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7 Steps to Optimizing Use of Your Restaurant Point of Sale Software
Success in today’s restaurant industry demands the best point of sale (POS) software. POS software is the hub of your financial operations, allowing...
7 min read
In this article, we’ll explore the factors to consider when choosing a POS system and rank systems by usability and return on investment (ROI).
To select the best POS system, you’ll have to narrow down your business's needs first. Have food and staffing costs reached an all-time high? Then having an operation system that helps you track and reduce costs is a necessity.
For other businesses with multiple locations, it may be hard to stay on top of it all, or smaller restaurants may be struggling to switch to omnichannel ordering, where guests can place dine-in, pickup, delivery, or mobile orders in one place.
Before signing up with a new POS service, you’ll need to assess your restaurant's specific needs.
Here are the top considerations for POS systems:
Considering all these factors will help you determine which software works best and integrates most effectively with your business.
POS systems offer a range of benefits, from processing payments to customization tools for leaders. Here are the top features to look for when selecting a new system.
Key features of a POS system include:
Keep track of your restaurant inventory with automated systems that update and adjust stock levels and send alerts when you’re running low on items. An inventory management system also allows you to automate reordering to reduce overstocking.
An essential function of every POS system is managing sales transactions securely. The best systems offer different payment methods, including debit and credit cards, cash, mobile payments, and other contactless experiences.
Specific POS systems may also integrate with secure payment gateways to protect customer data, prevent fraud, and remain compliant.
Modern POS systems include employee management tools that cover everything from payroll to time-tracking and scheduling. Having these tools integrated into the system allows owners to monitor and oversee employees at a micro level while creating reports on attendance, labor costs and, in some cases, individual performance.
Full-service restaurants, QSRs, bars, and cafes need a system that tracks transactions by table. This makes it easy for employees to print the bill and accept payment.
Popular restaurants may also require reservation tools, which should integrate into the system to track data.
Custom loyalty programs that integrate with your POS system let you offer the best rewards and increase overall spend per guest.
Store customer data, track purchases over time, and build strong guest relationships with a restaurant CRM. With the best POS systems, you can build targeted offers and personalized marketing campaigns using historical customer data and demographics.
Leaders can track data for profit management, helping your restaurant optimize operations and increase revenue.
Inevitably, you’ll occasionally have challenging moments, like when guest Wi-Fi goes down and your systems don’t stay online. In these situations, a POS system with offline mode lets you keep running your business until everything comes back online.
Real-time reporting is typically offered through cloud-based POS systems. They ensure efficient operations and allow those in charge to make immediate changes or corrections.
POS systems should integrate well (ideally with minimal support) with suppliers, sales channels, loyalty programs, and customer relationship management tools.
A secure POS system can protect your business's sensitive data, as well as that of employees, vendors, and customers. Security is fundamental in an age when most information is online.
Data helps your business go from good to great. With POS software, you can track best-selling items and sales trends and prepare for peak seasonal spending.
13. Customizable Features
Not all business needs are “one-size-fits-all.” To truly meet your needs, a POS system should offer flexibility and customization. This may be add-ons after you start using the system or software created exclusively for your business.
Top restaurant POS systems include Lightspeed Restaurant, Square, and Toast, each offering unique features and pricing plans.
Many high-quality restaurants with complex operations choose Lightspeed Restaurant. The POS system offers features including inventory tracking, customizable menus, employee management, customer loyalty programs, reporting, customer management, and table management.
As a software, it’s designed for multilocation restaurants seeking real-time reporting and centralized management.
Hardware: Businesses can build their own hardware stack, which can include POS terminals, individual payment terminals, receipt and kitchen printer, kitchen display systems, and barcode scanners.
Square POS offers a free tier, a card reader, and online ordering, making it a popular choice for small businesses and food trucks.
Square is a popular POS system, especially for those opening their first cafe or restaurant. One reason for its popularity is that there are no startup costs or fees for the basic software. Instead, they charge a percentage fee per transaction as a processing fee.
Square’s core POS system includes payment processing, customer relationship management (CRM), reporting and analytics, inventory management, employee and team management, and eCommerce integrations.
It’s popular among many businesses, including retail brands.
Hardware: Square offers hardware kits that include terminals, readers, kiosks, and handheld devices.
Many business owners run successful businesses with Toast POS software. Designed for restaurants, it has everything you need to run a business successfully.
With a cloud-based software, the system integrates payment processing, team/staff management, online ordering, reporting and analytics, menu management, payroll, loyalty program, and inventory management.
One key note is that Toast is an Android-based system and isn’t compatible with Apple's iOS.
Hardware: Handheld devices, kiosks, kitchen display systems, card readers, and terminals.
Ideal for QSRs, Tray POS is a cloud-based platform. The system offers a range of integrations, including self-order kiosks, mobile app ordering, and an online ordering and delivery system.
Tray operates on legacy Windows hardware and new Android hardware. It’s particularly popular in business settings, such as amusement parks, restaurants, and family entertainment businesses.
Hardware: Android hardware, kitchen display system, self-serve kiosk, and handheld devices.
A technology company that offers a mobile POS system for businesses in the hospitality industry. Clients get access to a MobileFirst POS system with features like loyalty programs, reporting and analytics, tableside ordering, inventory management, menu management, payment processing, and employee management.
Tabit helps restaurants and large hotel chains manage hospitality operations in their kitchens and restaurants efficiently.
Hardware: Self-service kiosks, handheld devices, payment systems, POS systems, and scheduling.
POS systems run on software and require the necessary hardware in-store.
Whichever POS software you select, it should be user-friendly, making it easy for your customers to spend money at your establishment. Tech should enable scalability across inventory management and operational processes, including table management and loyalty programs.
Built-in accounting software also reduces the overall burden of running a business and provides high-quality resources for leaders. Other features, such as online ordering platforms, allow leaders to scale their businesses and offer more of their offerings outside the physical store.
When selecting a system, we recommend considering options with a knowledge center and those with in-depth reviews from other users. Those offering a free trial are a bonus as it ensures it meets your restaurant's needs.
Features such as barcode scanners, an Android app, and offline mode can improve operational efficiency.
Businesses require both software and physical hardware to run their operations.
POS hardware includes:
All of which should be durable, reliable, and easy to use.
Bonus hardware installation to consider includes:
All to improve guest convenience and overall satisfaction.
Retaining customers and increasing customer loyalty are the ultimate goals with each sale or customer visit.
Customer loyalty programs are an essential part of restaurant marketing and are among the main drivers of customer retention and increased revenue.
POS systems that support your business should include features, such as integrated or built-in customer loyalty programs, online ordering (with delivery features), and customer displays to enhance customer engagement. The more customers can engage with your brand, the more they like you (usually).
Consider a POS system with advanced features, such as customer base tracking, shift management, and custom pricing, to optimize customer loyalty.
We’ll cover what you should know about pricing and the starting prices for the top five POS systems.
POS system pricing and total costs vary depending on the features, provider, and number of locations. It will also depend on how much hardware your business requires and if you need to customize the platform.
Look for POS systems with transparent pricing and no hidden fees. Scalable plans that can go both up and down allow for affordability. Consider all applicable fees, including processing and monthly fees, plus total hardware costs.
POS Start-Up Pricing Costs for the Best Systems
Not all POS systems are a “one-size-fits-all.” Those with complex operations will need a system that can support them.
POS systems should be capable of running your complex operation and be ready to handle multiple locations, customer loyalty programs, real-time data, and inventory tracking.
Consider a POS system with advanced features, such as in-depth inventory management, employee management, and profit management tools, to improve operational efficiency.
The Bottom Line
The right POS system serves your business's needs while elevating the guest experience. Our hundreds of POS integrations offer broad and deep functionality so you can run your business effectively without managing dozens of platforms.
Book a demo today to see our all-in-one POS solutions in action.