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Why Are Restaurant Owners Ditching their POS Systems?

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POS Systems are struggling to deliver what customers want. The overall consumer experience has seen a dramatic makeover in the last decade. Mobile technology — like using your phone to get food, rides, or even groceries delivered to your door– has changed us all. Technology has made the experience between buyer and seller as frictionless as possible. So, how has that affected your favorite neighborhood restaurant?

Change is in the Air, or Rather the Cloud

Let’s take a stroll down memory lane. The first major change to the consumer experience was the introduction of currency. Currency was the new system that allowed people to buy more freely. No more carrying items to barter or trade meant more transactions and better business. This made way for the second major wave of change,  credit cards. Transactions increased and business improved. Now we are entering the age of subscribing to services and “paying as you go”. This is becoming popular for things like software programs, applications and even cars. Other streaming services offer monthly subscriptions for platforms like Netflix, Hulu, Apple Music to millions. It seems giving users everything for a small fee works!

Many had believed online ordering sites were the last big innovation to the restaurant landscape, they were wrong. Recently, many 3rd party delivery apps, loyalty reward programs, and table side ordering, has taken the industry by storm. New tech for restaurants, like swapping free Wi-Fi for customer info, and eliminating processing fees, are becoming wildly popular among restaurant owners. The “Pay as You Go” model helps businesses invest and pay a manageable payment.

Is the “restaurant operating system” the next game-changer? While the concept of paying in installments is not new, there has never been a more complete cloud-based restaurant operating system ever built. Integrations and features are all prearranged and ready for you to use. The scavenger hunts for compatible integrations and paying a la carte for every added feature is no longer going to fly. Restaurants still using traditional POS systems have taken note, and many are ditching their clunky and limited POS systems for a more modern approach.

Why Are Restaurant Owners Making the Switch?

Restaurant owners are embracing these new -get it now and pay as you go- payment options. Finally, the technology exists that enables these features to be available immediately. Legacy POS systems will take years to add new innovations while cloud-based systems come pre-built with virtually every option. Newly added functions are a click and download away. An entire cloud system could be purchased for the price of a legacy POS update.

Also, new Restaurateurs don’t necessarily want to spend or open traditional lines of credit. Newer owners especially have less to start with, they tend to shy away from making big-ticket investments. Therefore, these new point-of-sale payment options, which offer predictable payments with no hidden fees are garnering attention.

Upgrading an older system just to stay PCI compliant or add an EMV reader can cost up to $10k or more. Owning a fully built cloud-based system with every feature imaginable costs less. Plus the ability to start using everything now and pay monthly makes it an even easier choice.

The Bottom Line on POS Systems

In terms of practicality, it makes more sense to upgrade and get a Modern POS that is modular and cloud-based and that allows for the addition of new features, along with options to pay as you go. Retrofitting a legacy POS system is incredibly time-consuming, expensive and often not even feasible.

It’s taken decades to see a meaningful improvement in the way restaurants interact with their customers. But the latest evolution in restaurant technology is truly setting a new bar. Brands and customers are embracing these new tools with such enthusiasm. Well-designed cloud technology, that is both affordable and flexible, seems to be the reason Legacy POS systems will become a relic of the past.


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