3 Reasons a Restaurant POS System is Better Than a Cash Register

Friday, July 12, 2019, 6:00 AM | Leave Comment

For a new restaurant, the choice of a cash register or POS system may simply depend on your budget.

Your staff should not be responsible for selecting a cash register or POS system.

Before this is done, you need to know your business needs, the POS software or hardware available and cash management options and make your choice based on an educated decision.

We can say one thing for sure – restaurants need to run database marketing, which can only be achieved with a POS system.

You’re unable to capture customer information and purchase history any other way.

You need to be able to market to the person who is likely to buy and not everyone who ever bought from you. 

What do I need to know?

The amount of extras needed will vary by type and size of restaurant.

Some questions to ask before choosing a POS system or cash register are:

  • How many departments or categories that need tracking are in your restaurant?

  • What tax must your business collect on a sale?

  • How many products do you carry now?

  • How many in the future?

  • Will you need more than one register?

  • How busy will your restaurant be?

  • Will you do gift cards?

  • What types of payment does your restaurant accept?

  • Will you have a loyalty program?

Now, let’s discuss the top three reasons why POS systems are better for restaurants (and in general) than old-fashioned cash registers that go ka-ching.

  1. Integration with CRM

    If the POS system integrates with a customer relationship management (CRM) portal, it’s easy to track purchasing behaviors. Restaurants can be sure that when customers come in, they will find what they were looking for. Studies show that repeat customers spend two-thirds more than first-time customers when they return.

  2. Loyalty Programs

    One way to get more regular patrons is to launch a loyalty program. It’s a great way to increase your revenue and show customer appreciation. People who participate in the loyalty program return in half the time it takes those who don’t participate to return.

    Don’t neglect customer service. It has a tangible impact on turnover! It is not enough to just smile at the customer. Providing quality customer service goes way above and beyond that.

    Instant Access for Employees

    POS systems also facilitate intranet communications so that your employees have instant access to the right information, support, and insight they need.

    The very best POS systems will improve the customer experience without drawing attention. It’s important to equip your venue for the future as the traditional cash register is becoming outdated very fast.

    An innovative POS system can integrate the act of purchasing into the overall experience with ease while adding opportunities to customize customer communication and service.

    A new POS system is a big commitment, and good ones can be quite expensive. Do research into the Return on Investment (ROI) you could achieve.

    There are several aspects to take into account when analyzing the impact of the new technology on your bottom line, including:

    • Loyalty

    • Time spent in staff training

    • Reduced waste

    • Time wasted in data alignment

    If you have high staff turnover, adopting a user-friendly Point of Sale system makes training new employees easy and fast. As a result, you’ll enjoy great savings. Know that you can save a lot of money by using what you have efficiently. How can a POS system help you increase repeat visits? By supporting loyalty program implementation and making it possible for you to send registered customers targeted campaigns and offers!

  3. Marketing

    The importance of new customers is undeniable, and gift cards are a really good marketing tool to this end. This is because your customers can buy gift cards for their friends, enhancing the profit your venue generates. Of course, the value of gift cards goes beyond this. Gift cards are also a great way to upsell.


    Good business is all about speed and quality, and a slow or buggy POS system that delays the service (if you run a restaurant) and leaves you with tables full of grumpy customers is one thing you want to avoid at any time.

    Ask for following questions:

    • Is the interface intuitive, and can it be customized to each staff member’s role?

    • Can it easily accept different types of payments, split bills, bills moved from the bar to the table, etc.?

    • What’s the average time per transaction?

    • What features does it have that help speed up the service?

    • What happens if the internet connection goes down? Will I have to take orders on paper sheets or will I still be able to take orders and process sales?

    Easier E-Mail Marketing

    When patrons don’t open email marketing messages, they miss out on event and product announcements, and restaurants lose opportunities to turn a profit.

    A study showed transaction rates and revenue per email increased six times when promotional emails had a personal touch. The unique click rate was up by as much as 41%.

    As mentioned, it’s easy to track what people are ordering the most when you have a POS system. This way, you can reach out with customized information about new offers or items you know customers will be interested in.

Here is a summary:

Benefits of POS Systems

  • Inventory management and control

  • More detailed reports

  • Customer relationship management (CRM)

  • Marketing tools

  • Improved accuracy

  • Loyalty programs

  • Omni-channel capabilities

  • Gift Cards

  • Easily grows with business

Benefits of Cash Registers

  • Most models easy to use

  • Low cost for startups

  • Fewer components

  • Longer life since it does not need to be updated constantly like a POS

  • Basic functions and reporting


Before you buy either a POS system or a cash register, learn what kind of warranty or support comes with the machine. Plan the training you or your staff will receive to use the equipment.

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