Restaurant POS Is An Investment That Pays For Itself

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    The correct Restaurant POS system, properly installed and programmed will quickly pay for itself and then keep on paying! We calculate this return of and return on your investment based on several ongoing factors which we will explain. Our ROI does not include the value of faster customer service, operational accuracy, management reporting benefits or the peace of mind that a restaurant POS control system provides.

    Today’s restaurant POS systems impact all areas of restaurant operations from employees to guests to management and owners. The restaurant POS system sends the guest’s order to the kitchen, prices all menu items, calculates and prints the guest check and takes care of the payment process. This is all happening while the restaurant POS is maintaining your credit card transactions, updating gift card balances, maintaining employee timekeeping data, updating detailed item sales reports and tracking the sales tax and accounting details.

    How is the restaurant POS going to pay for itself? Lets review some major areas of improvement:

    Elimination of Manual Guest Check Errors – industry estimates, based on guest check audits, calculate mistakes in menu item pricing, guest check addition and guest check sales tax errors at 1% of the restaurant’s total sales volume.

    Requisition and Production Controls – according to National Restaurant Association studies, a 2% decrease in bottom-line food and drink costs results from forced charging of all items served. All items ordered are properly recorded by utilizing the restaurant POS with remote order entry devices in the bar and kitchen preparation areas. The requisition order printers and kitchen video monitors eliminate shrinkage and improve waste control by providing accurate inventory and purchasing data based on accurate consumption information.

    Labor Cost Savings – results from detailed labor analysis of staff and cover counts, revenue center analysis of labor costs by day part and labor cost reporting with productivity by individual and job produce reduced labor costs. These factors coupled with automated check issuing and tracking, faster bartender, server and cashier check-outs and controls, automatic report generation and consolidation with detailed sales history create a substantial decrease in accounting labor. These automated report functions create labor and bookkeeping savings of approximately 20 minutes per shift for each bartender, server and cashier.

    Guest Check Cost Savings – by utilizing soft copy checks instead of hand written printed guest checks plus the elimination of controlling the issuance of checks by number sequence, automatically accounting for all guest checks and the elimination of “Lost” guest checks can create a substantial cost savings.

    Charged Tip Fee Savings – deducting the credit card processing fee on the charged tip portion of credit card transactions from bartenders and servers results in a 2% to 3% savings of the charged tips in credit card fees. If your restaurant has $600 per day in charged tips, this savings could be $360 to $540 per month. Verify with your accountant or attorney that this process is legal in your area before implementation.

    Increased Sales – by forcing a beverage sale with every entre for every guest, making sure all bar items are rung up and all dessert items are rung up can create additional profits for items your staff has been giving away.

    Utilize our Restaurant POS Features Ebook for a complete description of available restaurant POS features and functions and a review of how restaurant POS systems interact with all areas of your restaurant operations.

    Use our Restaurant POS Return on Investment Worksheet to calculate your actual restaurant POS payback based on your annual revenue, average per person sales, number of bartenders, servers and/or cashiers per day and the investment amount of a restaurant POS system that meets your needs.

    Need help determining which restaurant POS system is right for you? Use our 3-step Purchase Guide to Define, Compare and Negotiate your restaurant POS system purchase. Need a restaurant POS quote from a recommended local POS provider? Use this link and we’ll connect you with a local POS professional.

     

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