Among the most crucial overall benefits a tablet POS has over fixed POS terminals is the flexibility of cloud-based mobile POS solutions. While we typically refer to them as handhelds from the business, mobile wireless terminals or mPOS is much more precise. Over the last few decades, the rapid arrival of tablet devices directed from the Apple iPad and Android has led to the decreased popularity of traditional PDAs. The dimensions and weight of the tablets can be problematic; but many prefer them due to the screen size, and the iPad Pro may well become the hottest mobile hardware with the availability of card readers for lots of the tablet-based apps. The iPad Mini as well as the iPhone that have card readers will also be familiarized with those who still favor the size and weight.
For this particular study and guidenevertheless, the sort of portable device used does not matter. The advantages are the same. This guide is a comprehensive look at the many benefits of wireless terminals in comparison with a predetermined point of sale terminal. The most effective calculations are based on accurate data from the restaurant. Those numbers should always be used when deciding the chance to boost profits. Here I will include an example in each section for illustration purposes only.
1 area that will almost surely lead to a decrease in costs is labor. However, the amount of the savings will change significantly with unique restaurants due to the sort of restaurant, whether the regional laws allow a tip charge from minimum wage, and the way of compensating beverage and food runners. That makes it hard to project beforehand, so I won’t include it in this study. But, I must point out that we get consistent feedback from users of a mobile POS system which their labour costs have declined.
With the top 3 benefits below, we detail the calculations with the possible cost savings and an increase in net gains with some conservative amounts. When discussing the advantages and potential ROI from a mobile restaurant POS system, many additional benefits will accrue. However, they are more difficult to ascertain a certain increase in profits. We itemized all of the benefits into fifteen reasons why you should look at a mPOS for your restaurant.
Top 15 Benefits of Using MPOS (Mobile POS) for Restaurants
1. Elimination of “free beverages.”
Perhaps among the most critical losses in each restaurant’s dining area is the soft drinks which aren’t billed for by servers. Consider this example and situation for a second. Anytime a non-alcoholic beverage is arranged after the first beverage order, and with no food or alcoholic beverages, the waiter rarely charges for the drink — this is particularly true during active times. I recommend that when possible, test this on your restaurant.
Have someone go undercover and purchase an alcoholic drink or just a glass of water once the server first requires the order. Then when the machine comes back to check on the preparation of this entrée, order a non-alcoholic beverage. When the check arrives, the chances are high that the non-alcoholic beverage won’t be on it.
The server isn’t required to visit a terminal prior to serving the drink, and will almost always forget by the time he or she prints the test. When that happens, the restaurant lost the complete price of the beverage from its net profit because 100 percent of the cost was incurred.
Just how often do you guess that this happens in a restaurant? Most individuals don’t understand, but would you think it reasonable to expect that at least one drink is given away per server change? I have not had anybody disagree with this, and in actuality, they almost always agree that happens more frequently than that. However, to be quite conservative, we will use the one drink per server change number.
From there it is a very simple calculation. How many server changes do you have per week? Insert the amount for each lunch and every dinner. How much do you charge for drinks?
The calculation —
Server shifts Weekly X the beverage price = lost gain per week
Lunch: 3 servers Every Day or 21 per week
Dinner: 4 servers Sunday-Thursday, 6 servers Friday-Saturday or 32 per week
53 total server shifts weekly.
53 shifts X $2.00 = $106.00 lost gain per week X 4.33 months
$459.33 monthly reduction or Possible savings
2. Suggestive Selling
Suggestive selling has been successfully utilised in quick-service restaurants for several years leading to greater sales and profits. I read a recent online story that said McDonald’s has a 30 percent”hit” with their suggestive selling. To put it differently, 3 of every 10 times a McDonald’s cashier asks,”would you like fries?” Or”would you like a drink?” The client says yes.
For this calculation, we’ll assume only one proposed selling instant is used and it will prompt the server to ask the client”would you prefer an appetizer?” Anytime the customer hasn’t arranged at least one appetizer for the table. Again to keep the calculation really conservative, do you think it reasonable that if your servers were constantly motivated to upsell appetizers, it would lead to only one additional appetizer sale per host change?
If you would like to use your numbers for the suggestive selling calculation; what’s the average price of an appetizer in your menu? Also, what’s the average food cost of your appetizers?
While the calculation below may seem high, a great case can be made that it’s too conservative. If a server was motivated only ten times per shift and only had a”hit rate” of 10% which would lead to the new appetizer sold per change. Not only does that seem very reasonable there may be times when more than 1 appetizer is ordered in the table. Recall McDonald’s has a”hit rate” of 30%, so we’re just assuming 1/3 of that for this particular example.
The calculation —
Server shifts Weekly X appetizer profit = possible net profit
We’ll assume the typical price of an appetizer is $6.00, and the average cost is 33.33% or $2.00. It follows that the restaurant will create an additional net profit of $4.00 per appetizer. Using the same 53 server changes per week the Higher net profit from suggestive advertising is:
53 X $4.00 = $212 a week additional net profit X 4.33 weeks per month
$918.67 extra monthly gain
3. Increased Table Turns
There’s absolutely not any doubt that using mobile POS apps will lead to faster table turns in almost any restaurant. The quantity of turn time reduction will change through the results I’ve seen, but it is usually at the 7-15 minutes range. The precise amount for any specific restaurant will vary based on many things.
Here are a few of the factors contributing to faster table turns.
- Without mobile POS devices, servers frequently take orders from a couple of tables prior to going to a predetermined terminal and entering the orders. Taking multiple orders causes a delay in the initial orders reaching the prep areas, and additionally, it generates jam-ups from the kitchen and bar during peak periods. With mobile POS applications, whenever the server gets the drink order, it’s sent to the pub and also, for the food order — that leads to faster order preparation and orders reaching the many prep areas in an orderly manner.
- With the servers always on the ground the clients do not wait as long to put their orders.
- When clients ask questions about the menu, the solution is nearly always accessible with the touch of a button using a handheld device. Answering questions in the table remove time lost when a server must find someone with the response. Normal questions include a client asking what components are on a menu item to be certain they are not allergic.
- So long as the”Item Out List” is preserved, when a customer requests an 86’d thing, the server knows instantly. Knowing 86 status immediately gets rid of the long delays that normally happen when ordering an 86’d merchandise, and then after the server must return to the table to notify the client and choose the replacement order.
- Pay in the table with an mPOS machine removes long waits for the client to get their guest check and credit card back from the server. Having to wait or standing in long lines to cover is your number one annoyance of restaurant customers.
By boosting table turns, particularly in fine-dining restaurants, do not get the notion that mobile terminals mean hurrying the consumers in and out of the restaurant thus lessening their dining experience. This isn’t what reducing table-turn occasions means.
There are three sections to a client’s time at the restaurant. The first segment is by the time they arrive until their host approaches them to take their first drink order — this is true if the client is instantly seated or is added to the waitlist. Because tables turn quicker with mPOS, wait times are also shorter. The next section is from the time the client receives their entrée until they are prepared for their check. The last part is that the time between being ready for their invoice and completing the payment process and leaving the restaurant.
The second segment won’t be negatively affected by the use of a mobile POS system. Their dining experience will be enhanced since the first and third sections will be significantly shortened — this means they’ll receive their meals sooner and will have the ability to leave shortly after completing their meal. Finally, those customers that are paying by credit or debit card is not going to have to be worried about donating their credit card to a stranger and using the stranger take the card out of the sight — this gives them reassurance.
For our calculation from increased table turns a couple of things must be set. What the present typical table turn time is, how many hours a week the dining area is operating at capacity with an active waitlist, the amount of tables at the restaurant, the typical covers each table, and the average dinner check per person. By turning the tables quicker when there’s a waiting list, there’ll be fewer walkouts since the wait time is too long.
For instance, I will assume we’ll gain 1/2 extra table twist on Friday and Saturday nights only. We’ll continue to keep the quote conservative with these amounts.
The calculation —
Additional net profit per week X 4.33 weeks per month = possible net profit
25 tables with a mean of 3 covers and an average check per pay of $15.00.
We’ll use the identical average food cost of 33.33percent
25 tables X covers X 15.00 X 1/2 added turn X two nights per week = $375.00 additional earnings X 66.67percent (100 percent — 33.33%) = $250.00
Additional net profit per week = $250 X 4.33 weeks per month
$1,083.33 Additional Monthly Profit
4. Suggested Wine/Drink Pairings
You may Link suggested wine pairings into entrees as a modifier window which contains all suggestions as well as a”no wine” button — this will lead to higher wine sales since the servers won’t forget to upsell. Since wine is the most profitable thing in a restaurant, this is a superb benefit.
5. Prep Printer Routing
On-the-fly prep printer routing to accelerate service for all those restaurants with more than 1 service bar. Not all mobile solutions may provide this feature, so make certain to check.
6. Suggested Alternatives to 86’d Menu Items
Suggest alternative food items for 86’d menu items. As an example, if the point of sale informs you that you are from the prime rib, it is possible to suggest the ribeye. Again this is a distinctive characteristic of several iPad POS systems.
7. Eliminate Dual Training
Eliminate dual training using a solution in which the software on the mobile app and the terminal is identical. Some systems might not run the exact same application on both stationary and mobile POS terminals, which makes training more challenging. So make sure to check this operation.
8. Utilize Server Functions
In connection with eliminating double training, you will want the advantage of getting all server functions on the handheld device, negating the necessity that some functions be performed on the stationary equipment.
9. Reduce Labor Costs
Reduce front-end labor costs at your restaurant. As mentioned these are hard to accurately project ahead of time though there isn’t any doubt fewer servers are required using mobile terminals. Even adding beverage and food runners will nearly always still lead to lower overall labour costs.
10. Reduce Lost Sales
Fewer”lost chance sales” because the servers are always on the ground — making it more probable that a server will be available to take an order for a further drink or a dessert which customers often choose to have on impulse.
11. Reduce Order Errors
Taking the whole purchase table-side reduces order errors and sends orders straight to the kitchen. There’ll be fewer order errors compared to translating handwritten tickets to the fixed terminals.
12. Serve More Drinks
Other alcoholic beverage sales are resulting from the first beverage order being delivered to the table so much faster. The client will order another round since there’s time before their entrees arrive.
13. Enhanced Professional Image
Restaurateurs benefit from utilizing the most advanced technology which results in an improved dining experience for their guests. Restaurant customers love mobile technologies, and it enhances their image of the restaurant.
14. Collect Information
Gather your customer’s email address for promotion opportunities. The mobile device may also be used for taking customer studies.
15. Reduce Startup Costs
Last but not least, using a cloud-based mobile POS system, you could save hundreds or thousands of dollars within the”conventional” point of sale solutions available. You don’t need to get the software; it is typically a SasS (Software as a Service) in which you pay a monthly fee to use the service.
There’s generally still hardware cost, but using the cloud eliminates expensive purchases such as workstations, servers, and software licenses. However, if you would rather buy a complete POS system with wireless capabilities, see below since it may be more cost-effective long-term dependent on the savings we have outlined.
Final Verdict and The Savings
You will need to use YOUR amounts based on the calculations outlined above to determine just how much you can save. However, as you can see from our examples from just the top 3 benefits, by integrating a mobile POS solution for your restaurant, you can possibly save $30,000 annually.
To make our calculations much more conservative, let’s cut it in half to make sure we aren’t overstating the benefits of a mobile or cloud-based system. That’s approximately $15,000 annually in extra revenue for your company — this sort of savings could more than cover the monthly cost of a POS system before considering all of the other benefits from a mPOS, tablet, or iPad POS system.
How much can you save with a mobile POS?
- Elimination of free drinks — $459.33 per month
- Suggestive Selling — $918.67 per month
- Increased Table Turns — $1,083.33 per month
Total Additional Net Gain — $2,461.33 per month or $29,535.96 each year!
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