When figuring out how to boost your restaurant's efficiency, you should first consider upgrading your kitchen equipment. While that's an essential part of running a smooth operation, you shouldn’t overlook the role of your point of sale (POS) system, especially regarding costs. Restaurant POS systems can help you save time and automate tedious tasks like inventory management, employee scheduling, and reporting. This can reduce the costs of running your restaurant, improving your bottom line. Before you get too excited about the benefits of a new restaurant POS system, you'll need to look at how much they cost. In this article, we'll cover the details of restaurant POS systems cost to help you find a high-quality system that fits your budget, maximizes efficiency, and minimizes unnecessary costs—looking for an easy way to find the right POS for your restaurant? 

The POS Exchange's system offers an easy way to find a high-quality POS system that fits your budget.

How Much Do Restaurant POS Systems Cost?

A restaurant POS system is your restaurant’s central nervous system. It carries messages and important information from the head (the leadership team) to the heart (your staff) and throughout the rest of the body (your restaurant as a whole and your guests). 

Choosing which restaurant POS system to invest in involves extensive research and demos with various vendors. You need to consider the best POS software in addition to POS hardware, and that's no easy task.

Breaking Down Restaurant POS System Costs: Hardware, Software, & Hidden Fees

Sometimes, even after spending valuable time searching for the best possible system, restaurant owners make a mistake by basing their final decision on cost alone. This usually leads them to choose the least expensive pricing proposal. Instead, when analyzing the price of a POS system, it’s essential to focus on how the various costs will translate into value for your business.

So, here’s the real question: What are the different components of a restaurant POS system, how much do they typically cost, and how will they improve your restaurant operations? Below are answers to the questions restaurateurs have about restaurant POS system costs.

What Does a Restaurant POS System Do?

The essential 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: 

• Analytics & reporting (sales reports, product mix reports, and key business metrics)
• Inventory management and tracking
• Digital menu management
• Labor/employee management (time clocks, track hours worked, and track earnings)
• Customer relationship management or CRM
• Integrated payment processor (including contactless payment support)
• Reward/customer loyalty program management
• Online ordering and delivery integration
• Tableside service and payments
• Customer support options
• Marketing tools
• Catering capabilities

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.

How Much Does a Restaurant POS System Cost?

The monthly cost of restaurant POS systems typically falls between $60 and $250 for software. In addition to those monthly fees, hardware costs are often a one-time fixed cost starting at $700. Of course, the cost of your restaurant POS solution, particularly the hardware, depends on your restaurant’s size and needs. 

A smaller operation, such as a food truck, can run on a handheld POS tablet package, while a more significant, full-service operation may require several terminals.

Key Factors to Consider When Choosing a Restaurant POS System

When researching POS systems, here are the factors to consider: 

1. Hardware: This includes routers, terminals, kiosks, handheld devices or mobile POS, card readers, kitchen display systems, printers, and guest-facing displays. 
2. Software: This includes the tech stack or platform that enables your guests and staff to place orders and conduct key business operations such as payment processing and reporting. 
3. Additional Advanced Features: This includes add-ons such as software integrations, gift card programs, online ordering, takeout/delivery, payroll/team management, and loyalty/rewards program hosting. 

How to Compare Restaurant POS Systems: Features, Pricing & Value

There are many different types of systems and pricing structures. More expensive doesn’t always mean a better system; less expensive doesn’t necessarily mean better value. With each of these systems comes different hardware and capabilities from different brands, including: 

• Hardware
• Software
• Additional features

Because of this, you can’t compare quotes from different POS vendors as apples to apples. It’s essential to compare each POS system’s value to your small business. For example, are you looking for an iPad or an Android device? Do you run a cafe or quick-service restaurant that would benefit from customer-facing displays? These considerations should be considered when attending a demo or reviewing a quote.

How Much Does Restaurant POS Equipment Cost?

Here’s a comprehensive breakdown of the POS hardware costs you can expect to encounter. 

1. POS Hardware

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:

• Cloud-Based Systems: These are software-as-a-service (SaaS) or web-based, cloud-based POS systems. They store data on remote servers and allow users to access it anywhere they have an internet connection. 
• Legacy Systems: Legacy systems—sometimes called traditional POS systems or on-premise POS—store data on local servers (in your restaurant) and run on a closed internal network. 

Restaurant POS Hardware: Essential Components & Cost Breakdown

Here are some of the hardware items you can expect with point-of-sale systems: 

Front of House (FOH)

• Terminals (cash registers)
• Cases
• Tablet stands
• Credit card readers (EMV compliant)
• Cash drawers
• Receipt printers
• Guest-facing display 

Back of House (BOH)

• Kitchen ticket printers
• Technical hardware
• Wifi Router (for a cloud-based system)
• Servers (for a legacy system)
• Cables

Innovative Features

• Handheld POS system
• Kiosk
• Kitchen display system (KDS)

Rather than looking at the total hardware charge, focus on the cost of each line item. Ask questions like: 

• How does the cost of the handheld POS systems and countertop terminals compare?
• Are credit card readers, receipt printers, cash drawers, stands, and cases included in a bundle cost? Or is each additional item an additional fee?

Legacy vs. Modern POS Systems: Costs, Features & Choosing the Right Fit

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 compact and comfortable for your servers, fully integrated into the rest of your tech stack, and specifically built for restaurants—like the Toast Go® 2. The mobile Toast Go® 2 has even been found to reduce table turn times by as much as 46 minutes, improving your customer experience and creating happier servers.

POS Hardware Costs: Pricing Breakdown & What to Budget For

Here's how much you can expect POS system hardware to cost: 

• Approximately $800 for a terminal and credit card reader bundled
• Approximately $1,000 per terminal bundle (terminal, case, stand, credit card reader, receipt printer, cash drawer, cabling) 
• Approximately $200 - $400 for each additional receipt printer/kitchen ticket printer 
• Approximately $200 for a router 
• Approximately $600 for a handheld POS system with a credit card reader. If you're investing in handheld systems, you should expect additional networking hardware costs. These costs can range anywhere from $200 to $800, depending on the number of handhelds you are purchasing and the square footage of your restaurant. 
• Approximately $100 for a kitchen display system (KDS)

2. POS Software

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
• Continually 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: 

• Does the software subscription include phone and email support? 
• Does it include free updates and feature releases? 
• How often are software upgrades being released?

POS Software Costs & Why Support & Updates Matter

Most restaurant owners would agree that it's worth paying a little more each month to ensure that: 

• You and your staff can get support when you need it 
• You’ll always have the most up-to-date software available

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
• Support—let alone 24/7/365 support

Legacy software updates can sometimes require a total system shutdown, significantly impacting your operations.

Here's how much you can expect POS system software to cost: 

• Approximately $70 per device per month 
• Approximately $35 per month for KDS software

3. Additional POS Features 

The essential 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. In a way, this is similar to the purpose behind restaurants: A restaurant's essential 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: 

• Online ordering facilitation
• Gift card program hosting 
• Loyalty/rewards program hosting 
• Credit card pre-authorization 
• Inventory tracking and management 
• A customer relationship management (CRM) solution 
• Integrations with other software vendors 
• Offline mode

POS System Integrations: Enhancing Operations with Add-Ons & APIs

At Toast, these features are integrated into the POS experience. This way, a user—whether a customer or staff member—can access and use these services whenever connected to the system. 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. Pretty cool, right? Some restaurant POS systems offer these features as an integrated part of their system, but many do not. 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: 

• Approximately $50/month each for gift cards, online ordering facilitation, and mobile ordering solutions 
• Approximately $50/month for loyalty/rewards program hosting 

How Much Does Restaurant POS Installation and Training Cost?

You've chosen a restaurant POS system. You're ready to get up and running. Then, it hits you:

• Who will install this thing? 
• Me? My vendor? 
• Who's going to teach my staff and me how to use it? 

Installation and training are crucial factors when choosing a new restaurant POS system. These services are critical for ensuring that the system and network are set up correctly and that you and your staff feel comfortable using all the different features effectively. But here’s the catch: Not all POS vendors offer installation and training services. If you go with a restaurant POS vendor that doesn’t provide installation and training, it’ll be on you to install and train your staff. This can take days to weeks, with costly speed bumps and roadblocks.

POS Installation & Training Costs: What’s Included & What to Expect

When comparing installation and training costs, it’s essential to consider what’s included in those services. 

Here are some questions to consider: 

• Is there a time limit for when the company will install the system and train the staff? 
• How much does it cost if additional time is required? 
• Will the vendor come to the restaurant to complete these tasks? Or will you use online documentation and phone support to install and learn how to use the entire system? 
• Will the POS vendor build the entire menu for my restaurant, complete with all the menu groups, items, and modifiers offered? 

Weighing the Costs of Professional Installation & Training for Your POS System

Restaurant owners who care about a seamless transition and ensure that 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: 

• Approximately $75/hour for remote installation (support gives set-up instructions digitally) 
• Approximately $125/hour for onsite installation (support comes to your restaurant to install/person) 
• Approximately $400 for a full menu built into the POS 

How Does the POS System Cost Factor Into Your Decision? 

A restaurant POS system is a significant business investment; treating it as such is essential. 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 an investment—not just an extra business expense. 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.

Related Reading

• Toast vs Clover
• Toast vs Square
• Quick Service Restaurant POS System

Price of the 5 Most Popular Restaurant POS Systems

1. Square POS System: Affordable and Straightforward

Square offers an affordable and straightforward POS system for restaurants. Their hardware costs $10 for a mobile card reader, with no installation fees or monthly software costs. The only recurring cost is for payment processing, starting at 2.6% + 10¢ per transaction. 

2. Toast POS System: Customizable for Restaurants

Toast provides a customizable POS system built specifically for restaurants. Both software and hardware start at $0 per month, and installation costs vary depending on the specific equipment required. Payment processing fees for Toast are set at a custom rate that is “specific to the characteristics of your restaurant.”

3. TouchBistro POS System: Tailored for Restaurants

TouchBistro is a cloud-based POS system specifically aimed at helping different types of restaurants sell online and in-person. Their POS software plan starts at $69 per month, and hardware costs are available upon requesting a quote. TouchBistro’s payment processing services are available as an add-on, referred to as TouchBistro Payments; pricing is available upon requesting a quote. 

4. Lightspeed POS System: Flexible Solutions for Restaurants

Lightspeed offers online and in-person POS solutions for retail, restaurants, and golf businesses. Their restaurant plan starts at $69, while their retail plan is $89. 

Hardware costs depend on the equipment purchased, but a credit card reader starts at $79, a countertop terminal at $199, and a mobile terminal at $299. Lightspeed doesn't specify whether installation fees are included, and they charge 2.6% + 10¢ per transaction for payment processing fees. 

5. SpotOn POS System: Free Starter Plan Available

SpotOn is well-suited to new restaurants since its free starting plan includes a terminal, customer display, stand, receipt printer, and cash drawer. All you’ll have to pay is the 2.89% + 25¢ card processing fee, which goes down to 1.99% + 25¢ once you upgrade to one of SpotOn’s paid plans. 

If you’re on a paid plan, you’ll also get access to SpotOn’s Teamwork app, which includes complete tip management, such as tip sharing and tip reports, features not offered by established providers Clover and Lightspeed. SpotOn doesn’t provide as wide a range of POS hardware and accessories as competitors, so if you want all your equipment bases covered, you’re better off with a provider like Clover or Square.

Related Reading

• Cheapest POS System for Restaurant
• How to Use POS System Restaurant
• iPad Restaurant POS
• Lightspeed vs Square

Book a Free Demo With POS Exchange to Learn About Our Customized POS System Solutions Today!

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:

• Full-service restaurants
• Pizza shops
• Coffee houses
• Multi-location enterprises

We offer end-to-end service, from brilliant consultation and interactive demos to local installation and 24/7 support. Our mobile iPad POS systems streamline operations with features like:

• Order management
• Bill splitting
• Inventory control

Customized POS Solutions for Growing Restaurants & Multi-Location Businesses

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. 

Whether you're managing:

• A busy restaurant
• A local café
• Operating a multi-location business

The POS Exchange delivers customized POS system solutions that tell your unique business story. Book a free demo with POS exchange to learn about our customized POS system solutions today.

Related Reading

• Restaurant POS Launch Plan
• How Does a Restaurant POS System Work
• TouchBistro vs Square

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