In the hospitality industry, payment practices have shifted along with the rest of the business world. Cashless payments are now a norm. Restaurants need point-of-sales software to process them, bringing huge advantages to restaurants and their teams. Our article covers the reasons why it’s a good idea to employ point-of-sale software.
What Does Point of Sale Mean?
Simply, the phrase means the moment when the restaurant customer pays for service, to purchase their meal. Since their beginnings, restaurants accepted sales in cash. Both a cash register and a logbook were needed to tally up the total number of sales.
Point of sale software is the digital upgrade of this age-old process. Using computer technology, they do much more than simply count in and outgoings. Restaurants can:
- Track the flow of a restaurant’s stock and inventory
- Accept all methods of payment, from credit card to mobile ordering
- Automate financial processes related to restaurant payments, such as accounting and customer loyalty
- Split bills for customers, easing them through the sales process
- Analyse monthly reports with automated statistics
In sum, a point-of-sale system is built to tackle the demands of today’s financial landscape. Restaurants can avoid guest disappointment, allowing them to pay what they want.
Point of Sale Example
With a typical point-of-sale system in place, a restaurant will use the software to process customer payments. For example, a party has finished and requests the bill at a table. As such, a server can heed to whichever payment method the customer demands. For instance, if they wish to pay by credit or debit card, servers may use a dedicated card reader or mobile app to complete the transaction.
With new technology in place, such as contactless or one-tap payments, a point-of-sales system speeds up the customer payment process leading to better cover turnover. This example shows that a POS system is convenient and up-to-date with the ways of today’s world.
Why Do Restaurants Need Point of Sale Software?
Most customers prefer to pay by card. Digital payments are now the norm in hospitality, from corner coffee shops to upscale restaurants, and this represents a whole swath of payment methods, from pre-ordering online to card and digital transfers in person.
Frankly, restaurants must consider the reality that a POS system is essential. In the US alone, the Federal Deposit Insurance Corporation, a governmental body, recorded that cash only represented 30 percent of total payments in 2017.
However, this doesn’t mean that the industry is heading towards a totally cashless society. Harvard Business Review has recorded the stories of popular restaurants that have integrated POS systems, finding that they still operate in “less cash” societies than cashless ones. For example, a New Jersey café chain found that 81 percent of transactions were through card. The owner made the switch to a POS system but still had the remaining 19 percent of spending in cash.
How Much Do Point of Sales Systems Cost?
POS systems typically come under a subscription pricing structure. These charge on a monthly basis, with some of the top systems offering their services from between $69—$99 a month. However there are other costs to consider.
- Transaction Fees. Companies calculate a small percentage and apply it to the everyday transactions restaurants process via the system. This — the sum exacted for the service — is typically minimal, below a decimal point, for example, $0.08 per transaction.
- Transaction Type. Depending on the type of payment method, companies have to charge for these too as applied to regulations of different banks. For example, if a customer swipes their card, the charge may be smaller than when the customer keys in the card’s pin.
- Hardware Costs. Companies charge for use of card readers as well. Of course, restaurants could always go with a mobile POS app, able to integrate with other services.
Hungry for more? If you want to read everything you need to know about the nitty-gritty of POS system costs, read our ultimate guide.
Integration with Carbonara App for Free
What is integration in software? Specifically, this is the process of creating connections between two or more software options effectively. In regard to POS systems, Carbonara App has features to ease guest payments and purchases. It creates a seamless integration of cover allocation processes and offers customers easier ways to pay, including:
- Customers can pre-order and purchase drinks before they even step through the door. The internet is a massive help, allowing restaurants to launch their sales online. POS software helps to make this possible.
- Tableside ordering is an important part of today’s restaurant experience. Seat guests with Carbonara App, then allow them to connect to your menu and order from where they’re sitting. A POS system permits customers to order and pay simultaneously, easing the process. No more tripping between tables.
- Calculate your most valuable customers using POS analytics. Encourage guest returns with cost-free online reservations that allow guests to make a booking straight away from the palm of their hands.
Integration can be used to enhance convenience, guest turnover, restaurant profits and many other useful features available with Carbonara App. Talk to us about what systems your restaurant is using and find out how Carbonara App helps business grow.