How To Select Point Of Sale

Systems

The Problem

There is no “one-size fits all” solution in POS.Nor, unfortunately, is there a single template or criteria list to use when it comes time to make the right selection

Journey

Chinese Proverb

Tip #1: Avoid rush hour

insufficient planning is probably the number-one IT mistake when it comes to POS systems

Case StudyMike Gaston, MIS director for The Copper Cellar Corporation

Easy for waitstaff & managers to learn and use.Compatible with the custom-developed financial application Uses Microsoft Windows NT operating platform and SQL server database architecture Is scalable over time as both Copper Cellar company and units grow

Tip # 2: Create a selection team

Create a team from all ladders of the company

ServersShift leaderFront office managerChef & PurchasingAccounting

Tip # 3: It is OK to gossip!

Ask them about performanceTransaction speedProcessing speedInterface problems

Check with multiple vendors’ customersAsk them about their previous vendor, tooBut don’t compare apples to oranges

Tip # 4: Dig deeper, think deeper!

Terminal placement and the number of terminals needed primarily depends on:the layout of the dining area,volume of business,average length of a transaction, restaurant theme or concept, terminal size.

Tip # 5: Prepare a RFP

Request for Proposals will allow you to get what you want!Not what the vendor offers.Distribute it to as many as vendors possibleDo a balanced scorecard evaluation

Tip # 6: Know thy vendor

The vendor must provide solid, in-depth training and support throughout the implementation process. Look at their history.Do a literature search for them.

Why is the vendor so important?

What if the software company went out of business? What if they don't give you software updates when you need them?What if it takes 2 days to get your technical questions answered?What if you can't print and it takes six hours to get help from a support technician?

Case Study

The sudden dissolution of Sable Technologies in bankruptcy court in 2001 left International House of Pancakes, Lone Star Restaurants, Houston’s and Bob’s Big Boy without POS support or service.

Tip # 7: Do not forget legacy systems

Evaluate compatibility with legacy systems at both the unit level and home office.

Do a scalability study

Tip # 8: Analyze Interfaces

•Property Management System

•Inventory Control

•Purchasing (EDI)

•Accounting & Payroll

•Labor Scheduling

•Credit Card Processing

Tip # 9: Analyze features• Wireless Handheld

•Menu Analysis & Cost Control

•Retail Module

•Bar code scanning

•CRM

•Table Management

•Web Solutions

Features that wows the guests

Handheld terminalsGift cardsGuest recognition programsPrint recipes for favorite menu itemsTablet PC for wine selection

Use of bar coding

•Each time and order is entered into POS terminal, a bar code will be printed on the check. This bar code is then scanned in the kitchen when the items are picked up and delivered.

Tip #10: Analyze security

Analyze firewall, encryption and security risks, especially if the system is Web-based or an ASP.It takes only 5 minutes or less to hack into a non-protected network

Tip # 11: Analyze backup options

Back-up OptionsOff-site back upsTape back-upsRAID (redundant array of inexpensive disks)

Tip #12: Analyze legal issues

Data ownership in the case of ASP or Web-based solution.Read the fine print

Tip # 13: Do a Cost/Benefit Analysis--BEFORE

Tip # 14 Calculate ROI (if you can)--AFTER

It is not easy to calculate ROI on technology.Measure before/after implementation

Case Study

A sample ROI audit from GDK Development (which operates 13 Burger King and Bonanza restaurants in Pennsylvania) shows that drive-through times dropped an average of 17 seconds per car, which means more meals sold. GDK's ROI audit showed a positive return of more than $300,000 annually