Ella_Johnson
A restaurant cash register is a mechanical or electronic device for registering and calculating transactions. It has a physical drawer for storing cash.
A POS system can do everything that the restaurant cash register does, and much more. It has improved features such as advanced data management, integrations, and the freedom to install them on a variety of devices and form factors. A POS system is central to the technology requirements of the modern restaurant.
The POS collects the data that makes database marketing possible. When your customer’s orders get punched in, their details become a part of your database. The POS system then connects this customer data to transaction data and stores that information. This allows the system to segment your customer database by their repeat orders, frequency of orders and recency of order. When you have these segments, you can send them to offer campaigns. Think automated emails, SMS campaigns, social media ad campaigns that pursue your customers to make that repeat visit.
Unlike a restaurant cash register, a POS system enables you to automate a lot of the data compilation and prepares it for analysis. In the absence of a POS system, you would have to track sales with a restaurant cash register, tally it with an excel sheet and then contrast it with various other data stored in different forms. And as you can visualize, it would be an operational nightmare! The POS system does this automatically and saves you a ton of time. The POS collects the right data and stores it in relational data tables. This is the basic infrastructure for your restaurant analytics system.
Once you have your restaurant analytics in place, you would need reports that present all that data in a simple and easy to understand format. A good POS system in today’s time is defined by the quality of its reporting. You should be able to track your sales, the Cost Of Goods Sold, your inventory and profits, easily. And you should be able to do this anytime and from anywhere. LimeTray’s restaurant POS system comes with an analytics app that visualizes all this data in simple dashboards so that it’s easy for you to manage your restaurant with data. No points for guessing that a restaurant cash register does not give you reports.
Restaurant POS systems simplify the order taking the process and make it faster. Orders can be taken at the table or from the queue with a mobile POS. They can then be sent directly to the kitchen on the kitchen display system, shaving the time taken to take the order manually. Or take for example a delivery order. Orders can come in from any online channel. Whether your own or a third party. Juggling multiple tabs to mark them at each stage of the order process is tiring and time-taking. And for deliveries, a few minutes of delay could result in bad customer experience. Possibly even resulting in losing the customer forever.
Restaurant POS software lets managers track which menu items are selling and which ones are not. It lets them figure out peak hours and prepare for them better. It gives them visibility of their loyalty programs and marketing campaigns. The POS system is the one central place where all of this information is stored and managed. This helps simplify restaurant operations, from choosing to decide the menu, calculating stock to reconciling taxes.
A step up from efficiency, POS systems can help your restaurant become more profitable. Reducing the order processing and table flip times means you are serving more customers by the hour. Having a connected inventory management system means you have an eye on your food costs. And online order management tools also help you deliver faster. These all can contribute significantly to your bottom line.
Given the advanced data collection and reporting capabilities of POS systems, theft and waste at the restaurant become more visible. This discourages staff from being wasteful. When inventory policies are flouted, managers can spot it better and take action. The POS system is capable of calculating the total cash deposited by each employee and provides a clear picture of each employee’s performance. This way both good performance and poor conduct can be met with the appropriate action. The data collected can be analyzed over time to track over and under usage trends for your stock.
The inventory management system alerts you before the critical stock gets depleted. Restaurant cash registers do not have this feature. Imagine the impact on sales if you run out of a critical ingredient during a busy service. With inventory management, you can measure ingredients as you consume them. Without an in-built inventory management system, calculating the cost of your food becomes next to impossible. Imagine manually jostling through multiple xl sheets to sales reports trying to match them. You will end up feeling more like an accountant than a restaurant owner. The inventory management feature also has other handy features like sourcing raw materials straight from your inventory dashboard.
Another way restaurant cash registers stunt your growth is by their inability to accept online orders and delivery orders directly. When you have a restaurant cash register, you have to manually punch in all your online orders to accept them. With a POS system, this process becomes automated. Online orders are fast becoming the major sales channel for restaurants globally. Having your own platforms allows you to control every aspect of the experience – from ordering, discounts, checkout, payment, delivery, feedback, and loyalty.
Customers today want to be able to pay via multiple payment modes that your restaurant cash register is not compatible with. A POS system accepts all major payment methods including credit and debit cards, online wallets and loyalty points. Keep a lookout for PCI compliance in your payment processing software. PCI Compliance refers to adherence to the Payment Card Industry Data Security Standard, or PCI DSS and is a standard designed to reduce credit card fraud. It includes a list of best practices and guidelines by the major banks and credit companies.
