The Best POS for your Restaurant or Bar
QUESTION FROM: Susan in NJ
Frustrated AF with my POS. Been asking everyone I can which system they like best and why and thought I's ask you guys to weigh in before making my decision.
Thank you HH, Sue
HH ANSWER:
Most people will tell you that the best system they've ever worked on is, ironically, the one they have the most experience with. Aloha, in my opinion is much better than Micros but my first experience with micros was back in the monochromatic green on green (and orange on orange) screen days.
We had to use micros in a few casino outlets due to the fact that those casinos were already using micros for their front desk and other F&B offerings and we needed to be able to accept comps issued by those primary core systems ....so sometimes you don't or won’t have a choice.
But a lot of folks have had their fill with Aloha and are now considering newer web-based / cloud-based solutions since Aloha's hardware (and software) are now quickly becoming dated.
With so many options on the table, the ability to integrate into other systems and features like online ordering, online delivery routing, multi-menu pricing, KDS integration and multiple event portals - all impacts the overall intuitive use for a younger generation of servers and the future of foodservice in general. These have become the key features that are as attractive as overall dependability.
Personally, I like Breadcrumb, Aloha and Toast… and have heard the most horror stories (most often related to connectivity and compatibility issues) from operators using Clover.
Here’s what industry veteran, Bob Watson, had to say on the matter:
We love TOAST. We literally looked at everything we could get our hands on in Q1 & Q2 2018. There are many tablet based systems that were all similar and all have positive sides. Look at them all & think of everything that can come up in a daily, weekly, yearly scenario. Ask the sales person every question possible. Ask for references and PERSONALLY REACH OUT TO THEM. Don’t ask what they like- any salesperson should be able to feed that to you, ask what they don’t like. Or what the shortcomings are. That’s where you’ll find your best insight.
For us, our biggest concerns was making sure the system was robust and could handle those high traffic days. After talking with other larger establishments they were happy with TOAST. Are there other systems out there that could do the same? I’m sure there are but everything we heard from about TOAST was positive. The one short coming I heard from everyone, no matter the system, MAKE SURE YOUR INTERNAL NETWORK CAN HANDLE EVERYTHING AT PEAK TIMES. The people with the best insight were those that learned the hard way. This doesn’t matter if it’s TOAST its all of them- over build and put in fail safe features to prevent failure. Have 3 different backups. We completely reworked our entire network. We split off & isolated major bandwidth to allow TOAST to have first priority. Knock on wood, we only had 1 major issue that was quickly resolved and we were able to operate through it. Since then it’s essentially been flawless.
We are a larger account. There are days we are pushing 6,000 checks. This next year we’re anticipating 8,000 checks. Checks, not people. There may be 2-??? People on a check. Or the same person may open or close a check a couple times. And in those high volumes days we don’t skip a beat.
From everything listed above we know the reliability is there. The other MAJOR positive was the TOAST GOs. Handheld tablets/terminals that servers carry, that wirelessly handle all table service. They can be used anywhere FOH- Host desk, along with bartender as well as BOH to assist KDS and food expo. They’re well built with full shift battery life.
The cloud based system and the freedom it provides is amazing. We can always access our backend. Make menu changes and see what’s happening in real time no matter where we are- on site, home or a vacation (LOL).
Rewards program, online ordering, ease of menu changes/ backend ease of use all make for a system we couldn’t be happier with TOAST.”
When it’s time to decide...whether you narrow down your choices to Breadcrumb, Aloha, Square, Toast, Harbortouch or any other of the numerous options that can make your head spin at the NRA Show in Vegas...the overriding most important feature of any POS system is, IMHO : response time...especially if the system is not web/cloud based and processing fees.
Ask "Where are they based?"
How many techs are in your area?
Are you locked in as far as credit card processing goes and which fees are fixed / may potentially rise?
How long are you left on hold when you call tech support?
What is their response time like when your system goes down at 7:45 on a Saturday night?
Do they offer additional hardware or cloud-based services to run in redundancy when your base goes down?
Do they integrate with other outlets, delivery services, website or web/app based ordering systems, etc...?
Service plans, availability and training are some of the biggest aspects to evaluate when making this big decision as well...but the biggest and potentially longest lasting impact is the processing fee contract.
As a colleague who owned a merchant service company once told me. “Don’t ever use a POS that locks you up in their processing and rates/fees as the ones who lock you in (like Toast) typically increase their fees over time or at the end of your, not so clearly articulated, introductory period…if you can, AVOID any credit card processor that has a “qualified, mid qualified or non qualified rate”.” - which means ditching those exorbitant fees means ditching the system hardware and starting all over again.
Whenever I consult an owner or asset manager looking to build or update an outlet, I usually run an entirely new evaluation of a few systems suince they are advancing at a pretty quick pace and the features one system didn’t offer last year - are suddenly available this year with little to know press about it. Although some of the more popular brands offer familiarity among managers and staff - forcing a learning curve on them may save you tens of thousands each year if you go with an equally capable system that simply doesn’t lock you into using specific / set payment processors.
Aloha, NCR, Squirrel and Micros are all solid legacy systems but expensive and haven’t upgraded much in the last decade or so.
Upserve/Breadcrumb’s monthly fees are often higher and only worth it if you actually use the reports and analytics features.
Harbortouch offers a free point of sale set-up and typically locks you into a 5 year agreement with high fees but you may have room to breath afterwards.
Square seems like a good fit for few menu items / simple transaction outlets that have many low dollar value ($10-$20) rings as opposed to a of running a full service restaurant/bar. Their rates and fees are high but they present one of the simplest, quickest set-ups.
I have heard a lot of positive feedback on (but have zero experience with) the system features and attractive processor agreements available with Lavu, Paradise, Hot Sauce< Lightspeed and Linga.
Never found Clover to be particularly ideal for restaurants (and, similar to Toast, tends to lock you into their payment processor in perpetuity but a few friends with food trucks seem to like them…alot.
Which ever provider you are with (or are considering) carefully consider the value proposition of buying vs leasing the system…and knowing “the catch” of a fgree system.
A FEW ADDITIONAL TIPS:
Divide all fees you paid for the month by the total monthly cc volume to get your “effective rate” (e.g., $300 in fees divided by $10,000 in sales comes out to 0.03 which is a 3% effective rate). Anything over 3% is generally considered high
Look for a system that is processor agnostic. Meaning you can use any credit card service provider you want.
When dealing with processors (or a system company’s rep), demand that they give you “interchange plus” or “interchange pass-thru” pricing. That is the most transparent pricing plan for card service. You can see the processors markup above the true cost (interchange) from visa MasterCard and be able to compare apples to apples pricing with other providers.
Good pricing would be 10 basis points (0.10%) and 4-5 cents per transaction above interchange (cost) and a $7-10 monthly service fee. If you call your bank or current provider and ask for that pricing and they don’t give it to you, shop around for someone who will and NOT make you sign a contract with a early termination fee. Also ask them what their PCI fee is and Non-PCI fee is as well as their regulatory fee. Ask whether or not they have an annual fee and if so, how much it is and how often (and to what extent) they may increase it ( those are pretty much bs fees).
“Batch Fees” and “Merchant Fees” are another consideration as some providers are able to waive those entirely.
Using a credit card to purchase the point of sale may actually save you more $$$ in the long run than leasing.
If you’re a simple concept one or two oulet “mom & pop”, consider the value of keeping it simple with a cash register and hand written chits or an iPad system (for approx $2k per station, you can get an ipad, kitchen printer and connected cash drawer with printer...and the monthly license fees are usually around $79-99/mo per station)
No matter what system you go with: be sure to invest in stress-avoiding and time-saving "Crash Kits" (i.e., menus with updated pricing, calculators, carbon copy chit pads and zipper bags for a bank in a plastic case under each one of those new POS terminals because Chit Happens… and even handheld tablets storing transaction data eventually need to be re-charged.
Regards,
Josh Sapienza | UbiquityAdvisors.com