On the other hand, if your restaurant has multiple seating areason the curb-side, terrace, patio, and various floors of the building, you will need a mobile order management system. Modern restaurant POS systems offer just that.
Tableside ordering is similar to online ordering, but instead of placing an order online, customers on site place their orders directly with the wait staff, while seated at their table. The wait staff then enters the order into a handheld POS device. With this, customers no longer have to go up to the counter to stand in a queue and place orders. Tableside ordering also supports mobile payment processing where servers can directly accept payments from the customers without having to move them to the counter to swipe a credit card.
No. 3 - Kitchen Display and Management
A top priority for commercial kitchens is streamlining the flow of information between the front and back office, or the kitchen. A kitchen display system (KDS) is an essential tool in managing this process. A kitchen display system typically includes a monitor displaying food orders from the POS system, as well as order tickets to help the kitchen staff stay organized. The right kitchen display system will include features to manage brand promotions, happy hour discounts, and other pricing changes that need to be communicated to both front- and back-of-house staff.
You've been managing your restaurant well all these years without a pos system, and wondering if you really need one now.
This article lists the many ways a POS system will help your business and improve your bottomline.
No. 4 - Loyalty Programs
Restaurant loyalty programs are designed to encourage customers to continue visiting and dining at the establishment. Loyalty programs typically offer points or rewards for making purchases and these points are then redeemed for discounts, free meals or menu items, etc. Loyalty programs benefit both, restaurants as well as customers. The best restaurant point of sale systems manage loyalty programs that restaurants can customize and operate without any hassle.
No. 5 - Multi-Channel Payment Processing
Today's customers want a wide range of payment options from traditional credit cards to digital wallets. Restaurants need a Pos system that can manage payment processing for all these modes. You cannot restrict yourself to just credit card processing systems. You should also be able to offer QR codes, digital wallets and so on. Modern restaurant POS systems offer multi-channel payment processing systems. Moreover, their hardware like mobile POS devices support payments as well as manage orders. The convenience of this offering delights customers who can pay while seated at the table.
No. 6 - Employee Management for Restaurant Owners
In addition to managing their customers, restaurant owners have to also manage their staff. This includes hiring, setting employee work schedules, and ensuring that everyone follows food safety and other restaurant rules. You also need to make sure your employees are happy and productive. Believe it or not, a POS system can also take care of employee satisfaction! The right restaurant POS system offers add-on tools for employee management, employee scheduling and payroll processing. With these tools, you can make sure your restaurant is never overstaffed or understaffed on important days, the workforce is given conflict-free schedules that both increase their productivity as well as keep them engaged. You can also integrate the employee scheduling data with your payroll to ensure all overtimes and work hours are duly paid.
No. 7 - Back Office Analytics and Reports
Data generated by businesses can be processed, analyzed, and succinctly summarized to help them make better decisions, particularly for back office operations. By analyzing back office data, you can identify bottlenecks and inefficiencies that are costing your restaurant time and money.
A restaurant POS system will give you real time analytics of your sales data, inventory usage data, and purchase orders. It can track your KPIs, customer profiles, and other metrics. These will help you optimize your operations, keep your losses in check, and achieve a healthier bottomline.
Top 3 Restaurant Point of Sale Systems
Plum POS
Plum POS is an easy to use, all-in-one restaurant management solution. It takes care of the point of sale and inventory management; identifies sales trends; manages loyalty programs and gift cards; and facilitates employee management. Plum POS can streamline the business operations of any restaurant, no matter the size or scale. Be it a single small business, or a quick service chain, Plum POS equips you with all the tools you need to run a successful operation.
It offers third party integration with software you already run. And with its range of hardware solutions that covers the gamut, from POS stations to card readers, mobile POS to self-service kiosks, Plum POS makes sure your operation is fully covered. Most importantly, the company offers quick and reliable customer support that helps you tackle any problem and get the most out of your system. Plum POS can be purchased from Hubworks, the restaurant app store.
Lightspeed Restaurant
Lightspeed's fully integrated restaurant management system helps businesses take control of online ordering, delivery, floor plan adjustment, menu management, and flexible payment processing. It checks inventory losses, improves staff time management, and optimizes sales. It also produces real time weekly and monthly reports that help rein in wastage and reduce theft and unnecessary inventory usage. This POS system analyzes sales and transaction data in real time, helping a business make timely interventions that can boost revenue. Lightspeed has a range of hardware products like mobile POS units, iPad holders, printers, cash drawers, kitchen printers, etc.
Square for Restaurants
Square for Restaurants is another highly rated, comprehensive restaurant management system that works equally well for quick service, fast casual, and full service restaurants, bars and breweries. Square offers POS stations, mobile POS systems, a free website for online ordering and delivery, and kitchen display systems that streamline restaurant operations. With just a few taps, restaurant owners can have access to real time menu updates, orders, staff movement, and inventory usage. They can view and manage orders remotely and sync them with the kitchen. In addition to its advanced plans that come with POS hardware solutions for larger service restaurants, Square also offers a free plan for small businesses on a tight budget.
You've heard about the benefits of a modern POS system, but you're still not convinced you need one.
After you read this article, you'll be left with no doubt that a Restaurant POS System can turn your business around.
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Frequently Asked Questions
Are there any downsides to using a POS system in a restaurant?
The main downside to using a POS system in a restaurant is the initial cost. POS systems can be expensive, and restaurant owners may need to purchase multiple licenses in order to use all of the features. Additionally, POS systems require ongoing maintenance and support, which can add to the overall cost.
How much does a POS system cost for a restaurant?
There is no one-size-fits-all answer to this question, as the cost of a POS system for a restaurant will vary depending on the specific needs of the business. However, POS systems typically range in price from around $1,000 to $5,000.
What are 5 types of POS systems?
There are many types of POS systems, but the five most common are- 1. Traditional POS Systems 2. Cloud-Based POS Systems 3. Mobile POS Systems 4. Self-Service POS Systems 5. Kiosk POS Systems