How to Choose Between a Cloud-Based POS and a Traditional POS

in Business

According to the 2019 National Restaurant Association report, there are over one million restaurants in the US alone. This means that there is fierce competition to win customers over and persuade them to dine in your restaurant. Many factors determine your restaurants’ success, and in the journey, you will face many difficult choices like creating the right menu, choosing opening hours, effective marketing, and designing of the interior and exterior. When it comes to choosing a POS or Point of Sale system, the task is straightforward and easy.

What are the Two Main Types of POS?

There are two main types of POS, which include the cloud-based POS and the traditional POS. Research done by the NRA shows that 70 percent of customers agreed that technology improves convenience, and 66 percent agreed that it improves order accuracy.

Cloud-based POS – This processes and stores all restaurant data online rather than locally or in an on-site server. It is internet-enabled and can be accessed from anywhere using your mobile phone, tablet, and monitor. It is also known as EOS or Electronic Point of Sale since it uses electronic equipment. It is easy to update since your data is on a web-hosted solution/cloud where you can access it anytime, anywhere, through remote servers. If you want to learn how, click here for more info on cloud-based POS terminals.

Traditional POS or Legacy POS – This is also called on-site or on-premise POS because it uploads data to a local server that can only be accessed when you’re in the restaurant through an internal network. It functions only through the hardware that you have installed in your restaurant, so for you to access the restaurant’s information, you will need to log in to that device where it is installed.

Strengths of a Traditional POS

There are many reasons why a traditional POS system still stands out in this day and age. Here are a few reasons:

  • No internet access needed – One of the main reasons includes the fact that a legacy system or traditional system can function without internet connectivity, unlike a modern POS system. There would be no disruption in customer service with a conventional system.
  • A larger display – Rather than using smartphones or tablets, a traditional POS system uses a large, bright monitor display to keep track of all the data related to your restaurant sales.
  • Tailored features and extra tools – Local software providers customize features depending on your restaurant’s needs rather than showing you additional tools. Customization occurs at the time of the set-up, and any additional tools can be added by your provider.
  • The set-up is immediate – A local provider visits your restaurant and installs the software to your equipment and local network. They provide customizations at the time of the set-up so that you can have everything ready to run your restaurant.

Strengths of a Cloud-based POS

According to the NRA, about 81 percent of restaurants use a POS system in their operations. Recent surveys have shown that the majority of restaurants are updating to a cloud-based POS. Here’s why:

  • Affordable costs – Cloud-based POS are often subscription-based and don’t require a long-term contract. The subscription includes updates, hosting, customer support, and licensing. You can also pay for the number of touchscreen devices your restaurant will be using. You can always decrease your costs by reducing your devices or cancel your plan at any time.
  • Easy access from anywhere – One of the biggest strengths includes the fact that you can access the software from anywhere in the world as long as you have a working internet connection. A manager can be at home and make changes to the restaurant, edit staff schedules, payroll, access inventory, and cash flow.
  • Heightened security – No data is stored locally or any devices but are uploaded online to the secure cloud. If your software can function without the internet, any changes you make to your data will be saved until you go online again. Even if your hardware is damaged, you can always access your data from any device with the same login.
  • Reduces errors and paperwork – Despite having the best employees, it possible to make mistakes as a human, and when invoices are written manually, or data is kept manually, there can be errors. A cloud-based POS uploads all data to a remote server and doesn’t just reduce the chances of any mistakes but also reduces paperwork to promote sustainability in the restaurant industry.

Make the Right Choice Depending on Your Needs

When it comes to choosing the right POS system, keep your customers in mind. Inevitably, a good POS system does the best for its restaurant, but it also helps improve customer satisfaction, which is the key to success.

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