How Does a Restaurant POS System Work: 7 Sequential Steps!

Are you a restaurant business owner? If you say "Yes", you must know the working process of restaurant POS software. Using POS software is a digital operation you can integrate to improve your business. 

But most newbie or non-technical restaurateurs might not be comprehending what is restaurant POS system and how does a restaurant POS system works.  

To consider all of the circumstances, I will demonstrate the basic concept of the restaurant POS system, and the working process of POS software, as well as how it will be beneficial for your restaurant. 

So, you just need to invest some time to absorb the overall concept and working mechanism of the restaurant POS system. Let’s explore it and apply it in your restaurant.

What is a Restaurant POS System?

A restaurant Point of Sale (POS) system refers to a computerized tool to conduct the entire managerial activities and billing process at a restaurant. The restaurant POS system can assist to manage the overall operation such as online & offline order management, stock & inventory management, table reservation, menu management, reporting & analytics, delivery system, loyalty programs, and so on. 

However, the traditional POS system is considered as a restaurant billing software and just conducts the billing process and print invoice. On the other hand, the cloud POS software provides complete restaurant management that ensures an end-to-end solution for your restaurant.

Want to Move Forward Your Restaurant with Digitized Formation

The world is moving to automation and digitalization. In this regard, the restaurant industry adopts various technologies to improve the structure and services of the restaurant business. In the traditional restaurant business it was very hazardous to maintain the entire aspect of your restaurant. To resolve such kinds of difficulties, you need to learn about the concept of the restaurant POS system. According to Grand View Research, 

“Around 84% of restaurants are connected with the restaurant POS system and the global market size was almost $15.46 billion in 2020.”

So, why are you lagging behind???  You can automate the entire working mechanism of your restaurant by adopting the restaurant POS software. By integrating a restaurant automation system, you can play a significant role in the global economy. Another prediction shows that,

“The annual growth rate of the restaurant POS terminal market will be reached at 6.20% and $18,356.13 Million from 2022 to 2025.” Source

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How Does a Restaurant POS System Work: Features and Benefits

According to which POS software you choose, the working mechanism will vary. But all restaurant POS systems have a common structure to maintain the overall aspect of your restaurant. In this section, you will be informed of the sequential process of how does a restaurant POS system works.

Stage 1: Receive Order through POS Monitor

You can receive both online and offline orders through a touch-screen POS monitor. The POS system allows the operator to receive all orders easily and spontaneously. You just need to select the food items and provide some required information such as Customer Name, Customer Type, Waiter Name, and Table Number. In this regard, you can add new customers by filling in some required information. 

Also, you can quickly receive any orders by selecting the food items. Moreover, the restaurant POS system can allow the users to check all ongoing orders, kitchen status, and online orders. 

Similarly, you can receive all orders by using Mobile POS or the Tabtel POS system. Most significantly, the restaurant POS system allows the customers to conduct their order giving process by themselves through Self Ordering Kiosk POS System.           

Stage 2: Generate POS Invoice

After receiving the orders, the restaurant POS system can be able to generate a complete POS invoice automatically and accurately. To print the POS Invoice, you need to go to the On-Going Order option. Then, you will get two individual options that will print the Invoice - POS Invoice and Due Invoice.

Here, you can print the entire invoice without completing the payment, then you need to click on the Due Invoice option. If the customers complete the overall payment, you need to click on the POS Invoice option. When you click on the POS Invoice option, the restaurant POS system can convert the entire mechanism to complete the billing process.   

Stage 3: Conduct Billing Process

Now, the restaurant POS system helps to complete the transaction. After receiving the orders, you need to perform the billing operation. In this regard, the restaurant POS software can assist to complete the entire operation automatically.

Moreover, the POS system can be able to calculate the total payment smoothly and accurately. To do this, you need to go to the POS Invoice option. Then, you can see the total amount and need to click on the Pay Now & Print Invoice option. Also, the restaurant POS system provides a split billing system if your customer wants.

Stage 4: Display Order Details on KDS

After completing the order-taking and billing process, the POS system allows you to connect a kitchen display in your restaurant. This kitchen display shows the order details that will help to prepare the food according to the customer’s requirements.

Moreover, the POS system allows the operator to create a smooth and virtual connection between the POS counter and the kitchen of your restaurant. Also, the kitchen display system (KDS) can save your employees time as well as ensure effective maintenance.     

Stage 5: Check Inventory to Prepare Food

This automated POS system can be able to keep a record of your stock or inventory. You need not manually monitor or track your stock rather this system can keep the entire system always up-to-date. When any orders have been displayed, you will be automatically informed about the required ingredients is available or not.

In this stage, the POS system can check your stock or inventory and give you automatic feedback about the available ingredients. Also, the restaurant POS system can allow users to purchase all necessary items and suppliers.

So, you can conduct the overall purchase and inventory management of your restaurant by using restaurant POS software.

Stage 6: Notify Customer by Counter Dashboard

If all of the previous stages are performed, you can serve the desired food to your customers. In this regard, the POS system can allow you to notify the customers by integrating the counter dashboard.

When an order is done, the POS system can automatically send the message and notify the customers through this counter dashboard.

Thus, the counter dashboard can assist both the waiters and customers to observe Table No, Order Number, Order Time, Remaining Time, and Status. Also, the restaurant POS system allows the operator to set up the sound system and see the overall Counter List.  

Stage 7: Provide Overall Reports

After completing all the previous steps, the restaurant POS software can be able to generate the entire reports of your restaurant. If you do not have any POS system or restaurant automation system, you need to manually create the reports of every aspect of your restaurant. It will be time-consuming and tedious to prepare all reports by hand.

In this stage, the POS system can provide purchase reports, stock reports based on the food items and kitchen, sales reports, cash register reports, and so on. Also, the restaurant POS software can assist to generate individual item sales reports, waiter sales reports, delivery type sales reports, and so on.

This is how the restaurant POS system works in your restaurant and can easily monitor and manage every aspect of your restaurant business.  

So, the restaurant POS system can handle from order taking to reporting and delivering the food items to the customers smoothly and automatically. 

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Types of POS System for a Restaurant?

In this modern era, you can digitize your restaurant business by integrating several POS solutions. There are basically four types of POS systems that exist in the present restaurant industry. With the technological revolution, the restaurant industry has been getting in touch with various types of restaurant POS systems. Those are:

• Desktop POS System 
• Mobile POS System 
• Tablet POS System 
• Self Ordering Kiosk POS System 
• Cloud-based POS systems
• Multi-Channel POS Systems
• Open-Source POS Systems

1. Desktop POS System

This POS system can allow the operator to operate the order-taking and handling process through a computer or laptop, an app, or a browser. Also, it allows you to connect cash-drawer, barcode scanner, card swiper, and so on.   

2. Mobile POS System

The mobile POS system can allow you to conduct the order receiving and billing process from anywhere in your restaurant. Also, this system allows the process to connect with the barcode scanner, receipt printer, and so on.   

3. Tablet POS System

The working process of the tablet POS system is quite similar to the mobile POS system. The Tablet POS system can allow the operator to conduct the overall activities from anywhere and anytime. 

4. Self Ordering Kiosk POS System

This one is another exclusive type of restaurant POS system. It allows the users to order their desired food items by themselves. After that, the further process will be continued and managed the operations.

5. Cloud-based POS systems

Cloud-based POS are the type of system that entirely can be hosted online.  Its users have access to log in from anywhere and can manage, track and update anytime.

6. Multi-Channel POS Systems

Multichannel POS systems are designed to perform on multiple platforms. These systems can successfully manage inventory and sales. Moreover, a multichannel POS system allows users to see the customer's interaction, data sales performance, channel effectiveness, etc.

7. Open-Source POS Systems

An open-source POS system allows users to access the source code so the business can customize the system according to their needs. It is a system that empowers businesses by implementing modifications or features quickly.

Why Do You Need a Restaurant POS Software?

The restaurant POS system will act as a virtual assistant for your restaurant. In this section, I would like to highlight some core significance of a restaurant POS system and how you will be beneficial from a restaurant POS software. 

So, let's take a look at the most significant reason to integrate a POS system, and how the POS system can assist you to solve the daily challenges in your restaurant.      

✔ Restaurant POS Ensures Real-time Menu Management

The restaurant POS system can assist you to display a real-time menu and ensure dynamic menu management. If the customer orders any food items through the website, they will get a dynamic menu. 

So, the restaurant POS system helps to manage and track food orders, and stocks. Also, it allows the operators to make any changes, modifications, and replications through a single interface.    

✔ Reduce Customer’s Waiting Time by Using POS System

To integrate automation in your restaurant, you can enhance the experience of your customers and employees. The restaurant POS software can assist you to build an automatic framework to conduct the overall activities of your restaurant automatically.

So, you can quickly serve the food items and manage the other aspects of your restaurant by using the restaurant POS system.   

✔ Restaurant POS Allows Effective Monitoring & Tracking

If you want to track and monitor every aspect of your restaurant, you need to adopt restaurant POS software. A restaurant POS system can allow the operators to get real-time reports which will help to observe the total inflow and outflow of your restaurant.

By using this restaurant POS system, you can become aware of your stock and according to this, you can design the service plan. So, the POS system can improve the service and reach the desired growth of your restaurant business.  

✔ POS Software Minimizes Maintenance Cost & Errors

If you integrate a restaurant POS system, you will get a complete restaurant management solution. All of the essential features and modules are incorporated in a single package, so you need not purchase any required module separately. 

Most significantly, it will assist to provide automatic management of your restaurant, thus you need not handle any aspect manually. So, the restaurant POS software can reduce the maintenance cost, and human errors by ensuring the automation of your restaurant. 

✔ POS System Ensures a Tight Control Over Accuracy & Satisfaction

Since the restaurant POS system provides automatic management and seamless operations, it will ensure the satisfaction and accuracy of your restaurant business. Moreover, the POS system can allow the operators to maintain discount and loyalty programs which will enhance your customer's satisfaction. 

So, loyalty programs can ensure your customer’s satisfaction and retention by using restaurant POS software.

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How to Choose the Best Restaurant POS Software?

If you want to get all of the facilities by integrating a POS system in your restaurant, you need to choose the best restaurant POS system. There is a lot of restaurant POS software available in the present restaurant industry. But all of them might not be perfect for your restaurant business. 

In this case, you need to choose the best restaurant POS software by ensuring the required parameters and features. To choose any restaurant POS software for your restaurant business, you need to ensure the following criteria.           

✔ Is it Affordable to Purchase?  

To choose any restaurant POS system, you need to consider the pricing and costing of your chosen restaurant software. Otherwise, it will be a burden to afford and maintain for the owner. 

Since it is required to install and set up the chosen restaurant POS software, thus you have to consider the total cost. So, you can consider the following aspect.   

• One-time purchase 
• Free installation and set up
• Technical support

✔ Will It Ensure Usability and Smooth Operation? 

Some of the POS systems are complicated to use and difficult to operate. But you have to choose that POS software which will be easy to use and operate. Otherwise, you need to train your employees to be familiar with a new system. 

✔ Is it Allow 24*7 Accessibility & Flexibility?  

Before choosing any restaurant POS software, you need to consider flexibility and accessibility. It would be better if you can monitor the overall activities of your restaurant from anywhere and anytime. 

In this regard, the best POS system can be able to ensure a flexible and 24*7 services to manage the entire activities. Some POS systems are slow which might be hampered any aspects of the operations. 

✔ Will It Allow Customization Systems?

To operate and manage your restaurant business, you might be required any additional features. In this regard, it would be better if your chosen POS software allows customization systems. You can add or modify any features or modules which will be required to operate your restaurant business.    

✔ Required Features & Modules of Restaurant POS Software

To choose any restaurant POS software, you have to ensure some essential features and require modules that will assist you to operate your restaurant. These features will act as a virtual helping hand so that you can manage the entire activities of your restaurant.  

Online & Offline Order Management System

The restaurant POS system provides this exclusive module which will allow the operator to manage both online and offline orders. Moreover, the operator can receive and manage orders through the fingertips. Also, this feature is included the following aspects which will ensure a smooth operation in your restaurant. 

• Pending order list
• Complete order list 
• Cancel order list

Online Table Reservation System

Another essential feature of any restaurant POS software is the online table reservation system. This module can allow the customers to reserve their desired table before going to the restaurant. 

POS Billing System

One of the most crucial features of any restaurant management software is the POS billing system. This module allows the operators to complete the billing process and print a detailed invoice. Also, the operators can automatically calculate vat/tax or service charge and easily conduct the overall transaction process. 

Inventory & Food Management

To ensure uninterrupted service to your customer, you need to maintain inventory and food management. This feature allows the operators to get real-time feedback according to the available ingredients to prepare food. Also, the food management system can manage the category, variant, availability of food items, menu type, and add-ons. 

Human Resource Management (HRM) System 

To conduct any restaurant’s activities, you need to manage your human resources properly. This module allows the operators to add new employees and manage the employee’s designation, and salaries. Also, you can handle your employee’s attendance, award, payroll, expense, leave, loan, and other aspects through this feature.          

Customer Relationship Management (CRM) System

The restaurant POS software provides another significant feature namely the CRM system. You can maintain a centralized database that will assist to keep records of all essential data of your customers. Moreover, the CRM system can be able to personalize your customer’s experience that will play a significant role in the marketing purpose.

Mobile Apps Integration System

Mobile apps allow the operators to manage some specific activities of your restaurant from anywhere and anytime. If your chosen POS system allows you to integrate the mobile apps, you can save your time and reduce the operational hassle. 

Also, the restaurant POS system offers a customer app, kitchen app, and waiter app so that you can ensure a smooth interaction among the internal process of your restaurant.

Third-party Delivery Management System 

The restaurant POS system allows the users to integrate a third-party delivery management system. Moreover, you can add any food delivery service such as FoodPanda, Uber Eats, DoorDash, GrubHub, Swiggy, and so on. This delivery management system can ensure to reach the food to your customers at their doorstep.

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How Much Does a Restaurant POS System Cost?

Grab the Most Supreme Restaurant POS Solution Only at $99

You can get a complete restaurant management solution to purchase the best restaurant management software. Moreover, all required features and modules are accumulated in a complete restaurant POS software.

In this regard, you can go for Bhojon - Restaurant Management System which will provide one-time payment, complete documentation to install and set up the script. Most significantly, there is not any monthly subscription fee or hidden charge.  Also, you will get various flexible pricing packages which will be convenient to pick your required one.

Moreover, this restaurant POS software offers various exclusive add-ons. According to your business demand, you can purchase any add-ons and easily integrate them into your restaurant business. 

Bottom Line

A restaurant POS system can change the entire working mechanism of your restaurant. It will provide an automatic working flow and seamless operation in your restaurant. You have already been informed on how does a restaurant POS system works in a restaurant from this article. Also, this article can assist you to understand the basic concept of restaurant POS software. Moreover, you can not only learn the working mechanism but also acknowledge the types, benefits, require features, and so on. 

So, the restaurant POS software will be the necessary prerequisite to run your restaurant successfully.   

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