The Hospitality Issue In this issue: exclusive guest articles from Christopher Sebes - Heartland Commerce, John GilesFuture POS, Alex Barrotti - Touchbistro, O had Jehassi - Lavu, Mani Kulasooriya - CAKE and others! Plus, an interview with hospitality VARs; Steve Kramer, James Cawdron and Scott Appel, and muchmore including a handful of free r estaurant POS white papers. Download & save!
ISSUE 2 | 2017 | $8
HELLO Welcome to the special Restaurant/Hospitality edition of our digital magazine. Each year, like so many of you, I look forward to attending the NRA show in Chicago. It’s not just the fabulous food or the latest technology it’s the excitement, the intensity, the variety - and the energy! As I walk the aisles of the show - not being shy about trying the sushi, the desserts, the hot dogs, the cheeses, wines and exotic items - I’m always fascinated by the nuances of product. The technology, of course, just keeps getting better and better - everything from point-of-sale to high tech ovens. And of course, it was a treat running into the Twinkie! See you there! Craig Craig Aberle Publisher and POS fanatic
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The possibilities are almost limitless. With the right technology, you can analyze which menu items perform best and when, identify trends and spikes in business so you can more appropriately allocate staff resources, determine whether or not to open on a holiday or even identify which servers take the most time to turn tables and train them to be more efficient. By closing the gap on operational inefficiencies, you’ll have more time to dedicate to top quality customer service – and maybe even a vacation. Depending on the technology you choose, you may also be able to benefit from behind-the-scenes proactive data monitoring that allows customer support to proactively troubleshoot for your business.
By Mani Kulasooriya, CEO CAKE Corporation As an independent restaurant owner, you have a lot of decisions to make. From determining your menu items and managing inventory to hiring staff and adjusting schedules, you are constantly on the go, making decisions that will ultimately affect your bottom line. What if you could make some of those decisions based on concrete data that would ensure you are making the best choices for your business? At CAKE, this is our passion. Larger chain restaurants and companies in other industries have long been leveraging aggregate data to make better business decisions. As an independent operator, you might think this is an unattainable goal – something that would be expensive and require hours of specialized training in data analysis. But that’s not the case anymore. Today’s POS technology can help independent restaurant operators gain unparalleled insights into their business with the click of a button. By upgrading your POS, you can easily and definitively answer specific questions, such as, “what time should I open,” or “is it worth it to stay open on Sundays,” or “should I consolidate the number of menu items I offer?” These data-based decisions have the potential to level the playing field for your business as you compete against larger chains and in increasingly crowded markets. Some operators are already reaping the benefits of making data-based decisions. One CAKE customer in Oregon says, “I check the CAKE data reports on my mobile app at least twice a day, no matter where I am.” His restaurant incorporated both CAKE’s POS and OrderPads, and access to the data helped achieve a 25 percent improvement in overall revenue. Improvements could be seen particularly during the busiest days and busiest hours. Saturdays, for example, showed a revenue increase of more than 50 percent.
Imagine if the customer service department was working behind the scenes to resolve issues before they became problems, never even notifying you or taking time out of your busy day unless it was an issue that couldn’t be resolved remotely. Or if they could call and let you know the exact date when your hard drive was expected to fail, so you could proactively address the issue and avoid system downtime. This technology already exists, and hundreds of independent restaurant owners are already taking advantage of it. The fact is, technology has arrived that can transform the way restaurants do business, and the smartest owners are getting on board today to ensure their businesses thrive tomorrow. If you want to compete in today’s changing and ever-crowded marketplace, you should look into the technology options available that can help you make more informed, data-based decisions to put you ahead of the pack. About CAKE Based in Silicon Valley, CAKE is a Sysco company offering restaurant-specific technology solutions. CAKE’s platform seamlessly integrates front and back of house restaurant operations, allowing restaurant owners and operators to achieve unparalleled visibility into and control over their point of sale, table and waitlist management, menu pricing, guest preference tracking, reservations systems, inventory and payroll.
WHY I’M EXCITED about the Future of mPOS
By Ohad Jehassi, President of Lavu Do you remember what it was like to make a purchase twenty years ago? It was quite a different world of payments. There are plenty of examples I could give, but my personal favorite is The Dude paying his 69-cent grocery bill with a check in The Big Lebowski. If that movie had been released in 2017, I like to think that The Dude would have just tapped Apple Pay. I think very frequently about the state of payments—not surprising, given my role as president of Lavu, the iPad-based point of sale for restaurants. Lavu has been around for seven years, launching when the iPad did in the App Store in 2010. Because we were early mPOS leaders, the Lavu team has a reservoir of collective knowledge about how the POS ecosystem has changed. Here are some conclusions I’ve drawn from that reservoir: Growth - mPOS has grown tremendously in recent years. Business Insider published a chart last fall showing just how much, and it’s pretty astonishing to see what a rise we’ve been a part of. The chart depicts 3.2 million mPOS units in 2014, compared to 8.5 million in 2017. My favorite part of the chart, however, is what lies ahead: In 2021, Business Insider predicts there
will be a whopping 27.7 million units! As TouchDynamic.com recently noted, “mPOS will remain in growth mode.” Adaptability - It goes without saying—and yet deserves reiteration—that one of the keys to business success is the ability to adapt. As businessman Robert C. Gallagher reportedly said, “Change is inevitable, except from a vending machine.” mPOS has proven to be tremendously adaptable and flexible, allowing customization and enhancements that make it a continuously evolving platform. Consider it the anti-vending machine (also because when you order a Coke through an mPOS, you can expect to get it). Foundation - Along those lines, even though mPOS is a SaaS (aka “software as a system”), I consider it as more of a platform than a system. It is the foundation upon which enhancements, features, and integrations are built. This year alone, Lavu is adding so much to its core product—everything from robust payment integrations to thorough enterprise management to complete inventory management. Viewing mPOS as the bedrock on which to build a stable and long-lasting institution is the perspective I like to take. That bedrock is solid as a rock, but a whole lot easier to carry.
Universality - Finally, I want to point out that mPOS is far from a regional trend. It is an international movement. Nearly 40% of Lavu’s new customers are outside the US; our customers are everywhere from Bahrain to Trinidad and Tobago. A 2016 study from Juniper Research found that smaller merchants in emerging markets—especially India, Southeast Asia, and Latin America—are being enabled by mPOS to grow their businesses. On the micro and macro levels, mPOS is growing, and bringing business growth along with it wherever it goes. I was watching a TV show the other day, and I was caught off guard by the appearance of a legacy system on the screen. The show is supposed to be hip and modern, and yet the POS system on display was far from it. I suspect that twenty years from now, that scene will seem about as relevant as The Dude’s check. Because we won’t even be using the “m.” All POS will be mPOS. About the Author
been the CEO or founder of three, leading the rapid growth of digital media, marketplace, and marketing services businesses. Throughout his career, Ohad has focused on technological innovation and entrepreneurship: He has served as Operating Advisor to Aldrich Capital Partners, President of Marketflex, CMO and COO of AnyClip, CMO of Takkle (sold to Sports Illustrated and Alloy Media), and Director and COO of Interactive Marketing at America Online, among other industry-leadership positions. Ohad graduated from Carnegie Mellon University and Harvard Business School. He is a business mentor with Endeavor and serves on the executive committee of the New World Symphony. About Lavu Lavu is a leading mobile point-of-sale system for restaurants. Used on over 20,000 terminals, in more than 80 countries, Lavu is a full-featured iPad-based POS system designed exclusively for restaurants and bars. Lavu was the first iPad point of sale in the Apple App Store, and continues to be pioneers of technology by offering the latest in features and functionalities. Exceptional features include flexible payment-processing solutions, an intuitive, easy-to-use interface, and Lavu’s comprehensive business management suite for all reporting needs. Lavu works for all food and drink establishments, streamlining operations to simplify management and improve the customer experience. www.lavu.com
Be sure to visit these websites for useful restaurant POS information and free resources:
Ohad Jehassi is the president of Lavu, a leading mobile point-of-sale system for restaurants. Ohad has over fifteen years of international product-centric general management and marketing experience. He has launched four start-ups and
• POS-Advice.com - 100% focus on restaurant point of sale • POSforum.net - a POS support forum where users share information and answer tech questions for various products including Oracle/Micros and Aloha - free. • Restaurantsoftwarelist.com - A list of technology solutions for restaurants and hospitality. Find developers, manufacturers, resellers and processors. • POS-Advicenewsletter.com — A weekly newsletter of technology advice and opinion for restaurants.
7 RESTAURANT PERFORMANCE METRICS
& HOW TO CALCULATE THEM
By Aman Narang, President and co-founder of Toast If you’re a restaurant or foodservice business owner, there are certain metrics you need to track and evaluate over time to understand the health of your business. By regularly calculating performance metrics, restaurant owners can catch negative trends and identify areas that require improvement. Increasing a business’s efficiency and profitability doesn’t happen overnight. There are so many moving parts involved in operating a restaurant - so many different costs and revenue channels and factors that ultimately influence net profit or loss - that you cannot simply expect to make one change and see all operations and margins improve. Instead, operating a profitable enterprise requires constant tinkering and testing until you find the best practices for your business.
vestors or opening a new restaurant. You can also use break-even to justify a new big purchase, like a commercial kitchen redesign or launching a new marketing campaign. Saying something will cost $20,000 is one thing, but saying it will pay for itself in three months is a better way to put that number in perspective.
2) Cost of Goods Sold (COGS)
Cost of Goods Sold refers to the cost required to create each of the food and beverage items that you sell to guests. In this way, COGS is really just a representation of your restaurant’s inventory during a specific time period. In order to calculate COGS, you need to record inventory levels at the beginning and end of a given period of time, and any additional inventory purchases. It is important to track COGS because it is typically one of the largest expenses for restaurants. By identifying ways to minimize these costs, like negotiating better rates with your food distributor or selecting in-season ingredients, it’s possible to significantly increase margins. Every dollar you shave off COGS is another dollar added to the restaurant’s gross profit.
3) Overhead Rate
Fixed costs are good to know because they are straightforward. One bill, one price. But wouldn’t it be helpful to know how much those fixed costs are on an hour-by-hour or day-by-day basis? Overhead rate is a form of cost accounting that helps you understand how much it costs to run your restaurant when looking only at fixed costs.
4) Prime Cost This article identifies seven key metrics restaurant owners should track regularly and how to calculate each of them.
1) Break-Even Point
Your break-even point is one of the first numbers you should calculate. This number lets you pinpoint how much you must do in sales to earn back an investment. The number can then be used to forecast how long it will take to earn that money back. Break-even is a must-have if you’re looking for in-
A restaurant’s prime cost is the sum of all of its labor costs (salaried, hourly, benefits, etc.) and its COGS. Typically, a restaurants prime cost makes up about 60 percent of its total salesways. Prime cost is an important metric because it represents the bulk of a restaurant’s controllable expenses. While you can’t control fixed rent costs on a weekly or monthly basis, for instance, you can find ways to decrease prime costs by managing labor carefully. Thus, a restaurant’s prime costs represent the primary area a restaurant owner can optimize in order to decrease costs and increase profit.
5) Food Cost Percentage
Food cost percentage represents the difference between the cost of creating a specific menu item (the cost of all of the ingredients in a dish) and the selling price of that item.
6) Gross Profit
Gross profit shows the profit a restaurant makes after accounting for its cost of goods sold. The resulting gross profit represents the money available to put towards paying off fixed expenses and profit. To calculate gross profit, subtract the total cost of goods sold during a specific time period from your total revenue (the total sales of food, beverages, and merchandise).
7) Employee Turnover Rate
Turnover rate is the percentage of employees that leave or are fired that need to be replaced during a specific time period. The restaurant industry has a notoriously high employee turnover rate compared to all other industry segments. In the fast-paced foodservice environment, high employee turnover can hurt operational efficiency and require a lot of time and attention to get new hires up to speed. In order to gain true business insight and value from these metrics, restaurant owners should get in the habit of calculating and recording them regularly, on a weekly or monthly basis. Over time, this allows restaurant owners to compare their establishmentâ€™s current performance to historical data in order to identify problem areas and trends. About the Author Aman Narang is President and co-founder of Toast Restaurant POS. Prior to Toast, he worked on innovation initiatives at Endeca, now Oracle. Aman spearheaded the development of Endecaâ€™s business intelligence platform as well as their mobile commerce platform, each of which became a major business units. He holds BS and MS degrees in Computer Science from MIT and currently leads innovation and business development initiatives at Toast.
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May 20-23, 2017 NRA Show 2017
The international foodservice marketplace: NRA Show provides everything you need to know to run a successful foodservice operation - under one roof!
June 6-9, 2017 IRCE Internet Retailer Conference + Exhibition
E-Commerce is evolving faster than ever. Internet Retailer Conference & Exhibition (IRCE) provides you with a conference full of industry experts, an exhibit hall filled with the latest and greatest solution providers, and a community made for networking with thousands of like-minded industry peers. Want to add a trade show? Click here to contact us.
HOW TO RUN A PROFITABLE RESTAURANT using Real-Time Data
by Sharon Riggs, Action Systems, Inc (ASI) Whether you are a big-time operation like Amazon or Google or a smaller independent restaurant, you can use real-time data from your business to gain insights and make smart, quick decisions that will ultimately make your restaurant more profitable. So where do you get this data? Whether it’s information about staffing schedules, table turns or menu changes, you’d actually be surprised at how much data your restaurant is generating on a daily basis. You just need to make a point to collect that data and then use it effectively. Now let’s say you have gathered this data. You must react quickly and that is a challenge for most restaurants. Let’s face it … the faster and more accurately you can access and analyze information, the better chance you have to make real-time decisions that will inevitably affect profitability. Guest check analytics and other data gathered by your POS System is key, but your business may also have access to data from other sources, too, such as video security cameras, payroll services, or a customer loyalty application. If you’re not using all this different data , you’re missing out on important information that should guide your decision-making. This is why many restaurant technology specialists recommend implementing a real-time “Big Data” service that gathers actionable data from a variety of sources and delivers it -- in real-time -- to the smartphones of store managers. This information can be used to help operators: Decrease Costs - by taking select staff off the clock when Overtime Alerts warn an employee is nearing overtime thresholds or when Labor Cost Alerts that show that sales are dropping off after a lunch or dinner rush.
Improve Service - by giving special attention to special customers when the VIP Alert shows a big spending customer just ordered an expensive item or when the Prep Time Alert shows that Table 4 has been waiting more than 20 minutes for drinks. Prevent Wastage & Fraud - by using the Hardware Interface Alert to track when the Walk-in temperature goes above 50 or by using the Void Alert to identify staff who attempt to process a suspicious number of voids on cash transactions. Even the smallest restaurants can profit from real-time data collection. And with increased competition, you owe it to your business to look into big data options that fit your budget. Need more information? Talk to your POS vendor or visit RMPOS.com. About the Author Sharon Riggs is Senior Marketing Manager for Action Systems, Inc (ASI). Founded in 1987 and headquartered outside Washington, D.C., ASI provides open architecture software solutions for Restaurant Manager and Duet, its point of sale (POS) systems for the foodservice and restaurant industry. ASI has more than 150 value-added Resellers in the United States and in international markets, including Canada, Mexico, South America, Asia, the Middle East, and many European countries. ASI’s POS product line has continued to grow to cover all areas of the foodservice industry, including table service, nightclubs & bars, pizza & delivery, quick service and chain operations. Image courtesy of Flickr creative commons: https://flic.kr/p/S9v44U
The Evolution of POS By Christopher Sebes, President of Heartland Commerce
costs plummeted. The mass adoption of Windows software expanded the market and brought in numerous and specialized software vendors. What was new and generalized now became specialized. Many companies felt compelled to ride this second wave and create “best of breed” solutions with several or even dozens of vendors, attempting to get separate systems to talk to and integrate with each other. Software moved into the realm of bloated features which add little to no value and increased complexity that raise the cost of the collected mess. It reached its value apex and the slope for additional gain is just too steep. The problem was there were no great platforms that let customers use any hardware or any reporting solution all in a frictionless, affordable model.
The Point of Sale system is arguably the most important function in any single restaurant, other than the kitchen itself of course. It is the critical piece to completing any transaction, and has served as the business center in every restaurant dating back to the very first cash register. So it is no surprise to see rapid innovation happening in the POS industry, as restaurants leverage the latest technology to make their operations run more efficiently, increase speed of service and allow their staff to focus on guest service instead of troubleshooting technology failures. The POS industry and the restaurants it serves have come a long way – but to appreciate how far we’ve come, let’s take a look back at the rise of the POS industry and how it came to be, perhaps, the most important operations decision a successful restaurant can make. The traditional cash register held court on restaurant counters for decades. That is until the, 80’s arrived. The 1980s were the golden age for software. Moore’s law combined with new operating systems and programming languages unleashed a tidal wave of computing innovations. Many significant hospitality tasks for restaurants such as reservation systems, order systems, inventory, accounting, and billing began to see software automation. While the technology was a significant investment, the return on the investment was a “no brainer” and once companies embraced the new technology there was no turning back to paper. But as with any technology, what was new becomes old and what was innovative soon has a spotlight focused on all its shortcomings. We find that today with legacy POS systems. For example, installing legacy (client – server) POS in a new store requires a few weeks. A professional IT site survey would is conducted, Windows terminals are ordered and configured, a local network server is installed, computers are purchased and installed, the network is hardwired for the entire location and then there are three days of system training. For enterprises, they also require backend of servers and test environments to test everything and aggregate the information. This is a long and arduous process. A technology becomes more accessible as computing
We have now reached a point in which whole business models around software, software delivery and value creation are shifting both on a technology basis and philosophically. These are all great things for the consumers of technology as they can get better, more powerful technologies at continually decreasing costs. This is also a great thing for technology companies, but only if they incorporate new abilities and phase out older code bases. We have the luxury of learnings from an industry that has evolved from pen and paper to clunky machinery to more modern Windows POS systems and now to flexible, easy to use cloud-based restaurant management platforms. There have been significant improvements that have increased restaurants’ abilities to drive profit – the North Star for the industry. While much will change over the next decade, I envision the next phase of POS to be an influential driver of the overall restaurant industry – integrating in savvy product features that cater to a guest’s needs and appeal to their desire for speed and convenience. The industry will evolve as POS companies continue to address the challenges that impede restaurants and help drive more efficient and profitable businesses – all the while creating happy and loyal guests, arguably a top priority for every restaurant out there. We are entering into an age when restaurants focus on food, brand and experience and not the technology that supports those critical missions. Christopher Sebes, President of Heartland Commerce, a Global Payments Company. Xenial, a product of Heartland Commerce, is the industry’s first cloud-based, device-agnostic restaurant management platform, addresses the issues with today’s POS systems and brings the industry into the next phase. Mr. Sebes has spent his entire career in hospitality management and technology. He received a degree in Hotel and Restaurant Management in England and managed hotels and restaurants on three continents including multi-unit restaurant operations in Europe and the U.S. He created the first Microsoft Windows point-of-sale company, Twenty20 Visual Systems, which he sold to Radiant Vision Systems. He went on to become the CEO of Progressive Software before founding XPIENT in 2004. XPIENT was sold to Heartland Payments Systems in 2015 and he was tapped to become the President of Heartland Commerce, a major player in restaurant and retail management technology.
Helping you connect with the restaurant technology solutions you need to be competitive in today’s market. Five free tools for restaurant owners and managers 1. SaaS Restaurant POS Pricing Comparison | Download Now >>
Our Pricing Comparison includes 20 POS systems designed for table service restaurants, bars and clubs. These operations typically require a more sophisticated POS solution and we have focused on table service solutions that are available on a Software as a Service basis. Most systems are available on a monthly basis and we have detailed that pricing based on one, two and three station configurations.
2. Free Restaurant Technology Directory List | Download Now >>
The Restaurant Technology List has been compiled by POS Advice and is updated routinely. Restaurant POS Developers are the first list and the major category of the Restaurant Technology List. The Restaurant POS Software List includes over 200 restaurant POS software solutions with their website and phone number for your convenience in contacting these POS providers.
3. Find the Best POS System for your Restaurant in 3 Easy Steps Download Now >>
The Selection of a POS System is a Critical Decision that you and your business will have to live with for many years! • DEFINE your POS system requirements based on your management style, restaurant type and facility limitations. • COMPARE only the POS systems that meet or exceed your defined POS requirements. • NEGOTIATE the Programming, Training, Onsite Support, Staging, Shipping, Warranty, Ongoing Service and Support in addition to the Investment.
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Use our “Restaurant POS and a Whole Lot More!” white paper to learn what a restaurant POS system can do for your restaurant. Choosing and purchasing a POS system is one of the most important decisions that you make as a restaurateur. And if you are like most, it is one of the last decisions you make before opening a new location. All the many other decisions you’ve had to make regarding décor, equipment and menus are usually done or in the works, along with a dwindling budget, before you turn your attention to a restaurant POS solution. Yet this important decision will have both a short and a long term impact on your business. The restaurant POS system is the heart of your restaurant operation with all control and management functions interfaced to the POS system. Read more about these choices in our white paper below.
5. Restaurant POS System Investment & ROI Calculator Whitepaper | Download Now >> Our free Restaurant POS System Investment and ROI Calculator Whitepaper shows how a restaurant POS system pays for itself and then keeps paying you forever. The Return on Investment calculator only uses hard numbers and doesn’t count faster customer service, the management reporting or the peace of mind a POS system provides in our calculation but we do include a Return on Investment (ROI) calculator so you can see how long it will take your POS system to pay for itself.
Click to request a free, no obligation, quote for a restaurant POS system with this form. Find dozens of retail and hospitality/restaurant case studies here
RESTAURANT POINT-OF-SALE CASE STUDIES New POS system creates a stronger brew for coffee shop! (Atticus Teahouse) Lunchtime Line-Busting for a Cause:Point-of-sale Inside The Box Cafe Italian Restaurant Thrives With Mobile Point of Sale (Fortina) POS At The Table: Calming the Chaos with OrderPads POS Software Helps Coffee Company Expand to Retail Locations (Piñon’s) Case Study: Delancey Street and Positions for Success Case Study: Lou’s Brews and BBQ Liquor Control Technology Proves A Popular Point of Sale Solution Case Study:Chinese Restaurant Upgrades Its Point of Sale System Point of Sale Terminal Spotlight - 9021PHO Vietnamese Restaurant New Point Of Sale System For Growing Fast Food Specialist Case Study:Small Business Funding: The Killarney Third Generation Restaurateur Chooses Next Generation POS System Simplifying A Point-of-Sale System Upgrade (Johnny Carinos) Family Owned Chain Finds Loyalty Program Pays Off (Grotto Pizza) Ballpark Boosts Sales With Real-Time Payment Solution (Stadiums, Baseball) Case Study: POS Software For A Brewery Successful Barcode Solution for Pizza Company Cloud Technology and Restaurants – Possibilities and Limitations Using POS Data For Decisions to Improve your Independent Restaurant Business Modern Stadium Point-of-sale Is A Technological Marvel Pizza and The Point-of-Sale System - Infographic Hospitality Case Study: Gino’s East Healthy Food Truck Rolls Out Advanced Mobile POS Amsterdam Coffee Roaster Brews Better With New POS System
Other restaurant and hospitality articles: Waterproof Receipt Printers Worth The Investment For Kitchen POS (highly recommend****) Restaurant Improvement: Integrating POS Technology with Guest Management The Top Four Reasons To Update Your Kitchen Display System VAR Delivers Solution to Ensure Restauranteur Profit: A Low-Light Setting Case Study Four Top Technologies to Activate Your Restaurant Business Choosing A Restaurant POS System: Features to Consider Amazon Alexa Allows Diners to get on the Waitlist at Nearby Restaurants
BAR RESCUE’S JON TAFFER Partners with Harbortouch To Deliver Industry’s First
SMART POS SYSTEM Las Vegas, NV - March 28, 2017 - Jon Taffer, executive producer and host of Spike TV’s hit show Bar Rescue and foremost expert in the hospitality industry, today announced a comprehensive partnership with Harbortouch, a leading national provider of point-of-sale (POS) systems and merchant services. Taffer has officially endorsed the company’s touchscreen POS systems and will collaborate with Harbortouch to develop the industry’s first “smart” POS (sPOS) system. The collaboration will enable Harbortouch to integrate powerful revenue generating tools, based on Taffer’s extensive industry experience, into the company’s Elite POS systems. Harbortouch’s sPOS systems will bring together technology and industry expertise in a way that has never been done before. Harbortouch POS systems deliver countless benefits in terms of improved efficiency and streamlined operations, and now these benefits will be combined with integrated tools, including powerful analytics and customer promotions, that will have a direct impact on top-line sales by increasing both customer frequency and spend per visit. Harbortouch CEO Jared Isaacman explains how the partnership came about: “We really challenged ourselves to develop something truly game changing. We have already built the best POS system with the best technology and at the best price point, but we wanted to see if we could go a step further and do something entirely unique by helping our customers generate more revenue. We wanted to leverage the power of our industry-leading POS technology to help our merchants make more money. As the leading authority in the bar and restaurant industries, we knew that Jon Taffer would be the perfect partner to help pioneer this smart POS technology.” “POS systems are the backbone of any business, but their major benefits have always been about efficiency,” says Taffer. “In my experience, I have found Harbortouch’s POS solution to be the best in the industry. Their POS system is unparalleled in terms of both price and capabilities, the two elements most critical to any small or mid-sized businesses’ success. I am proud to integrate my proven tools for increasing revenue with their best-in-class system and bring the first truly smart POS system to market.” With over three decades of hands-on experience, Taffer is a two-time winner of the Bar Operator of the Year award, among a myriad of other honors, and his management methodology, Reaction Management, has become the gold stan-
dard of the industry. In 2010, Jon was appointed President of Nightclub & Bar Media Group where he oversaw the Nightclub & Bar Convention Trade Show. He also sat on its board of directors and serves as a consultant and development advisor to major restaurants, nightclubs and hotels worldwide. Harbortouch is a pioneer of the POS-as-a-Service business model, offering a revolutionary free equipment program that delivers best-in-class POS systems with no up-front costs, including state-of-the-art hardware, premium software, custom programming, professional installation, onsite training and 24/7 support. Founded in 1999, the company has served more than 325,000 merchants and currently processes in excess of $12 billion annually. A six-time Inc. 500/5000 honoree, Harbortouch has been widely recognized for its innovative and disruptive POS and payment solutions. About Harbortouch Payments Harbortouch Payments, LLC is a leading business technology company and pioneer of the POS-as-a-Service business model, having served over 325,000 merchants in 17 years in business and currently processing more than $12 billion annually. The company offers a revolutionary free equipment program that delivers best-in-class POS systems with no up-front costs, including state-of-the-art hardware, premium software, custom programming, professional installation, onsite training and 24/7 support. A six-time Inc. 500/5000 honoree and recipient of numerous industry awards, Harbortouch has been widely recognized for its innovative and disruptive POS and payment solutions. For additional information, visit www.harbortouch.com. About Jon Taffer Within the nightlife, bar and restaurant industry, there is no greater authority than Jon Taffer. As a celebrity, hospitality expert and entrepreneur, Jon entertains and educates audiences from all walks of life, from Average Joes to CEOs. By delivering life-changing business lessons and inspirational stories, Jon has helped transform millions of people and companies by changing how they think and what they do. He is best known for his ‘in your face,’ no holds ‘barred’ style of turning failing bars into profitable businesses as the Host and Executive Producer on Spike TV’s number one hit show “Bar Rescue,” which is currently going into its sixth season. Jon is recognized internationally as an award-winning hospitality consultant and concept developer. With over three decades of hands on experience, he has owned and operated 17 hospitality businesses, consulted with over 800 venues in 30 countries and has worked with powerhouse brands like Hyatt Hotels, Hilton Hotels, TGI Fridays, Subway, Wolfgang Puck Express, Anheuser-Busch, AMF Bowling Centers and many more. Jon’s knack for starting, growing and improving hospitality concepts has led to many awards (such as Operator of the Year, Property of the Year, Visionary Leadership and the United Kingdom’s Pub Master), as well as executive positions with the Nightclub and Bar Convention and the National Restaurant Association, where he’s currently a Strategic Advisor. Learn more at www.jontaffer.com.
5 TIPS TO RETAIN CUSTOMERS in your restaurant in 2017 Article Courtesy of Lightspeed POS and Data Candy Everyone has a favorite restaurant. But with more than 624,000 restaurants in the U.S., there are plenty of opportunities for customers to stray. Maintaining consistent business from regular customers is a critical (yet challenging) business model for restaurant owners. So, how do you make sure customers stay inside your dining room? Customer Loyalty Programs have become a primary sales driver for many chain restaurants. According to DataCandy, most corporate restaurants estimate repeat customers spend 67 percent more than first time guests during a single visit. In the never-ending battle for customer loyalty, many small restauranteurs with tight marketing budgets tend to feel like the underdog. Surprising to some, the National Restaurant Association says more than 7 in 10 restaurants are single-unit operations and more than 9 in 10 restaurants have fewer than 50 employees. You see, a good meal, great service and a positive experience has nothing to do with dining room square footage or number of locations. Size and budget doesn’t have to factor into the customer retention game. Loyalty programs designed for the unique needs of small restaurants are helping to level out today’s playing field. DataCandy is one example of loyalty solution providers specifically catering to owners who operate one or two restaurant locations. So, how do you keep loyal customers loyal and ensure they stay in your dining room? Here are five tips to retain customers in 2017: 1. Work on your first impression A positive first impression of your restaurant is crucial. Bringing a new customer through the front door is far more expensive than keeping a loyal, repeat customer happy. Put out your best service every day and offer customers the kind of service they’re expecting. 2. Communicate with your customers Effective customer communications will keep your restaurant top of mind. Consumers have a short attention span and competition for a diner’s wallet is fierce. Position yourself so your brand, menu specials and unique offer-
ings are present daily. This can be done with mobile apps, loyalty programs, social media or marketing emails. 3. Give customers a reason to visit AGAIN How do you show customers that you want and appreciate their business? A rewards or loyalty program is a practical way to offer incentives and track a customer’s response. By offering customers personalized rewards, you will help establish an emotional connection and entice them to visit your restaurant more often. 4. Customer service still counts Eighty two percent of consumers in the United States have stopped doing business with a company because of bad customer service. Yikes! Customer service means different things to different diners, so do your research and implement change, if needed. 5. Learn what makes your customers tick Loyalty programs have evolved beyond paper punch cards. Restaurants can gather critical data via automated loyalty programs to better understand dining behaviors, habits, patterns and purchase triggers. By having a true understanding of consumer preferences, you can develop more targeted strategies and better marketing messages. Technology can make executing customer retention more doable for small restaurant operations. However, implementing every new technology option will never replace the five customer retention tips listed above. For those heading to the annual National Restaurant Association Show later this month, you can expect to see plenty of emerging technologies designed to support independent restaurants, including Lightspeed Restaurant and DataCandy (Booth #6475). Flashy technology and new tools can be very alluring. Technology adoption will keep growing among restaurant operators in 2017, but the process is not without challenges. Cost remains a significant barrier, according to the National Restaurant Association’s 2017 Restaurant Industry Outlook. Before you invest in new technology or processes, ask yourself one simple question: Will it help me retain customers in 2017?
CLOUD TECHNOLOGY & RESTAURANTS possibilities & limitations
By Alex Barrotti, TouchBistro Founder & CEO Running a restaurant is no small feat. Long hours, hard work, and an excellent grasp of day-to-day operating details are essential for business success. Staffing, menus, inventory, pricing, customer preferences, table turns, promotion effectiveness, and bottom line profits – a restaurant owner requires insights into all of these areas to effectively manage the business. A modern point-of-sale (POS) solution for restaurants should enable much more than just processing orders for the kitchen, calculating bills, and recording payments. Ideally, the restaurant operator should be able to use the POS as the hub of efficient and profitable restaurant operations. This should include real-time access to the information collected by the POS in an easy-to-use and understand format that helps in making better business decisions. Since restaurant owners today often manage and make key business decisions remotely rather than from the office in the restaurant, critical information about the business and its operations should also be accessible in their homes or while on the go. Today, this is possible through web-based cloud portals that can be accessed anytime, anywhere from an internet connected device, whether a mobile phone, tablet, or computer. The Cloud – The Wonders and the Not So Wonderful While cloud-based solutions provide restaurant owners with management flexibility not previously avail-
able, there are inherent problems for restaurants with a POS system that is strictly cloud-based. In this particular type of POS system, the application, all data files, and all processing are located on a remote server in the cloud and are not directly under the restaurant’s control. What happens when the internet goes down? How are orders taken? How are payments accepted? It is not unusual for restaurants that use cloud-based POS systems to lose thousands of dollars when there is an internet outage, even a temporary one. A hybrid POS that is cloud-connected but not cloud-dependent prevents this risk. If the internet goes down, the restaurant can still transact business. The safest solution for a restaurant is a POS with an in-house server that keeps all the data and synchronizes the data with the cloud again when the internet comes back up. The other main problem with cloud-based POS systems is that they struggle to keep up with the pace of a busy restaurant. One example of this is Calzolaio Pasta Company. When the restaurant’s older POS solution was going to cost thousands more to upgrade – despite the fact that upgrade wouldn’t even offer tableside tablet ordering capabilities – co-owner Tom Marchellino decided to research POS alternatives. He avoided those that were only cloud-based. “Solutions that are only cloud-based are typically laggy
and don’t keep up in real time – every time you make a change it has to go to the cloud and back. These systems are not user friendly in a fast-paced environment. It doesn’t work with eight waiters using five machines. We have fiber optic tech here, so our data speeds are very fast. Even at that, strictly cloud-based systems were laggy,” says Marchellino. After extensive research, Marchellino chose the TouchBistro iPad POS designed specific for restaurants as it was built as a hybrid to take advantage of the cloud while preventing the risks. “Aside from being very user friendly for both back and front of house, TouchBistro is also a fully integrated (inhouse server-based) and cloud based system. All the operations of the system are in-house, but the reporting and credit card processing are in the cloud,” Marchellino says. “This provides the best of both worlds. You have very quick turnaround when processing credit cards, and very quick processing between servers and in-house.” The Right Information the Right Way Drives Business Success A POS with a web-based cloud portal can provide a restaurant owner with access to key management metrics whenever and wherever needed. But just because the information is in the cloud, doesn’t mean it is usable. Generic business reports can be too wieldy to understand or analyze, containing or comparing data less essential to a restaurant operation. So it is just as important that the information provided by the POS is in reports that are designed for the specific work flows and operating nuances of a restaurant, such as: Increasing profitability with metrics at a glance Forget massive, complex, and tedious spreadsheets with complicated pivot tables; a gross margin report needs to clearly communicate key restaurant metrics simply, at a glance. For example, it should enable the restaurant to compare weekly and historical order counts, sales, discounts, voids, menu item and labor costs, net sales, and ultimately the restaurant’s total margins. Hourly sales heat maps for more effective promotions One problem that many restaurateurs face is knowing the right time to use promotions to drive traffic. Most follow the obvious blueprint: Tuesday night is dead and Friday night is prime time. Gaps in between those
common periods are often ignored. That is where a heat map comes in. Using a heat map, owners can see the times of day that aren’t performing as well, giving ample insight to strategically plan promotions that maximize revenue for those periods. Lowering labor costs by simplifying staff scheduling and overtime tracking With rising wages and complex compensation structures, managing staff can consume many hours each month and become quite a challenge, particularly when it comes to overtime. Easy-to-use staff scheduling and overtime tracking functionality that allows owners to configure overtime rules is essential. This helps restaurateurs account for each staff member’s overtime hours and total wages so staffing can be adjusted as needed to lower overall labor costs. Keeping up with the most advanced technologies for restaurant success It is difficult for restaurants, or any business for that matter, to always keep up with the latest advances in technology. In fact, if a business is always waiting for the latest, they will be dealing with the challenges of old technology for a very long time. The best option for any business is to choose solutions from companies that are committed to investing in technology development and innovation that helps their customers. These companies will have a proven track record of upgrading their systems to include enhanced or more advanced functionality and technologies, and providing these upgrades routinely to users without continually charging expensive upgrade fees. At TouchBistro, technology and feature enhancements are provided every six to eight weeks, based on insights from more than 7,000 restaurants around the world. TouchBistro Cloud, with Reports-to-Go mobile reporting app for iOS and Android smartphones, is one the most recent enhancements we have deployed. Topping the iPad restaurant app list in 37 countries on the Apple App Store, TouchBistro can be downloaded for a free 30-day trial at www.touchbistro.com.
Salsarita’s Fresh Mexican Grill uses a Cloud-Based Software to Simplify Daily Operations and Implement Online Ordering
Salsarita’s Fresh Mexican Grill was founded in Charlotte, N.C. in 2000. Salsarita’s offers Mexican favorites such as five flavorful house-made salsas, custom burritos, tacos, nachos and salads made fresh to order with an extensive selection of proteins, toppings and fillings. Salsarita’s was acquired by franchise industry veteran, Phil Friedman, in 2011 and operates more than 80 locations in 18 states, including 12 that are company-owned. With numerous locations and a large menu offering, Salsarita’s was in need of a new point of sale solution that would simplify daily operations and help grow the brand. It was also important to Salsarita’s that the new POS solution would allow them to incorporate online ordering and loyalty card functionalities, as well as offer better reporting options and ease of use for employees. As a franchise organization, making a change to the POS solution meant setting the standard; not just for the corporate operations, but for the franchisees who invested in the concept with the expectation of an ROI. The push to “go into the cloud” was a big decision for Salsarita’s, but it was the direction that they knew they wanted to go in. The cloud has many advantages,
but determining what the cloud would be utilized for, and what would still be handled or hosted “live” inside the restaurant was an important decision. Salsarita’s wanted to be able to choose from the flexible features and functionalities of a cloud-based platform, and customize their solution around their business needs and preferences. After an extensive search, Salsarita’s selected PAR Technology’s cloud-based Brink POS® Software and EverServ® Terminals. Brink’s capabilities and ease of user interface made a big impression with the Salsarita’s technology council, and stood out amongst the other options. The ownership and backing of PAR gave them the confidence that the platform was going to be well supported, and around for the long haul. The in-
herent – not “integrated” – loyalty and online ordering functionalities, hybrid-cloud functionality, and having a single data-base instance instead of multiple servers trying to work together behind the scenes, were also deciding factors in choosing Brink. Brink and the EverServ terminals were deployed in 52 restaurants in 12 weeks - roughly three times faster than the last POS deployment. This cut down on frustration within the franchise system and sped up adoption of the solution. With Brink deployed, loyalty and online ordering platforms are highly anticipated and will roll out this spring and summer. Brink has also brought stable, clear reporting to the unit-level operator and key performance indicator’s (KPI) are accessible at the terminal, keeping managers out of the back office during critical business periods. Petty cash management and house account functionality was really well thought through and is giving Salsarita’s much more confidence that every penny of their sales is making it to the bank. Integration of labor exports to payroll is reducing keystroke errors and reducing restaurant manager administrative task time. ABOUT SALSARITA’S FRESH MEXICAN GRILL At Salsarita’s Fresh Mexican Grill, we’re building a dynamic and authentically inspired fast casual Mexican brand, offering delicious food that is made the way you want it and prepared every day in-house. From Wildly Addictive Chips our guests truly rave about, to queso, customizable burritos, tacos, salads, bowls, quesadillas, nachos, signature salsas and fresh-made guacamole, Salsarita’s Fresh Mexican Grill thrives on making great Mexican fare fresh daily. Since our beginnings in Charlotte, NC in 2000, we have worked to perfect the notion that a restaurant should be fast and friendly but also casual and delicious like no other. Today, we have locations in 19 states and rapidly growing! ABOUT PAR TECHNOLOGY CORPORATION PAR Technology Corporation’s stock is traded on the New York Stock Exchange under the symbol PAR. PAR’s Hospitality segment has been a leading provider of restaurant and retail technology for more than 30 years. PAR offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. For more information, visit https:// www.partech.com/ or connect with PAR on Facebook and Twitter.
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POS Advice From Three Hospitality VARs spected hospitality companies.” He segued into the POS industry when he had to research, purchase, and implement a point of sales system for a small chain he was running at the time. After installing the systems, the POS company offered him a sales and training position. “It seemed like a very interesting business,” Appel explains.
By Charlotte A. F. Farley If you’ve ever consulted with a point-of-sale expert, you may have wondered how they ever got into that line of work to begin with. Perhaps you’re wondering if you might want to change gears and go into the point of sale industry yourself. You might be reading this article just because you want to see how other guys get it done (we get it). The Point of Sale NewsTM talked with three value-added resellers (VARs) who offered their insights and expertise for both business owners who implement a POS system and for anyone who has ever been interested in pursuing the field.
Steve Kramer didn’t start out trying to take over the family business; in fact, he spent a near-decade as a regional sales manager for Firestone. A relocation back to St. Louis in 1980 inspired him to join his brother and father, who had started “Data Cash Register Systems” in 1976, after spending 30 years at National Cash Register-NCR. Steve says that “the responsibilities lined up with my background: Managing Sales & Marketing. I wanted to learn everything about the business, so my initial role was Sales and Programming/ Installation.”
Scott Appel, Gotham Hospitality Solutions Segued into the POS industry when he had to research, purchase, and implement a point of sales system for a small chain he was running at the time.
Meet three VARs: Scott Appel, owner of Gotham Hospitality Solutions, has been in business for almost 19 years and serves clients within the tri-state area (200 miles radius of New York City). Steve Kramer is the co-owner of DCRS Solutions, a business 40 years old this year that serves clients in Missouri and southern Illinois as well as site locations owned and managed by regional and national clients with headquarters in the St. Louis area. James Cawdron, owner of Manhattan POS, has been in business since 2007, serving clients in the greater New York metropolitan area through the Mid-Atlantic. All three men come from different backgrounds and have different reasons for what attracted them to the industry— not one of them set out from the get-go to become a value added reseller. Scott Appel, for example, started working in the restaurant industry when he was just 14 years old, which nurtured his interest in the hospitality industry. “As I grew, I worked for and consulted for several highly re-
James Cawdron hails from the east coast of England, and came to the U.S. with years of working in hotels and on cruise ships under his belt. Upon arriving in the U.S., “one of my friends got me a job in a snooty upper East Side restaurant.” Cawdron then ran a French restaurant group for almost ten years, and worked with VARs and point of sale systems, he thought “it seemed easy.” He credits his early success in POS from his background in hospitality: “It was helpful to transition, since I knew what I wanted to get out of the system.” Switching careers comes with challenges, and the point of sale industry brings its own set of challenges to the table every day. It seems that regardless of what field you were in before and how much your experience lends itself becoming a value-added reseller, the biggest challenge is pace of change. Kramer states that “there have been many changes in the last forty years.” Appel explains that “whether it’s the ever evolving credit card security requirements or cloud-
Steve Kramer, DCRS Solutions “The responsibilities lined up with my background: Managing Sales & Marketing. I wanted to learn everything about the business, so my initial role was Sales and Programming/Installation.”
based technology, I need to carve out several hours a week to keep current.” While anyone in business for themselves needs to dedicate time to invoicing, generating new business, marketing, and staff training, the nature of the point of sale industry with its constant change of pace prevents a sense of routine. Kramer says that every day is different, and his colleagues tend to agree. Appel says: “It could be sales consulting meetings for a few hours and service calls the next. All the while ensuring the client’s needs are attended to in a timely and precise manner.” Cawdron normally heads to the office to delegate to his staff, but he states that one beauty of working as a value-added reseller is the ability to work remotely. Cawdron begins his business day by answer emails and texts, which will determine whether he goes into the office, goes on the road, or works a few hours from home, depending on the urgency of what’s going on. “Most of our business is based on the internet, and to a degree I can work from anywhere on programming or troubleshooting.” While “the constantly changing landscape is the biggest challenge” according to Cawdron, he admits that he enjoys the enthusiasm generated around new concepts and meeting new people and new businesses. Kramer piggybacks off of that concept; he believes that VARs are in the business of problem solving and that is his favorite aspect of his career: “Finding success at problem solving is not only challenging, but it also delivers personal satisfaction to our entire staff, and every day is different.”” Appel enjoys the problem-solving nature of the field, explaining that “it’s a great feeling when I look back and see an improvement in the client’s business—and sometimes even their quality of life.” Can something as simple as having an efficient point of sale system running really affect one’s quality of life, and if so, does that actually improve ROI? Appel says yes. “Sometimes the return on the investment may never end and this is a good thing. We have consulted on projects that would only involve guidance on a new payment or payroll processor to full technology upgrades including security and point of sale.” He explains that recently, his company had to replace a point-of-sale system in the dining hall of a local hospitality
culinary school and has since received extremely positive feedback from the director of the program. “He told us that the reliability, ease of use, and features has enabled them to dedicate more time with the students in the program and less time on maintenance of a system that did not work for their business.” The fiscal view regarding return on investment depends on the product, according to Cawdron. “Liquor tracking is definitely faster,” with a few months, with “POS probably nine months to a year, and surveillance is harder to measure depending on the business and how much is spent on the product; product has a big variance in cost.” Appel agrees that having the right product in place is key. He offers this example: “We were recently contacted by one of our clients that felt there were not getting the best value from there merchant processor. We made an introduction to one of our certified business partners and saved that client over $3,000.00 a month on their fees. This is not typical, but savings of $400.00 a month or more is.” Kramer says it’s also about the support a client receives from their VAR: “as far as full return on investment, our support of those systems is what makes the return far more successful.” For business owners looking to invest in a new point of sale system, Cawdron advises that owners find a reseller or dealer that they’re comfortable working with. He also recommends checking the facts. “One thing that surprises me is that very few people call references. If you’re going to buy a new car, you ask friends, you read about the car online,
James Cawdron, Manhattan POS He credits his early success in POS from his extensive background in hospitality: “I knew what I wanted to get out of the system.”
you check garages,” so why not do the same when it comes to investing in your POS system? Appel echoes this advice and suggests that business owners ask many questions and follow up by spending the time to verify that the answers you received are correct and make sense. He warns that “anyone can walk into a business and have the gift of gab. That does not mean the product and company are right for your business.”
of the “Living Wage” Movement By J ohn Giles, CEO Future POS During the political season, we’ve all seen politicians using hard working, decent people as props to sell their message. These politicians are promising to feed the hungry, cure disease, and make the world a fair place for everyone. As soon as the elections are over, these politicians go back to lining their pockets and forget about all those inconvenient promises they made. But this election season, one of the popular political sound bites is going to end up hurting lots of innocent people. I’m talking about the “Living Wage” movement, where minimum wage employees were told that if they stomped their feet hard enough that their bosses would happily double their pay rates. Now I’m not minimizing the challenges of raising a family on minimum wage – that’ obvious. I’m also not here to tackle the subject of social justice. The whole purpose of this article is to explain with real world examples the long term damage that will follow:
Unintended Consequence #1: The Rise of the Kiosk I recently ran across an advertisement for a company that does kiosks for quick serve (aka fast food). Two things jumped out at me. The first was that the ROI of a kiosk versus a person at the counter (never wants a raise, never calls off, etc). These points are somewhat obvious, but when you run the numbers, the kiosk pays for itself in a couple of weeks. Not six months or a year – less than a month. When you can show anyone a product that will pay for itself that quickly, expect any sane businessman to investigate further. Even if it takes 10x that long to pay for itself, it’s still a great deal. The second part of the ad that grabbed my attention is that there were quotes from major quick serve companies singing the praises of how this will transform their businesses. When a company like McDonalds goes this route, you can expect Burger King and Wendy’s to follow suit. You can also expect anyone who aspires to be like these quick serve giants to try to emulate this. The net result will be more kiosks and fewer employees at the counter taking yourorder.
Unintended Consequence #2: Order and Pay at the Table Don’t think this labor reducing move is limited to quick serve. Chili’s has had Ziosk devices on every table in the restaurant for years. Why? Because you can pay at the table, thus saving the server one trip to the nearest point-of-sale terminal. Yes, those units can also let your kids rent overpriced games, but make no mistake, the primary goal is to reduce labor and guarantee up-selling. Now imagine if, instead of a Ziosk device on every table, they just had a handheld device for every server. Much more cost effective to get started, and now there will be zero trips to the point-of-sale terminal. A server could effectively serve several more tables simply because they don’t have to run back and forth to a point of sale workstation (and potentially have to wait in line to enter the order during busy times). More tables being serviced by fewer servers equals a need for fewer servers.
Unintended Consequence #3: Kitchen Automation Years ago I had a vision of a restaurant concept that would be completely automated. You enter your order and pay via kiosk and your food is prepared without human intervention. There was nothing standing in the way from a technology perspective back then, and there certainly isn’t now. The only thing holding this back is practicality. At an $8 minimum wage, you couldn’t justify potentially millions of dollars of equipment to do the job of a human. Not sure where the break-even point is for this burger bot, but if you change that to $15 per hour, the break-even point just got more than cut in half. We all know the cost of technology comes down over time, so these kinds of systems will eventually make business sense. If the cost of labor goes up, it only means these systems will start to appear that much sooner. I just saw an article the other day regarding a robot named “flippy” that does nothing but make hamburgers. In the day of the self-driving car, don’t kid yourself that this isn’t going to happen.
So in conclusion, I hope I’ve given you some thought provoking takeaways. Technology is destined to replace all mundane and repetitive jobs. Those of you old enough to remember Bugs Bunny cartoons on Saturday morning can probably remember that in the days before we were born, they had elevator operators. You didn’t just push the button for the floor you wanted – a person operated the elevator for you and took you to your desired floor. That job is a thing of the distant past, and nobody laments the departure of the elevator operator. Likewise, 20 years from now nobody will lament the fast food worker that has been replace by a machine. But that fast food worker will probably lament the fact that they don’t have a job anymore. How livable is that wage?
Images courtesy of Flickr creative commons: https://flic.kr/p/7gkvJ3 / https://flic.kr/p/AKaoY
John Giles, CEO Future POS
• The Rise of the Kiosk • Order & Pay at the Table • Kitchen Automation
EVERY RESTAURANT NEEDS EMV to protect against customer fraud
By Bob Frazier If you have upgraded to a working EMV reader and are dipping EMV eligible cards then this Every Restaurant Needs EMV to Protect Against Customer Fraud post is not for YOU! If you think your restaurant or bar is too small to get hacked, statistically the odds are in your favor that you probably will not be hacked, but that does not protect you from EMV customer fraud! If you think you are safe from Credit Card Fraud because you don’t have a POS system, you are WRONG! If you have not upgraded your credit card terminal or POS system to process EMV cards than this is for YOU! Since the October 1, 2015 Liability Shift, new EMV dispute policies have been instituted. This change has created a tidal wave of chargebacks with restaurants, bars, quick service and petroleum being the top merchant categories for chargebacks! If your business is located in the states of Texas, New York, California, Florida, Illinois or New Jersey you are in a high risk area. If you are in a large city, a highly populated area, a college town or take a lot of foreign credit cards you are also considered to be high risk.
AT RISK FOR WHAT? Counterfeit Fraud and Friendly Fraud Chargebacks, here’s what you need to know about these two types of chargebacks. Counterfeit Fraud – This is one of the main benefits of EMV because it’s virtually impossible to recreate the chip. The EMV chip protects against the creation of a counterfeit EMV credit card, but you as the merchant must have a working EMV reader to know if it is a counterfeit card. No EMV dip, than you the merchant are automatically getting the chargeback in the case of a counterfeit EMV card used at your business! Friendly Fraud – Also known as Chargeback Fraud is a bigger issue than counterfeit cards for non-EMV merchants. Every EMV card you accept that is not processed with an EMV reader could be a chargeback! How is this possible? – Before October 1st of 2015, if a customer disputed their credit card purchase you had the opportunity to prove that the customer was present and approved the transaction. It took some time to research the transaction, but the chargeback was reversed, you were paid and the chargeback responsibility shifted to the card issuer. Now, if your customer used an EMV credit card and you did not dip the card into a working EMV reader and your customer disputes the charge with their card issuing bank there is a completely different end-
ing! If the merchant does not have a working EMV reader, then the merchant can’t dispute this chargeback even if the merchant has evidence the customer was present! Example, Johnny uses Dad’s EMV credit card to purchase 20-pizzas from your restaurant and takes them to his friend’s party, you know Johnny and his Dad and appreciate the big order. When Dad gets his credit card statement he calls the card issuer and disputes the charge, since your restaurant did not process the charge with a working EMV reader you are chargedback with no option to dispute the chargeback! Is this Fair? HECK NO… What do you do to protect your business? Contact your merchant processor or POS provider and get updated to EMV, the sooner you can process EMV cards the better protected your business will be! About the Author Bob Frazier is a restaurant POS professional with over 20 years of coaching, advising and assisting restaurateurs with their Restaurant POS System selection and implementation. Bob Frazier and POS Advice provide unbiased and independent restaurant POS system information, resources, white papers and educational videos for restaurateurs considering a POS system so they can make an informed selection. Visit http:// www.POS-Advice.com to access our FREE Restaurant POS Purchase Guide. Read Bob’s FREE e-book “Find the Best POS System for Your Restaurant” at http:// freeposquote.com/pos-e-book/
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CAKE (a Sysco company) designed it’s POS to easily meet the demands of your Quick or Full service restaurant. Features include online ordering, gift cards, and tableside ordering. Menus/reports can be adjusted/seen on the fly, even remotely. The system integrates with third parties such as PayPal, Quickbooks.
Future POS is one of the top 5 point-of-sale software packages for the hospitality industry and regularly wins prestigious awards such as the RSPA Gold Medallion Vendor of Excellence in 2016.
Harbortouch Hospitality delivers a robust restaurant software ideal for fine and casual dining as well as quick service establishments. Features include efficient order management, flexible pricing for discounts and specials, easy menu set-up, employee management, bar tabs and table tracking.
Lightspeed is one of the world’s largest point of sale and eCommerce solutions for merchants and restaurateurs, with over 34,000 customers transacting over £7billion annually. They specialise in products for Retail, Restaurant and eCommerce sectors, allowing them to tailor their features accordingly.
Restaurant Manager offers a total POS restaurant software solution that can be easily tailored for use in any sort of food service establishment, from fine dining and table service restaurants to quick service (QSR), pizza delivery and take-out establishments, as well as bars and clubs.
TouchBistro is the #1 ranked iPad-based point of sale solution specifically designed for restaurants. Restaurants buy TouchBistro because they want a POS that is the easiest to use and learn, increases staff performance, drives greater operation efficiency, brings actionable insights about their business, and improves customer experience.
Lavu’s restaurant point-of-sale system for the iPad® does more than place orders and process payments. Lavu enables users to manage their restaurants with comprehensive reporting, including live sales figures and employee management tools.
How You Can Benefit From Using A POS Consultant So, you’ve decided to make point of sale technology an integral part of your business—what do you do now? e recommend that you talk to at least three local specialists W in Point of sale. These specialists are also known as VARs, or Value-Added-Resellers. VARs often provide services including equipment installation and setup, software and menu configuration, connecting your POS system to a payment processor, and transferring data from your old system to the new one. Then they can train your staff so that the pain associated with switching to a new system is minimized. Why use a VAR? Because your staff is already working at 100% of capacity. Setting up a new system takes dozens of hours for a single store, and much more than that for a multi-store operation. A VAR w ill also often provide o ngoingmaintenance and technical support. onsulting an expert in POS technology can save you time C and money! Click here to find hundreds of consultants sorted by state/country
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The Wrong POS System Will Crush Your Business, Get a Free Second Opinion • DEFINE your POS system requirements based on your management style, restaurant type and facility limitations. • COMPARE only the POS systems that meet or exceed your defined POS requirements. • NEGOTIATE the Programming, Training, Onsite Support, Staging, Shipping, Warranty, Ongoing Service and Support in addition to the Investment.
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FREE POS SUPPORT FROM YOUR PEERS! • Where can you go to get free POS support from knowledgeable people? • Has your POS vendor dropped support for your product? • Are you unable to afford a support contract with your POS vendor? There’s a free website for POS support where see the answers to thousands of questions your peers have asked. www.POSforum.net Visit it, sign up, search for what you need. Can’t find an answer? Post a question in the appropriate place and let the universe of POS users respond.
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The Point-of-Sale magazine is back with its sophomore issue; all about the hospitality industry.