The point-of-sale (POS) landscape has changed significantly since the start of the pandemic. A sudden uptake in takeout and new protocols drove countless operations to look to POS innovation to bring order to the chaos of upended business models. Even larger restaurants turned to cloud-based systems that catered to the independent and small-chain restaurant sector.
“We started [targeting] independent and small-chain segments, but we’re now seeing very, very large businesses coming to us. It’s all inverted. Now the big ones want what the smaller ones have,” says Bryan Solar, head of Restaurants, Square in Austin, Texas.
“The idea of the standalone POS is antiquated,” says Solar. “It’s much more a restaurant-operating system now that brings traditional POS functions, handheld devices, online and delivery and takeout orders and third-party apps together.”
Even coming out of the pandemic, current conditions are driving integrated POS system adoption even more, says Samir Zabaneh, chairman and CEO TouchBistro in Toronto. “For one thing, consumer habits have changed forever. They now want omni-channel services to be available for ordering, delivery, pickup or dining in.”
Secondly, he says rising costs are making operators think more about profitability, driving a need for more insightful management tools. “The old concept of using notebooks and summarizing purchases against revenues is no longer working. They need to get into the details of pricing different recipes and re-thinking their approach to inventory,” says Zabaneh.
“We are in an industry where margins are so compressed, they need the technology tools to succeed,” says Peter Dougherty, general manager of Hospitality at Lightspeed in Montreal.
Labour shortages have become another driver behind the shift in POS systems, says Zabaneh. “Right now, restaurants need to ensure the right forecasting and find ways to keep loyal employees.”
“Labour shortages continue to be a real pain for restaurants,” says Solar. “Because they are struggling to bring in new[customers], they are increasingly leaning on technology to be the lifeboat, whether it’s for online or mobile ordering, or servers taking orders.”
The added power of integration
The big focus last year for TouchBistro was online-ordering platforms with direct seamless integration into POS and related CRM and marketing tools, reports Zabaneh. “With third-party delivery apps, restaurants are realizing they are delivering services to guest they don’t know. Two years ago, it was all fragmented.”
Solar adds that integration has moved well beyond order and payment processing. “True back-of-house integration with kitchen-display systems makes operations much more efficient. There’s also a lot happening with reporting.”
Vince Farago, general manager, The Fifth Social Club Entertainment Complex in Toronto, says it switched to Square to run POS functions for its four venues, including the kitchen-display systems. “The biggest reason for the switchover was the back end. Integration has allowed us to track things more easily and follow through. Now everything is connected.”
Farago also pulls nightly reports off the system to help assess any menu changes or other adjustments needed. “I can manage it all remotely. Reporting makes it very easy for me to check sales. If there’s an issue with a credit card, we can look that up easily. And it’s all integrated with delivery and takeout. Orders go right to the kitchen-display system.”
The online onslaught
One major change over the past two years was a massive shift to online ordering for operations that had never had to consider it before, says Dougherty. “It was the first time many restaurants dipped into cloud and modern technology. Now as we emerge from the pandemic, restaurants are busier than ever, and are doubling down on technology to stay open and handle the volumes. Tech adoption is not slowing but accelerating.”
Anna Jakubiak, manager at Gatto Bistro in Toronto, says the lockdown turned the tables for her establishment from being a full-service restaurant with minimal takeout to 100-per-cent takeout. “During the pandemic, our online ordering had to be very strong but our POS system was not good enough. I had to come in to check the computer and see if I wanted to do any changes. After the lockdown hit, we got so busy we had to create an entire system that would make it all work.”
The Lightspeed system they have now integrates with the Deliverix delivery-service system. “It automatically sends tickets to the order system, and I can see the orders on my iPad,” she explains. “I can control the system from wherever I am located.”
Everything there is to know
Reporting has also become increasingly intuitive and detailed. Reporting systems can now inform managers in real time whether kitchens are behind or ahead, which is helpful when timing orders, particularly when dealing with in-house and online order volumes. “Historically it was more an art than a science,” says Solar. “With omnichannel orders, you need to make sure you don’t overburden the kitchen.”
“Those touching technology for the first time are amazed by the insights technology can bring, such as margins on different food items,” says Dougherty. “Maybe the margins are higher on pizza than a burger for example, but the most loyal repeat customers come back for the burger. That level of insight is mind blowing for restaurants.”
POS systems can also help to manage tables, track costs, and power recommendations, he adds “It can tell you if the kitchen isn’t fast enough and offer many other insights.”
What’s next
A new trend emerging is bringing deliveries back in house, reports Solar. “We are seeing companies like VROMO that can be integrated with online ordering and prioritize multiple deliveries to create the most efficient routes possible. It’s a super powerful tool that can save the costs of third-party delivery services and help protect margins.”
Square’s focus moving forward is on live sales reporting so managers can understand their sales costs in real time in multiple locations. “We’re building a lot of tools to help people better understand what is happening in their businesses.”
Zabaneh believes POS systems will be able to gain even more insight on the guest side. “Guest engagement will be crucial moving forward. That level of insight will be top of mind for restaurateurs.”
By Denise Deveau
