What Is Restaurant POS System: Everything You Need To Know

By Restora POS -- Monday, 20 Jun, 2022
what is restaurant pos system

Restaurant business is something that will last till the end of time as humans need food to function no matter what. If you want your restaurant to be the most crowded dining place in the town, then serving delicious food cooked by the most experienced chef is not enough. The entire management process has to be very professional and well organized and fast. As you must ensure your customer experience comfort and relaxation. Restaurant POS systems can help manage your restaurant or dining space effectively. Now what is restaurant POS system?

Nowadays everything is rushing towards renovation as well as the restaurant business. Restaurant POS system is like a virtual restaurant manager. It is not just limited to taking orders and processing payment. This system is also a complete computerized restaurant management system to help manage a restaurant accurately.

What Is Restaurant POS System?

In order to understand what is POS system, we first need to know what does POS system stand for. POS stands for point of sale which is a system for restaurant and dining business to manage their daily work smoothly. It’s a restaurant management tool which allows restaurant owners to take orders precisely avoiding errors. And also it makes the payment process smooth which reduces the possibility of theft as it tracks down the history.

The restaurant POS system allows customers to pay with both cards and cash. It is a big plus point as people nowadays prefer to use cards and carry less cash with them. It works like a register and also keeps the track of daily income of your restaurant.

Customers don't have to wait for someone to get them a menu as they can see the menu on screens. They don’t even have to wait for their chance to order as some POS system allows them to order themselves. It makes both online and dine in orders detailed and clear cut. Which leads to a better experience of both table serving and home delivery experience not keeping your customer waited for a long time.

It also helps a restaurant owner or a manager to manage their staff. It can help them organize their employees and manage shifts. And also makes the communication with staff faster, smoother and accurate. As a result, staff can serve your customer even better and customers leave your place satisfied and keep coming back.

In one word, a restaurant POS system is the complete restaurant management software which allows you to take full control of your restaurant.

How Does A POS System Work

How Does A POS System Work

Restaurant POS software works like magic when it comes to the point of managing any restaurant. They allow managers to keep track of customer orders, sales, and other important information. Most restaurant owners use a POS system to streamline their operations. They are also a critical component of any restaurant’s marketing strategy.

Receiving Orders

Restaurant POS allows its operator to take both online and offline orders. If a customer is dining in your restaurant they can simply order from anywhere in the restaurant. Waiters can take their order right from their table using a tablet or mobile screen and this information will instantly appear in the screen of the register computer or tablet. And all details will be secured in the system. No matter how many devices are used to take orders. Gone are the days when customers had to walk their way to the register desk to place their order. Register can print the bill receipt whenever the customer is done and wants to pay the bill.

Create Invoice

The POS system can calculate and print the total bill after ever order is placed. If any customer orders food multiple times, the POS system can keep track and can quickly count the total and address the due bill. You can integrate a printer with the system to print out the bill receipt.

Manage Billing

The restaurant POS system can manage the whole billing process. This system can calculate split bills, tax and vat, service charge etc. automatically. You don't have to input this information manually for every receipt. POS takes care of that.

The POS system also allows customers to pay in multiple payment methods. Such as, mobile banking or cards. This helps customers simply finish their transactions.

Show Order Details

After an order is placed, it instantly appears on the KDS or kitchen display system. The POS system notifies kitchen staff almost instantly about the new order. Kitchen staff like cooks and chefs can instantly see the full details of the order in their KDS. The POS system allows constant communication with the table to the kitchen. And you can serve your customers quickly.

Check Stock

You can count on the POS system to keep track of your stock items. It allows you to track all raw materials and necessary items in your stock in real time. You can observe your raw materials and get notifications if any item is not available in your kitchen. Also get an alert message if any item is almost out and you have to restock it.

Confirm Customer

When the food is finally ready to serve, the POS system lets the customer know by sending them notification. So the costumes get their food from the counter or the waiter delivers the food on the correct table.

Deliver Report

Restaurant POS system allows you to get the complete report of your restaurant. You can see whether your business is growing or not. You can monitor coast to coast issues of your restaurant and take necessary steps to improve and upgrade. It helps you gain more control and also helps you save more time.

Benefits Of Restaurant POS System

Benefits Of Restaurant POS System

A POS system is a key component of any restaurant. It is the system that allows customers to order food, pay for their meal and receive change. If a restaurant doesn’t have a POS system, it will be difficult for the business to function effectively. A POS system helps a restaurant manage its cash flow and keep track of its expenses.

Restaurant owners and managers face many challenges when operating their businesses. One of the most challenging aspects of operating a restaurant is managing the wait staff. Managing a team of employees requires a lot of effort and skill. One of the most important aspects of managing a staff is having a quality employee scheduling system. 

Restaurant POS systems have a lot of features that can help restaurant owners to face these challenges easily and smoothly. Restaurant POS systems have other benefits as well.

Sales Monitoring

Keeping the track of sales is the most important factor for every business as well as restaurant business. Restaurant POS system keeps track of every transaction of your restaurant everyday. So you can easily access the history of your sales. This helps you know if your business is doing good or not. And you can take any necessary action to improve your business. 

Stock Observation

You can observe or monitor your stock through the restaurant inventory management software. The restaurant POS system helps you keep in touch with your stock. You can easily observe what is available in your stock. If you don’t have a POS system in your restaurant and you are manually operating your daily work in the restaurant, you can easily lose track of your stock which can lead to chaotic situations. 

Such as, your staff took an order from a customer. And the order reached the kitchen. The chef is about to prepare the food according to customers' demand. But then he finds out that the raw material is already out of stock. But the customer is waiting for food. It is a nightmare for any restaurant. You can avoid these nightmares if you have the POS system in your restaurant.

Future Alert

When you have a POS system in your restaurant, it helps you to stay prepared for the future. The restaurant POS system records every sale you made throughout the day. These records help you to stay updated about your business growth. And if you are getting more orders than usual you are going to need more raw materials than before to serve your customers. With a POS system you not only can observe your stock but also update your stock items to serve new customers.

Better Transaction

Restaurant POS systems can handle transaction processes like nothing else. With a restaurant POS system your customers can get a better payment experience. Customers can pay with both cash and card without having to face any trouble.

System That Is Safe

Restaurant POS systems ensure the security of all information regarding your business. Whether it's about a single transaction or about your daily sales history, the POS system keeps it private. Also this system is secured to this extent that it ensures that the sensitive information is kept hidden from employees.

Online Order

Online ordering is getting more and more popular nowaday. Now people prefer to enjoy their favorite restaurant’s food from the comfort of their house. You can take online orders using the online food ordering system. You can increase your sales rate and earn more revenue. 

Overall Report

A restaurant POS system tracks every interaction done by its operators. So it has all the information to create the overall report of your restaurant business. Whether it's about sales or transaction or stock, POS systems can generate an accurate report. These reports help you take necessary steps to ensure your business profit.

Controls Staff

A restaurant POS system helps you manage your staff. The POS system tracks your employees' entry and exit time as well as activities. It shows the exact number of sales each employee made. how many sales are made by your staff and also each staff made how many sales.

Communication With Kitchen

When a customer places an order, the POS system automatically sends a notification to the kitchen. And also sends the details of the order. Kitchen staff can instantly start preparing food according to customers' demand. As soon as the preparation is completed the waiters serve the food on the table. This system minimizes errors and decreases confusion and makes the whole process faster and smoother.

Artificial Accountant

Restaurant POS system works like your artificial accountant. If you try to manage your accounts manually, it creates a huge load on the accountant. Also lots of mistakes can happen. But if you have a POS system in your restaurant, you can easily manage your financial issues without any miscalculation.

Display Menu

The restaurant POS system has a very interesting feature which is the display menu. Traditional way of a waiter bringing a menu to a new customer's table takes forever. Consumers are irritated sometimes by this kind of delay. In some cases customers leave without even ordering. Which is not expected by restaurant owners. But when you have a display menu in your dining space, customers can look at and decide what they want to order instantly.

What Are The Features Of A POS System?

Features Of A POS System

The importance of POS system in restaurant is vital for the smooth running of the business. They are used for taking orders, managing inventory, and generating reports. They also allow the restaurant to improve their services and provide a better experience for their customers.

But every business is different and every business has their different strategies. Also different businesses have different needs. So you should choose the best POS system to ensure your business growth. 

Let's look at some features of the POS system to understand it better, what is restaurant POS system. It will help you choose the right POS system for your restaurant,

  1. The restaurant POS system can keep track of your inventory and help you monitor your raw materials in real time. So that you can stay updated and repurchase any raw material before it runs out from stock.
  2. This system helps you to reasonably evaluate your employees. As all of your employees' activities can be tracked through this system you can easily find out what each of your employees do throughout the day and how hard they worked. Also you can predict the busiest hours and manage your employees.
  3. The POS system can be managed through any device. So you can monitor your restaurant activities through mobile from anywhere in the restaurant.
  4. This system lets you integrate as many devices as you want or need to effectively run your business. For example you can integrate a large display menu and also have several tablet or mobile phone menus which can be used to get orders for table to table.
  5. One of the best features of this system is that this system provides you reports automatically. Multiple filtering options like date, month, year, with or without service charge, vat etc. are available in this system. You can filter your sales report and get a broader view of your income.
  6. You can choose a customizable POS system for your restaurant. Where you can customize language, currency, country, payment system, banking information etc. as you wish.
  7. Using the POS system you can not only dine in and take away orders but also online orders for home delivery. Which is impossible if you are running your business traditionally. This system also shows you the status of orders taken, such as, how many orders are pending, how many orders are ready and how many orders have already been served.
  8. You can manage your table and reservations with this system. This system allows you to see how many tables are empty and you can serve your customers accordingly. With the POS system customers can book a table online which is not possible in traditional restaurant management systems. And you can keep the record of reservations using this system easily.
  9. This system allows you to keep the records of your purchase of supplies. Also if anything is returned POS system can record it easily.
  10. You can organize food based on different categories and also include add on using this system easily.
  11. POS systems can handle your financial sector and work as your error less accountant which will help you run your business better.
  12. The POS system also works like HR. Employees payroll, attendance, leave etc can be maintained and handled with the system.
  13. The system also provides role facilities. Admin can assign different tasks to different people and give each of them some limited authority and access on the system. This helps to remove workload from the admin's shoulder and get the job done. As every person has limited authority, on one can access other sectors and violate any sensitive information.
  14. The system allows to show menus on display and also other mobile and tablet devices which replaces traditional paper menus. If any raw material runs out of stock you can easily remove that item from the menu till restocking it’s raw material.
  15. This system can save customer data and recognize your old and new customers. And based on customer data you can offer discounts and other offers and promote your business. After all, customer satisfaction can lead to successful business.
  16. You can analyze customer data and discover which time is the busiest hour of the day and you will be able to keep additional employees on hand to serve customers.

List Of Hardware POS Needs To Function

List Of Hardware POS Needs To Function

Restaurant POS is a restaurant management software or tool which increases the speed of daily activities in a restaurant. It plays a vital role for the restaurant business. It helps the waiter or waitress serve customers, keep track of sales, and manage the register. The restaurant POS system typically includes,

The Restaurant POS System Terminal

The POS terminal is the physical device where the software runs on. It can be a computer, like a desktop or laptop or any other portable device like, tablet or mobile phone. It is a virtual platform where staff can use to manage activities like transactions.


KDS stands for kitchen display system which is another major piece of hardware to run the POS system accurately. It connects the counter or table with the kitchen. It sends notification of every single new order and visualizes the order details in the monitor. So that the core job, which is cooking food according to customers' needs, can be done effectively. It ensures quick communication with the kitchen, saves time and minimizes errors.


After the order is placed and the receipt is ready to be printed you need another hardware which is a printer. Many venues are still using printers to print kitchen tickets instead of kitchen display systems. This is also why you need this equipment if you prefer the same. Restaurant owners widely use thermal printers and impact printers in restaurants for some special features.

Thermal Printer

These types of printers are cost efficient. These printers use heat to print out the characters and images. It is mainly used to print the receipt. It needs thermally sensitive paper. These printers are very quiet.

Impact Printer

Impact printers are very noisy. It exclusively prints out the kitchen tickets. This type of printer uses special ink made with wax, resin or ink-soaked ribbon. So that ink doesn’t smudge even near around 400ºF+ heat.

Payment Terminal

This is a place where customers can play through their cards or mobile banking without facing any hassle. It's a contactless card reader where customers just need to tap their cards or smartphone. Payment terminal makes the billing process fast and easy.

Cash Drawer

There is a proverb “Old is gold”. Though many customers prefer mobile banking or cards for paying bills, paying in cash still exists. Some customers still prefer to pay in cash and a cash drawer is a place to keep that money safely. Cash drawer has different chambers for bills and coins.

Internet Router

This piece of hardware is also a must to run the POS system accurately. For proper communication of different devices such as, POS terminal, display menu, portable menu like, mobile and tablet, KDS, printer, payment terminal, cash drawer a good quality router is very important. 

And most importantly you need to carefully choose your router as different routers provide different ranges of coverage. One router might not be enough if you have a big dining space.

Barcode Scanner

You are going to need a barcode scanner to scan the items you are going to store in your stock. It easily and effectively records the details of different things in a short amount of time without any errors. Which allows you to create the list of things you stored in your inventory.

Drawbacks Of Restaurant POS System

We know what is restaurant POS system and how important the Restaurant POS software is. If the POS system were not available, the restaurant would not be able to function properly, yet it has some drawbacks,

  1. Biggest drawback is this system requires upgrade, maintenance, support and repair on a regular basis, which is costly.
  2. Another major drawback is you have to train your employees to use it properly. Because if the employees don’t know how to use a POS system in a restaurant, what is the benefit of having it in the first place.Training employees takes a long time and it also can be a bit expensive.
  3. You cannot do online activities without the internet in the POS system.
  4. As this system is fully computerized, if it crashes, you will lose all types of data regarding your business.

Although there are some disadvantages when you are using a restaurant POS system. But those are all minor compared to the numerous advantages.

Wrapping Up

Restaurant business is one of the most wanted businesses nowadays. The popularity of restaurants is increasing day by day. Every restaurant business is trying their best to become better than before. Restaurant owners are spending more time and money to figure out how to run their business in the best way possible. They have to find the best employees, keep their doors open, and stay in the black. But despite their best efforts, sometimes things go wrong. Maybe their employees are slow, or their delivery didn’t show up on time, or their competitor had a better offer. A restaurant POS system is the best solution for these problems. It helps you stay many steps ahead from your competitors.