How To Choose A Restaurant POS System

A restaurant POS system helps businesses manage a menu and inventory, build floor plans, take orders with item modifiers, accept digital payment types, and view financial reports.

The best POS systems for restaurants also include features like a customer loyalty program, online ordering, and gift card sales. Keep reading to learn how to choose a POS system for your restaurant based on your restaurant’s needs and budget.

How To Choose A POS System For Your Restaurant

There are several things to consider when comparing POS systems and deciding on the right fit for your restaurant. Let’s go through each one step by step.

Step 1: Build Your Monthly Budget

First, you need to figure out how much you can spend on your restaurant POS system every month. To take digital payments like credit cards and online payments, you’ll have to pay monthly POS software and payment processing fees.

Read our full guide on restaurant POS system costs to get a better idea of how much you may pay for your restaurant POS software, hardware, and payment processing fees.

Step 2: Decide Your POS Hardware Needs

Consider the following when deciding what hardware (and accompanying software) you want to include in your POS ecosystem:

• How much space do you have in your restaurant or food truck?
• How reliable is your internet connection?
• Do you need a POS that can take payments offline?
• Would you like handhelds for ordering at the table? 
• Would your restaurant benefit from kiosk-style self-ordering?
• Are your employees very tech-savvy?
• Do you want a tablet restaurant POS system that works with the iPads or Androids you already own?

Your hardware needs will depend on your restaurant type and size.

Read our restaurant POS hardware guide for more information on the functions of restaurant POS hardware and how to decide which hardware you need for your establishment.

Note: If you cannot afford your POS hardware upfront, look for providers that offer no-interest financing or get a small business loan to afford everything you need to set up your restaurant.

Step 3: Make A List Of Your Must-Have Features

Your must-have features will vary depending on your restaurant size, ordering types, number of employees, floor plans, menu management, and inventory management needs. We also highly recommend that you set up online ordering for your restaurant so customers can order ahead of time.

Larger restaurants will need features like more in-depth perishable inventory management, more POS registers, and potentially multilocation management.

Also, consider marketing features that will help your restaurant grow, including a POS loyalty program, in-house restaurant delivery, and integrations with third-party delivery services.

Take into account any expansion plans for the future. If you plan on accepting catering orders or reservations, hiring more employees, opening more locations, franchising, or expanding in another way, look for software that both fits your current budget and includes built-in features or integrations that you’ll need to expand in the future.

Step 4: Narrow Down Your Options

Once you get a sense of your hardware and software needs and your budget, make a list of your options. To narrow down your options further, search online blogs, forums, and other social channels for user reviews of POS systems and customer service.

Step 5: Get A Free Software Trial

Most restaurant POS system providers offer a free trial (or a free demo.) Take advantage of that opportunity to see how easy the software is to set up and edit. Try out all of the features and run every alternative scenario you can imagine.

Include employees who will be using the software in the trial run, too. Ask them what the learning experience and real-world usage are like. This will help you estimate how long it will take to train someone on the new system and whether it’s effective during a rush.

Make no long-term commitments until you can get a feel for how easy the software is to use and whether it can adapt to fit your growing business’s needs.

Step 6: Read Through & Sign A Merchant Agreement

Almost all restaurant POS systems require a contract, also known as a merchant agreement. These contracts include term lengths, fee structures (monthly, annual, or custom), payment processing requirements, hardware warranties, and whether there are any early termination fees.

Make sure to negotiate a good merchant agreement so you understand what to expect with your software subscription and get the best contract terms.

The Bottom Line On Choosing A Restaurant POS System

When choosing a restaurant POS system, consider your current pain points. Are you facing inventory loss due to spoilage and poor inventory management? Do servers wish they could input orders while taking orders at the table? Is your staff struggling to manage online orders? Would customers come in more if you offered special discounts and loyalty program offerings?

Keep note of your current and potential issues, and check out our list of the best restaurant POS systems to help you find the option that reduces problems and helps your restaurant drive more sales.