Leverage point of sale solutions to reduce restaurant operating costs

The challenges of running a restaurant are well documented. From securing startup capital to hiring staff, there is no shortage of hurdles that test even the most experienced restaurant owner. But perhaps one of the most frequently overlooked aspects of owning a restaurant is ensuring that your operations are running as smoothly as possible. And one of the most valuable solutions for restaurant owners who want to fine-tune their business is a point of sale (POS) solution.

“I always encourage the restaurant owners we work with to monitor and streamline their back-of-house operations,” says Lisa Richardson Waller, vice president and small business product manager at Bank of America. “Past years have demonstrated just how vulnerable restaurants are to unforeseen economic shocks, which is why it’s so critical that managers and owners have the information they need to make timely decisions, respond to trends and keep a lid on expenses.”

Not only are POS systems vital for controlling costs, but the latest versions on the market are increasing in popularity because they can do so much more than process credit card payments. In fact, in a 2024 survey, 43% of full-service restaurant operators planned to invest in POS systems in the coming year.¹

If you’re not currently using a POS solution for your restaurant, below are three ways in which it may help streamline critical day-to-day activities — and free you up to focus on other aspects of your business.

1. Use POS reports to track important metrics and make informed business decisions

Like so many technology solutions on the market today, POS systems designed for restaurants have evolved and are more multifunctional than ever before. While 65% of customers now say they would use the option to pay the check on a tableside device in a full-service restaurant, streamlining payments is just one function that continues to advance.²

The best POS systems on the market today integrate both payment and business management data in a single system, providing owners with a better view into their business. For example, a smart POS system produces reports that can help restaurant managers and owners monitor key metrics and quickly pinpoint any areas of concern, such as labor or food costs.

“Having this level of detail at your fingertips makes it easier to address problems before they spiral out of control and affect the bottom line,” suggests Waller.

2. Efficiently manage staff and schedules

Restaurant owners know that it’s impossible to manage employees every second they’re on the job. Fortunately, the latest POS systems usually build in employee management resource planning, which doesn’t require another third party.

Let’s say, for example, having these integrated systems helps you realize that your labor costs are high. This is the perfect time to shift your attention to making more efficient use of your staff. Similarly, your POS system can pinpoint when your restaurant has the most customers, which enables you to reduce staff during slow times and increase staffing when warranted.

POS solutions for restaurants also have features to help manage staff such as shift reminders via text message, settings that prevent employees from working outside of their scheduled hours or even cameras that photograph employees clocking in to prevent co-workers from punching a time clock for someone else.

3. Reduce human errors and increase accountability

Some POS solutions can help restaurant staff handle different ordering scenarios. For example, if a customer orders a steak, the system may have a pop-up asking how they’d like their meat cooked. For salads, a prompt for dressings may be provided. If the server is new or is having a bad day, the system may be able to help catch anything missed before the order goes to the kitchen. The merchant may also be able to add custom prompts such as special requests or customer allergies. “The ability to customize a POS system can optimize a server’s time spent in the dining room versus in the kitchen, helping provide a more favorable customer experience,” Waller suggests.

Some solutions have training modes so new employees can practice with the system without affecting sales reporting.

Another feature —  void audit report — showcases when customers order items from the menu and cancel the transaction before payment. Such canceled transactions can result in food waste. The void audit report provides management with insight into which servers may need additional coaching and helps increase accountability.

Keeping your restaurant on track

The technology supporting today’s restaurant POS systems has become more advanced, and solutions providers continually update their offerings with added functionality. If your system is out of date, consider an upgrade. And if you have a newer system, make sure you’re taking full advantage of its features. The easier it is to track your restaurant’s vital statistics, the easier it will be to stay tuned in to your business — and ultimately keep it on track.

¹ National Restaurant Association, “Restaurant Technology Landscape Report,” 2024.

² Ibid.