If the kitchen is the heart of the restaurant, the POS has truly evolved to become the brain. As we noted in our popular MURTEC breakout session on POS best practices last March, restaurant operators must think of the POS as more than just a payments tool: POS is a transaction engine. Indeed, restaurants are relying on POS for a vast “menu” of benefits, including:
- Streamlining restaurant operations
- Providing data-driven insights
- Improving customer experience
- Managing inventory
- Managing workforce
- Ensuring security
- And more
Each year, HT surveys top restaurant technology leaders to learn their POS software priorities for the coming year. We’re interested in purchasing plans, business drivers, key features, and leveraging data. As we look ahead to 2024, integration is more critical than ever to restaurant operations: Whether a restaurant is chasing shiny new functionalities such as generative AI or trying to squeeze the most out of legacy solutions, they are attempting to take integration to the next level.
Restaurant Purchasing Plans for 2024
Restaurant operators are planning significant investments in their POS systems in 2024 (see Fig. 1, below), with a focus on adding features to, and expanding the installation base of, existing POS, deploying mobile solutions, and exploring research and development for the coming years.
A significant 84% of survey participants plan to add new functionality, features, or modules to their current POS software, underscoring the need to improve customer service and streamline operations. (We outline some of the top features driving investments below.) In a resounding reinforcement of the move toward a more nimble, responsive guest experience, 50% of respondents plan to develop and deploy POS solutions for use on mobile devices. We’re pleased to see that 33% will test and research new POS solutions for possible implementation after 2024 — R&D remains the lifeblood of restaurant technology. And 30% of restaurant operators aim to expand their installation base of POS software from their current vendor.
Business Drivers Impacting Restaurants’ POS Upgrades
The restaurant industry has reached an inflection point where new customer expectations (some triggered by the pandemic, others by trends toward mobility and self-service in other sectors, most notably retail) and the business goals of restaurant operators come together (see Fig. 2, below).
A sizable 85% of respondents seek to enable self-service options, speaking to the benefits of guest convenience and optimal workforce and streamlined operations that self-service can provide. 83% of operators are acknowledging the centrality of data in understanding customer preferences and behavior. Underscoring the theme of integration, 68% of respondents report a focus on building a robust POS platform. 66% report prioritizing new contactless, cashless and secure payment options such as e-wallets. A new category, inspired by our MURTEC breakout on POS, Enabling enhanced “suggestion engine” capabilities, was a business driver for 52% of respondents — the promise of menu personalization and increased basket size is very real.
Features & Functionalities Driving POS Purchases
As technology capabilities have evolved rapidly in recent years, restaurant POS systems are also transforming themselves with an array of features and functionalities (see Fig. 3, below) to better facilitate transactions, enhance operational efficiency, and elevate the guest experiences.
But a key challenge has been integration. In fact, 85% of restaurant operators report integration with other systems as a top functionality driving 2024 POS purchases. Another notable feature for 2024 is 83% of respondents seeking to incorporate tablet-based POS software, which can allow wait staff to take orders and process payments right at the table, potentially turning tables more efficiently and boosting revenue. 68% of respondents report seeking cloud-based POS and the agility and scalability it can enable. On a related note, 66% of respondents seek Software-as-a-Service (SaaS). And AI-powered solutions are making a splash, with 35% of respondents seeking generative AI, which has the potential to enhance and streamline nearly every process from FOH to BOH and beyond.
Leveraging POS Data for Engagement, Personalization, and Staffing
Today’s POS has the ability to deliver real-time data that allows restaurant operators to respond effectively and nimbly to customer and operational needs (see Fig. 4, below).
85% of respondents are using POS data for digital engagement vua texts, emails, and web browser interactions. 60% of restaurant operators report putting POS data to use to help power a loyalty program. 54% deploy POS insights to create tailored promotions such as upsell and discount offers; and on a related note, 51% use POS data to create personalized offers based on previous buying habits. 50% of respondents are reimagining menus with insights gained from POS data. 50% are leaning on POS data to help determine staffing levels and performance.