Managing Hospitality Information Systems
Spring 2008

Monday, March 10, 2008

Top POS Software Trends
By Viki Powers
Hospitality Technology


Article Summary:

In response to fast paced lifestyles and the current growth in tech-savvy clientele, many quick-service and fast casual restaurants are experimenting with Point-of-Sale (POS) innovations in order to better serve their customers. This article identifies some real applications of POS systems in the restaurant/quick-service industry with potential of becoming the next essential industry tool.

Pei Wei Asian Diner, a branch of P.F. Chang’s China Bistro implemented a new addition to their current POS system that helps to manage to-go business more accurately and efficiently. This technology was developed by Radiant Systems and has the capabilities to very accurately forecast preparation time for to-go orders based on number of staff in the kitchen, volume of orders at the particular time, and the time it takes to cook the meal. This new system also now allows Pei Wei’s to keep record of customers and their past orders. To-go orders make up 20% of Pei Wei’s business, so it was critical not to overlook the development of this department as many restaurants do.

Taco Bueno has implemented Xpient’s Intelligent Restaurant Information System (IRIS) POS application. This allows headquarters to compile and relay data to all individual Taco Bueno locations every 15 minutes from a remote location using .NET technology.

A McDonalds in Boulder, Colorado, along with 250 other local shops and restaurants, have implemented text message payment options to all their customers. Customers simply set up an account and text a code to Mocapay when ready to make a purchase, and Mocapay texts you back a code to give to the cashier. You get a receipt and are on your way. This is similar to a credit card transaction, but benefits the merchant by eliminating fees associated with credit card transactions.

Self-service payment options have successfully controlled DiSalvo’s Pizza and Italian Restaurant’s problem with long lines to pay bills. They have added SoftPay kiosk’s to their 5 restaurants in Florida which allows customers to bring a “self-pay card,” instead of a traditional check, to a SoftPay kiosk and then complete payment transaction personally.

Reflection:

I am sure that POS applications have only begun to develop and will continue to make an impact on the restaurant industry for many years in some form or another, but I am not sure if all the examples described in this article will catch on. I think the POS applications that increase efficiency and speed of service are here for good. Of all the POS applications listed in this article I see the self-service payment kiosks as having the most significant potential. Not only does this technology speed things up for the patron on the run, but it also may eliminate personal identity and credit card security concerns that come when you hand your credit card to a server to complete your payment transaction. There is really nothing more than ethics that stops servers from copying a customer’s credit card number and using it to make fraudulent purchases. The SoftPay kiosk will also end the fairly common practice of servers altering tip amounts on credit card receipts. The SoftPay system allows customers to electronically submit tip amount and payment total so no alterations can be made.

I also liked the way Pei Wei’s has begun using their already existing POS system to enhance their to-go services. In a busy restaurant it is very difficult to predict wait times for to-go orders accurately because there is so much activity taking place at the same time. In my experience, restaurants usually have a standard wait-time estimation that is given to customers no matter what was ordered or the current capabilities of the kitchen. Pei Wei’s system that can accurately predict when food is ready will improve food quality and increase customer satisfaction.

I don’t see the text payment systems catching on as the latest trend. Although it is an interesting and effective way to pay for things, I don’t see any advantage over using a credit or debit card. The article mentioned the benefits for merchants lowering credit card fee costs, but unless these savings are passed on to the consumer, I don’t think the majority of people will choose to adopt this payment method because they are satisfied with their current method of transactions.

3 comments:

Only for class said...

WOW this new technology is pretty cutting edge. I work in a fast paced high turner over restaurant and the take out order information is amazing. Guess like to know exactly how long they have to wait for their meal on the go. The idea of a prepaid card I don't like as much I lose my wallet a lot and can not afford to lose money that I have already spent to obtain meals with. I understand there is a code but it is very easy to over hear or watch some one using there ID code. if the company can figure out how to keep m e safe then I would have no problem with using the device.

Marissa Landeck said...

I thought that this seemed like a very interesting article. Hotels and restaurants must constantly work to satisfy their guests and exceed their expectations. Customer relationship management is certainly a great way to improve guest satisfaction. It is great that the implementation of customer relationship management in Ruby Tuesday’s has already showed to be successful, with a 4% increase in sales since they started to use Micros Systems to analyze customer information. It is also an innovative idea for hotels and restaurants to use this CRM technology to not only increase sales, but to solve potential problems. It is great that The Peabody Orlando has been using UniFocus to identify patterns in customer complaints.

Anonymous said...

My restaurant was lagging when it came to providing fast service to customers. However, I came across a POS software system sold by VisualRetailPlus.com that helped me expedite everything more efficiently.