How to Identify the Perfect Point-of-Sale System

Point-of-sale systems are changing the way many bar and tavern owners do business.

By Maura Keller

Restaurants use them. Clothing retailers use them. Grocery stores would be lost without them. They’re point-of-sale (POS) systems, and they are changing the way many bar and tavern owners do business.

What to Look For

Technology within the hospitality industry is here to stay. This reality, coupled with the fast-paced nature of the bar and tavern business, results in a need for electronic systems that can help owners and operators streamline business processes and improve their bottom line.

For years, POS systems had large, bulky, fixed terminals, and pricy hardware that required excessive cabling to install, and occupied expensive restaurant or bar space. Upfront costs for these systems were generally high and usually required long-term lease contract commitments. What’s more, routine upgrades provided by the manufacturers of traditional POS systems were expensive to implement, frequently requiring the purchase of new hardware or the manual installation of new software. Thanks to streamlined technology, however, today’s POS systems are getting smaller and offering more efficient options than ever before.

Today’s well-designed POS systems can help a bar or tavern owner run their business more efficiently and thus more profitably. In a base-level situation, a single POS can provide the following:

• Easier ordering

• Order accuracy

• Comprehensive reporting

• The ability to complete management functions

Experts agree that, if a very small bar or tavern doesn’t have hectic rush times, and operators have plenty of downtime, which they can fill with manually tracking sales and employee time records, then a POS system may not be a necessary investment. However, the cost of a POS system can easily be justified if a bar is able to serve just a few more customers a day because of increased speed and accuracy during its busy hours.

A key advantage of a POS system is the ability to run comprehensive reports, including metrics like sales by the hour, sales by the menu product, and sales by the day of the week or month. A master report often gives an executive summary of receipts, including credit card transactions, sales tax collected, discounts for customer loyalty rewards or otherwise, employee hours clocked and order counts for any given time period.

According to Tony Robertson, territory account executive at Toast Inc., there are a wealth of POS systems that are geared toward the hospitality marketplace. These include:

• Cloud-based POS systems that offer real-time data access, easy scalability and secure data storage. With cloud-based systems, businesses can manage inventory, process payments and track customer data.

• Self-service solutions, which provide customers with the ability to order and pay for their meals and drinks directly from their own device. This helps reduce wait times and increase customer satisfaction.

• Kitchen display systems that help streamline kitchen operations by displaying orders and instructions directly to kitchen staff. This helps improve efficiency and accuracy.

• Systems with multi-location capabilities to allow businesses to manage multiple locations from one system, improving efficiency and accuracy. Some of these complexities include menu management, inventory management and variable costs, while tracking voids, discounts and losses from afar.

Robertson advises business owners to make sure to research and compare different POS systems and vendors to find the right one for your business. “Consider investing in a POS system that offers scalability, which will help you keep up with changing technology as your business grows,” he says, for example.

“When evaluating POS systems to purchase, take advantage of online resources, such as vendor websites, online forums and social media communities, to learn more about the latest POS features and benefits,” Robertson says. “Ask questions and seek advice from other bar and tavern owners and industry experts who can share their experiences with different POS systems.”

According to Cory Sosnovske, president of Star Business Machines, some clients prefer simple, basic cash registers, which his company still offers. “Then we have other clients who want all the latest features, such as online ordering, scan to pay, tableside ordering, mobile guest apps and more,” explains Sosnovske. “We carry several different systems and we try to match clients’ needs with the best solution.”

Ease and Accessibility

The complexities of today’s POS systems are as varied as the users themselves. That’s why it’s imperative that bar and tavern owners and staff take the time to learn their chosen POS system. “This puts you in a position to be able to use the system to its fullest capabilities and sets you up for success,”

VetsRoll extends a heartfelt THANK YOU to the Tavern League of WI Members and Your Customers

Robertson says. “With the right resources and training, learning and implementing a POS system should be relatively easy and efficient.”

So how do proprietors select the best POS system for their needs? Robertson says it all boils down to how reliable your system is. If your POS isn’t reliable and you have to shut down for the night or become cash only, you are not going to be a happy owner. “You want something that will work in harsh environments, something that won’t shut down if a customer spills on it,” explains Robertson. “And a POS that has an offline mode is a must. This is so you can still take payments offline if your internet goes down.”

Upgrade Requirements

Typically, most POS hardware has a stated expected lifespan of five to 10 years. But Sosnovske says this can vary greatly depending on the environment and amount of use on each terminal. “Often times, software is improving, and can be updated to improve performance and add new features without needing new hardware,” Sosnovske notes.

When determining how often to upgrade an existing POS system, Robertson recommends users conduct an upgrade evaluation process every three to five years. This ensures that your business is taking advantage of the latest technology and is able to provide the best customer experience possible. Additionally, it is important to evaluate your current POS system regularly to determine if it is meeting your needs, or if it is time to upgrade or replace it. “You wouldn’t keep a cell phone for 10 to 15 years, why would you keep your POS for that long?” Robertson asks.

Mistakes to Avoid

Evaluating, and subsequently using, POS systems can be challenging, and there are many common mistakes that bar owners and operators make as it relates to their POS system.

One of the most common is not taking advantage of the POS system’s reporting features.

Robertson explains that these features can provide invaluable data, such as sales trends, customer preferences and inventory levels.

“Not training employees properly is another common mistake,” warns Robertson. “If employees are not adequately trained on how to use the POS system, they may not be able to take advantage of the full range of features available or they may make mistakes when entering orders.”

Robertson suggests avoiding these other common POS system mistakes as well:

• Not using secure payment processing, thereby increasing the risk of credit card fraud and other security breaches, which in turn, can cost the bar or tavern owner a great deal of money in the long run.

• Not enabling theft prevention measures, such as requiring employees to log into the POS system with a unique identification and password, which can help prevent theft from within the establishment.

• Not setting up employee permissions, which can leave the bar or tavern vulnerable to employee theft or fraud, as employees may be able to access sensitive data or change settings without the owner’s knowledge.

• Not factoring in the total cost of ownership. Many tavern owners do not consider the amount of time or money they could save by using the right technology, thus avoiding hidden credit card fees or having to replace consumergrade equipment sooner than expected. When you have the right technology, you can reinvest your time on revenuegenerating activities instead of on mundane, time-sucking tasks.

“It’s hard to identify mistakes until after the system is implemented and you realize it doesn’t do something you wish it did,” Sosnovske summarizes. “Think carefully about how you want your POS to flow. Determine what your ultimate goal is and ask lots of questions of your POS provider before deciding to purchase. It’s best to uncover shortfalls as soon as possible in the buying process, and it’s better to disqualify a brand or vendor than wind up with a costly system that doesn’t do what you want or need it to do.” TLW