This is the Best Way To Choose Your Restaurants POS System

Summary

In this video, Mike B, a restaurant owner with over 20 years of experience, shares crucial advice on selecting the right Point of Sale (POS) system for your restaurant. He emphasizes the importance of cloud-based systems, competitive credit card rates, scalability, and integrated reporting features. Drawing on his own experiences with multiple POS systems, Mike explains how choosing the right POS system is more critical than menu or equipment decisions, as it can impact your restaurant’s efficiency and success. His insights will guide restaurant owners in making an informed, long-term decision to drive growth and operational success.

Takeaways

• 😀 A Point of Sale (POS) system is critical for a restaurant's operational workflow and is more important than your menu.
• 😀 Choosing the right POS system is a decision that impacts your restaurant's success long-term, so don't base it on how likable the sales rep is.
• 😀 Cloud-based POS systems are essential for accessibility and efficiency, allowing you to manage your restaurant from anywhere.
• 😀 POS systems should have open APIs, so you can integrate various apps and features seamlessly for smoother operations.
• 😀 Credit card rates are a major factor in POS selection. Aim for a blended rate under 3%, ideally in the low 2% range, to optimize long-term costs.
• 😀 Focus on the quality of reporting the POS system provides. Customizable reports like day vs. night sales and individual server performance are crucial.
• 😀 A POS system should be scalable and adaptable to different restaurant styles, such as kiosks, full-service dining, or handheld ordering.
• 😀 Don't get swayed by upfront costs alone. Choose a POS provider that stays invested in your success through integrated services and continuous support.
• 😀 The ability to handle force modifiers (e.g., customizing burger orders or pizza toppings) is key for a more complex menu.
• 😀 A poor POS decision can lead to a 'messy divorce,' making it difficult to switch systems without significant disruption and data loss.
• 😀 It's better to trust other experienced restaurant operators when choosing a POS, rather than relying solely on sales representatives.

Q & A

Why is choosing the right point of sale (POS) system more important than selecting a menu for a restaurant?

The POS system is crucial because it impacts your restaurant's operations and long-term efficiency. Unlike a menu, which can be updated relatively easily, a POS system is a long-term commitment, and switching systems later can be a complicated and costly process.

What is the primary benefit of using a cloud-based POS system for a restaurant?

A cloud-based POS system allows restaurant owners and managers to access reports and data from anywhere, eliminating the need to be tied to a physical office. This flexibility helps improve operational efficiency and responsiveness.

What features should a POS system include to support multiple restaurant styles or locations?

The POS system should be capable of handling different service styles, such as kiosks, handheld devices, or traditional dining setups. It should also allow easy integration with multiple locations, enabling smooth management as the business grows.

Why is it important to consider credit card rates when selecting a POS system?

Credit card rates directly affect a restaurant’s long-term profitability. A good POS system should offer competitive rates, ideally with a blended rate below 3%. This helps keep costs down and ensures that the system remains cost-effective over time.

What is the significance of having open APIs in a POS system?

Open APIs allow the POS system to integrate seamlessly with third-party applications. This flexibility ensures that the POS can work with other tools like inventory management, loyalty programs, and scheduling apps, streamlining operations.

How should a restaurant owner prioritize the importance of reporting in a POS system?

Reporting should be a key priority when choosing a POS system. The system should provide customizable and detailed reports that give insights into sales by day, time, and server. This helps make informed decisions and optimize restaurant operations.

Why should restaurant owners avoid choosing a POS system based solely on the sales representative's appeal?

Sales reps are often temporary, and their charisma shouldn't be the deciding factor. A restaurant owner should focus on the POS system’s functionality, longevity, and ability to meet the business's specific needs, as the sales rep's role ends once the sale is made.

What are the risks of switching POS systems after making a decision?

Switching POS systems is a complex and expensive process. It involves transferring data, integrating new systems, and possibly operating two systems simultaneously during the transition. This disruption can negatively impact operations, making it critical to choose the right POS from the start.

What kind of POS system does the speaker recommend for restaurants looking to scale?

The speaker recommends a POS system that can grow with the business, supporting multiple locations, different service styles, and integrations. This versatility is key for restaurants aiming to expand and maintain smooth operations across multiple setups.

What is meant by 'force modifiers' in a POS system, and why are they important for certain restaurants?

Force modifiers are additional options required for certain menu items, such as choosing a burger's cooking temperature or selecting toppings. These are important for restaurants with complex menus, as they ensure that all necessary details are captured during the order process.