Is it time for a cash register update at your restaurant?
The investment and monthly expenses of owning a restaurant are usually large and can lead to tight profit margins. As a result, many restaurant owners don’t get around to buying a proper restaurant point of sale system. The cash register works just fine, right?
It may not. Deploying and investing in an intelligent, efficient POS software can do more for a restaurant than just looking “tech-savvy.” Research shows that 32 percent of restaurant operators consider their operations to be lagging when it comes to technology use.
It is no longer aesthetic
Cash registers used to be the norm in small businesses. Right now, they only work as a novelty. Paying for services is a pain point for some customers, so a clunky, noisy cash register does not inspire confidence with your clientele. With all the payment options out there, consumers are finding fewer reasons to carry cash. If the payment process can’t be painless and easy, then customers would rather not bother sitting down or return.
Customers spending time waiting to pay
If you think about it, this is ridiculous and frustrating to the customer. Why should they wait in line to give you money? So why keep this crucial business step inefficient and so unpleasant for the customer. When asked about their preferred method of payment, 54 percent of customers chose debit cards, while 26 percent selected credit cards, and only 14 percent specified a preference for using cash.
A digital POS system will make receiving payments more efficient and painless. Menu items and combos only need to be selected to add them to the bill, providing an instant calculation. Bill calculation is notably easier when the bill must be split amongst multiple guests.
Too many human errors
Restaurants usually strive for and have high volumes of sales. The high volume of sales is necessary to operate on thin margins. Sadly, if the restaurant is using a cash register, then human error creeps in. It can’t be avoided-a double entry, missed transaction, overcharging, etc. is bound to happen.
A simple mistake, even on a small transaction, can ruin the entire customer experience. The frustrating process of trying to get their money back and having to deal with the restaurant, and possibly banks can negatively damage the restaurant’s brand. Most customers won’t even believe it’s a mistake, especially if they find other customers with the same problem; your restaurant will just be labeled a thief.
A lot of back-office work
A restaurant, like any business, has an administrative office that handles accounting, inventory, and logistics. The operation is not massive, one or two people, but it is time-consuming. Receipts must be reconciled, inventory checked, orders written up, expenses tallied-all, resulting in an abundance of paperwork.
Digital POS systems do away with mundane, routine tasks. The POS system comes with accounting software, or it can be integrated with yours. Sales, returns, and discounts will automatically be recorded with no paperwork needed. Your technology platform can be integrated with inventory management software, so you can view stock levels as the day goes by. Orders can automatically be drawn up once minimum standards have been reached. The labor and time saved will be an advantage to your bottom line.
Marketing efforts are floundering
Flyers, radio spots, magazine ads, and other marketing tactics are only as effective as the strategy used. Randomly distributing flyers with no thought behind the messaging or paying for expensive mass media without an understanding of your target market can be a waste of time and marketing.
Data is the currency of the day. It provides critical information for analysis and, ultimately, for better decision making. POS systems record and log every transaction.
With analytics in hand, your restaurant can make smart, targeted decisions. You will know who your regular customers are, what they order when they like to eat, how they prefer to pay etc. With these analytics, your marketing campaigns become more targeted and effective.
Too many staff resources are spent on small tasks
Remember how POS systems can reduce the back-office work? How can it also reduce transaction times? Or the reports it can generate reports quickly?
All these tasks took away man-hours from the core of the business-serving customers food. Considering the available technology, it is not necessary to have staff do them. By automating a lot of these tasks, the team can focus on more strategic efforts, such as focusing on the customer experience.
Cash-out the register and cash in with POS system
The cash register has run its course; the writing is on the wall. For a payment system that is safer, more efficient, and productive, restaurants must switch to a POS system.