A traditional point of sales (POS) system was the first digital electronic system restaurant started using. Traditional POS was the software used for basic day-to-day sales operations of a restaurant, limited to taking orders, punching KOT, and providing invoices for the end customer.
As businesses started adopting digitization and automation, the restaurant POS also transformed. A cloud-based restaurant POS solution is a digitized avatar of its standard version capable of solving complex challenges like Inventory management, Business analysis, Operation management, etc.
In the below article, we will see how a modern POS aids a restaurant.
What is a cloud-based restaurant pos solution in a restaurant ?
A restaurant point of sales is software that records the transactions happening in the restaurant. With the added features of digitization and automation, the modern cloud-based POS has evolved into a complete restaurant management system. A cloud-based POS can help restaurants increase efficiency, help in data-driven decision-making, and reduce human resource intervention
How does a restaurant POS solution work, and what are its integral features?
A cloud-based restaurant point of sales has become essential for the smooth running of any food business. As there are many different types of restaurant POS, a food entrepreneur needs to be mindful of the most important features required for the system’s smooth running.
Below is a brief about the working of a restaurant POS solution and the essential features of an effective point of sale system :-
Order management is one of the basic features of the POS system. A server punches the order in the POS system as soon as he receives an order. Once the server punches an order, POS generates a Kitchen order ticket (KOT) in the kitchen. A modern POS can also reflect the KOT on a kitchen display system. The kitchen display system is a screen that displays the order tickets by connecting to the Points of sales system.
Besides punching in orders from dine-in and take-aways, a cloud-integrated POS can also take online orders and orders from the food aggregators. Cloud enables restaurant point of sales like Posify enables online integration with food aggregators like Swiggy and Zomato. Once all third-party food aggregators are integrated, restaurants can view all these orders in one dashboard. A POS system makes ordering seamless and much faster than taking an order through pen and paper.
A modern POS system can help you analyze the profitability of the menu items. A restaurant can evaluate the menu items based on the most selling and the most profitable item. Often, the most popular items are not the one that creates the profit. The figures generated by the POS can help you find out dishes restaurants need to promote based on profitability.
Once a restaurant finalizes the most profitable dishes, it can promote the items on its menu and help increase profitability. Another way the POS helps increase profitability is by highlighting the cost of the menu item vis-a-vis the amount the client pays for it. While reflecting on the numbers generated, if a restaurant has a low-profit margin, the item’s menu cost can be increased.
An efficient POS system makes restaurant floor management much easier. A restaurant manager can monitor the bill amount of each guest occupying the table through the information generated by the POS system. In this way, if a guest is occupying the table longer and spending, the restaurant can try and upsell menu items. If the guests are seated for a while but not making any new orders, restaurant staff can politely ask them to vacate the table.
By using a POS system, restaurant staff can come to know how long the guests have been occupying the table. The team can accordingly advise the wait time to guests waiting for a table.
A modern cloud-based POS has evolved in multiple ways to manage the payment system of a restaurant. Today, the restaurant can give their customers several avenues to make payments at their convenience. Digital payments are in trend today, and restaurants can collect payment through credit cards, mobile wallets, QR code scans, and other options thanks to a POS system.
A modern POS is also capable of collecting payments done online ordering. A food business can take online orders and collect payment seamlessly through a POS system. Online payment through a mobile wallet or QR code makes the customer feel very secure as their details are not being saved on any system.
A restaurant POS solution can also split the bills per dish or bill amount as per guest request. Your restaurant server doesn’t have to go into panic mode every time the client wants to split the bills.
Restaurants can optimally manage and track the productivity of their human resources through an effective POS. A food business can monitor the staff’s productivity by monitoring the amount of business they are closing per table and the promptness of the service. The most productive staff can be rewarded; likewise, the team members who cannot perform can be given additional training to increase their productivity.
Another way a POS is useful is workforce allocation by mapping the rush hours in the eateries. The working hours can be amended, and staff can be allocated as per rush hours. The most productive staff can be assigned during the peak hours, and the ones who are still under training can be delegated the lean hours.
Pilferage and wastages :-
Pilferages and wastages can dent food business profitability if not nipped at the bud. Research shows almost 75 to 80% of theft in the restaurant industry is committed by the staff. A cloud-based POS system can drastically reduce the pilferage in the food business by tracking the food at every stage, from the warehouse till the billing process. To prevent pilferage, access to a certain portion of the POS can be restricted to non-managerial staff. The act of voiding the orders punched can be given only to managers to limit theft and keep a tab on ingredients.
A modern POS can track the inventory and even intimate the restaurant management when to reorder. A restaurant POS solution can count exactly the quantity of ingredients required in a dish. As the orders are punched, a POS deducts the ingredients from the total inventory. In this way, the POS alerts the restaurant when it’s time to restock. Tracking inventory makes it easy to know when to reorder and avoids the challenges created by overstocking and understocking.
Reports and Analytics:-
A cloud-enabled POS can generate real-time data and can be accessed remotely. If the business owner is not on the restaurant premises, they can still access the daily report directly. A modern-day POS can generate many reports like sales, cost, etc. After comparing the various reports, a restaurant can diagnose the problems a food business faces and take corrective action to fix them.
One of the biggest advantages of a cloud enables POS is that the data is safe and secure and not stored in your hardware, i.e, laptop or computer. In case of theft or damage to your hardware, the data is still safe.