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Last updated: 22 August 2024

The Complete Restaurant POS Guide For UK Businesses

  • A restaurant POS system utilises hardware and software to handle payments, track inventory, take and manage orders, and generate sales reports.
  • POS systems can help reduce human error and minimise incorrect orders. Approximately 80% of customers indicate they would only return to a restaurant if they received the correct order.
  • The average cost of a POS system ranges from £250 to £1,600, depending on the required hardware and the chosen subscription plan with the POS provider.

An efficient Point of Sale (POS system) is crucial for success in the highly competitive restaurant industry. A robust restaurant POS system streamlines the ordering and payment process, enhancing operational efficiency, customer satisfaction, and profitability. 

This comprehensive guide aims to help restaurant owners and managers in the UK understand the importance of a modern POS system, explore its various features and functionalities, and choose the best solution tailored to their needs. 

A well-chosen POS system can be a game-changer for your restaurant business, improving table turnover rates, managing inventory, integrating with online ordering platforms, and providing detailed sales analytics. 

Are you ready to install or upgrade your POS system? Collaborating with professionals who can provide valuable insights and practical advice is crucial to making an informed decision. Market Inspector can connect you with top professionals and offer four free, non-binding quotes. Click below and fill out a quick 30-second form to get these quotes as soon as possible.

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What are restaurant POS systems?

A restaurant EPOS system is a digital tool for managing restaurant operations. It uses a combination of hardware and software to handle tasks such as taking orders, processing payments, managing inventory, and generating sales reports. EPOS systems improve efficiency by reducing errors and speeding up service. They also provide valuable insights into business performance, ultimately improving customer satisfaction and profitability.

IBM first created point-of-sale systems for the restaurant industry in 1973, and in 1974, a specialised, cutting-edge system was created for the fast-food chain McDonald's. As of 2024, McDonald's still relies on restaurant POS systems, explicitly using the NewPOS NP6 system, designed and tailored to McDonald's and not commercially available.  

However, many POS solutions are available for other restaurants to choose from, which provide both software and hardware. For example, KFC uses Oracle's MICROS RES POS system which is commercially available to other restaurants. Key hardware components of these POS solutions include:

  • Touchscreen terminals
  • Receipt printers
  • Card machines
  • Cash drawer
  • Kitchen displays

This hardware helps restaurants streamline communication between the front and back of the house, thereby reducing human errors. Kitchen displays, have revolutionised the restaurant industry by automating orders and updating inventory in real time. This reduces order errors and food waste. According to Restaurant Hospitality, food waste from order errors and poor stock management costs the industry around $25 billion annually.

Modern POS systems also integrate with online ordering platforms. As Madmobile states, this integration can boost profitability by 30% compared to systems without online ordering. In addition, ordering platform integration provides real-time data analytics to help restaurant owners make informed business decisions about their most popular items and keep track of inventory levels. These systems are essential for optimising restaurant workflows, increasing sales, and maintaining accurate inventory levels.

Best restaurant POS software features

Restaurant point-of-sale (POS) software is crucial for efficient business operations. Traditional POS systems rely on manual operation and hardware, successful restaurants utilise cloud-based POS systems to manage inventory, sales data, reservations, menu prices, and online orders. These systems offer various features to streamline operations and improve customer service which include:

Order management

The POS system enables efficient and accurate handling of customer orders, reducing the risk of order errors and theft within the restaurant. According to a study by the National Restaurant Association, nearly 80% of customers who receive an incorrect order will not return to that restaurant. Without an EPOS system, your business could be susceptible to employee scams, where employees undercharge the guest on the system to pocket the difference. Order management features can help prevent this.

Payment processing

The restaurant POS system accepts all primary forms of payment, including debit and credit cards, as well as contactless, Apple Pay, and Google Wallet. According to NMI, 69% of customers are excited to try different payment methods. To maintain customer satisfaction, a POS must accept all forms of payment.

Inventory management

Advanced inventory management tools track stock levels in real-time, automate reordering, and provide alerts for low stock, helping to prevent shortages and reduce waste.

Customer relationship management

POS systems with robust CRM features store customer data and order histories, enabling personalised service and loyalty programs. According to Hotel Tech Report, restaurants POS software with loyalty program functionality can increase ticket size by up to 46%.

Employee management

This function enables restaurant managers to efficiently schedule shifts, track employee hours, and monitor performance. It offers performance analytics, employee management, and labour cost control, integrating into a single POS system for streamlined operations.

The best restaurant POS software features vary significantly depending on the price range. A new restaurant POS system costs between £250 and £1,600, including hardware and software.
Choose between low, medium, and high-end tiers based on your restaurant's size and needs.

Low-cost options provide essential order and payment processing capabilities. Mid-range systems offer reporting and CRM features, while high-end solutions provide advanced inventory, robust integrations, and employee management tools.. By choosing the right POS system, restaurants can optimise operations, improve customer satisfaction, and boost overall efficiency.

Low budget tier

Restaurant EPOS systems come equipped with essential features that cater to the unique needs of food service establishments. These features streamline operations, enhance customer service, and improve overall efficiency. Key functionalities include:

Low tierDescription
Order managementBasic order entry and transmission to kitchen
Payment processingSupports multiple payment methods, including contactless payments
Basic inventory managementTracks stock levels and provides low-stock alerts
Basic reporting Generates sales and transaction reports
Customer relationship managementStores basic customer data and order histories

Lower-tier subscriptions for restaurant POS systems provide small businesses with an affordable way to access essential operational tools. These tools help them manage orders, payments, and inventory effectively. 

Some POS solutions, like Square, offer free plans, ideal for small restaurants and cafes looking to expand their business without additional fees. It is essential to consider transaction fees. Although Square's lower-tier subscription is free, their transaction fees are high, at 1.4% + 25p for UK cards and 2.5% + 25p for non-UK cards. 

Other POS providers offer lower tiers starting at around £5 to £20 per month. These systems offer scalability, ease of use, and flexibility, ideal for small restaurant owners enhancing operations affordably.

Medium tier

Medium-tier restaurant POS subscriptions balance affordability and advanced features, ideal for growing businesses needing more than basics. These systems typically include:

Medium tierDescription
Advanced inventory managementReal-time stock tracking, automated reordering, and detailed inventory reports.
Enhanced reporting and analytics Detailed sales, performance metrics, and customer insights
Customer relationship managementTracks customer preferences, supports loyalty programs, and personalised marketing.
Employee managementManages employee schedules, tracks hours, and monitors performance
Mobile integrationAllows staff to take orders and process payments via tablets or mobile devices.

Medium-tier restaurant POS subscriptions cost £50-£100 per month, offering features like real-time tracking, automated recording, and detailed inventory reports.

These features help restaurants maintain optimal stock levels, reduce waste, and prevent stockouts. Furthermore, medium-tier POS systems offer advanced reporting and analytics, providing insights into sales trends, customer behaviour, and employee performance.

This data-driven approach enables restaurant owners to make informed decisions that enhance efficiency and profitability. Additionally, these systems often include comprehensive CRM tools that track customer preferences and purchase histories, supporting personalised marketing efforts and loyalty programs. Employee management features are also more robust, offering tools for scheduling, time tracking, and performance monitoring.

High-end tier

High-tier restaurant POS subscriptions offer advanced features for large, high-volume restaurants, supporting complex operations to enhance service and profitability.

High-end tierDescription 
Inventory and supply chain managementIntegrates with suppliers, tracks waste, and offers in-depth inventory analysis.
Advanced CRMManages extensive customer data, automates marketing campaigns, and loyalty programs.
Integration with online ordering and deliverySeamlessly integrates with third-party platforms for consistent order processing.
Employee management and payroll integrationAdvanced scheduling, time tracking, and integration with payroll systems.
Customizable reportingOffers customizable reports, advanced analytics, and business intelligence tools

High-tier subscription plans cost £100 or more and are designed for large restaurants and chains. These plans offer extensive control over restaurant operations, helping to minimise costs and optimise inventory management. They also offer advanced CRM, marketing automation, employee management, omnichannel integration, and customizable reporting for complex restaurant operations.

Restaurant till system and additional hardware 

A modern restaurant requires a comprehensive restaurant till system to ensure efficient transactions and streamline overall operations. On average POS systems will cost between £300 to £1,000 for the hardware depending on which components your restaurant requires.

The main element of an EPOS system is the till software, which handles sales, orders, and customer data. Various hardware components support this software, optimising restaurant activities and enhancing customer service.

Key hardware components include:

  • Touchscreen terminals: User-friendly interfaces for staff to input orders and process payments quickly, speeding up order taking and minimising errors.
  • Receipt printers: These printers generate customer receipts and kitchen order tickets, ensuring clear communication between front-of-house and kitchen staff.
  • Cash drawers: Allows restaurants to store cash securely and is an organised method in cash handling.
  • Kitchen display systems: A digital display showing orders to the kitchen, reducing paper waste and enhancing order accuracy and efficiency.
  • Customer-facing displays: Screens that show order details and totals to customers during checkout enhance transparency and improve customer experience.
  • Mobile POS displays: Staff use tablets to take orders and process payments table-side, improving accuracy and service speed in busy dining areas.

Integrated with EPOS software, these components optimise operations, enhance customer satisfaction, and provide valuable reporting insights. Investing in a comprehensive till system with additional hardware is crucial for restaurants to boost efficiency and stay competitive.

Restaurant POS systems UK: the 3 best solutions today

Choosing the right POS solution is essential for your restaurant business as it directly affects efficiency, customer satisfaction, and profitability. A well-chosen POS system can streamline various operations, such as order management, payment processing, inventory control, and employee scheduling. This integration can reduce errors, speed service, and enhance customer experience.

An effective POS system should support various payment methods, including contactless and mobile payments, to accommodate consumer preferences. Inventory management features can help prevent stockouts and overstocking, optimise resource use, and reduce waste. CRM capabilities within POS systems enable personalised marketing and loyalty programs, which can foster customer retention and increase repeat business.

The right POS system is crucial for restaurant operations. The best POS systems streamline workflows, improve financial management, and enhance customer engagement, crucial for sustaining and growing your business.

Here, we will detail the top three best solutions available for restaurants in 2024.

Square for restaurants

Square's POS system solutions are popular with restaurants due to their affordability, comprehensive features, and positive user feedback. As of 2023, Square POS won the UK Card & Payments Awards' Best POS Solution' 2023.

Priced starting at £0 per month with optional add-ons, Square offers an economical solution for small to medium-sized restaurants looking to optimise their operations without significant upfront costs. 

Key features include easy-to-use order management, multiple payment processing options, contactless and mobile payments, and robust inventory management tools that help track stock levels and automate reordering.

Square POS provides advanced reporting and analytics, enabling restaurant owners to gain valuable insights into sales trends, customer preferences, and operational performance. This data-driven approach supports better decision-making and enhances overall business efficiency. 

This system includes integrated CRM capabilities, allowing restaurants to manage customer data and implement personalised loyalty programs, fostering customer retention and increasing repeat business.

User feedback highlights the system's intuitive interface and ease of setup, making it accessible even for those with limited technical expertise. According to case studies, Square POS restaurants have reported significant improvements in order accuracy and service speed. 

For example, Tender Cow experienced smoother operations and enhanced customer satisfaction after adopting Square POS due to having everything they needed on one platform. Using data analytics and CRM, Tender Cow saw that their loyalty program customers spent 84% more per visit on average compared to customers not part of the program, which is a vital insight needed to continue the growth and success of their business.

Square POS stands out for its balance of affordability, feature richness, and ease of use, making it a highly recommended solution for restaurant businesses looking to streamline their operations and improve customer service.

Lightspeed POS

Lightspeed offers many features, including advanced inventory management, customizable reporting, CRM tools, and seamless integration with online ordering platforms. The system supports table management, menu customization, and real-time analytics.

In 2022, StartUps named Lightspeed Solutions the number one hospitality POS available. It is highly praised for its user-friendly interface and robust functionality. Users appreciate the detailed analytics and seamless integration with various third-party applications.

The starting price for Lightspeed is £59 per month, which includes basic reports, integrated payments, a loyalty program, and marketplace integrations.Many users have reported significant improvements in operational efficiency and customer satisfaction after implementing Lightspeed. 

For example, Mana, a Michelin-star restaurant in Manchester, chose Lightspeed for its inventory control. Their main goal was to create a financially stable business. Lightspeed provided the control the restaurant needed to become financially stable and plan for future growth. Additionally, the data reports provided by Lightspeed POS have allowed Mana to forecast their business and monitor restaurant activities remotely.

Toast POS

Toast POS system solutions are tailored specifically for the restaurant industry, offering a comprehensive suite of features to enhance operational efficiency and customer satisfaction. Priced starting at £80 per month, Toast provides robust functionalities, including order and payment processing, advanced reporting and analytics, inventory management, and employee scheduling. 

Additionally, if their plans do not have what your business is looking for, they offer customisable quotes for restaurants so that POS systems are tailored to the needs and budgets of each restaurant.

These features enable restaurants to streamline workflows, reduce errors, and make informed business decisions based on real-time data. 

One of the standout features of Toast POS is its user-friendly interface and ease of integration with various third-party applications, which allows for seamless operation across different platforms. Toast offers CRM capabilities that help restaurants manage customer data, personalise marketing efforts, and implement effective loyalty programs, boosting customer retention and repeat business.

User feedback for Toast POS is overwhelmingly positive, with many restaurant owners praising its reliability and comprehensive feature set. According to case studies, businesses such as Bang Restaurant in Dublin, Ireland, have increased tips by 2.5% thanks to the efficiency of the Toast Go 2 handhelds.

Toast POS stands out for its balance of affordability, extensive features, and positive user feedback, making it a highly recommended solution for restaurant businesses aiming to optimise their operations and improve customer service.

Restaurant EPOS: What are the advantages?

Restaurant EPOS (Electronic Point of Sale) systems are essential for enhancing the efficiency and profitability of restaurant operations. These systems streamline order management and payment processing, ensuring orders are efficiently transmitted to the kitchen and reducing errors. 

This results in faster service, ultimately improving customer satisfaction. EPOS systems provide robust inventory management capabilities, real-time stock level tracking, and automated reordering processes to minimise waste and optimise resources.

EPOS systems come equipped with advanced reporting and analytics tools, offering valuable insights into sales trends, customer preferences, and employee performance. This data-driven approach empowers restaurant owners to make informed decisions that improve business operations. 

Integrating CRM (Customer Relationship Management) features allows for effective customer data management and the implementation of personalised loyalty programs, boosting customer retention and increasing repeat business.

Moreover, EPOS systems support various payment methods, such as contactless and mobile payments, catering to modern consumer preferences and enhancing the checkout experience. Their flexibility and scalability make them suitable for restaurants of all sizes, ensuring adaptability and expansion as the business grows. 

The advanced features of restaurant EPOS systems are crucial for improving operational efficiency, enhancing customer satisfaction, and driving business growth. Choosing the best restaurant POS system is vital for the success of your establishment. By filling out Market Inspector's quick 30-second form in the link below, you can obtain four free quotes from experts in restaurant POS solutions. Act now and click below to find out more.

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