13 Reasons Why a Restaurant POS Terminal is Worth the Investment

By: AJ Beltis

6 Minute Read

Nov 09, 2017

You must have Javascript enabled in order to submit forms on our website. If you'd like to contact Toast please call us at:

(857) 301-6002


Just so you know, we’ll handle your info according to our privacy statement.

Img 0165 Smudged 790715 Edited

point of sale terminal worth

Is it finally time to trade up?

Thousands of restaurants have or plan to update their restaurant technology, according to our recent study.

One of the best benefits of modern restaurant technology - specifically a restaurant POS terminal and a restaurant POS system - is the proven ROI, or return on investment.

Running on paper-thin margins, most restaurants don't have the willingness or ability to invest their hard-earned capital into something that doesn't prove its worth. But a new point of sale terminal is not one of those bad investments.

If you're still on the fence about embracing the many benefits of restaurant tech, read on for 13 reasons why a POS terminal purchase is well worth it.

For more accurate metrics for your restaurant, follow along with a free download of the
Restaurant Point of Sale ROI Guide!
[Download Here]

1. Speed Up Sales With an Intuitive Interface

Having worked in a pizzeria for several years, I know the frustration of waving my finger around the POS terminal's screen like a metal detector looking for the right sub or modifier button to press.

Dated restaurant technology seems to make it difficult to find the right button at the right time. Plus, adding modifiers and typing in special instructions is another beast altogether.

Modern Restaurant POS systems with intuitive menus that you build with industry experts ease the process of typing in an order and can save around 10 seconds per order input - and during a Friday night rush, those 10 seconds can seem like a lifetime when they're spent holding up the phone line or keeping a guest waiting for their check.

Orders are fired faster, guests finish their orders quicker, and your staff stresses less - all of which save you capital in the long run.

2. Reduce Errors With an Easy-to-Use Setup

Along with saving time and money on inputting orders, this easily navigable menu makes it more difficult for servers and cashiers to input an order incorrectly. Even if this happens 1% of the time, think about how much money this will save on food over the course of one year, or even five years.

Additionally, I made my fair share of mistakes in the pizza business, and customers weren't happy. If a mistake upsets a customer, they may choose not to return to your restaurant. Seeing as return customers drive the bulk of your business, it's crucial not to lose someone over something as simple as the wrong press of a button.


3. Cut Back on Food Costs

When an order is input into the POS terminal, modern software records the sale in the back-end of the system. This means that if someone orders extra cheese, the upcharge is automatically applied, and you can make note of how much cheese to get in your subsequent supply purchase. The National Restaurant Association has found that this accuracy in pricing and ordering results in retaining 2% of annual sales that would be otherwise lost.

While 2% seems like an insignificant number, this is $20,000 for a $1,000,000 business that could be going into new furnishings, an updated menu board, or even your pocket.

4. Save Money With Smarter Scheduling

Poor scheduling practices can cost you in more ways than one. First, you have to take the time to sit down and actually write up the schedule, which is complicated given the amount of time off requests you are flooded with. You never think making the weekly schedule takes as much time as it actually does, do you?

Next, if you over- or under-staff for a shift, you cost your restaurant even more money but not having the floor manned properly, because you're either losing revenue from slow service or paying more on wages than necessary.

Insightful labor and sales reports from the back end software of your POS terminal makes scheduling easy, so you won't be lying to yourself anymore when you say making the schedule will only take a few minutes.

5. Reduce the Chance of Employee Theft

A POS terminal requiring a blind employee closeout makes it more difficult for employees to steal from your business, while frequent comps and voids can be noted in your business reports. When employees know this, they'll feel less comfortable skimming from the register.

6. Effectively Track Your Inventory

How would you feel if you could cut inventory variance by 3%? Tracking inventory directly through the terminal and software controls your food cost and helps avoid inventory waste.

7. Decrease Wait Times With Restaurant Handhelds

Employees can use handhelds to turn tables up to 20% faster during peak hours. You won't be rushing customers out of the door - you'll just be turning the five minute process of paying the bill into a one minute process.

These tablets aren't just for full-service restaurants. Fast casual restaurants can use this technology during the lunch rush to "bust the line" and send more orders to the kitchen.


8. Get the Best Credit Card Rates

Save money on every single credit card transaction when the processing is integrated into your POS terminal. You'll earn the best rates for your restaurant, and since the industry is becoming increasingly cashless, this will continue to be a pressing concern for your business.

9. Create and Retain More Loyal Customers

Loyalty software integrated into your POS terminal and tied to a customer's credit card info can increase ticket size by 46%. The cost of the occasional reward is minuscule compared to the increased visitation to your restaurant and the increased order size.

10. Boost Spending Amount With Gift Cards

On average, a guest will spend 72% more at a restaurant when paying with a gift card, and around half of gift cards are sold outside the month of December. Capitalize on the gift card craze, increase sales within your business, and bring in even more new guests when you integrate gift cards into your restaurant's POS terminal.


11. Don't Lose Per-Order Online Ordering Commission

Imagine your online orders are synced automatically within your POS terminal when they come in. Better yet, you don't have to pay for a commission fee on every single online order. An in-house online ordering system that you can control and pay a flat rate for is much more economical for your business.

12. Eliminate Paper Waste and Cost

Few things in life are more frustrating than having to replace the paper in a receipt printer on a Friday night. Digital receipts make this all-too-real struggle a pain of the past. Allowing patrons to opt for email or even text receipts (which 53% of restaurant-goers prefer to do) saves you money and keeps your staff focused on tasks that are actually important.

13. Keep Staff Around (and Happy)

Remember that earlier point about staff theft? Well, a well-tipped employee is probably less likely to steal. POS terminals that allow for easy tipping can result in an increase in tip amounts by 3X for your staff.

While this doesn't have a direct impact on an owner, it can deter theft, and it can keep staff satisfied, saving you money on employee turnover costs.

A POS That Pays for Itself

Purchasing a new system for your POS terminal is a big decision, but it's one that can deliver an almost guaranteed return on investment.

To see how these benefits will lead to pay back for your restaurant, download the free Restaurant ROI Calculator below! See how modern restaurant technology pays for itself by increasing sales, efficiency, and insight for your business.

You must have Javascript enabled in order to submit forms on our website. If you'd like to contact Toast please call us at:

(857) 301-6002

First and Last Name is required
Phone Number is required
Restaurant Name is required

Are you a Toast customer? Log in to Toast.

Just so you know, we’ll handle your info according to our privacy statement.

DISCLAIMER: All of the information contained on this site (the “Content”) is provided for informational purposes only and not for the purpose of providing legal, accounting, tax, career or other professional advice. The Content is provided “as-is” without any warranty of any kind express or implied, including without limitation any warranty as to the accuracy, quality, timeliness, or completeness of the Content, or fitness for a particular purpose; Toast assumes no liability for your use of, or reference to the Content. By accessing this site, you acknowledge and agree that: (a) there may be delays in updating, omissions, or inaccuracies in the Content, (b) the Content should not be relied upon or used as a substitute for consultation with professional legal advisors, (c) you should not perform any act or make any omission on the basis of any Content without first seeking appropriate legal or professional advice on the particular facts or circumstances at issue and (d) you are solely responsible for your compliance with all applicable laws. If you do not agree with these terms you may not access or use the site or Content.