What Is a POS System in a Restaurant?

How Does a Restaurant POS System Work?

Restaurant POS systems consist of two parts: hardware and software. Hardware includes physical equipment like tablets, handheld terminals, and chip readers. Software is a computer program that performs tasks like processing transactions and running reports.
Restaurant POS systems typically attach a dollar amount to every item on your menu and provide information about modifications, combos, taxes, and discounts. The staff member simply taps the correct item, and the system sends it to the kitchen. For full-service restaurants, this usually means a server enters the order via a terminal or handheld device at the table.

Orders sent to the kitchen usually appear on another piece of hardware called a kitchen display system. This system lists the order details, including special requests, and routes it to the appropriate stations. Some POS systems can also connect with inventory management tools.

Once the meal is complete, the POS system helps staff close out checks by applying discounts, splitting bills, calculating tax, and processing payments. Many systems can accept several payment methods, including credit cards, digital wallets, and contactless payments.

What Types of POS Systems Do Restaurants Use?

There are two main types of restaurant POS systems:

• On-premises: Also called traditional or legacy POS, an on-premises system typically comes with cash registers, terminals, and card readers. An on-premises POS can often handle a high volume of transactions and doesn’t need to be connected to the internet to work.
• Cloud-based: A cloud-based POS generally relies on an internet connection to run and store data, and may be accessed by tablets, handheld devices, and self-service kiosks. This usually means it can scale easily, be managed remotely, and receive automatic updates or backups.

Can a POS System Integrate with Other Restaurant Tools?

Restaurant POS software often works alongside other systems. A POS system may integrate with tools such as reservation platforms, back-office systems, and third-party apps for scheduling, online ordering, and delivery. When those tools integrate with your POS, they can help streamline operations and support many aspects of a restaurant manager’s job.

What Are the Benefits of a Restaurant POS System?

A POS system with the right features and integrations can help your restaurant, hotel, or winery run more smoothly. Here are just a few of the ways a point-of-sale system can optimize your business…

Accuracy and Efficiency

A POS system can prompt servers to select required options, add allergy alerts and eliminate handwritten orders. If staff does this tableside with a handheld device, orders can be instantly transmitted to the kitchen, reducing service time. When the meal is over, offering several payment options helps staff close tickets faster and turn tables sooner.

Staff Coordination

Using one system keeps the front-of-house and back-of-house in sync. Rather than interrupting the kitchen staff to check on orders, servers can monitor the status from the POS. Depending on the platform, built-in staffing data can also help you see if you’re scheduling too many or too few employees per shift.

Business Insights

Many POS systems generate sales reports by day, shift, server, and location, giving you the opportunity to spot sales trends and plan accordingly. These systems may also show which menu items sell well or bring in more revenue. Comparing sales data and food cost information can give you a clearer picture of which dishes are most profitable and what may need to change.

Guest Data Tools

Identify your best customers and track their preferences and history. Use that data to provide personalized hospitality and drive return visits. Some POS systems can even manage a rewards program to keep your most valuable diners returning and convert occasional visitors into regulars.

How Do You Choose a POS System for Your Restaurant?

The first step in choosing a restaurant POS system is to evaluate your operations. You want to get clarity on your:

• Service style
• Order-taking process
• Payment methods and processing
• Online ordering, delivery, reservations, inventory, or loyalty program needs
• Terminal and handheld device needs

Next, make a short list of features that could support your operations. Focus on the basics first, such as order entry, payment processing, reporting, and menu management. From there, you might add on a few “nice to haves,” like customer relations management or inventory tracking.

That information should help you set a budget. Be sure to consider the full cost, which may include hardware, software, payment processing fees, installation, and support.

With a budget in hand, you can start researching your options and checking out demos of the systems that fit your criteria. Keep in mind that finding a POS that has strong integrations with other tools like accounting software or reservations can be essential to smoother operations.

A restaurant POS system can be a considerable upfront cost, but the time it saves, the visibility it provides, and the efficiencies it creates often makes it a worthwhile investment.

Learn more about how Resy integrates with restaurant POS systems.