POS system or cash register?

The world's first adding machine, the abacus, was invented by the Chinese in the 14th Century, but more than four centuries passed before it was improved to a full-fledged, mechanical adding machine.

 

A century and a half later, many cash registers aren't much improved from that, yet shockingly, they're still used widely in the restaurant marketplace.

 

Despite the plethora of point-of-sale-system options available, many operators choose to use registers that:

Why not?

 

Many operators recoil at the cost of a POS system. Spending $5,000 to $15,000, and often much more, on a three-terminal POS seems like a lot when decent cash registers can be had on eBay for a fraction of the cost.

 

Often the problem lies in a lack of education; not every operator understands the potential of a great POS system. It's much more than a high-tech cash holder. 

 

When used correctly, a great POS system becomes an operator's eyes and ears, an electronic manager, if you will, that knows what's going on in every area of the restaurant. POS systems provide instant data no cash register can, such as:

Food cost: A POS system won't improve a restaurant's food, but it can manage food cost to the penny. An ideal food cost can be created by entering recipe ingredients and their costs into the system. As sales occur, those ingredients are pulled out of electronic inventory and those sales are compared to remaining inventory. The result is an estimated but accurate food cost, which means operators don't have to wait until the end of the week or month to spot food cost problems, such as waste or theft.

Labor management:POS systems can provide detailed data on labor cost, something no cash register can do. Operators can use the POS system to produce employee schedules and make it the time clock at which they punch in and out. If employees are clocking in too early, the system can be set to bar them from clocking in.

 

The system also can provide an up-to-the-minute labor cost based on the sales flowing through at that moment.

Theft control: When it comes to sales, a POS knows all, and that makes theft from the till difficult. All sales are tracked in real time, which means a manager who knows the beginning balance of the cash drawer can spot check the cash on hand to ensure the balance is correct. All voids, clears and zero-outs are tracked and attached to the employee who made them, making discounts and freebies for friends nearly impossible.

 

Interestingly, many first-time users of POS systems report sales increases when they first use their systems. The truth is, they're enjoying a theft reduction.

Marketing: POS systems shine in their ability to pay for themselves by generating sales through marketing. Operators who collect customer data with their POS system can perform targeted marketing efforts easily. Try sending out a "free dessert on us" postcard campaign with a cash register.

Accounting: Business operators need solid accounting tools for good record keeping, and there's none better than a POS system. Modern systems can run multiple software programs that keep the books in IRS order. Plus, many Web-enabled POS systems send data to offsite servers for backup multiple times a day.