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POS Technology vs. Operations: A Restaurant Owner's Dilemma

Sahana Ananth
August 7, 2024
1 mins

Table of Content

A restaurant owner's primary focus should undoubtedly be on running the show. Their core competency is demanded daily in crafting exceptional dining experiences, managing staff, and understanding customer needs. However, technology, specifically a robust POS system, is a crucial tool to streamline operations and enhance those experiences. Does that mean a restaurant owner should be well versed in IT? Not necessarily.

a person is using a pos machine in a store

The Role of POS System: A Central Hub for Restaurant Ops

POS systems need to do a lot more than just handle transactions. It’s not the time for cash registers, anymore. POS are the central hub of your restaurant’s operations, managing everything from orders and payments to inventory and customer data. A good POS system can significantly enhance your restaurant’s efficiency, allowing your staff to focus more on delivering top-notch service.

Take OneHubPOS, for example: Our cloud-based POS system provides real-time sales data from anywhere, which helps you make quick decisions about inventory and staffing. This way, you can easily spot busy times and adjust your team and menu accordingly.

Of course, choosing the right POS isn’t just about what the system can do—it’s also about how it fits your specific needs. While POS companies need to show their system’s value, it’s up to you to understand what you need and evaluate your options. This is where I want to explore more. It has become tricky, especially with the rapidly evolving world of restaurant tech. So, are POS providers actually helping customers make easy decisions? I highly doubt…

The Complexity Conundrum in Restaurant Tech

The restaurant industry, while embracing technology rapidly, is often overwhelmed by its complexity. The desire for simple, effective solutions is a recurring theme among restaurant owners and operators. POS solutions have become feature-heavy, competition heavy and market saturated with misaligned providers with core services and revenue share challenges. 

Navigating the Complexity: The Need for Simplicity

While technology offers immense potential, it is also a double-edged sword. Overly complex systems have ALWAYS overwhelmed restaurant owners and staff, hindering productivity. 

Take the example of legacy POS systems. Often burdened with customizations and add-ons over the years, these become cumbersome and time taking to navigate. This complexity can lead to errors, slow down service, and frustrated staff.

3 Key Points for POS Sellers to Navigate Complexities:

  • #1 Simplicity is King: Restaurant owners are primarily focused on operations, not IT. Overly complex systems hinder their ability to focus on their core business.
  • #2 Feature Creep: The tendency to add features without considering the overall user experience can lead to software bloat and confusion.
  • #3 The Value of Service: Providing implementation and support services is crucial for successful technology adoption. It transforms the software from a product to a solution.

What Can POS Companies Do:

  • Focus on Core Functionality: Prioritize features that directly impact daily operations and customer experience.
  • User-Centric Design: Ensure the interface is intuitive and easy to navigate.
  • Invest in Support: Offer comprehensive training and ongoing support to address user concerns.
  • Strategic Partnerships: Collaborate with other technology providers to offer integrated solutions without sacrificing simplicity.

I urge modern POS providers to focus on creating intuitive interfaces that require minimal training. Period. By aligning with these principles, POS companies can significantly improve customer satisfaction and drive adoption. 

The Must-Have Ecosystem: POS and Beyond

A robust POS system is undoubtedly the cornerstone for a restaurant's technological infrastructure. However, its true potential is unlocked when it becomes part of a broader ecosystem, communicating with all systems, to and fro. It can be interconnected components like software ones including Loyalty or CRM, even payment workflows with features like reconciliation or cash discounting, marketplaces for delivery and hardware (very important) - that must work in harmony to optimize restaurant operations and enhance the customer experience.

The Crucial Role of Partners In Restaurant Ecosystem

  • Payment Processors and Operators: Facilitate secure and efficient transactions. Beyond basic payment processing, they often offer value-added services like fraud protection, chargeback management, and data analytics. Companies like NMI, Thysys, SparrowPay.io can enable transactions, provide detailed reports and customer preferences.
  • Hardware Resellers: They supply the physical components of the POS system, including terminals, printers, and kitchen displays. A reliable hardware partner ensures minimal downtime and efficient operations. For example, partners like PAX, Imin who are OEMs with resellers like BlueStar, StarMicronics offers durable and user-friendly hardware.
  • Independent Sales Organizations (ISOs): These intermediaries connect restaurant owners with POS providers and other technology solutions. They offer expertise in the market and can help tailor solutions to specific business needs.
  • Industry Consultants: These experts provide strategic guidance on technology adoption and implementation. They can help restaurant owners assess their needs, evaluate options, and optimize their technology stack.

Building a Strong Ecosystem

To create a truly effective restaurant technology ecosystem for owners, POS providers must prioritize seamless integration and open APIs. This allows for flexibility and customization, enabling restaurants to choose the best-of-breed solutions for their specific requirements.

Additionally, fostering strong partnerships with hardware resellers, payment processors, and ISVs is essential. Collaborative efforts can lead to innovative solutions that address the evolving needs of the restaurant industry.

By carefully selecting and integrating these components, restaurants can build a technology foundation that supports growth, efficiency, and customer satisfaction.

Top 4 Challenges Restaurant Owners Face 

While the benefits of a well-integrated ecosystem are clear from above, restaurants face several challenges:

  • Cost: It’s noted that a comprehensive solution is expensive, while a basic solution is affordable. This huge surge in cost makes it difficult for restaurants to scale. 
  • Integration: Without integrations, maintaining all aspects of business gets tough. 
  • Staff Training: Employees need to be trained on how to use new technologies effectively. An easy to use with minimal training will help.
  • Keeping Up with Technology: The rapidly evolving tech landscape necessitates continuous evaluation and updates.

Overcoming Challenges Through Strategic Partnerships

To address these challenges, restaurants can benefit from strategic partnerships with technology providers. For example:

  • Cloud-based solutions: Can reduce upfront costs and provide scalability.
  • Technology consultants: Can help assess needs, select appropriate solutions, and implement them effectively.
  • Managed services: Can handle system maintenance and updates, freeing up restaurant staff to focus on operations

The Power of Software + Managed Services

We have until now discussed that simply having a POS system isn't enough. To truly thrive, restaurants need a holistic solution that combines non-chaotic cutting-edge software with expert management. This is where the power of software + managed services shines.

  • Increased Efficiency: Streamlined operations, reduced manual tasks, and optimized workflows lead to significant time and cost savings.
  • Expert Support: Dedicated support teams provide round-the-clock assistance, ensuring minimal downtime and maximum productivity.
  • Data-Driven Decisions: Advanced analytics and reporting tools offer valuable insights to inform strategic business decisions.
  • Scalability: As your restaurant grows, the solution can adapt to meet your evolving needs.
  • Focus on Core Business: By outsourcing IT management, restaurant owners can concentrate on delivering exceptional customer experiences.

OneHubPOS exemplifies the software + managed services approach. Our cloud-based POS system offers a user-friendly interface, robust features, and seamless integration with other restaurant technologies. Coupled with our dedicated support team 24/7 throughout the year, we provide restaurants with a comprehensive solution that drives growth and success.

Exploring POS Systems: Simplicity vs. Complexity

POS Systems that Excel in Simplicity

Several POS providers have recognized the need for simplicity and have built their platforms accordingly. Here are a few examples:

  • OneHubPOS: A simple, android-based POS system which is cloud-first and app driven. Purpose of OneHubPOS is to make it simpler for restaurant owners to get the best in the market. Built by restaurateurs, this focuses on core features, support and affordability. 
  • Square: Known for its user-friendly interface and mobile-first approach, Square has gained popularity among small businesses, including restaurants. Its focus on core POS functionalities and integrations with other tools has contributed to its success.
  • Toast: While offering a comprehensive suite of features, Toast has made an effort to provide a clean and intuitive interface. They've also invested in training and support to assist restaurant owners in navigating the system.

POS Systems Where Complexity Can Be a Challenge

While many POS systems aim for simplicity, some can become overwhelming for restaurant owners.

Smiling man and woman at cash register
  • Legacy Systems: Older POS systems are slow, laggy and seldom maintained. Often with customizations and add-ons it becomes complex and heavy application.
  • Overly Feature-Rich Systems: With all features present, you will experience a cluttered interface and steep learning curve. Most of the time, you might be paying for some features you are not using, in between all the clutter.

Key Takeaways: What Did We Learn

  • Simplicity is a competitive advantage. Restaurant owners are often overwhelmed by technology and appreciate systems that are easy to learn and use.
  • Focus on core functionalities. While additional features can be valuable, the core POS functions should be the primary focus.
  • Prioritize user experience. Intuitive interfaces and clear navigation are essential for user satisfaction.
  • Invest in support and training. Providing comprehensive guidance can help restaurant owners overcome the learning curve.
  • Software + managed services is the way forward. Solve restaurant challenges in a simpler way with effective technology and hands on support. 

Some Real-life Examples of Restaurant Tech Influence

  • McDonald's: Known for successfully integrating digital ordering kiosks and mobile apps into their stores, streamlining operations and enhancing customer experience.
  • Starbucks: Surpassed revenue goals by leveraging its mobile app for loyalty programs, payments, and order-ahead, building a strong digital connection with customers.   
  • Chipotle: Implemented a highly efficient kitchen layout and POS system to optimize food preparation and order fulfillment.
  • Chick-fil-A's Focus on Simplicity: Known for its efficient operations, Chick-fil-A relies on a POS system that prioritizes speed and accuracy. Their system is designed to be user-friendly for both cashiers and managers, contributing to their reputation for fast service.

The Path Forward: Partnership and Managed Services

By understanding the unique challenges faced by restaurants, POS companies can develop solutions that deliver real value.

Ultimately, the goal should be to create a seamless and efficient technology ecosystem that empowers restaurant owners to focus on what they do best: providing unforgettable dining experiences.

Here’s a full list of considerations before buying POS, or talk to our POS experts to make it easy for you to make a buying decision.

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AUTHOR
Sahana Ananth
Director, GTM - OneHubPOS

Sahana is a seasoned GTM leader with a passion for building startups. She excels in crafting GTM strategies for tech products, driving revenue growth.

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