The hospitality industry is among the most challenging for an entrepreneur to enter. Long term sustainability is dependent on many factors including market penetration, profitability and effective management. One of the most important aspects of opening a new restaurant is the installation of an effective point of sale (POS) system.
A Point of Sale system is a specifically designed hardware and software package that performs the same cash management functions as a cash register but also does a great deal more. A POS system at the front counter is similar to a traditional cash register in that sales are rung, money is exchanged, change is given, cash is secured and a drawer is balanced. The difference lies in how the information is gathered and processed. A POS system captures, maintains and updates an enormous amount of information in a way impossible for a cash register.
Pos Touch Monitor
A good Point of Sale (POS) system will benefit your new restaurant in several important ways including improved margins, increased sales, better inventory tracking and reduced operating costs.
Improving your margins
Improved margins are generally the most significant tangible financial benefit. With a traditional cash register, employees can ring up sales with any prices they wish. A POS system requires the entry of specific items with pricing already established in order to process a sale. This protects your margins! Taxable and non-taxable items will be processed properly to make your state sales tax reporting accurate and easy.
Controlling Inventory
Equally important to the proper management of your establishment is inventory control. A POS system allows you to know exactly what you have on hand, what you need, and when to order it! When a sale is processed, the appropriate items are shrunk from the inventory. This enables you to keep your inventory wide and shallow, preventing over/under-stocking. Margins are also improved and protected through this better inventory control and tracking by knowing what and when to order, reducing shipping costs and allowing you to take advantage of supplier promotions. By knowing your inventory, you are able to better manage your capital, keeping it off the shelves and in your bank account!
Increased Sales
Want to implement a customer appreciation promotion? Need to know a regular customer's address for delivery without having to ask each time? How about a gift card program? A POS system will handle all of these aspects for you. With a detailed record of each customer's vital information at the touch of a finger in a fast and comprehensive relational database, the days of having to remember and hand write information are over. We all love it when the pizzeria we always order from already knows our name and where we live when we place our second order. You will speed your sales and increase customer confidence in your establishment.
The POS system integrates such tasks as credit card processing and receipt reproduction. You can add a wireless handheld device to take orders and process sales right at the table, further reducing your manpower and potential for errors while improving your customer's experience.
Reduced Operating Costs
A POS system reduces overhead by more efficiently providing and managing information. Operating costs are reduced in re-ticketing of items, time spent with your accountant, over-staffing, yearly physical counts, etc. The POS system eases the burden of training new employees, removes the hours (and potential for error) pouring over register receipts at the end of the day, and automates tasks like employee time keeping and labor scheduling. Kitchen/bar printers and monitors simplify the process of submitting orders. Servers no longer run back and forth to the cooks. And custom reports make your time with the accountant much more productive and brief.
Save time, protect your margins and create a professional experience for your customers through a quality and professionally installed Point of Sale system. Hospitality establishments historically see a 10-20% return on investment in the first few months of operation. A POS system is a worthwhile investment which will increase the long term sustainability and profitability of your new restaurant.