Quietly chipping away at your margins, bottom line erosion is the death of a thousand cuts for the hospitality industry. While slow sales can hit you pretty hard, bottom line erosion can undermine you completely.
Here are five ways that upgrading to a good point of sale system can help you stop these incremental losses, get your business back on track, and increase your profits.
1. Your POS system will eliminate errors
As humans, none of us are perfect, and we all make mistakes. The problem in the hospitality industry is that these mistakes cost you money. The good news though is that a good POS system will make this a thing of the past.
Your new POS system will come with a touchscreen, meaning fewer keying errors, as your staff simply press the menu item on the POS terminal instead of keying in the price.
Small keying errors may not sound like much, but over the course of a year they can add up to a substantial amount. If you can fix something as simple as this, imagine what other savings you can make.
Take stock, for example. Instead of counting incoming stock on a piece of paper, your POS system will allow you to sync a barcode scanner to your POS, meaning you can scan an item’s barcode and it gets logged instantly in your system.
Now there are fewer chances of miscounting, or of missing a box or a package. Every single item in your inventory will be accounted for, from your beverages to your cleaning supplies.
There’s also the big one: tax. Everything in your POS system is tracked – all your payments, expenses, and earnings – so you have an exact and accurate record for your accountant.
You’ll be covered when it comes to tax time, your books will add up, and you’ll get everything back that you’re owed.
2. Your POS system will cut back on loss
A good POS system will give you all the reporting and stock management tools you need to pinpoint inventory loss, stock wastage and shrinkage. You can use this data to tighten up your business.
With a kitchen management integration like Cooking the Books, you’ll be able to cost your recipes more accurately and track your menu ingredients to the gram.
You’ll get the whole picture of everything that leaves your kitchen, helping you cut back on ingredient wastage.
When it comes to incoming stock you can ditch the pen and paper and track all your orders electronically, with this information getting relayed directly to your POS.
Your precise inventory will be available in real-time, meaning you’ll always know what you have available, and you’ll be able to see if you’re using too much of one item and make changes immediately.
While you don’t want to imagine it happening, a good POS system will help you cut back on any stock theft from staff as well.
Whether it’s extra food wastage or a few schooners unaccounted for, your POS system can help you track when your losses are happening and correlate that information against staff on shift. It might come to some hard conversations, but your POS system has your back.
3. You get a smarter way to see your numbers
A good POS system not only allows you to track and monitor your business more effectively, but it’ll give you the information you need to be able to act on this information, and make changes where necessary.
Using integrated reporting software you’ll be able to track your sales in real-time, and use this information to make immediate changes. You can track your customers’ ordering habits—a bold menu choice not selling? Get rid of it.
You can monitor your sales against your current staffing needs, or whether it would be worthwhile offering your loyal customers a same-day deal to pick up your sales.
Are your current deals working? Use this real-time data to see if offering $2 coffees before 7am is worth it, or if a two-for-one chicken and chips on a Tuesday really pays off.
You’ll be able to keep tabs on your supplier costs too, to see if their prices change and if there’s a cheaper supplier you could be using.
Get a Demo Today
4. You’ll take orders faster
A new, state-of-the-art POS system will have faster processing power, meaning orders are processed in the blink of an eye.
Your system won’t take time to ‘think’. It’ll just process the payment, send the orders to the appropriate printers, and open up the cash drawer.
Each second you save with one customer gives you more time to serve another, resulting in a higher turnover. And it really adds up.
Say you run a busy bar; if you’re able to serve just two more customers per day, at around $8 a drink, you’ll increase your income by $16 per day.
Again, this doesn’t sound like much, but over the course of a year this can add up to over $4,000. A few seconds here or there really does make you money.
Your customers appreciate a quick, efficient service too. If you’re known for having slow service, your business will suffer. If you’ve got a reputation for a quick system and quick service (but still taking the time for a chat, of course), people are going to want to come back to you.
These days your customers expect you to be mobile. If you’re using mobile POS terminals, you can speed up your service and increase your sales even more.
You’ll be able to take orders and payments at the table, reducing the need for multiple trips and saving your staff time. Your staff will be able to get out on the floor and take orders in your queue during busy periods.
A faster POS system leads to quicker service, more customers through the door, quicker table turn, and increased sales.
5. Improve your labour management
A good POS system will give you all the software you need to manage your staff in a more efficient way.
Your sales reporting will enable you to see your busiest times so you know when to schedule more staff on shift. An integrated rostering system will allow you to use this information to automatically generate rosters based on this historical information. This not only lets you manage your staff time better, but yours too.
Your new POS system will allow your staff to clock in and out right from the terminal. This way you’ll get a more accurate account of staff hours—no more fudging time sheets to get a few extra minutes. Even if you save one hour a day in labour savings, this will save you thousands of dollars each year.
Good reporting lets you:
- see when your busiest hours are
- where you need to increase or reduce the amount of staff on hand
- keep track of staff across your venue or other venues
- access your system online to check labour hours.
Better rostering system lets you automatically fill shifts and save on your own hours.
At Impos, we’ve here to help you get the most out of your venue. Whether you’re a café, restaurant, small bar, pub, food truck, fast food restaurant, catering business, or anything in between, our POS systems come fully-integrated with all the POS equipment and software you need to help you cut back on your bottom line erosion.
Contact us today to get your business back on track, and growing the way you want it to.