Article
In tough economic times, POS systems can help revenue
Modern technology can automate the flow of data and content, allowing for easier analysis and increased efficiency.
June 18, 2009 by Karen Sammon — President, PAR
The following is a commentary featured in QSRweb.com's QSR Technology Comparison Guide, a comprehensive look at the different features of quick-service restaurant technology and the companies that offer those products.
For more information about the guide, which is scheduled to launch June 22, go towww.QSRweb.com/white_paper_directory.
Point-of-sale technology has evolved considerably over the years. Modern POS systems are designed to automate the flow of data and content that are vital to business operations. Today, QSR operators are selecting solutions that integrate front-of-house to back-of-house operations with above-store reporting and strong centralized tools for application, data and content management.
A truly integrated solution can increase the speed of service, increase revenue and provide key insight into business operations. In today's market, operators are managing not only a fluctuating and diverse labor pool, but are also operating their business while remaining wary of the severe economic conditions. As a result, today's POS systems play an even more significant role in the health and success of a QSR.
Increased revenue comes from speed of service
To remain competitive and viable, many restaurants have increased the diversity and flexibility of their menus. POS systems must handle complex combinations across hundreds or thousands of restaurants throughout the country and around the globe. Extensive modifier, combo and conversational ordering capabilities that are easy to set up and intuitive to use dramatically accelerate the speed of service and improve customer satisfaction.
In addition, multi-channel ordering capabilities backed by customer-order history speed delivery and build customer relationships with carryout, walk-in, phone-in and Web orders. Restaurants can improve revenue opportunities with suggestive selling tools such as integrated marketing and order confirmation displays. POS systems with mobile integration for tableside ordering and payment assist in line-busting, reducing human error, improving efficiency and boosting payment security.
And expanded payment capabilities increase revenue with customer-accessible credit card and gift card/bar code scanner processing. I also believe that in certain segments of our market, integrated kiosk applications will prove to be a viable point of sale, but the key to success will be in the management of content.
Integration to back of house
Back-of-house functions, such as financials and forecasting, are key outputs and operators need the ability to analyze data on both a store and corporate level. David Ostrowe, president of O&M Restaurant Group, a Burger King franchisee, is a firm believer in the old business adage, "If you can't measure it, you can't manage it."
From the number of sesame seed buns lost during a particular shift at a single restaurant to the weekly labor costs for all eight of his Oklahoma City-area Burger King locations, Ostrowe can measure just about anything. O&M also can use this data to lower costs, increase sales and boost operational efficiency.
"Our internal joke is that we get stressed out over issues because we know what the issues are," Ostrowe said. "Some other restaurateurs don't have a clue what their issues are, because they don't have the information. I want to know what the problem is, like when things are spiking above our mean, so we can address those issues. Having an integrated POS system enables us to do that."
Today's POS systems help ensure the right people are scheduled for the right jobs every time, with key functions like shifts by job code, user-defined shift templates and auto shift generation. Managers should be empowered to make smarter, faster decisions by handling overtime, borrowing employees, wage type support and pay adjustment. A clear view of labor-turns allows for faster management decisions with no service interruption.
In addition, operators can increase selling margins by optimizing food costs with such tools as tracking physical counts, purchasing, receiving, and waste-transfer adjustments, as well as production planning — with an interface that easily displays variances by category. QSR restaurants can control food costs by forecasting future traffic patterns based on past history.
Understanding restaurant performance is vital, whether you own a single unit or oversee thousands of sites. POS systems with integrated back-of-house functionality and above-store reporting give you clear visibility of up-to-the-minute financials, sales analysis, marketing, inventory and labor. Operators should focus on functionality that enables them to identify trends quickly, predict patterns, improve business processes and turn analysis into data-based business decisions.
Centralized management solutions
A sophisticated POS system should take the system-maintenance burden off restaurant personnel by centralizing application, data and content management. Content management is proving to be one of the toughest challenges. With diversified menus, the need for displaying nutritional information, the increase in digital signage and the move to online ordering, QSRs have to manage large amounts of content across multiple channels and devices.
To ensure the successful management of key strategic initiatives such as on-time distribution of new menu items and promotions throughout the enterprise, restaurants should invest in content solutions that can manage multiple business operations by distributing information across the enterprise swiftly and seamlessly.
Summary
POS technology can help QSR restaurants improve operations. Look for strong integration between front-of-house and back-of-house applications with sophisticated above-store reporting as well as centralized management tools. The right investments in POS technology can improve the speed of service, help build profitable customer relationships and provide invaluable insight into key business operations.
Karen Sammon is president of software solutions for ParTech Inc., a hardware and software provider for the hospitality industry with a concentration in food service. She has been with ParTech for more than 16 years and is responsible for overseeing the strategic development and implementation of existing and next-generation software and hardware.
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