November 7, 2024
Written by: The POS Exchange Team
Choosing your restaurant's point of sale (POS) system is no small task. With numerous options and features to sift through, it's easy to feel overwhelmed. On top of that, each system varies in price, with some costing less than a used car and others more closely resembling the price of a brand-new luxury vehicle. How much does the Best POS System for Restaurant cost? The answer isn’t simple; it depends on many factors, including your unique business needs. In this article, we’ll break down the costs of restaurant POS systems to clearly understand how much a POS system will cost your business. We’ll cover the factors influencing POS system pricing and help you determine the best system that fits your needs and budget.
The POS Exchange's solution offers restaurants an affordable way to improve operations and enhance the customer experience. POS systems can help you achieve your goals by streamlining restaurant processes, tracking sales data, and improving accuracy so you can run your business more efficiently.
A restaurant POS (Point of Sale) system combines hardware and software to help restaurants process payment for on-site and online orders. It’s typically what your staff uses to take orders, send them to the kitchen, and accept payments.
However, restaurant POS systems are more than just a digital replacement for a cash register. They serve as the central hub of your restaurant’s operations, helping improve efficiency, accuracy, and organization.
The basic function of a restaurant's point-of-sale system is to facilitate customer orders and accept card payments. With the advent of new technology, POS systems have become increasingly robust in their capabilities. Many POS systems, like Toast, can serve as an all-in-one platform for your restaurant. Along with sending orders from customers to the kitchen, modern restaurant POS terminals commonly offer users features such as:
Most importantly, finding the right POS for your restaurant is key. Whether you’re a brand new operation or a multi-location chain, the best POS systems can grow with you and support your business.
POS hardware costs vary depending on the type of system you're looking to purchase for your restaurant. The two main types of POS systems are:
Here are some of the hardware items you can expect with point-of-sale systems:
Rather than looking at the total hardware charge, focus on the cost of each line item. Ask questions like:
Legacy POS systems traditionally have the highest hardware costs, ranging from a few thousand to tens of thousands of dollars. Some can even cost as much as $50,000 a year.
Most POS providers offer both terminal and handheld POS options. When choosing a handheld POS for your restaurant, look for something that is compact and comfortable for your servers, fully integrated into the rest of your tech stack, and specifically built for restaurants.
Here's how much you can expect POS system hardware to cost:
If you're investing in handheld systems, you should expect additional networking hardware costs. These costs can range from $200 to $800, depending on the number of handhelds you purchase and the square footage of your restaurant.
Software is a huge differentiator when purchasing a restaurant point-of-sale system. Reliable, durable POS hardware is necessary in a restaurant. But it isn't worth your money if the software powering your concept isn't lightning-fast, robust in functionality, and always improving and updating.
Cloud-based POS systems typically have a monthly or yearly software fee, and it varies significantly between vendors. When judging how the software price will translate into value for your restaurant, you need to look beyond the listed price.
Here are a few questions worth considering and asking any vendor you’re evaluating:
Most restaurant owners would agree that it's worth paying a little more each month to ensure that:
Legacy on-premise systems often charge very little for the software and significantly discount the listed price to make a sale. This is because the monthly subscription typically doesn’t include regular software updates, feature releases, or support, let alone 24/7/365 support. Legacy software updates can sometimes require a total system shutdown, greatly impacting your operations.
Here's how much you can expect POS system software to cost:
The basic purpose of a restaurant POS system is to facilitate orders and accept payment from customers. But most, if not all, restaurant owners are looking to invest in a system that does way more than that.
This is similar to the purpose behind restaurants: A restaurant's basic function is to feed people, but you and your staff do way more than that by creating delightful, memorable dining experiences for your guests. The best modern restaurant POS systems offer customers additional features that allow them to take things to the next level.
These can include:
These features should be integrated into the POS experience. Whether customers or staff members can access and use these services whenever they're connected to the system.
For example, if you invest in a restaurant POS system with an online ordering integration, your customers can order food online from your website. From there, those orders will be routed directly to the kitchen to be fulfilled. They’ll also be tracked in your POS system's reporting. Some restaurant POS systems offer these features as an integrated part of their system, but many still need to. Suppose your restaurant uses additional third-party vendors to power different areas of your business. In that case, you’ll want to invest in a restaurant POS system that can integrate their services into your system via API sharing.
Here's how much you can expect additional POS system features to cost:
You've chosen a restaurant POS system. You're ready to get up and running.
Then, it hits you:
Installation and training are crucial factors when choosing a new restaurant POS system. These services ensure that the system and network are set up properly and that you and your staff feel comfortable using all of the different features effectively.
Not all POS vendors offer installation and training services. If you go with a restaurant POS vendor that doesn’t provide these services, you must install and train your staff. This can take days to weeks and involve costly speed bumps and roadblocks.
When comparing installation and training costs, it’s essential to consider what’s included in those services.
Here are some questions to consider:
Restaurant owners who care about a seamless transition and ensure the system is set up correctly often find paying more for professional installation and hands-on, in-person training worthwhile.
Here's how much you can expect restaurant POS system installation and training to cost:
A restaurant POS system is a significant business investment, and it must be treated as such. Select the system based on its value to your restaurant and avoid hidden transaction fees. It'll be worth it if the software, support, and service quality prove themselves as investments, not just extra business expenses.
Your ultimate goal should be to find the system and vendor that meets your business needs, attracts and serves more guests, and improves every customer's dining experience.
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The three main pricing models are a one-time purchase, subscription-based pricing, and pay-as-you-go. Each has advantages and disadvantages, catering to varying needs and budgets.
Under this model, businesses pay a single upfront fee for the POS software license. This approach offers predictable costs without recurring fees and allows full software ownership.
The main drawback is that it has a high initial cost and may not include updates or new features, increasing the risk that the software will become outdated. The cost includes:
This type of pricing involves paying monthly or annual fees for POS software. It requires a lower initial investment, includes regular updates, and is easy to scale as the business grows. Ongoing payments can add up over time, potentially making it more expensive in the long run.
The pay-as-you-go model charges fees based on usage, such as the number of transactions or specific features. It offers flexibility and lower initial costs, making it ideal for seasonal businesses or those with fluctuating sales.
Variable costs can make budgeting tricky, and high transaction volumes can lead to substantial fees. This model benefits seasonal businesses, which pay more during busy times and less during slow periods, and small or new businesses that can keep initial costs low and scale expenses as they grow.
Hidden costs can significantly impact the total cost of ownership and should be factored into your decision-making process. Here are some less obvious expenses to consider.
Even after the initial purchase and setup, ongoing maintenance is necessary to ensure the POS system operates smoothly. Regular servicing and maintenance, including updates and minor repairs, are required to keep the hardware and software in optimal condition.
Keeping your POS system up to date is essential for taking advantage of new features and maintaining security. Some providers offer free software updates, but major upgrades or new versions might incur additional fees. As technology advances, upgrading hardware components may be necessary to ensure compatibility and efficiency, with an estimated cost of $500 - $2,000 every few years.
Downtime can occur due to:
This can lead to lost sales and operational disruptions. Regular maintenance might require the system to be offline for short periods, and while this is usually planned to minimize disruption, it can still affect operations. The estimated cost varies based on business size and maintenance duration.
We’ve compiled some practical budgeting tips to help you make a wise investment in 2024. Below, you’ll find five ways to ensure you get the best value without compromising on essential features.
Choosing a cloud-based POS offers many benefits. These systems typically have lower initial costs because they don't require a lot of hardware investments. They are also scalable and allow you to adjust resources as your business grows.
You can request discounts on long-term contracts, bulk purchases, or referrals. Also, take advantage of free trials and demos to test the system before committing. It's wise to compare quotes from different vendors to find the most cost-effective solution that meets your needs.
To save on hardware costs, consider using your current tablets or computers as POS terminals if compatible with the chosen POS software. Begin with essential components of the POS system and gradually add more features or terminals as your budget allows and your business expands.
Take advantage of online training resources and tutorials provided by the POS provider. These resources offer a cost-effective way to train your staff, eliminating the need for in-person training sessions.
Proactive optimization of your POS system is vital for enhancing business performance. Use your POS system's reporting features to analyze sales, inventory, and customer trends, identifying areas for improvement and cost reduction. Regular audits can help you avoid paying for unused features.
The POS Exchange brings over 20 years of restaurant expertise, serving 200,000+ merchants and processing billions annually. Our tailored POS system solutions help businesses speed up checkouts by 30%, implement dynamic pricing, and manage customer reviews while reducing overhead. Perfect for:
We offer end-to-end service, from smart consultation and interactive demos to local installation and 24/7 support. Our mobile iPad POS systems streamline operations with features like:
With integrations for business management tools and advanced security measures, we ensure your POS system grows with your business. Trust our expertise to help you avoid the common pitfall that affects 38% of new business owners who choose the wrong POS system. The POS Exchange delivers customized POS system solutions that tell your unique business story whether you're managing:
Book a free demo with POS exchange to learn about our customized POS system solutions today.
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