POS Systems: The Backbone of Restaurant Tech
3 Min Read By Saleem Khatri
The modern restaurant point-of-sale (POS) system has grown beyond simply handling payments. Feature-rich mobile POS systems have evolved to processing orders, sending tickets to the kitchen, providing detailed reporting and offering thorough inventory and business management. With the restaurant market expecting to exceed $22 billion by 2025, the high volume of cash and credit cards that pass through a restaurant each day make a POS system a necessity rather than a convenience.
The progression of POS toward being a “one-stop-shop” is likely the biggest driver of the restaurant POS market’s growth. Digital innovations remain the leading factor in changing the way people make and receive payments. Cash registers are a technology of the past as business owners now focus on greater flexibility and control. Similarly, gone are the days of basic systems and stationary credit card readers. Restaurant POS systems are changing, morphing, and evolving as restaurateurs and other business owners demand the features that did not exist 20 years ago. Read on to learn more about the evolution of POS systems and why they are so valuable today.
The Evolution of POS
All restaurant technology starts and ends at one central point: it’s POS system. It has evolved from simple cash registers to more complex control modules due to changes in technology. POS systems are a vital and key component of the restaurant industry in both mom and pop establishments and major franchises. In fact, a good point of sale system can be the biggest asset a restaurant has. It functions as a team of experts working behind the scenes to make sure that everything is moving quickly and efficiently from the front of the kitchen to the back. With the new changes, the previously humble POS system can now track sales, inventory, cash flow, and more.
Why Restaurants are Upgrading their POS Systems
Consumer surveys point to the fact that more and more people, specifically millennials, prefer to spend their money on memorable and shareable experiences than on material goods. Restaurants are a prime example of opportunities to create those experiences. The fact that technology can improve and transform the restaurant experience is an important consideration for restaurant operators to keep in mind as they look for new innovative ways to launch their businesses to ever-higher levels of guest satisfaction and operational efficiency. When combined, they translate into positive financial outcomes.
Technology upgrades, such as those that protect against data theft or provide guest relationship management capabilities, can make a big difference in improving operational efficiency and guest satisfaction. Another key benefit is mobile enablement, utilizing tablets for order and payment processing. In some restaurant categories, POS mobility can go a long way toward increasing revenue and becoming more cost-effective. In the end, all of these upgrades ultimately benefit the guest experience, yet, some restaurant operators with outdated solutions remain reluctant to embrace new technologies. Typically, we see operators subscribe to the “if it ain’t broke don’t fix it” phrase, while others simply don’t realize the full range of benefits a cloud-based, mobile-enabled next-generation system designed specifically for the unique workflows of a restaurant can deliver.
The Future of POS
Modern-day point-of-sale software functions on its ability to integrate. It focuses on bridging the gap between online and offline communications and covers everything from inventory, accounting, online ordering, and delivery, to marketing campaigns and more. It may be impossible to predict the future of POS technology with certainty, but it’s quite transparent that the technology will continue to evolve to meet the changing demands of the market. It’s likely that POS terminals will remain dominant and utilize multiple channels like app integrations to connect restaurants with customers and provide restaurateurs with management tools. These new developments will create more value for businesses, resulting in more structured and time-saving technology in the foreseeable future.
Improving the quality of food, service, and guest experience has always been and will always be the primary driver of restaurant success. To do that, every restaurant needs a POS system that won’t fail them and will provide assistance in all aspects of operations from now into the future.