Restaurant Point of Sale (PoS) solutions have evolved into sophisticated business tools that offer franchises innovative ways of increasing revenue and improving efficiency levels. As a business tool, your choice of Point of Sale can make a significant impact on your franchise’s bottom line. For Chief Financial Officers (CFOs), procurement decisions boil down to the level of return that can be expected from it. This blog answers a few key questions every financial manager should ask before committing to a new PoS solution.

What will my total cost of ownership be?

Apart from the initial cost of hardware and software installations, PoS solutions typically require ongoing support from vendors coupled with staff training, necessary periodic updates and other auxiliary services. In many instances, these additional facilities may be excluded from the purchase price and only come to light in later discussions when the need for them arises, leaving you with very little negotiating power.

Hidden overheads are common with less sophisticated vendors who offer poor after-sales service at a considerably high cost to the business. Most established PoS vendors will offer you a cover plan that will typically include 24/7 support, free training, upgrades and other auxiliary services at a fixed monthly cost. These cover plans are a great way to protect your franchise from suffering from the effects of downtime and considerably reduce your total cost of ownership over the long term.

Will it reduce overall operational costs?

Good financial managers are always looking for ways to increase revenue. Consultations with your operations manager might help to identify ways in which your PoS solution can plug revenue leaks. For example, calculating the cost per dish down to ingredient level gives you a granular view of how fiscally sensible your menu design is. Modern PoS solutions have the ability to determine costs down to a very detailed level, which gives financial managers the insight they need to curb wasteful spending. From back to front of house, modern Point of Sale systems empower management to make business decisions that result in healthier bottom lines.

The best PoS solutions on the market offer centralised tools that include individual and combined outlet analyses, reporting on inventory, staff performance management and a myriad of other functions. With access to real-time information and powerful reporting and analysis capabilities, financial managers are able to fine-tune operational expenses and stamp out redundant overheads.

Does it improve financial management?

By their very nature, franchises typically experience large volumes of cash flow that require sophisticated accounting software solutions to manage it accurately. Franchises require PoS solutions that are capable of exporting financial information to external software packages for accurate and compliant bookkeeping. Many PoS systems offer only entry-level accounting tools that fall short of the demands of large-scale franchises. Investing in a PoS solution that offers only superficial accounting functions can trip up even the smaller outlets as future growth might demand more powerful financial computing down the line.

Invest in the right solution and avoid buyer’s regret

Franchises can afford little room for error. Bad investments that yield little return on investment can cost your business large sums of money in the long term. Make a thorough assessment of what your current – and future – needs are and be sure that your choice of PoS solution not only aligns itself with your short-term but also your long-term strategy.

Pilot Software is a leading South African Point of Sale solutions provider that offers franchises a comprehensive business tool that puts fiscal control in the hands of financial managers. Our range of products is designed with a focus on your current and future needs. This means that we grow alongside your business and provide great returns for your franchise at a sensible total cost of ownership.

No other PoS provider offers the same depth of functionality, third party loyalty, accounting, ordering and payment integration, and intuitive online and mobile reporting. Download our brochure for more information on why you should choose Pilot.

Author : Rudi Badenhorst