What Is A Restaurant POS System & How Do They Work?

A restaurant POS system, also known as a point of sale system, is crucial for running your restaurant efficiently. Learn more about what a POS system for a restaurant is, how they work, and how to choose the best POS system for your business.

What Is A Restaurant POS System?

A restaurant POS system is software combined with a credit card reader that allows you to take restaurant orders on a tablet screen, manage a menu and inventory, manage orders in the kitchen, accept digital payment types, and print receipts.

How Does A POS System In A Restaurant Work?

Here’s a quick breakdown of how a POS system in a restaurant works.

Benefits Of A Restaurant POS System

There are lots of benefits of upgrading from a cash register to a restaurant POS system, including:

• More Payment Methods: You can take additional payment methods like debit and credit cards, Apple Pay and Google Pay, gift cards, and payment with loyalty points.
• Increased Efficiency: By using a POS system instead of writing orders down on paper, there are fewer order errors and increased communication with the kitchen, leading to increased efficiency and fewer item comps.
• Automated Inventory Tracking: Many POS systems for restaurants include automated ingredient-level inventory tracking. As orders are fulfilled, ingredient levels are automatically decreased until an order item or modifier runs out. At that point, your POS system removes that item or modifier so customers can’t order it.
• Marketing Opportunities: Some POS systems come with marketing features like loyalty programs, email marketing functions, and scheduled item discounts.
• POS Reporting: Most systems offer POS reporting tools so you can get insights on things like sales numbers, inventory loss, and menu performance.

Related: Increase customer retention at your restaurant with one of our best loyalty programs.

Disadvantages Of A Restaurant POS System

Is it fair to say there aren’t a plethora of disadvantages, however:

• Cloud-based POS must be connected to wifi: If the power goes out, you might not be able to take and accept sales if you are a cloud-based system. Upgrading would afford you more flexibility.
• Added costs: Staying simple is good for a time, but when you need to upgrade, that is usually associated with additional fees.

Choosing A Restaurant POS System

When choosing a restaurant POS system, consider restaurant POS system costs, restaurant POS hardware options, extra features like liquid inventory management and third-party delivery service integrations, and how easy the software is to use.

Read our full post on how to choose a restaurant POS system for a more in-depth guide to picking a POS for your restaurant. Also, check out our post on the best restaurant POS systems to help you find the right fit for your establishment.