15.1 Introduction
When most people get into restaurant management, they typically have visions of creating delicious dishes or interacting with customers.
However, there are also practical responsibilities that you will have to deal with. One of these is the restaurant POS system.
The POS, or point of sale system, is your network that is made up of several features including the register, ordering system, credit card processor and time clock, among other things.
By learning more about the digital technology associated with modern POS systems, you will not only know how to choose the right system for a restaurant, you will understand all of the available features of these systems and how you can use them to bring success.
15.2 POS System Basics
A POS system serves as a program for your restaurant that allows you to track inventory, monitor profits, place orders, record sales and much more.
The system also allows you to analyse sales, track employee time and access company records. Of course, not all systems have all of these features, but in general, with a point of sale system you can: Analyse sales data, inventory and adjust purchasing levels to meet your needs.
Maintain your restaurant's sales history to analyse what dishes do well and what dishes should be taken off the menu. You can also see the profitability of every dish. Improve the accuracy of pricing, perform credit card authorisations and enter orders. Track employee work hours.
Most POS systems are fully customisable, and you can choose to add or subtract different features. Do you need a credit card reader? You can have it. Would you never use a bar-code scanner? You do not have to add it. Many manufacturers of POS systems have specific packages for restaurants, which will have everything you need to run a successful business. Other vendors will offer POS systems that are perfectly customisable, which means they are made specifically for your restaurant.
FACT
By 2017, an estimated 50% of all transactions will be completed by mPOS, self-checkout or on a
customer's mobile device
Source: mobilebuilder.net
15.3 POS System Features
Some of the features on a POS system that may be useful in a restaurant include:
Sales Information - Most POS systems allow you to enter your inventory codes to keep track of what is coming in and going out of your restaurant. You can do this manually or with a bar-code scanner. Once the code is entered into the system, the system can do many things with it including calling up standard or sales prices, compute the price at different qualities and provide running totals of sales. The system will remember the code and you can recall the code at any time.
Pricing - You will also find that POS systems usually offer many ways to track pricing including margins, percentages and add-ons. You can also use custom formulas with most of these systems, which is useful for many restaurant managers. Pricing can easily be changed and updated through the system, too.
Updating Products Information - When a sale is entered into the POS system, the system automatically updates inventory and the restaurant's accounts receivable records. You canalso create reports which will show this information at any time.
Sales Tracking - A POS system will also tack sales in a way that is convenient for you. You can keep receipts open, put sales on hold, split sales and more. More detailed management tools are also available, which show sales for a certain time period, overall sales, and even profits or loses.
Security - Most POS systems also have technology that provides audit trails, which allow you to review and search anything that seems unusual. With alerts, which are available on some systems, your system may realise that there is an issue before you do.
A POS system will also give you more control over the restaurant via the reporting system. With these systems, you can easily review your sales data in a number of ways, to facilitate a better overall analysis of your sales. You can even see finite details, such as what type of food sells better at certain times or even on certain days. You can also figure out what deals or sales work best, and if seasonal foods truly make a difference to the menu.
15.4 Choosing a Point of Sale System for a Restaurant
With so many POS systems on the market, from iPad-based solutions to full systems that handle everything from accounting to payroll, finding the right POS system for your restaurant can be a difficult task.
You will want to choose one that is easy to use, one that fits within your budget, and one that offers good customer services. Of course, you also want to make sure that you have the right features for your business.
Knowing and understanding what is required in a POS system is your first step, and it will help you to narrow down the field. Once you have a smaller number to choose from, you can start testing them out. If you have ever purchased a car, you will know what the process of buying a POS system is like. You will narrow it down by brand, model and features, and then take it for a test drive, just like when buying a car. It is best to choose anywhere from two to four systems, and to use the systems for a few days in a number of scenarios. Here are the specific areas that you should focus on when choosing the POS system for your restaurant:
Budget
The very first thing you should do is to set your budget, and only look for POS systems that fit within that budget. This does two things: first, it helps you to narrow down your choices, and second, it helps you to not overspend on the latest and greatest system. Keep in mind, however, the cost of the system is only one part of what you will pay out of your budget. In addition, there are licensing fees, support fees and the cost of additional hardware, such as a credit card scanners. You will pay some of these fees every month, and if the POS system is integrated with a credit card processor, you will have to pay for this also.
Type of System
There are two main types of POS system. Systems usually either store all data and updates on a server, which is stored in the cloud, or there are systems that store data and updates on a computer locally at the restaurant. As with anything, there are pros and cons for each system. It will be worthwhile to do your research and then talk to other restaurant managers to find out which system might be best for your type of restaurant.
Features You Want and Need
Now that you have narrowed down POS systems based on budget and type, you also want to think about features. Thanks to technology, there are many features on these systems, and a good way to think about it is to rank the features on a continuum with 'must have' on one side and 'nice, but not necessary.' The goal of this process is to find a system that has all of your 'must have' features, and if you happen to get some 'nice but not necessary' in there, that's good, too.
The following is some important information about features:
Quickbooks Integration - If you use Quickbooks, or another accounting software, you can find POS systems that work with them seamlessly, and in real-time. There are also systems that allow you to import and export files into the system, too.
Table and Floor Management - If you have a dining room and require table or floor management, you should narrow down your choices with systems that offer this functionality, as not all of them offer this.
Inventory Management - POS systems also often have inventory management. This is convenient for restaurants that need to track inventory based on ingredients. For instance, if you own a pizza restaurant and have to track inventory for cheese, peppers and black olives, you will find that this is an excellent feature. Some systems will even alert you when inventory gets low, and will allow you to send a purchase order for the item.
Credit Card Processor - If you accept credit cards, you may require processing equipment with your POS system. Not all credit card processors integrate with all POS systems, so if there is already a processor in place, you may need to choose a POS system that specifically works with that processor. If it does not integrate, you will have to run your credit card sales outside of the POS system, which means you will have to essentially require two different accounting systems. This is not the most efficient way to run a restaurant.
Mobile Payments - You also may want to accept mobile payments at your restaurant. This is a relatively new technology, and not all POS systems will have them. This technology is required if you want to accept mobile payment wallets, such as Apple Pay.
Employee Time Management - You can also choose a POS system that allows for employee time management. This allows your staff to sign in when they arrive for a shift, and then sign out when the shift is over. This then will send the information through the accounting system, which processes staff payroll.
Ease of Use
Most POS systems will offer a free trial of their software. Take advantage of this. As the restaurant manager, you will have to test and use this software and make sure that it will work well with your staff. Run the software is if you were in a live environment and think of it as a test drive or dress rehearsal. You may also want to bring in trusted staff who will use the software, such as your head waiter or kitchen supervisor, to see how they feel about it. Ask them to point out problem spots and areas that they like. Also, consider alternative scenarios, try out all of the features, and be clear about what you get before you buy.
Customer Support
During a trial run, it is a good idea to check out the POS vendor's customer support. You will pay a monthly fee for this, so you might as well use it. Some of the things you should look for include hours of availability, response time and troubleshooting. You should also look for features such as tips fornew users and educational information.
User Reviews
Searching online forums, blogs and other social websites for reviews of POS systems and vendors is also a good idea. Remember, however, that you want to get the big picture of these companies. If you read 20 different reviews of POS Company A, and see one negative review, you should likely focus on the positive. Alternatively, if you read 12 reviews of POS Company B, and five of them are negative, you may want to see this company with more of a negative view.
15.5 A Focus on Restaurant POS System Technology
For many years, restaurant POS systems were largely the same across the board. You may find different features and technology along the way, but most were nothing to write home about. They made life easier, of course, but it is only in the past few years that the POS system world has greatly opened up. This, of course, is due to technology. By looking at and understanding the newest POS technology, you will learn what is both popular now, and what will be popular in the future.
Mobile POS Systems
Mobile POS systems are the latest and greatest technological advance for restaurant managers in the past decade. These systems are affordable and efficient, and they bring new benefits to your restaurant. For instance, using one of these systems often allow restaurant managers to save on the start-up costs of buying a POS system. These are cloud-based systems, so there is no expensive equipment to buy, except for of a few iPads, and all of the other hardware, such as printers and Wi- Fi router, can be hidden away. You will also get service throughout the restaurant, as the system works on Wi-Fi. You can upload and change menus quickly, and it simplifies floor management.
New Payment Options
Another technological advancement with POS systems is the possibility for new payment options, such as digital wallets. Google, Amazon and PayPal are the big three when it comes to digital wallets, which allow people to literally add money from a bank account or credit account to their mobile phone. Through a restaurant POS system, this information can be read and used just as if the customer was using a credit card. Apple Pay is also one of these new payment options that is greatly increasing in popularity with the introduction of the Apple 6 and Apple Watch.
Loyalty Tools
Customer loyalty is more important than ever, and some POS systems have new technology that allows for the tracking of customer loyalty. Using loyalty cards or linking the loyalty markers to a customer's credit card or mobile number are new ways of tracking customer loyalty. There are also systems on the market that have facial recognition software, those that use biometrics and systems that automatically apply rewards to a customer's latest purchase.
15.6 The Future of Point of Sale Technology
The future for point of sale technology is bright, especially now that we are comfortably set in the internet age. Manufacturers of these systems are keeping up with other forms of technology, such as mobile phone manufacturers, and coming up with new and exciting features. For instance, these future POS systems will likely be multi-functional, and can read everything from chip cards to QR codes for payment.
Another future technology for POS systems is to integrate marketing and advertising into the system. This would work in a couple of ways. First, systems will gather information from customers, and then apply this information for marketing purposes. Another reason this could work well is that restaurant managers can research their customer base and get basic information about who their customers are. In other words, it is simply another form of market research. If you really want to look ahead, you may consider some of the technologies that are currently being worked on, including many biometric features.
Imagine paying for a meal with the touch of a finger or scan of the eye. We are almost there, and when this technology is commonplace, it will likely change the way we do everything, including run a restaurant.
Module Summary
Restaurant POS systems will make your life much easier. These systems benefit your staff, your customers and how you do business. When you start your career in restaurant management, you may find yourself learning a POS system that is already in place, or you might find that you will have to choose one to implement. Either way, this module gave you some information about the ins and outs of these systems, and even gave you a glimpse into the future of POS systems.
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