Wondering if your restaurant needs POS technology?
Are you skeptical of the benefits it can offer your business?
Whether you believe it or not, there are a lot of benefits to POS software that can really help your business run more smoothly. On the other hand, if you’re not using POS technology you may be facing a lot of unnecessary risks.
Below we’ll look at the 7 risks you’re taking if you’re not yet using a POS system.
1. Human Errors and Mistakes
Human error can and does happen regularly in a fast-paced restaurant. Whether an employee is manually adding up orders at the register or you’re checking inventory, errors can happen whenever a human is in control.
With such a high volume of cash and credit transactions happening in a restaurant every day, it’s important that you track activity. You need to reduce human error as much as possible.
POS systems can help you easily track sales and inventory. POS will also function as an accurate and efficient tool for processing credit cards and payments.
When performing a task manually there will always be some errors. While it may not seem like a big deal to have a 1% margin of error, that is still money you’re missing out on. It can add up throughout the year.
A POS system will cost you money as well. However, you’ll likely make up for this within a few months from the amount you’ll save each year by reducing the risk of human error.
2. Unexpected Losses and Theft
If there are any unexpected losses, a POS system can help you understand when and where it occurred. This will allow you to rework any part of your operation that needs to be improved. It can help you to avoid the risks of inventory waste or losses due to employee theft.
A POS system can help you track inventory as well as cash flow. It can help you monitor every step of the inventory lifecycle and track a product all the way from the supplier to a customer purchase.
Untrustworthy employees may learn to exploit an inefficient or insecure system and steal from your business. Employee theft can be reduced greatly due to the security included in a POS system.
Since servers and restaurant staff are responsible for their sales, it’s important for all transactions to be accurate and secure. Without the password, it is impossible to alter a check on the computer.
3. Inefficient Processes
Old, manual restaurant systems can be highly inefficient compared to those which use POS technology. They lack the types of integrations that can really make a business operate smoothly.
The ability to easily track inventory and sales can be a lifesaver. It can help you to easily analyze food usage and recognize which menu items are the most popular.
Most POS systems will have the ability to automatically update inventory when sales information is entered. As a result, there will be no more need to double-check constantly to ensure that sales and stock are aligned. Inconsistencies will become a thing of the past.
In addition to simply helping with daily operations, a POS system can help when it comes to organizing profit and loss statements and calculating sales tax. Some POS technology will even integrate seamlessly with your accounting software, saving you plenty of time and effort.
4. Not Knowing Your ROI (Return on Investment)
If you don’t have the insights available to accurately measure and improve your ROI for your business, you’re missing out. A POS system can help you accurately assess the strengths and weaknesses of your business.
The sales reports that can be created using POS software will help you to accurately analyze the effectiveness of special deals or sales campaigns you’re running. You will easily be able to see and dissect important data, finding out what your most popular product is, which brands sell the most, or even who the most successful server on your team is.
Using this data wisely can allow you to determine where your time and energy should be spent to raise your profit margins and help you see where you may be coming up short. You’ll also end up with a great idea of what menu items you should be marketing more as well as what may need to be discontinued.
5. Poor Employee Management
POS can also help you to have better employee management. If you don’t have a good system in your restaurant you run the risk of employee theft and discrepancies when it comes to financial transactions and sales. POS software is incredible and will help to prevent any types of vulnerabilities that an employee may be able to take advantage of.
A good POS system is the first line of defense against forged receipts, wrongful charges, and misplaced orders. Supervision of cash flow among employees and an accurate record of all transactions can help to avoid profit losses and allow you to be more efficient.
Additionally, employee payroll will also be much easier when using POS technology. With built-in clock-in abilities, accounts can be easily tracked and a POS system can easily help you generate payroll. This type of POS usage can be a huge asset, helping you to simplify the bookkeeping department and save a lot of time.
6. Ineffective Communication Between Departments
When running a high volume restaurant, coordination between departments can be very challenging. POS technology will help to easily increase communication between departments.
Orders and restaurant operations between the back-of-house and front-of-house staff will be more efficient than ever before. Restaurant orders will go directly to the computer system and will automatically print out in the kitchen. As a result, your restaurant will be able to move faster. Wait times will be greatly reduced.
Management will also be able to easily review orders, keep track of inventory, and increase efficiency. This will help to make sure that all inventory is replenished at an appropriate time. Your management staff will be able to work more easily with the purchasing department, accounts section, and restaurant suppliers.
7. Weaker Customer Relationships
POS technology can also be crucial for improving customer service and making the most of customer relationship management. POS can also help you to build ongoing customer relationships, convincing customers to keep coming back for more.
The increased amount of data you’ll have on individual customers will be invaluable. You’ll be able to market to customers directly based on their buying patterns.
With a POS system, you can view up-to-date customer information and will be able to email receipts to customers. You’ll also be able to send special deals and offers to keep them interested in your restaurant.
Additionally, if you decide to have a customer rewards or loyalty program you can do this as well. You’ll be able to track what customers buy, offer them points, and easily allow them to use their points for menu items.
Using POS software can go a long way in helping your business and improving your day-to-day operations. POS technology will help you work smarter, become more efficient, and build better relationships with employees and customers.
On the other hand, neglecting to use POS comes with more risks than you may like to believe. When it comes to the success of your business, less risk is a good thing.
Looking for a reliable POS system for your restaurant? Contact us today to learn more about how our POS technology can help your business succeed.