Restaurant POS. Having a Robust POS is like Printing Money!
POSTED BY: Rhett Baylies
Point-of-Sale Systems, or POS, as we have come to know them, have become an essential tool in today’s restaurant business world.
As a matter of fact the top restaurants in in the country invest big money in their POS systems. This is because high quality POS software and systems enable their restaurants to run more efficiently and more profitably. Servers can input customer orders more quickly and handle larger stations, the kitchen makes fewer mistakes, customer service is faster, inventory and ordering are streamlined, less food is given away to friends, and detailed reports make doing the books a breeze while making menu adjustment decisions easy. With a good POS system sales will increase, inventory doesn’t have to be torture, employee time cards are 100% accurate, figuring out what items are hot and what are not is easy, you can create professional shelf tags, stop worrying about employee theft, and you will never forget to order something again! So why hasn’t your restaurant purchased a POS system? Well….
The cost of good point-of-sale systems (POS) has been a huge obstacle for the average restaurant.
As a matter of fact the average cost an effective Point-of-Sale systems can range anywhere from $2,000 to $5,000 per server station plus additional costs for extra kitchen printers, cash drawers, scales, etc.! The average small to medium restaurant can expect to spend $15,000 or more on a good POS. This means that all too often restaurants wishing to take advantage of the time savings, increased profits, and increased sales that can be realized when switching to a POS system are forced to stick with antiquated business practices. Great news - it is now more affordable than ever to step your business into the future of business, guaranteeing you many more years of success with a robust and intuitive Point-of-Sale Systems (POS).
Do you often wonder how much more money your business could generate if you had an efficient way to track all your inventory?
or How many hours of payroll you could save by not paying your chronically late employees 10 minutes here and 5 minutes there? Maybe you just want to ensure that all your items are being charged the correct price. Have you heard of the benefits that gift cards offer but can’t justify the cost to redeem them.? Maybe you have you looked into the ever suspicious “FREE” systems only to realize that they are far from free - requiring long contracts, expensive payment processing, and no support…. The Merchant Doctor is going to get to the bottom of these issues and many more in this series on how an affordable and robust POS systems can increase your bottom line and pay for themselves.
Did you know—- The average increase in sales after a restaurant POS installation is 15%!!!! WOW what if by making a simple shift in the way you do business could not only save you time but increase your sales by 15%?
The Merchant Doctor is proud to announce that we have partnered with one of the top POS software and system developers in the world with over 80,000 installed POS systems worldwide to offer a robust and adaptable POS system that will pay for itself! In this series we would like to review just a few ways that a robust Point of Sale System can not only make your business run more smoothly but pay for itself by increasing profits, reducing cost, and eliminating theft!
First off, did you know that according to an independent study by eConnect, an independent security company, restaurants actually show the 2nd highest employee theft rates only topped by Grocery/Convenience stores?
In fact, 34% of all 18-29 old employees believe that it is justifiable to steal from their employer and an effective Point-of-Sale System can greatly reduce your restaurants exposure to employee theft. POS software and systems can help ensure that every penny is accounted for because any changes to checks can require manager approval meaning that unlike a handwritten guest checks that can disappear easily your employees will be fully accountable for every item ordered during the their shift. Also by utilizing the inventory control feature on the POS you will be able to quickly notice if food is being wasted or “walking out the back door” of the kitchen and identify if your bartenders are over pouring or over “comp”ing. Imagine the thousands of dollars your business could save by eliminating “harmless” theft and streamlining inventory!
Additionally, did you know that some restaurant POS (point-of-sale systems), like the one the Merchant Doctor offers, have the ability to not only manage the task of scheduling but function as a timecard system as well eliminating “fudging” on timecards. As a matter of fact, according to a “Work Place Diva” statistic, 33% of all US employees cheat on their time cards! Think about this every 15 minutes of your employees’ time cost you about $3. So if you have just 2 employees that are late 5 days a week that is $30/week or $120/month OR $2400/year in not only wages but in any applicable federal and state payroll taxes. That savings alone could almost pay for the monthly payment on a brand new cutting edge restaurant POS system for your business.
Another way that a good restaurant POS can pay for itself
is by providing you with detailed customizable reports. Detailed easy to read reports not only save you many hours of your valuable time but can also help identify simple changes to increase sales—- and Profits! One of the most effective ways to keep your loyal customers is rotate your menu multiple times a year but one of the biggest challenges can be discovering what your customers favorite items are, which items are modified the most, and which are the most profitable. Imagine being able to generate a report quickly and easily that would enable you to make menu change decisions easily and profitably! In depth reports can reveal nuggets of gold, increasing your sales, and creating more return customers which is the goal of any business.
Let’s touch on a another way that you can save money and increase your bottom line with a point of sale system.
Your server’s charge tips. Have you ever considered that for every $100 in tips that your servers make on credit card payments that that costs your business $2-3? What if your POS system could recoup that cost? Here’s an example if your business tipped out a mere $300/day to its servers that cost could be $9. That’s $180/month and $2,160/year! Many servers may disagree with this policy but the reality is that the business shouldn’t be paying that cost. The good news is that the Restaurant POS The Merchant Doctor offers has a great feature that allows a reasonable percentage (like 2-3%) to be automatically deducted from each servers cash out and saving your restaurant thousands!
What about keeping the regulars coming back with rotating daily specials, happy hours, or just about anything else? Well with just a few strikes on the keyboard you set up enticing specials that automatically rotate. Program in your Happy Hour so that no one is getting happy hour pricing during prime business business hours. Make the buttons bright so that your servers are constantly reminded of today’s specials so that you move that inventory and end with the day with no waste!
Now that we have covered just a few of the ways that a robust restaurant POS System easily justifies the rather large price tag by paying for itself not only in dollars but time saved there are only a few questions left.
1. What if your POS software could process gift cards at absolutely zero cost so there would be no more having to not only purchase your gift cards but to also pay processing fees when they are redeemed?
2. Can you imagine being able to harness the power of a restaurant POS for less than $200/month?! Well in the next part of our series we will cover exactly that!
If you have any questions, comments, or if you would like to schedule a live demo of our POS software simply contact The Merchant Doctor or leave them below. Remember to join us to help spread the word and stay on top of the industries most important news that will effect your business. The Merchant Doctor is on FaceBook, Twitter, Google+, and LinkedIn.