The service sector is constantly evolving and changing due to technological and competitor advancement and is in much need of point-of-sale (POS) systems. Restaurants are seeking to boost customer service, save time, be productive, and stay competitive in the growing global arena, thus resorting to cloud-based POS systems.
Restaurants have heaps of challenges, such as regular maintenance, multiple rounds of technical consultation, and long periods of downtime, which is why cloud-based POS systems for restaurants would be beneficial.
A POS system is the core of any restaurant’s operations. It is responsible for handling orders, tracking inventory, and managing customer data.
With the right add-on features, it can assist with the management of staff, handle online processes and payments, streamline your back-of-house kitchen operations, provide insight through the feedback left by customers, and offer after-sales service to consumers.
What are cloud-based POS systems?
A cloud-based POS system is a software solution that stores data on remote servers, accessible via the internet. Unlike traditional POS systems that rely on local servers and hardware, cloud-based solutions offer flexibility, scalability, and remote accessibility.
This modern approach to POS technology is designed to meet the evolving needs of the restaurant industry, providing a robust platform for managing transactions, inventory, staff, and customer relationships.
How are cloud-based POS systems beneficial for restaurant operations?
Let’s explore 6 benefits of cloud-based POS systems for restaurants and how they can be integrated.
- Innovation
Innovation is very important for building and growing a restaurant and becoming recognised in the industry. Therefore, to stand out, restaurants must implement procedures that are innovative and creative. An example of innovation through cloud-based POS systems is the establishment of virtual restaurants, also known as ghost kitchens, cloud kitchens, or dark kitchens—a relatively new concept growing alongside the delivery app market.
These restaurants take orders through online apps and use “ghost kitchens” or virtual kitchens that offer virtual menus to take-out customers. It has also been found that as of 2022, 32% of restaurateurs reported that installing a new POS system was a priority. - Cost-effectiveness
Cost-effectiveness is one of the primary reasons cloud computing is important for restaurants. Cloud-based POS systems are cost-effective because there are no hardware costs involved.
According to a study by the International Data Group, 69% of businesses are already using cloud technology in one capacity or another, and 18% say they plan to implement cloud-computing solutions at some point.
- Flexibility
Previously, restaurant expansion was costly, time-consuming, and a strategic decision because any expansion requires a substantial investment, but restaurants can now switch to more profitable decisions and secure finances.
By having a system infrastructure based on the cloud, restaurants can be more flexible. Cloud-based POS systems enable switching procedures and practices, which can be accessed from anywhere and be converted anytime.
- Accuracy
Cloud-based POS systems for restaurants enable better decision-making and offers, so these establishments will be able to use expert data analytics which will improve their operations and the overall customer experience.
Digital cloud systems improve accuracy and reduce errors, which contribute to and aid better decision-making and planning.
- Integration
Integrated restaurant operations pave the way for holistic and well-rounded data—useful for getting insight into internal and external restaurant practices. Integration forms a link between best practices and procedures and this keeps operations in sync.
A 2022 HospitalityTech survey showed that the top reasons for restaurateurs to upgrade their POS systems are to get better data to understand customer preferences, to enable additional payment options, to offer self-service options, and to activate multi-channel sales.
- Communication
Cloud-based POS systems for restaurants build communication and relationships with customers, which ultimately results in customer loyalty. According to a survey, 86% of restaurants use POS data to inform discounting, loyalty programmes, and marketing strategies. - Accessibility
With data stored in the cloud, restaurant owners and managers can access real-time information from any location using any device with internet connectivity. This is particularly useful for multi-location restaurant chains that need to monitor performance across various sites.
Moreover, accessibility and the ability to operate from anywhere will also enhance the continuity of businesses while making the operations less prone to disruptions. - Maintenance
Cloud-based systems receive automatic software updates, ensuring that restaurant POS systems always have the latest features and security patches without the need for manual interventions. This ensures peak functionality and performance in operations without disruptions.
Unlike manual updates, labour hours won’t have to be allocated for system updates and system downtimes can be avoided altogether with cloud-based POS systems that are designed for restaurant operations.
How can you integrate cloud-based POS systems to revolutionise operations?
Integrating a cloud-based POS system into restaurant businesses involves several key steps. Here is a detailed roadmap that provides a guide to navigating the most common stages of this process:
1. Assess the requirements
- Start by evaluating the current state of the restaurant operation and identifying areas that need improvement. Consider factors such as:
- Current operational limitations: What are the key pain points within the current operation and existing POS system? Identify whether it lacks features, is proving to be unreliable, or poses difficulties when in use
- Business goals: What are the business objectives that are aligned with integrating a new POS system? Common objectives could include seeking to improve customer service, increase efficiency, or gain better insights into the performance of the restaurant
- Budget: Determine the budget allocated toward integrating the new POS system, including initial setup costs and ongoing subscription fees. This is an important step in assessing feasibility by comparing the costs with the potential gains and savings
2. Research and selection of the right system
- With the exact operational needs and requirements of the project clearly defined, detailed research should be conducted on different cloud-based POS solutions. Look for systems that offer:
- Comprehensive features: Ensure the system includes essential features such as order management, inventory tracking, employee scheduling, and reporting to make a notable elevation in efficiency and results of restaurant operations
- Ease of use: The interface should be intuitive and user-friendly for both staff and managers. Having capabilities for seamless integrations is also vital for implementation, check if the system can integrate with your existing tools and software
- Support services: It is crucial to opt for a provider with a strong reputation for customer support who is willing to provide assistance related to all aspects of the system during and after the integration process
3. Plan the implementation
- Effective planning is critical to a smooth transition. Develop a detailed implementation plan that covers:
- Timeline: Create a realistic timeline for the integration process, including a sufficient amount of time dedicated to testing the system and training the users
- Hardware requirements: While cloud-based systems reduce the need for extensive hardware, restaurants may still need tablets, receipt printers, and cash drawers to optimise operations. Ensure these are compatible with the chosen system
- Data migration: Plan out how to transfer data from your existing system to the new cloud-based POS. This may include the transfer of customer information, inventory data, vendor registries, and sales history
4. Train the staff
- Training is crucial to ensure that staff can effectively use the new system. Provide comprehensive training sessions covering:
- System navigation: Basic operations such as placing orders, processing payments, and handling refunds. This is especially important for staff in operations which handled these operations manually prior to the integration of the new system
- Advanced features: Restaurant management teams will need to be familiar with more complex functions like automated inventory management, reporting, and customer relationship tools. Training on these aspects is essential to boost the accuracy of decision-making
- Troubleshooting: Staff need to be aware of basic troubleshooting steps to resolve common issues. Consider ongoing training opportunities to keep staff updated on new features and familiar with best practices
5. Test the system
- Before going live, conduct thorough testing to identify and resolve any issues that may still be present. This stage includes:
- Simulated transactions: Run test transactions to ensure everything functions correctly. This testing can range from regular transactions and extreme transactions as well as void transactions to test if the controls that are in place to identify errors are triggered
- Inventory checks: Verify that inventory levels are accurately tracked. This includes ensuring that stock counts are accurately maintained throughout the operation. Simulate reorders and stock depletion scenarios to test if controls related to reorder thresholds and minimum order quantities are activated
- Accuracy of reporting: Check if the sales and performance reports are generated correctly. Make adjustments as necessary based on testing results and ensure that the system accounts for all data captured by the system and generates accurate reports
6. Go live and monitor performance
- Once testing is complete and any issues have been addressed, it’s time to go live with the new cloud-based POS system. During the initial launch phase:
- Monitor operations: Keep a close eye on system performance and operations to catch any issues early on. Having a strong focus on spotting and addressing issues early can minimise the chances of operational disruptions further down the line which could have a more severe impact on the restaurant
- Gather feedback: Solicit feedback from staff who are using the system and customers who will be experiencing the service after the integration of the new system to identify any areas for improvement both in terms of productivity and customer satisfaction
- Make adjustments: Upon integrating the new cloud-based POS system, restaurants must be prepared to make quick adjustments based on feedback and performance monitoring to further finetune and streamline operations
7. Leverage data and insights
- One of the key advantages of a cloud-based POS system is the ability to gather and analyse data. Use this data to:
- Improve operations: Identify trends and patterns in sales, customer behaviour, and inventory usage to further optimise operations and improve outcomes. As conditions may change from time to time based on factors such as seasonality, it is important to prioritise continuous improvement initiatives in the restaurant
- Enhance customer experience: Utilise customer data to personalise service, implement loyalty programs, and tailor marketing efforts. Personalisation is key to building customer loyalty and encouraging repeat business through unparalleled service levels
- Make informed decisions: Use data-driven insights provided by the analytics and reporting functionalities of the new system to guide business decisions. These can range from demand-based menu changes to determining optimal staffing levels during specific shifts
Cloud-based POS systems for restaurants to revolutionise operations
A modern restaurant POS system can streamline internal and external operations, connect all of the various personnel involved in making the restaurant run smoothly, and automatically track sales, labour, and inventory metrics.
In a rapidly changing business environment, it is important that restaurants prioritise keeping their options open to make sure they keep up. With cloud-based POS systems in a restaurant, it’s easy to centralise tasks and maintain seamless operations.