POS Software



             


Wednesday, March 12, 2008

Can Point of Sales Systems Really Enhance My Customer's Visit?

You may assume that your guest's experience at your restaurant may be enhanced by a point of sale system. Maybe you had not even though of it. However, the fact is that a good point of sale system can benefit the experience of your guests.

So often the salesperson tries to focus your attention on the benefits of their product with regard to your interests. But what about your customer's interest? Shouldn't you also be concerned about how installing a point of sale system is going to affect them?

Depending on the type of restaurant or bar you have certain benefits will be more readily apparent than others. On top of that, the method by which a guest's experience is enhanced may also change. But overall you can expect some or all of the following:

Remote Printing or Displaying Or Orders

There are varying degrees of this benefit depending upon your application. In Table Service you have the ability to have the order entered by the server and immediately printed on various printers in the kitchen. With some systems you can have up to 6 remote printers. This reduces steps to the kitchen and eliminates the requirement for the server to even go to the kitchen to deliver the ticket.

In a Quick Service environment you can also use printers to deliver orders to the kitchen but an even better solution is a kitchen video system. The orders get to the kitchen even faster as an item is sent to the monitor as soon as the next item is entered. With printers, the order does not start printing until the order is finalized. With a kitchen video system items can be set to go when the next item is entered, thus speeding up the process of order delivery even more.

Bars can enjoy increased speed of service through the use of remote printers. With some systems we can even use the printer next to the terminal to save on the cost of an additional printer. Drink orders can be printed on this printer and the drinks can be prepared and waiting on the server when they walk up.

For your customers, faster service means happier customers

Reduced Errors In The Kitchen

Printing or displaying the orders for the kitchen is also more accurate than hand written tickets. No longer will you have hastily scribbled notes to the kitchen that are hard to read, time consuming and the birthplace of guessing and eventual errors.

In multi-lingual situations you will be pleasantly surprised how quickly your kitchen staff will learn to read the tickets that come out of the printer.

You will also see how organized the tickets are and how special orders and modified items stand out with either 2-color printing on the tickets or multiple colored items on the displays.

For your customers, reduced errors means happier customers.

Quality of Service

In a Table Service setting, since the server is not required to walk to the kitchen to hand deliver the ticket they are able to use this time to prepare soft beverages and deliver them to the table quicker.

For Quick Service operations once the cashier is through with one order they may start another. The orders are separated and a specific number is assigned to each. This number helps track the entire order and keep items together for presentation to the customer.

In bars with a kitchen it would be ridiculous for a bartender to leave the bar to take an order to the kitchen. This would reduce customer service. Well, so is not serving food to your bar customers. By printing orders on a remote printer you are better able to serve your bar customers.

For your customers, better service means happier customers.

On-Line Credit Authorization

Some point of sale systems are able to process credit card transactions via a high-speed Internet connection. This reduces authorization down to as little as 1 - 2 seconds from up to 30 seconds for a dial-up connection.

On a standard credit card machine provided by most credit card processors each approval can take up to 30 seconds. Each swipe takes time. Each server waiting in line adds up the total time it takes to process a credit card for a customer. If you have 3 servers waiting on the same credit card terminal the 1st server waits 30 seconds, the 2nd server waits 60 seconds and the poor 3rd server waits 90 seconds to get their approval. Add the time it takes the server to walk back to the table and the poor customer has almost had another birthday!

For your customers, faster service means happier customers.

Processing Credit Cards At Multiple Terminals

Take the previous scenario and add multiple terminals. In our industry we recommend 3 servers per point of sale terminal. Therefore, if you have 3 server terminals you could have as many as 9 servers on the floor at one time. If they all try to access the same credit card terminal from the processor the wait could be intolerable for your guests.

Almost every restaurant point of sale system allows for credit card transactions to be swiped at each terminal. With most processing software you can swipe at every terminal at the same time and there is no additional waiting. If you are processing through a high-speed connection each terminal in the network can expect an approval in less than 2 seconds.

For your customers, faster service means happier customers.

Professional Appearance

DirecTouch Restaurant Point of Sale will produce a professional and neat guest check, ticket or receipt for the customer. Items will be detailed with pricing. Modifiers can also be printed to show preparation instructions. The taxes will be shown and broken out by type. The total will be displayed in bold lettering so that there is no confusion.

You will also be able to show the date of the visit, the server, cashier or bartender that served them as well as any marketing information you wish in the header and footer of the receipt.

This will assuradly be better than the receipt we get at our local Mexican restaurant which is simply a calculator tape with no description of the items we were served.

For your customers, a trusting customer is a happier customer.

Customer Reward or Customer Loyalty Programs

With Frequent Diner Modules you are able to reward repeat customers through either discounts on meals, free food or reduced prices on specific items.

These rewards are earned either on a points system or on dollars spent. The rewards are good off of their next visit.

Use these programs to directly market to your customers about specials, new items or even an invitation to come in for a free/discounted meal for their anniversary or birthday.

For your customer, a rewarded customer is a happier customer.

Split Checks

There are many times when the customer will not tell the server that they want split checks until the ticket is presented. Having an easy method of splitting these checks is essential to customer satisfaction. If the task is difficult then the attitudes of the servers will show through to the customer. Then the task itself will take a long time, really impacting the customer's experience.

Some,not all point of sale systems have extremely fast and easy method of splitting checks at any time the ticket is open. In a few simple touches, extra tickets can be added to the table and items moved to the proper seats. When done, the system will immediately print new tickets for each guest.

If the server rang the original order in separate seats then it is even quicker and easier to split the order.

For your customers, faster service means happier customers.

Split Items

Sharing appetizers should be encouraged by your servers even if the guests want to split the costs amongst themselves. This will create additional sales for the restaurant in enhance the guest's experience.

Some,not all point of sale systems can easily split the cost of an item and divides the cost amongst the guests that shared the item. If not all the guests shared the item, then only the guests who want to share the cost will.

For your customers, accurate pricing means happier customers.

Pricing Accuracy

Hand written tickets create errors. Using a calculator to compute tickets creates errors. For years, cash register salespeople have been taught that doing a guest check audit is one of the best ways to sell a cash register of point of sale system. Humans make errors. Point of sale systems don't.

What about multiple prices for the same item? Do you run a happy hour in your bar? How about early bird pricing in the restaurant? How do you know that the servers and bartenders are charging the correct price? Your point of sale system will set the price by the time of day for you. Your early birds will get their discount pricing.

The National Restaurant Association backs this up with surveys and documented evidence that says that the average loss due to human error on hand written tickets and calculator tape is 2% of sales. Do the math for your business with our Return on Investment spreadsheet. I'll bet the loses are huge if you are using hand written checks or calculators to compute guest checks.

For your customers, accurate pricing means happier customers.

86 Item Feature

Almost all restaurants run some kind of daily special or have items with a limited shelf life. Table Service applications sometimes have lunch or dinner specials that are added just for that day. Deli operations sometimes have a limited number of breads available by style. The 86 Item feature will count down these types of items until you are sold out.

Prior to running out of an item the terminal will display a numeric display on the button letting the server, cashier or bartender exactly how many of that item are left. When the item is sold out it will then display a symbol on the item button and prevent the item from being rung.

Customers who want a daily special that is out will be given the opportunity immediately to order something else rather than ordering the item and then being disappointed that it is not available.

For your customers, a satisfied customer is a happier customer.

Faster service, better service, customer rewards, accurate orders, fewer mistakes and satisfied customers are all benefits enjoyed by your customers simply by you investing in a point of sale system.

The fact remains that the investment is yours to make. The financial benefits are yours to enjoy from the return on your investment. But you are going to have the share the satisfaction with your customers and guests.

Jerry D. Wilson has over 25 years of restaurant point of sale experience consulting and helping businesses automate their processes, control their businesses and increase their profits. You may find out more about restaurant systems and how they can help your business by visiting DirecTouch Point of Sale. directouchpos.com

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Monday, March 3, 2008

How to find the Right Point of Sale System for You

Replacing your cash register and payment processing terminal with a point of sale (POS) system is a great way to take your business to the next level. Few purchases can have as dramatic an effect on your retail or hospitality business as a POS system.

A well implemented POS system can give you a new level of control over your operations, increase efficiencies, boost profits and help you fine-tune your business model. In addition to efficiency gains over your cash register, POS systems provide information and reports that can help you make more informed business decisions.

Conversely, the wrong POS system can multiply your headaches and cause you to spend valuable time and money on supporting a technology that distracts you from running and growing your business.

By reading this article, you will learn how to make an informed POS purchase decision. Knowing what questions to ask will help you avoid the mistakes of a first time buyer.

DO YOUR RESEARCH - Spend time evaluating POS companies

Finding the right POS software for you takes time and effort. It's an important decision that will effect how your business operates. Make sure you do your due diligence and research several companies.

When choosing a POS system, experienced buyers will tell you that it is very important to buy from a solid company. Taking the time to evaluate companies to ensure that they are customer centric and are committed to great service for the entire lifetime of your business is a smart move which will alleviate headaches now and in the future.

Ask the Following Questions to Evaluate POS companies

1. How long have you been in business?

Software develops over time. So the younger the company, the greater potential for software bugs. With an older, more established company, you can rest assured that they have gone through the growing pains of new software and have a proven product.

2. What is your growth rate?

You want a company that is actively growing. The software industry is very competitive. Companies need to continually advance and improve their product offerings to keep their competitive edge. Not having significant growth indicates that the company may not be advancing their product as much as they should and could eventually be left behind. Stick with innovative companies that are leading the way.

3. How many customers do you have?

The number of customers is an indication of how successful the company is. If the company only has a handful of customers, it's either a) a new company, which you probably should avoid, or b) the company has a bad product or poor service resulting in high customer turnover and few new customers.

4. How do you sell your products?

If the company sells direct, the company has more control over price and support which means you get consistent service and prices. If the company uses a reseller channel be prepared for increased costs and inconsistent service. Selling through a middleman limits the company's ability to control service and price.

SPEND TIME EVALUTATION SERVICE LEVELS

When you purchase POS software, you are entering into a long term relationship with a vendor. Let's face it, there's no such thing as fool-proof software. Understanding that you will be in continual contact with your chosen POS company for software updates, support, training, hardware and consulting should be an important consideration in your decision process. The company's level of support could be the difference between a good experience and a bad one. Take the time to inquire about support service levels. If the company you are talking to cannot provide you with specific support measures, they likely don't take support seriously.

Ask the Following Questions to Evaluate service levels

1. Do you offer 7 X 24 X 365 support?

You need support that works on your time. Why settle for anything less? Find a company that you know will be there for you when you need assistance.

2. How do you diagnose issues?

With web-based hosted solutions, support issues can be diagnosed immediately allowing the support team to begin to solve your problem immediately. With on-site, you have to wait for someone to come down to your location to first assess the problem and then take measures to fix it.

3. What is your average support wait time?

How long will the support phone ring before it's answered? Waiting anything more than 30 seconds is abysmal. A company that takes their time answering support calls, indicates that they don't care about their customers.

4. What is your 1st call pick up level?

Companies may say that they pick up their support phone in less than 30 seconds, but how long does it take to speak with an actual support person? Support lines can be answered by an automated system that places you in a call waiting pattern or they send you directly to voicemail. This can be very frustrating and time consuming when you want to speak to a 'real' person. By asking this question, you can find how often you will speak to a 'real' person when you call the first time. The higher the percentage, the greater the chance you will speak with someone sooner.

5. What is your system performance uptime?

Your POS system needs to work 99.9% of the time. A 98% uptime promise may sound good initially but this actually means that the system can be down for 29 minutes a day or 14 hours a month and they've still met their obligation!

LOOK FOR A POS SYSTEM THAT'S DESIGNED FOR YOUR SPECIFIC BUSINESS TYPE

Your business is unique. As such, you need software that meets your specific needs. A lot of POS companies claim their system works for every business type (retail, restaurant: fast food to fine dinning). As a business owner, you are well aware that you can't be all things to all people. Why settle for something generic when you can get software that was built with you in mind? Know what business issues you need to address with your POS in advance and then look for a POS that is catered to your needs. You will be much happier in the long run.

REQUEST A DEMO

You'd test drive a car before you buy it, wouldn't you? Requesting a demo from a salesperson is a great way to see how the software works and if it's a potential fit for your business. Beware of the salesperson who just launches into their product without first taking the time to understand your business needs. Use the salesperson as a resource. The best salespeople are there to answer any questions you may have and to help you find the best solution for you - even if it's not their product.

ASK SALESPEOPLE FOR QUOTES

By now, you should have a good understanding of what your needs are and you can begin asking for quotes. Please note that getting quotes from companies that you are interested in adds another dimension to the decision making process.

Some POS companies will include everything in their quotations while others will leave items out to make their prices seem more palatable - make sure you are comparing apples to apples. It's also very important to ask about costs that may arise during the life of your POS, such as maintenance, support, and upgrades.

You should also ask the sales rep to give you a proposal on all hardware, training, installation, support, upgrades and maintenance.

Ask salespeople the following questions

1. Is software support included for the full term?

We can't reiterate enough how important support is. The majority of providers will provide free support for the first year of the contract, leaving you with potentially expensive on-demand support for the remainder of your contract. Be sure to clarify the support service when you are evaluating companies.

2. Is hardware support included for the full term?

Some companies separate hardware and software support. Hardware support is just as important as software support. Be sure to find out if hardware support is 1) included and 2) covered for the full term of the contract.

3. Are there internal costs I should consider?

With many traditional POS systems a back-office computer is required to run your entire POS operation. It is your responsibility to maintain this computer. The cost of maintaining and running this operating system needs to be included when you are considering purchasing a traditional POS system. Conversely a web-based system would not have this additional cost.

4. How often do you provide updates?

You want the best software available. You can only stand to benefit from a company that is continually upgrading and improving their product.

5. Do you charge for updates?

Some companies charge extra for updates. As a user, you deserve to use the most updated and bug-free version of the software. Look for a company that includes upgrades for the full term of your contract.

CALL REFERENCES

Asking the salesperson for references gives you the opportunity to speak with someone that has used the product first hand. Taking the time to contact references and ask the right questions will help you select the right system and avoid many problems.

In addition to asking for references from businesses that are similar to your own business, ask for references from businesses that have successfully addressed issues that are similar to your own issues (opening a new restaurant, switching from a cash register, addressing a specific cost issue). By speaking with relevant references, you can find out if the POS company keeps their sales promise.

Ask References the Following Questions

1. Have you used other POS solutions?

The reason you should ask this question is to determine how valuable the reference will be. If the reference has only owned and operated one POS solution, they essentially have nothing to compare their experience to. They could be experiencing the worst service in the industry and not realize it. A reference that has used several POS solutions can provide a comparative context and therefore better information.

2. Why did you purchase this POS solution?

If you can take away one thing from reading these tips, it would be to find a POS system that is best suited for you. You can definitely learn 'what not to do' from someone that purchased solely on price, but there is more value in speaking with someone with similar business issues to you, that found a system that best fits their needs.

3. Did the POS live up to its promises?

You want to find a company that stands by the promises that they make.

4. What specifically do you like best about your POS?

Features are great, but most POS systems have relatively the same features. What really counts is good service and support which is difficult to find in this industry. If service is what the reference likes most about their POS system, chances are you've found a good company.

5. What specific issues have you had with your POS?

As mentioned earlier, software is not infallible. There will be issues. It's important to find out if the issues were only minor or if the software had major faults that prevented the user from performing fundamental tasks.

6. How has the POS company addressed these issues?

Responsiveness is key. A company that responds quickly to issues is an indication of great service. Find out how quickly the company responded to the issue and took the necessary actions to solve the problem.

7. Rank sales expectation setting out of 10.

In any sales situation, sometimes promises are made to get the prospect to purchase the product. Did the sales person oversell and leave the customer expecting more? You want to be able to trust the salesperson. Make sure the customer's expectations were met when they started using the end product.

8. Rank the training experience out of 10.

How easy was the product to learn? Did the training process run smoothly? If the reference rates the training experience highly, you can assume the training process will run seamlessly with little disruption for you as well.

9. Rank the service experience out of 10.

Service. Service. Service. Ask this question to get a quantitative score for highly important service levels.

10. Rank your likely of recommending out of 10.

If the reference would recommend this product it's a good indication that they are happy with the product and it is a good fit for their business.

11. If you were going to buy a new POS solution, what questions would you ask a new vendor that you did not ask last time?

This is a great opportunity to learn from someone that has already gone through the process you are currently undergoing. Established POS users have a different perspective and would probably approach things differently the second time around. Gaining insight from the reference will help you avoid the mistakes of a first time buyer.

PLAN FOR THE FUTURE

It's important to think about your future. You may have one location now, but if you ever plan or dream of having multiple locations you need to consider scalability. Ask the provider about the software's ability to incorporate additional locations. How are the different locations integrated? How are menu items and prices changed for all locations? What are the costs associated with having additional locations? Purchasing a POS system can be a scary and frustrating process, but with the right amount of patience and perseverance you can find the POS that best fits your needs and puts you on the track to success.


Dan Mitchell works with Halo Web Based Point of Sale to provide high-quality, cost-effective POS Restaurant systems. Feel free to contact Halo to find out how your restaurant can be more profitable

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Tuesday, January 1, 2008

Restaurant Management Software - An Overview

There are several types of software that can help your restaurant run more efficiently. Here is an overview:

POS Software

POS stands for Point Of Sale. Point Of Sale software is basically a program that combines many aspect of restaurant management including order taking, order entry, billing, staff supervision and account organization tasks into one program.

Most restaurants will need a Point Of Sale station at several points in the restaurant including the front of the restaurant, the back office area and the kitchen.

POS software can handle complete order and customer management including tracking the number of orders and customers, table information, billing transactions and more.

POS software can also provides excellent organizational abilities to help monitor and report every aspect of order taking and customer interaction and do proper timekeeping, inventory tracking, stock management, security tasks and much more.

Restaurant Inventory Software

Restaurant inventory software is much more of a database style of program that helps to keep track of your food stocks, can alert you to foods that are required or will be required soon and can even assist in replenishing the needed stocks by recommending the correct amounts according to the database history and its forecasts for future usage. Inventory software will also help save money by reducing the spoilage of food by telling you to order only the amounts you should need.

Costing Software

Costing software can be very important to a restaurant. Costing software can help you track and maintain your food inventory, like restaurant inventory software, but it has the added benefit of calculating the costs of your menu items through its analysis tools. This helps the restaurant owner to properly price their food in order to make maximum profits and also provide value to the customer. Costing software can also be invaluable for catering companies, so they can properly price their events.

Suites

There are also suites of software available that combine one or more of the above types of restaurant management software. These suites will be much more optimized to work together properly and to help your restaurant run to the best of its ability or to improve the efficiency of an existing restaurant.

Whatever restaurant software you choose, your restaurant is bound to benefit from the many advantages in ordering, customer management, inventory management and costing services they will provide. Technology is now an important part of restaurant management, and used wisely, reaps great benefits for the savvy restaurant owner.

Lydia Quinn writes for Cost Genie, leading maker of restaurant costing, restaurant inventory and menu costing software. Visit us at: http://www.costgenie.com

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