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Why Restaurants Can No Longer Rely On Legacy POS Systems in 2023

Fundamentally, a Cloud-Based Point-of-Sale (POS) system is a Software as a Service (SaaS) which enables data to be saved and retrieved from a distant server instead of storing data on local computers. It just needs an active, strong internet connection to work and doesn’t require you to buy any additional hardware. There is just an annual cost with SaaS for cloud providers to deliver the software online which are in charge of making sure the programme runs properly throughout the day and the software is hosted on their servers and data centres.
Simply put, it means that a cloud-based restaurant POS system allows online access to the entire database of information, including the daily transaction reports, inventory data, and customer data. It is not location-dependent and is available from anywhere. Additionally, because cloud services are scalable, it is simple to add new features to them.

Compared with the systems that have long dominated the market- Legacy POS systems use local servers and a secret network to save all your data locally. They have historically been used by staff to process restaurant billing invoices and create KOTs (Kitchen Order Tickets). Traditional, or Legacy POS systems have several issues such as data loss risks, high start-up costs, data security issues, data accessibility issues, and the continual need for manual data uploading.

Restaurants Need To Get Rid of The Legacy POS: Here’s Why

Being the first to market can sometimes make change challenging. Even if legacy POS systems were previously state-of-the-art, the more antiquated technology has its limitations. The following are a few reasons why conventional POS systems are not adequate for your needs:

  • HARDWARE
    Legacy POS system’s hardware consists of large terminals, typically 15 inches, that are challenging to move once they have been installed on-site.
  • SPEED
    The interface and operating system are no longer supported in the market, and the software is so slow that it greatly hinders businesses’ ability to grow and fulfil consumer demand.
  • DATA ACCESSIBILITY
    Data can be accessed only by logging into the local servers. This makes it susceptible to system errors, breakdowns, and other risks. Regular backup is also necessary, which therefore requires additional storage.
  • LIMITED FEATURES
    It cannot combine other corporate processes and is limited to billing and information storage, in contrast to a modern cloud-based POS system that can do this and reduce the labour required of the operators.
  • INCOMPATIBILITY
    The gadgets and features of legacy systems are incompatible with new technology, making it difficult for you to find replacements if they break or fail. These limitations will hinder your company’s operations, thus it is not worthwhile.
  • DATA STORAGE
    For Legacy POS systems, data is stored on local servers that are part of a closed internal network, and hence can only be retrieved if you are at the physical location.
  • COST
    The one-time licence fee for Legacy POS is rather pricey. The danger of making a significant upfront investment is greater than the risk of making regular monthly payments since technology is always changing and the program’s quality could alter suddenly.
  • UPDATES
    When a typical POS system needs a software upgrade or service, technicians must travel to the site and programme the upgrade operation. Because it takes a long time to manually upgrade legacy POS systems, you can’t perform frequent update processes on them.
  • SECURITY
    Without a terminal server installed, data from a vintage POS system can only be viewed locally. The restaurants are in charge of data security, and if it isn’t sufficient, the data may be in danger. If the servers break down, crash, are hacked, stolen, or suffer other harm, the data cannot be restored.
  • INTEGRATION CAPABILITIES
    Integrating legacy point-of-sale systems with other software and tool types might be difficult. The system’s capacity for expansion and the inclusion of new features is constrained by the absence of integration capabilities. It is difficult for you to change the system to meet the needs of your business as a result.
  • SCALABILITY
    Only one site may use on-premise point-of-sale (POS) systems. If your restaurant wants to create a new branch, you would have to purchase new hardware to run them.

Making The Switch: How Cloud-Based POS Systems Can Help You Deal With These Challenges

Given how rapidly technology is developing, you should seriously consider replacing your outdated POS system with one that is using the latest cloud technology. The following are just few of the many reasons for why restauranteurs ought to implement this change and go for a cloud based POS system to expand their businesses:

  • REPORTING & ANALYTICS
    Thanks to the detailed analytics and item/ingredient level statistics report, the management can keep track of the restaurants’ daily, monthly, weekly, and annual sales.
  • CRM
    The Customer Relationship Management (CRM) feature frequently gives consumers discounts and promotions based on predetermined events like birthdays and other occasions, and centrally stores their data. CRM is a tactic to improve relationships with your customers by keeping tabs on their dining and purchasing habits. Since the cloud-based POS system for restaurants enables you to acquire both basic consumer information and data on previous purchases, you will be able to decide what marketing campaign to launch.
  • STOCK & INVENTORY
    The stock and inventory module monitors the remaining stock and alerts management when it needs to be refilled. It might help you restrain your spending. Some POS programmes even let you directly order more inventory. They can help you maintain track of your supply, keep an eye on your inventory, and find products that are in high demand.
  • ANTI-THEFT
    Any abnormalities, such as unlawful discounts, KOT reprints, employee thefts, etc., are reported to the manager by the anti-theft module.
  • SIMPLE INTEGRATION
    Cloud POS systems can simply be coupled with payment, delivery, and other third-party apps. Integrating with payment systems and other food aggregators can help make the entire process, from ordering to serving and delivery, simple for the customer.
  • SCALABILITY
    Restaurant industry growth is rapid. You must have the ability to quickly offer fresh ideas. It’s also important to recognise and reward underperformers, whether through menu adjustments or promotions. You may implement your ideas more quickly and effectively with the help of a cloud-based restaurant POS system.

Finals Thoughts

As per the data given above, it might be simple to comprehend why the industry is generally moving away from traditional systems and toward cloud services. A cloud POS system is probably the greatest choice to expand and extend your business, as research indicates that 55% of retail organisations aim to replace their current POS with a cloud-based POS system within three years and 30% expect to do so within the next year.

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