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A Complete Guide of Restaurant POS System

By Ataul Karim Last Updated -- Wednesday, 2024-01-10
A Complete guide of restaurant POS system

A traditional restaurant POS system refers to a place where customers can complete their payment process and record the history of all transactions. Also, this POS system can only manage orders and make receipts in any restaurant management system. 

What is the Restaurant POS System?

A Restaurant POS system is a set of functions that can operate any restaurant’s transactional activities. Moreover, the restaurant point of sale system is a process that helps to perform the payment procedure smoothly. The best restaurant POS software is an integrated package of restaurant management systems. So, the restaurant POS software can not only manage the ordering and payment process but also maintain everything in any restaurant management system.

How Does the Restaurant POS System Work?

The Restaurant POS system is the most vital concept of any restaurant management system. So, before starting any restaurant business, you should have proper knowledge about how a restaurant POS system works. In this section, I would like to describe the working procedure of a restaurant's point of sale system. 

  • First, you have to install the software and set up the whole system.  
  • After completing installation and setup, then you need to import all customer-relevant data
  • Thereafter, you can be able to manage all orders in this system.  
  • After receiving orders, you can manage staff by using this software. 
  • Then using this software, you can check your inventory. 
  • You can monitor the quality by using this system
  • After ensuring quality, you can manage customer service. 
  • Then you can perform billing and accounting activities.
  • After completing the payment process, the system will create a balance sheet.
  • Finally, the system will prepare reports.

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Restaurant POS Software

Business Benefits of Restaurant POS System

The restaurant business is one of the trending businesses in the present world. Statistics show that Americans prefer to eat out, and they spend more than 48% of their total budget eating at restaurants. However, the restaurant POS system is an essential part of managing any restaurant properly. Now, I will discuss the business benefits of a restaurant POS system.

Benefits of Restaurant POS System

1. Sales Tracking

When you start an online restaurant business, then the sales tracking factor will be a very important issue in your business. Moreover, a restaurant POS system can provide this sales tracking facility. By using this software, you can track your sales, and that will reduce the risk of your business. So, this is one of the advantages of a restaurant POS system.

2. Stock Monitoring

A POS system can be able to monitor your inventory. This is the most significant factor in managing any restaurant properly. Moreover, the success of your business depends largely on this factor. In the manual business process, you can not track your inventory system efficiently. But when you use a POS system, then you can easily get your stock update. Also, you can understand the number of sales, dates, and prices. It provides the scanning process as well. Moreover, it can analyze the previous sales data. So, a restaurant POS system can help you understand the current situation of your stock and make an alert for the future.  

3. Smooth Transaction

Restaurant POS systems can manage transaction processes. Using this system, customers can easily complete their payments. A restaurant POS system allows credit card and debit card processing which helps to reduce the payment hassle. Also, it creates a payment receipt after completing the payment. So, it provides a faster, easier, and more secure transaction process.

4. Secured System

To increase your restaurant business security, you need to use the POS system. Because it can be able to track your sales and can monitor the entire activities. As well as, you can keep track of sales by your employees. So, it can reduce the chance of stealing. Also, it can help to create the most secure system in your business. 

5. Provides Report

A restaurant billing system can generate reports on your restaurant activities. Moreover, this system can track from A to Z in your restaurant and provides an accurate report without any human interaction. Also, it helps to generate sales reports, transactional reports, stock reports, profit-and-loss reports, etc. This system provides you with real-time information so that you can make the right decision for your business. 

6. Customer Marketing

This system helps to manage the customers and can increase customer interest. Also, it can increase the rate of returning customers. Statistics show that the POS system can increase more than 2% returning customers and they spend almost 67%.   Moreover, the restaurant POS system can be able to increase the retention of your foot traffic. When you want to provide some promotional discount offers, then the POS system will do this task automatically and easily. So, this system is free from all kinds of errors and completes all tasks accurately. 

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7. Manages Labor

Statistics show that 76% of restaurant owners are searching for labor-management features for managing their labor effectively. Moreover, using this system, you can track the labor's activity time and attendance. Also, the laborers can not access any sensitive information in this system. As well as, this system has time clock functionalities. So, using this POS system, your employee can maintain the timing issues efficiently. 

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8. Kitchen Maintenance

This system helps to maintain the kitchen activity properly. Moreover, the POS system can manage automatically the entire procedure. So, using this software, you can create a communication platform between the kitchen and customers. Also, you can monitor the kitchen activities. As well as, it helps to save your time and energy. Because of the use of this system, there is no need to come to the table from the kitchen repeatedly. Rather, when any customer comes, the POS system can be able to send a notification to the kitchen, and provide a token to the customer automatically. So, the POS software is a very easy and clear process, and it can reduce the chance to create any confusion.  

9. Manages Financial System

The POS system can manage your restaurant’s financial sectors. It can help to reduce the workload of your accountant. Also, it can perform an accurate calculation. But when an employee does these, they can often make some blunders or mistakes. On the other hand, the POS system is free from all kinds of mistakes. Moreover, using this system, you can get all accurate reports and understand these things easily. So, the restaurant POS system can ensure your business's success.  

10. Automated Menu Display

The menu is the most crucial thing in any restaurant management system. Almost 75% of customers see menu details before ordering food online.  Also, when you go to a restaurant, the waiter will show you the menu, which is a very time-consuming issue. But the POS system can be solved this problem. Moreover, it can create a visual display for showing the menu. So, the customers can get the menu easily, and save the time of both customers and staff by using this system.

11. 24*7 Customer Support

Using the POS system, you can provide customer service anytime and anywhere. Customers may have lots of questions about your restaurant or your food, and you can use this software to answer all of them automatically. So, it can ensure the customer's satisfaction and help to create a positive impression. This will be very helpful to your business's success. 

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Selecting the right POS system

It is undoubtedly clear that it is a more profitable business. Moreover, to perform your restaurant business activities smoothly, you need perfect restaurant POS software. Around more than 80% of restaurants prefer the technological use of their restaurant. Besides, 84% of restaurant owners use the restaurant POS system. So, it is a very important factor in choosing an appropriate POS system. In this section, I want to describe some features for selecting the right POS system. 

1. Inventory Management System

This feature helps to manage your inventory system. It is the most essential part of any restaurant business. Moreover, using this feature you can understand your stock. Also, you can track and monitor your inventory. As well as, you can be ready before the stock of any product runs out. So, this feature can help to perform the business process smoothly. 

2. Labor Management System

With this feature, you can track your sales. Moreover, this system helps you to keep a record of the busiest hours and the most selling hours. Thus, you can be prepared based on the record. According to this schedule, you can provide the staff. As a result, the staff can handle the overall activities properly. As well as, customers will be satisfied with proper service. Besides, you can track your labor activities. Also, you can understand how effectively they have utilized their valuable time. So, you can easily evaluate your employees by using this feature. Also, this assessment will be very helpful in case of payment of salary and for dismissal of staff and further recruitment.        

3. Smart Device Integration

Before choosing any POS system, you have to ensure that the system can be able to integrate any smart device. It is the most important feature for operating your business smoothly. Moreover, mobile POS systems can enhance the working efficiency of your business. As a result, you can monitor and operate the entire functionalities from any time and anywhere. Thus, you can manage from taking orders to delivering the food through the mobile POS system. Also, you can monitor food delivery orders from the mobile POS system until food delivery is confirmed.  So, using this feature, you can manage your business easily and smoothly. 

4. Hardware Integration

This software must have the ability to integrate some hardware equipment. When you want to set up the whole system, then you will need accessibility to configure this hardware equipment. Firstly, you need a desktop for using a legacy POS system. Then you need a touch screen terminal for user interaction. Also, you must need a server and router for getting internet service. As well as, you might be needing a kitchen display for seeing the order ticket. The most important piece of equipment is the credit card reader that helps to read the cardholder's account information for completing payment. Also, you need cables, a ticket & receipt printer, cash drawer as well.   

5. Reporting System

The POS system can provide an essential feature of preparing reports automatically. With this feature, you can get the overall update from time to time. Moreover, this feature can generate a date-wise purchase report. Also, it not only provides the sales reports but also sales report filtering facilities for your better understanding. As well as, you can understand the stock reports on your product-wise and kitchen-wise. Thus, the POS system can provide accurate reports. Besides, you can configure your system with cloud reporting. So, it helps to access remotely and does need not to have any space for exporting the reporting data.    

6. Settings & Configuration

Using this feature, you can configure the whole software as your business requirement. So, you have to choose a customizable system. In this feature, you can configure your payment settings, SMS, and email settings. Also, you can set up the banking information of your system. As well, you can set up the language, currency, and country in this feature. Moreover, you can configure your application settings by using this feature. After purchasing the POS software, then you can fully set it up on your business information. So, before choosing POS software, you must make sure that this feature exists in your software.   

7. Order Management System

The POS system can help to manage the order process easier. Using this feature, you can create a POS invoice and see the order list. Also, you can understand the complete order, pending order, and cancel an order. As well as, you can track your order by using this feature. On the other hand, in manual processes, you can not handle the order system properly. Also, it is impossible to take the online order in the manual process. Statistics show that almost 34% of customers spend a minimum of $50 for each online order. For solving these problems, the restaurant POS software provides the order management feature. So, this feature helps to operate your business’s order procedure smoothly.      

8. Table Management & Reservation

Using this software, you can manage your restaurant table and reservation process. Moreover, this feature can maintain a table booking system. Thus, the customer can book a table via phone call or message. As well as, you can keep a record of this booking information through this feature easily and accurately. Besides, you can easily see how many tables are empty in your restaurant. According to this, you can serve the customers. So, it is the most important feature for growing your sales and profit.   

9. Purchase Management

This feature helps to maintain the purchase management system. Thus, it can manage purchase items. As well as, you can perform a new purchase through this feature. Also, you can manage the return of the purchase. In this feature, you can create the return invoice without any difficulty. The restaurant POS software allows managing the supplier and supplier ledger by using this feature. So, using this feature, you can manage your purchase system and your supplier information as well.    

10. Food Management

Food is the most vital element of any restaurant management system. If you think about starting a restaurant business, then you will be concerned about this feature. Because using this feature, you can maintain the food properly. Also, you can organize your food according to the category. As a result, customers can easily get their desired food. Hence, this feature can save the time of both customers and owners. As well as, you can provide the add-ons facility in this feature. So, this feature is very helpful to the customers and the owner.      

11. Account Management System

The financial section is the most significant part of all businesses. So, you must have to handle this section efficiently. Moreover, the restaurant POS system can provide the account management feature that helps to operate your account activities smoothly. Using this feature, you can maintain the supplier payment. Also, you can manage cash adjustment. As well, this feature helps to create a debit voucher, credit voucher, contra voucher, etc. With this feature, you can get your overall account reports automatically. So, you can understand your total profit and loss easily. Besides, this system can provide a more accurate report that is very useful for your business's success.       

12. HR Management System

Human resource management is one of the essential features of any business system. Moreover, this feature helps to manage employee attendance. Also, you can handle expense, award, and recruitment processes easily in this feature. With the POS software, you can maintain the payroll system by using this feature. When you provide a loan to any employee, then you can manage the loan information in this feature. As well, this feature provides the leave employee information. So, this feature can help to maintain human resources properly.  

13. Role Permission Facility

Before choosing a restaurant POS system, you have to ensure that the software can be able to provide the role permission facility. Because this feature can reduce the admin’s workload. As an admin, you can add some new users and assign some specific tasks to each user. The most important thing is that the user you assign for that task will only be able to access that task and will not be able to access anything else. Thus, it can not break your system’s security. The users can only perform individually their assigned tasks. So, using this feature, you can maintain your business efficiently.  

14. Menu Management

This feature helps to manage your food menu. Using this feature, you can organize your food items based on the categories. Thus, this is very helpful for the customer to get their desired food easily. Also, you can provide a paperless menu system by using this software. So, to update your restaurant business in modern technology and manage your restaurant activities automatically, you need a restaurant POS system.    

15. Customer Management System

Using this feature, you can manage your customer system easily. Moreover, you can add new customers and manage previous customers properly. Also, this feature can be able to save customer data. So, you can provide some attractive discounts and offers based on customer data. Besides, you can discover the busiest hour by analyzing the customer data. As well, with this feature, you may provide some offers to the customer for promoting your business.

16. Usability & Support

Usability is an important factor in any system. So, you have to choose easy POS software. Moreover, you have to choose those types of software that can handle and operate easily. Also, you can get technical support facilities by using this software. After purchasing POS software, you may have various kinds of queries and face some technical problems. So you need to make sure that you get answers to all your queries and solutions to technical problems. 

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Key Features of Restaurant POS System

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How Much Does a Restaurant POS System Cost?

The cost of restaurant POS systems is not high. Moreover, it is affordable for all types of business holders. So, the cost range of the POS software is $79 - $150 per month. Also, the cost of hardware is almost $799. So, to operate this system you need to purchase some hardware equipment and some software equipment. You will also need to carry some additional costs. Now, I would like to describe in detail the cost of restaurant POS systems.

Restaurant POS Software Cost

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Hardware Cost

The cost of hardware fully depends on your system. But there are mainly two types of costs that are major in the hardware of POS systems.

Cloud-Based POS Cost 

In your restaurant POS system, you can apply cloud-based service. This is also known as Software-as-a-Service (SaaS) or web-based. This service allows you to access your system's data from anywhere through the internet.  

Legacy POS Cost

The legacy POS system is also known as a traditional POS system or a self-hosted POS system. Moreover, you need to operate this system by manual process. Also, this system requires large types of hardware equipment. As well as, you have to install the entire system on your restaurant computer by using the local server. So, the legacy system is slower and more expensive for maintenance.

Also, you need to purchase some hardware items which are listed below.

  • Touch screen terminal
  • Handheld tablets
  • Restaurant kiosks
  • Router 
  • Server 
  • Credit card readers
  • Cables
  • Kitchen display system
  • Kitchen ticket printer
  • Cash drawers
  • Pole display
  • Scale
  • Receipt printer   

Software Cost

To establish a restaurant POS system, you need to bear some software costs. These are discussed below.

Installation Cost

After purchasing a point of sales system, then you have to provide some installation costs. After a certain period, you need to pay an installation fee depending on the type of your system. Also, if you integrate some hardware or software into this system, then the cost will increase. So, the installation cost fully depends on your business requirements.    

Implementation Cost

After installing your restaurant POS system, you need to consider the implementation cost of your software. Moreover, you have to integrate the POS software with your business workflow. When you want to choose the legacy system, then you will need a computer and local server service. On the other hand, if you want to choose a mobile POS system, then you need a router and a standalone server. This section also includes training costs for your staff. So, you have to bear some expense on each step. 

Support & Maintenance Cost

This is the most important issue of any software and system. After installation and implementation, you have to provide the proper support and maintenance costs. This sector will play a vital role in your business success. Also, you have to ensure that you will get updated and repaired facilities from the service provider after purchasing this system.

Update Cost

When you want to install a legacy point of sale system, then you need to be concerned about the update cost. In the legacy POS system, you need to update manually. So, it is very time-consuming and slower. But when you want to install a mobile POS system, then you will get hassle-free update facilities. As well as, you have to pay a monthly service to get this.   

Repair Cost

Before purchasing the POS software, you have to know about the repairing facility from the provider. To purchase the POS software, you need to choose a provider who can solve any kind of problem at any time. Also, you need to purchase software from organizations that are always ready to provide customer service. 

Additional Cost

To provide the best facility in your restaurant, you have to bear some additional expenses. In addition to the cost of hardware and software, you will have to bear some additional costs, which I will discuss below. 

  • Online order cost
  • Gift card hosting cost
  • Credit card authorization cost
  • Award program hosting cost
  • Tracking and monitoring cost
  • Managing cost
  • CRM management cost
  • System integration cost
  • Offline system cost
  • Delivery system management cost

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Deploying Cloud-Based Restaurant POS Systems

From the previous discussion, it is clear that a cloud-based POS system is the easiest solution for setting up the point of sale software. Also, I will provide some of the benefits of the cloud-based POS system in the following section, which will be very helpful for you to establish a cloud-based restaurant POS system. 

Enhanced Dynamism

The cloud-based system can help you to enhance the dynamism of your business. You can operate your business from anywhere via the use of the internet and any smart device. But you must have to connect that device in your system for getting into this facility. Also, you can access your system from any device without any difficulty. So, using the cloud-based POS software, you can perform various tasks when you are away from the POS terminal.    


Using the cloud-based POS system, you can get the benefit of flexibility and adaptability. Moreover, you can access all your data and information from your home or anywhere. Also, there is no need to go to the office to manage your tasks. You just need a smart device for operating these tasks. So, this provides the easiest way of managing your business easily and efficiently. 

Lower IT Cost

In the cloud-based point of sale system, you can reduce the IT cost. Because there is no need for a computer and local server service in this POS system. Moreover, you can operate the system by using your mobile phone. So, it can reduce the server and installation costs. As well as, it can maintain all things automatically.

Real-Time Processing

The cloud-based restaurant POS system can help to provide real-time data processing benefits. Moreover, it can update your whole system and save real-time information instantly. Also, it can be able to always update your customers, sales, and stock information.  As well, you can track your delivery process by using the cloud-based restaurant point of sale system. 

Data Security

The cloud-based restaurant POS system can provide the most secure system. There is no possibility to hack any information by using this system. Moreover, this system can help to store all information, and the information is synced electrically. So, there is no reason to lose or miss any data. As well, it can apply the encryption method for protecting your data from viruses and any kinds of breaches. 

Secure Data Backup

With the cloud-based POS system, you can not only get the data security but also get the data backup facility. This system can be able to save the data on an online platform. And it helps to back up the data automatically. So, you can use the data as per your requirement for further needs by using this system. 

Customized System

In this system, you can get the advantage of customization. It is one of the most benefits of the cloud-based POS system. So, you can set up the whole system in a customized way. Also, you can configure your system as per your requirement. So, using this system, you can add any modules as your requirements.        

Tracking & Monitoring Facility

The cloud-based POS system can provide real-time information. So, you can track your system easily. Also, you can monitor all activities of your system effectively. As a result, it can help to enhance the working efficiency of your employees. As well, the cloud-based restaurant POS system can ensure your business profit and success. 

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Limitations of Restaurant POS system

A proverb goes, "There is no unmixed good". So, all things have both positive and negative sides. It is undoubtedly true that the POS system has lots of benefits, but it also has some challenging factors. Before starting a restaurant POS system in your business, you must be concerned about these factors. Now, I would like to describe some challenges that you may be faced with in a restaurant POS software. 

  • The cost of the POS system is expensive.
  • The business has to face highly competitive situations.
  • When the POS system is online-based, then it will be impossible to access the internet.
  • It has some support and maintenance cost
  • This system requires upgrades and repairing costs.
  • There is also some security risk.
  • This system is fully dependent on technology. 
  • Need to train the staffs to cope up with this system

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Bhojon - Restaurant Management Software


The restaurant business is a demandable business for the new generation of people. Almost 95% of restaurants increase their business profit by using technology. Thus, it is a very important factor to use newer and newer technology in your restaurant business. A restaurant POS system is one of the most significant technologies to operate your business smoothly and efficiently. So, in this article, I tried to describe the overall things about a restaurant POS system, and I hope this will be very helpful for you to understand restaurant POS software.       

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