Things You Should Know Before Buying for a Restaurant POS System

A very important business tool for the restaurant industry is a Point of Sale (POS) system. Since a POS system uses handheld devices, errors and omissions typical of the manual order taking process are eliminated when an automated restaurant ordering system is used.

Though having a Point of Sale restaurant is quite beneficial, the functioning and associated procedures of a POS system can be quite complex. Since implementing one is a substantial investment, you need to know what you’re getting into.

The following information might prove useful in familiarizing you, as a member of the restaurant industry, with POS concepts. Importantly, you’ll understand how your business can be protected from the usual pitfalls related to POS.

Get Familiar with Components and Costs

It’s important for you to know all the hardware and software components of your POS system. Some systems offer comprehensive functionality with others only the basics. When you are shown an initial demo, the system provider might use a lot of fancy equipment which may not be included in the quotation he provides. Ensure that he lets you know the pricing for all optional software and hardware that might not be part of the main quote.

In addition to this, make it a point to find out other affiliated charges such as license and installation fees along with possible recurring costs such as maintenance charges and fees for service level agreements (SLA).

By being well informed regarding how much total expenditure you’re in for initially as well as over a period of time, you can determine your total cost of ownership (TCO) and avoid any financial shocks later.

Ensure clearly defined Service Level Agreement and Fee Schedules

The SLA which is a negotiated agreement between you and the POS System Provider enlists the provider’s obligation with regards to his services, responsibilities and warranties. Sometimes, even penalties are agreed upon in the event of SLA non-compliance. A clearly defined SLA will go a long way in avoiding potential misunderstandings in future, minimizing questions and providing necessary recourse.

In addition to the initial POS system cost, you will need to incur recurring charges for services given by other business partners such as credit card processing, online ordering, time and attendance etc. It is advisable to confirm the party providing each service. You also need to be clear about fees for additional services like upgrades, software and hardware support and staff training. Once you have a schedule outlining all costs and their recurrence, you can plan your budgets accordingly.

Know your Service Provider and Affiliated Financial Benefits 

If you’re stuck in a non-profitable business relationship with your POS provider, it can have a detrimental effect on your restaurant’s operations. Before you actually sign a contract, make sure you know all options for terminating the agreement or payment processing and any other associated fees.

It is common for POS System Providers and payment processing companies to have revenue-sharing arrangements. Ask the POS System Provider to disclose financial benefits, if any, from such associations.

A System Provider may significantly bring down the cost of a POS system if you use the “processing services” of his company or increase it if you don’t. When processing is outsourced to an independent sales organization (ISO), the provider may charge more than the direct processor. Find out the additional services that you are getting from your System Provider which may not be available from the direct processor.

If you go in for a POS restaurant being well-informed, you’re sure to reap innumerable benefits. An organised workplace, increased revenues, happier customers and larger profit margins are only a few of them.

Benefits of Wireless Restaurant Ordering System

With modern technological advancements influencing all aspects of our lives, the new age mantra of going wireless has caught on with restaurant ordering system. Let’s take a look at the potential advantages of the same.

Streamlined Processes

Since the system works through handheld devices connected to a main POS server, potential errors and omissions in the manual order taking process of the traditional Point of sale restaurant are eliminated.

• Wait staff are promted with a follow up screen to select the modifier options for a particular dish for the customer.
• Data is directly processed to the POS system; omiting all errors during transfer of data.
• No queue up for inputting the manual orders at the POS terminals, saving time and reducing staff requirements.
• The wait staff avoids taking orders of unavailable foodstuffs, as the system prompts the status of stocks while ordering.
• The orders into the kitchen are more evenly spaced out, which avoids overstuffing the kitchen with too many orders at one time.

Increases revenue and reduces input costs for the setup

In a wireless POS restaurant, the staffing approach of the restaurant is more cost effective and efficient. The opportunity to schedule less skilled staff who can serve more tables through up selling and increase revenue through quicker table turns.

• In this system, all the menu options and modifiers are saved on handheld devices which can be easily updated at any time. This leads to reduction in training cost and the reliance on memory, during order taking process.
• The satisfaction levels of restaurant staff increases as they serve more tables, which in turn raises their tips. A stable workforce for the restaurant will reduce acquisition and training costs of new staff.
• It’s also a way to practice the ‘Go Green’ initiative in the restaurant by avoiding the use of pen, pencil and paper.
• It is more energy efficient and cost effective as the number of fixed POS restaurant systems is reduced.

Customer satisfaction

The above listed benefits lead to a higher level of operational efficiency within the restaurant. Now let’s look at things from the perspective of your customer.

• Easy search of all the dishes at the touch of a button makes the customer feel delighted. The visual treat ends up with customers not only choosing their preferred dishes, but also leads them to experiment with a number of options from the menu list. In a nutshell, POS restaurant system ease up the ordering system both for the customers and the table staff.
• The customers get an instant response to their query about ingredients, and nutritional information of the dishes. You are in a better position to gauge the regular customers preferred choices of food and seating.
• The customer either can view the cheque on the handheld device or can be emailed directly from the handheld for their records.

The benefits of wireless order taking system are extensive and many restaurateurs have already implemented this technology, realizing its potential to generate more revenue than older installed systems. So gear up for the change, there are huge benefits in adopting the latest technology!