Point-of-sale technologies are essentially a restaurant’s beating heart, so it makes sense that optimizing POS systems will lead to greater returns. Can the table- and quick-service sectors use this technology to adapt to modern consumer demand?
POS Systems and Consumer Demand Go Hand in Hand
The food and beverage industry, which has long operated on lean profit margins, was hit hard by the COVID-19 pandemic. Now, in the wake of rising prices, diminishing operating hours and declining labor availability, many restaurants are facing increasingly unsympathetic customers.
Consumers in the quick-service restaurant sector are growing less tolerant of inconveniences like lengthy wait times. According to one study, one in five drive-thru customers will wait only two minutes to order. The majority state they’ll become annoyed after just five minutes.
Even casual dining restaurants are experiencing a diminished tolerance for minor inefficiencies. Customers irritated about rising meal prices and tip expectations are scrutinizing every aspect of service for its perceived value.
While operational budgets are being stretched to their limits, consumer demand for speed and satisfaction is increasing. The restaurant industry’s survival depends on its ability to minimize wait times and streamline service.
Realistically, adapting to shifting consumer expectations will take effort. Effectively managing high order volumes and fluctuating demand during an industrywide skill shortage will be challenging. This is where restaurant technology enters.
A well-tuned POS system is a commonly overlooked solution for increasingly impatient customers. Many restaurant owners and managersdon’t realize its potential—it’s so much more than an order-taking machine.
Optimizing POS systems for operational efficiency and speed is a cost-effective way for restaurants to address modern consumer demands. Minimizing the number of clicks per action, improving data aggregation and automating internal processes can streamline sales processes.
The Importance of a Well-Tuned POS System
Research shows both the quick and table service industries would benefit from a high-quality POS system. After all, around 95 percent of restaurant owners state technology increases their operational efficiency. A few well-placed adjustments to an existing device will likely be enough for noticeable improvements.
Whether employees use a stationary or mobile device, a slow system will cost them precious time. Every minute customers wait to order, split a check, or leave a tip increases their annoyance and lowers their tolerance for back-of-the-house mistakes.
Quick-service restaurants lose counter and drive-thru sales when wait times increase, which highlights the importance of an efficient POS system. A machine that can rapidly process orders, decrease table turn time, and shorten in-line time will result in a more tolerant customer base and higher returns.
The benefits aren’t limited to customers and management—technological efficiency also impacts employees. While few people will quit because of a complicated POS system, it can be a significant contributing cause in their decision.
While an optimized POS system isn’t the only solution to customers’ shifting expectations amid industrywide cost and operational changes, it is one of the few widely applicable ones. Virtually every restaurant already has one of these machines—they just need to tailor it to their needs to unlock its potential.
How Is an Optimized POS System Beneficial?
Restaurants should consider their business-specific needs when optimizing POS systems. How they upgrade, update, integrate and configure their machine determines the types of benefits they’ll receive. Strategic optimization can maximize returns.
A well-tuned POS system benefits those who use it daily by making their jobs easier. It can lower employees’ stress levels, reducing turnover and increasing job satisfaction. Consequently, management doesn’t have to spend thousands of dollars interviewing and hiring replacements.
Naturally, management can also receive benefits. A machine capable of automatically stocktaking, managing tables, and applying promotions minimizes the need for manual intervention. The resulting reduced human error rates and improved operational efficiency can lead to lower overhead costs and higher customer satisfaction.
A well-tuned POS system becomes vital for a restaurant when it handles the most repetitive and critical tasks. In most cases, minor adjustments will be enough to dramatically improve operational efficiency, potentially boosting returns.
How a POS System Can Increase Gross Profits
The most basic way a POS device can increase gross profits is through regular hardware and software updates. They enable new features, fix bugs and patch security gaps, which often increases a system’s processing speed.
While out-of-the-box solutions are acceptable, most restaurants would benefit from personalization. Ideally, they should customize their POS system to align their business processes with their needs. This way, they can streamline repetitive and frequent actions to increase transaction speed and customer satisfaction—securing repeat sales.
POS systems that track inventory levels can prevent overstocking and stockouts. Real-time updates prevent servers and cashiers from selling something that is no longer available. Sending error-free order tickets streamlines back-of-the-house operations, reducing food waste and increasing customer satisfaction.
Management will be able to track inventory, manage customer relationships and collect data more easily if they integrate various restaurant technologies with their POS system. Certain software or hardware integrations can eliminate business-specific pain points and streamline critical processes.
Cloud-connected POS systems can send employee, customer, and operational information to remote servers for real-time processing and analysis. Management receives data-driven insights as a result, enabling them to make proactive, cost-effective business decisions.
Best Practices for Optimizing POS Systems
Restaurants determined to optimize their POS systems should consider leveraging the best practices for better business outcomes.
Restaurants should consider programming their POS systems to take stock and reorder ingredients once certain triggers occur. This would eliminate the need for manual intervention, minimize human error and streamline one of the most repetitive tasks in the industry.
Optimized POS systems can do more than monitor sales they can collect employee data. Restaurants should customize their machines to track metrics like items sold per transaction and average order time to identify workers who need efficiency improvements.
Restaurants should consider automating customer relationship management. They should program their POS system to automatically apply customer-specific discounts and coupons. This would encourage repeat visits, increasing satisfaction and sales.
A significant aspect of optimizing POS systems involves collecting sales information. Simply tracking it is not enough—restaurants must find ways to make raw data measurable and actionable. This way, they can leverage insights to improve inefficiencies.
Train Staff on Custom POS Systems
Even the most efficient technology in the world is useless in the hands of someone who doesn’t know how to wield it. Management should train staff on their custom POS system setup. Familiarizing them with it will increase order-taking speed and shorten wait times.
POS Systems Operating at Peak Efficiency Are Vital
Very few restaurants can operate effectively without a POS system in the modern age. However, an out-of-the-box solution isn’t ideal in every situation. Management should customize their machines to align with business-specific needs to ensure they’re operating at peak efficiency at every location.
Emily Newton is the Editor-in-Chief of Revolutionized Magazine. She has over five years experience writing for the food and beverage industry.
