May 08, 2020
How POS Helps A Restaurant Business
Mobile and tablet compatibility allows business owners to view and monitor transaction data from any remote location.
Very often, POS or Point of Sale systems is often mistaken by persons as cash registers. However, modern POS systems are much more versatile; they can help build up your sales, enhance the guest experience, and help you in making superior business decisions.
The utility of POS is proven in an arena like a restaurant business. There are many benefits of restaurant POS systems.
What Is Restaurant POS?
A restaurant POS is a system of software and hardware that performs together to handle transactions and workflow for the food and beverage business. Modern POS for restaurants helps do more than take orders. Venues ranging from fine dining restaurants to fast food joints are using their POS as the main operation hub for their business. Using POS has a domino impact on your restaurant business, from boosting sales to improving customer experience to better business decisions.
What can POS do for your restaurant?
POS helps you serve more customers in less time. It simplifies the workflow from start to finish, thus speeding up each transaction. It helps the restaurant staff to move through lines in a faster mode. Mobile POS of full-service restaurants helps servers to take tableside orders. Tableside ordering has been proven to increase sales by 20% or more.
Optimize Menu Prices
Using a restaurant POS, you can break down food cost percentages and contribution margins by menu item and day. When you know the cost of preparing a menu item, you have the opportunity to optimize menu prices. When you decide to hike up the price of a certain food item, the POS will also allow you to update your menu instantly at any time from anywhere.
Push for Most Popular Menu Items
The POS also helps you know which menu items are top sellers and which are most profitable; these are two different considerations. For instance, even if a pasta dish sells much, it may not bring in most profits because it may have costly ingredients. Your POS report may indicate that compared to pasta, your item of pizza may be more profitable. Using this data, you can promote pizza orders via deals and discounts, thus improving your bottom-line.
After identifying high margin items using your POS reports, such items can be placed strategically in your menu in a place called the Golden Triangle. This triangle is the area of your menu which customers typically read first, rendering it likely for them to order items in that area.
Now, you need not depend on your staff to up-sell. The POS can be used to upsell by automatically prompting your front-of-house staff. For instance, when a customer orders for a premium Vodka, up-sell by suggesting a Bloody Mary also. Up-sell prompts help new staff and encourage all servers to offer consistent service to all customers. Small upsells can contribute much to your bottom-line in the long run.
Prevention of Theft
Employee theft in restaurants is a substantial risk. A restaurant POS can help contain this threat and enhance authentic sales. A restaurant POS can stop theft in many different ways. Firstly, all food orders are tracked. Secondly, the POS has security settings that restrict what can be done by a staff member in the system as per his position. For example, an employee may be tempted to give freebies to friends or change a bill, but this is not possible with POS. Thirdly, the POS can keep track of your inventory to ensure that the sales report matches your inventory report.
More Customer Retention
Using a POS, you can cultivate business from loyal customers, encouraging them to bring along more friends to the restaurant. This is not done only with a punch card. A POS system integrates the loyalty program within your system by keeping track of customer interactions and making a customer database that you can use for other purposes. For instance, you may offer a free Espresso to a loyal customer. It all boils down to encourage repeat business.
Targeted Campaigns for Marketing
You can make use of the customer database collated by your POS system to target marketing campaigns for the individual preferences of customers. Tailor-made marketing programs are highly popular now, and many customers expect a customized service. The POS can be used to create targeted campaigns that encourage customers to return and spread the word about your business.
Manage in Real-Time
You can use table management and floor plan to instantly find out when guests were seated and how much is being spent at each table. Restaurant managers need to know in real-time how long guests take to finish meals such that they can keep service moving at a reasonable speed. In case there is a table where guests are taking time but are spending good money, it is an opportunity to upsell some coffee. On the other hand, if they are seated for long without spending too much, it may be time to drop a hint about their bill.
Take Online Orders
You can make arrangements for online orders through certain popular food delivery apps in the market. As per statistics, two-thirds of Americans order food regularly through a website or an app. A restaurant POS system makes it simpler to work along with a growing list of online ordering apps since these apps can integrate with your POS.
More and more customers demand the facility for making mobile payments. A POS system can offer mobile payment processing integration, with a focus on security and convenience.
Track Performance of Staff
With POS, know exactly how much your servers or front-office staff are selling and how long they are taking at each table. POS reports can reveal much about staff performance, so you know where mistakes are being made and how you can correct them. These are tips for restaurant manager POS.
There is no bigger dampener for a restaurant guest than to be handed with a wrong order. For instance, it would be a nuisance if you get chicken fingers when your ordered chicken wings. Such mistakes can cost the business in terms of money, time, and crucially, customer retention. With a modern POS system, your servers can take tableside orders on a mobile device, which helps avoid human errors like poor handwriting and confusion in communication.
In sum, your restaurant POS can become a central hub for your business. Investing in POS can throw open opportunities to grow your business.