Whether you own a world-renowned five-star restaurant or a local diner, you should invest in a point of a sale (POS) system. Using this device, you’ll differentiate yourself from your competitors while encouraging patrons to return to your establishment in process. So, what is a POS system exactly, and how can it yield higher profits for your restaurant?
Overview of POS Systems
Point of sale systems execute transactions between a business and its customers. In retail stores, cash registers and computer terminals are often used as POS systems. The customer provides the store clerk with his or her payment, which the clerk processes using the POS system.
In restaurants, some owners and managers also use cash registers. Investing in a modern, high-tech POS system, however, offers several benefits.
Accept Multiple Forms of Payment
Using a modern POS system, you can accept multiple forms of payment from your restaurant’s patrons. According to CNBC, more than half of all small businesses in the United States only accept cash payments. Some of these business owners assume that customers only want to pay with cash while others want to avoid the transaction fees associated with credit and debit card payments. A study conducted by Intuit, however, suggests that U.S. small businesses lose about $7,000 per year by not accepting other forms of payment.
Sales Tracking Data
The right POS system can also make it easier to track sales in your restaurant. With only a cash register, you’ll be forced to keep paper receipts. Assuming you turn 75 tables a day day, that’s a staggering 27,375 receipts per year. A modern POS system simplifies this process by automatically storing all sales data.
Some POS systems are integrated with cloud computing and storage technology. With cloud-powered POS systems, data is stored on a remote server. So, if something happens to your restaurant’s POS system — fire, flood, theft, etc. — you can rest assured knowing that your restaurant’s data is backed up on the cloud.
Furthermore, a POS system reduces human errors. When a worker is juggling a half-dozen tables, he or she may give the wrong change to a patron. While a POS system doesn’t eliminate human errors completely, it can reduce them by creating a central computing system in which transactions are executed. Restaurant workers can see exactly what the patron ordered, the cost of their meal and how much change to give them in return.
These are just a few ways that a POS system can yield higher profits for your restaurant. The key thing to remember is that you need to choose the right type of system.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.