Choosing between a cash register and a POS system can significantly impact the efficiency and profitability of your restaurant. Understanding the distinct functions and benefits of each can help you make an informed decision. This blog delves into the core functionalities of cash registers and POS systems, comparing their capabilities in handling financial transactions, inventory management, customer relationship management, and more. By exploring these differences, you’ll gain insights into which system best suits your restaurant’s needs and growth aspirations.
What is a cash register?
A cash register machine is used to record financial transactions. Most of them have a keypad that will let you enter values and most of them can be upgraded by attaching a bar code scanner, cash drawer, receipt printer, and scales. New-age cash registers don’t have a keypad but rather can be operated by using the touchscreen.
What is a POS system?
A POS system is a more centralized device that can be used for more than just financial purposes. You can use it to monitor your business. You can perform essential functions like managing your inventory, monitoring your sales data, monitoring data related to customers, and managing multiple restaurant outlets from one place.
What Is the difference between a POS system and a Cash register?
A cash register machine will only tell you how much money you’re making but a POS system will tell you how much more you can make. A cash register usually comes with a printer that will let you print the financial receipts and a cash drawer that will store the cash and can be opened only using a passcode or a key.
There are POS systems(commonly called POS cashier systems) that play the role of cash register as well.
POS system will let you track important metrics like your monthly sales which will tell you which dishes in your restaurant are best sellers and which of them need to be removed from your menu.
Digital Menu updation
The problem of updating your menu is solved by a POS as it lets you edit your menu, saving a lot of money as there won’t be any need to print physical menus.
Inventory management
It will also let you monitor your inventory levels and get alerts as soon as some ingredients get replenished so that you don’t run out of stock of important ingredients and your dishes are consistently delicious.
Recipe Management
It also helps in recipe management as the levels of ingredients in your inventory will automatically get adjusted as soon as they’re used in a particular recipe.
Customer relationship management
A POS system is very useful when you want to build better relationships with your customers. Their details will get saved in the POS and the next time they place an order from your restaurant they will get upselling suggestions based on popular choices.
Loyalty programs
You can retain customers by rewarding them. A POS system will let you apply loyalty programs like cashback in your restaurant.
SMS marketing
Promotional messages can be easily sent to customers who qualify for certain criteria. This will be very useful when you want to update your customers or want to remain relevant for them.
Employee management
Employee management becomes easier with a POS system as it will let you track their attendance, and calculate their salaries based on that and also lets you add new roles and remove the roles to this.
Multi-location management
If you own multiple outlets then maintaining uniformity across all the outlets can be done through the POS system.
Which one to choose?
If your restaurant is small scale like you have very minimal inventory and minimal sales, then in that case a cash register would be helpful for you. But if you want to expand your restaurant business and improve the efficiency and profits then a POS system would be the best option for you.
In conclusion, selecting between a cash register and a POS system hinges on your restaurant’s scale and growth ambitions. For smaller operations with straightforward needs, a cash register offers simplicity and cost-effectiveness. However, if you aim to enhance efficiency, manage inventory, and build stronger customer relationships, a POS system provides comprehensive tools to support expansion and profitability. Assess your specific requirements and long-term goals to make the choice that best aligns with your restaurant’s vision.
