This is one of the most commonly asked questions in the initial conversations with any client. So here is a detailed article explaining what a POS or Point-Of-Sales software is and the key features & functionalities you will require for your food delivery and takeout business.
Image courtesy Chowly
WHAT IS A POS?
POS or Point of Sale is the software that helps you accept orders from customers and generate a bill at the end of the service. In this article, we will explain to you how to use POS in Cloud Kitchens and how it helps delivery through orders from third-party applications. POS is a very generic term used to feature the technology used by food businesses to accept, process, and manage orders.
A point-of-sale system possesses one or more processing components in general -POS software, a receipt printer, and a monitor. And in some cases just a Tab or an iPad.
WHAT ARE THE USE CASES OF A POS?
#1 Streamline Your Business
An advanced restaurant POS system can help you run your delivery or takeout kitchen successfully. It will enable you to streamline your business operations right from taking orders to processing the final delivery. Some of the advanced POS systems can also help you in collecting and manage food orders from multiple deliveries and sales channels. With the point of sale systems, you can control direct orders at the outlets and collect information about your customers and their preference.
#2 Increase Efficiency Through Integration
POS systems can help you manage the way you handle your orders efficiently,
keeping track of the workflow, helping you mitigate mistakes, and increase
productivity. Receiving orders from various platforms can be hectic, but if all orders
are integrated onto one POS screen using various color codes help the kitchen
staff to divide work amongst themselves and work efficiently to have the orders out
So, do not forget to ask your POS provider, if they can integrate third party delivery orders into your POS system. This will eliminate the need for manual order entry resulting in lesser hassle, lower labor costs, greater accuracy of orders, and quicker delivery times.
#3 Reporting & Analysis
A good POS allows you to note down important factors of an order like the discount offered, the frequency of a particular dish ordered by a customer, the least ordered dish on the menu, and peak order hours. All these reports generated by your POS software will eventually lead to an informed evaluation of your Cloud kitchen's performance. It will help you make the required changes in running your operation like a well-oiled machine.
Always take an in-depth training to download and decipher the reports generated by your POS, at the time of installation and training.
#4 Managing Pricing & Discounting
A good POS software can help you decide the appropriate price for each dish taking all the cost factors into consideration. If you are a multi-outlet delivery kitchen, based on the sales report of each outlet, you can choose to incorporate differential pricing or discounting strategy for different locations.
A well-integrated POS will also report the value of orders you received through all your different sales channels. Based on the cost of sales for each of these channels, you can choose to have different promotional strategies for each of them.
#5 Always Include Inventory Management Module
Automating your kitchen's inventory management through POS software will help you keep an eye out for stock levels. In case of low stock levels, you can act proactively to replenish it on time to avoid an 86ed situation. Similarly, to get Reid of access and expiring stock, you can introduce a special on the menu.
All in all, a proper automated inventory management system helps you keep food costs and wastage in check while you manage your ordering and vendor relationships at your convenience. Never forget to include this module in your POS feature bundle.
To learn about how to select the right POS software for your business, please read out another blog post here. Also, if you have purchased our Series, you can download a report on the profile of top POS providers around the world.