Choosing a POS system is no easy task. First, you have to determine if the decision is right for your pizzeria, figure out what you need and then sort through the dozens of systems out there serving the pizza industry. In addition to committing to the purchase of a POS system you have to understand the potential a POS system can offer your business. That is what this article is aimed to help you do…sort out the mess and make an informed decision.

Company List (Web Page)
Company List (Excel)

HOW TO CHOOSE THE RIGHT SYSTEM
A POS is not just an expensive cash register, it’s a tool for success that, if used properly and to its fullest potential, can pay for itself in a reasonably short time.

“I’ve talked to hundreds of retailers that went through two, three or even four different POS systems before they found one that works,” says Jeff Haefner, author of a retail guide called Point of Sale Software. “Those mistakes can cost at $10,000 - $100,000! With the right POS software you could increase profits, lower inventory costs by 5 to 40 percent, improve customer service, automate tedious tasks and maximize efficiency, simplify the management aspects of your retail business, and improve the efficiency of your business by at least 20 percent.”

 Many restaurant owners overlook important features in the POS decision-making process that would save them time and money. On the same note, just as many buy more ‘bells and whistles’ than they need for their type of operation. Too many unnecessary or overly advanced features can create a monster for smaller operations that managers or owners fear and never really utilize. To avoid this, analyze your business’s needs, create a list of features important to you, prioritize your list and use it to compare and choose the right system. Jeff mentions that if you’re like most people, you’ve probably struggled with confusing sales literature, compared software programs with countless features and most likely been discouraged.

Another thing to consider in your decision-buying process is service and on-site training. Keep in mind that just like an oven or mixer, there will come a day when you have a problem and you will need access to help…and need it fast. Ask about what type of on-site training comes with your POS. Also ask about on-site service after the sale and access to service people in off hours (nothing ever breaks between 9 a.m. and 5 p.m., Monday through Friday).

TIP FOR USING YOUR POS
If you are thinking of buying a POS, or want to know how you can justify the cost, look at some of these examples of how you can utilize features to get more return out your investment.

LOWERING THE COST OF GOODS SOLD
  Can a POS lower your cost of goods sold? It is very possible by using the software’s sales report that summarizes the profit margin totals for each of your suppliers. This information can be used to negotiate better prices with your suppliers. A lot of restaurant owners don’t ask for discounts from suppliers because they don’t feel they have the buying leverage of companies like Pizza Hut or Domino’s, but in many cases all you need to do is a little homework and just ask. The worst they can say is no. By looking at your reports and analyzing the profit margins you can bring to your distributors’ attention that they are your top suppliers but your profit margins on their products are lowest. By simply stating the numbers and comments like, “We really like your products and we would consider ordering even more, but we simply need to make more money. What can you do about better discounts on a permanent basis?” according to a suggestion by Jeff. This is more effective than just asking for them to cut you a discount. Using the right POS reports and software can generate these numbers and info in seconds and it can knock off a nice portion of your inventory costs. You can also watch inventories to ensure portions are being measured and that too much food is not being offered for too cheap of a price.

ELIMINATING PROFIT-STEALING ITEMS
Nearly everyone has product lines that are eating profits. Another way to get the most out of your POS and increase profits is to analyze the profitability of certain menu items by using actual sales statistics. By identifying and eliminating or replacing these items, you can increase profits by as much as 2 percent.

Open your POS’s menu report that compares your profit margins for each menu item. Things you want to look for are categories where there are low profit margins or sales compared to everything else. You have to ask yourself, “Should we really carry this item on the menu? Could there be something else or a higher profit margin item we could add or push?” By dropping certain non-selling or high cost items, you not only increase profits, you have less inventory to manage. By running your business by the numbers and systematically analyzing your areas of high and low sales, you may be amazed at what you will find by using your POS’s management features.

TRACKING CUSTOMER INFORMATION
Knowing who your customers are and their buying habits is one of the most valuable pieces of information you can utilize and with a POS system, you can mine this bank of information to create more repeat customers, higher ticket averages and more effective marketing campaigns…in essence, spend your money more wisely. One thing you can do is easily create a list of customers who purchase certain menu items and mail them offers for new menu offering that may be similar. For example, if you are adding one or two new flavors of wings to your menu, you can pull a list of all customers who have ordered wings (say the large order, rather than the small) more than once in the past month and then send them a postcard with either a discount for the new wings or just simply an invitation to try out your new flavors. You can identify your 100 most loyal and frequent customers and send them a gift certificate at Christmas. Another way to use a POS for marketing is to identify customers who haven’t ordered from you in the past two months and use the system to email or generate mail pieces, cards or mailing labels to entice them back before they are lost to a competitor.

CUSTOMER LOYALTY
Did you know studies have shown that the cost of getting a new customer is 10 times that of holding onto an existing one? Having customer information on their frequency of buying from you can be money in the bank. You create loyalty by rewarding desired behavior. It is a proven method of classical conditioning. Tracking customer information is relatively easy for deliveries because they give you a name and address, but what about those dine-in and carryout customers? Many pizzerias fail to capture their info for tracking their habits in house. Maybe it is because you feel customers don’t want to give you their name or address out of fear they will be bombarded with junk mail, but there are ways to coerce this information in a friendly way, such as a simple statement like, “We are launching a customer loyalty program where you can earn discounts and free food just by continuing to visit us. If you would like to be added to our customer loyalty program, simply provide your name and address on the back of your receipt and you can start earning free food tonight.” Another approach could be to say: “Could I get your name and address so we can send you discounts, coupons, and information about new menu items?” There are lots of effective ways to motivate your customer to give you their information. Once you come up with a method that works, write a script for employees to follow and keep it handy at the POS. In addition, you should tell the customer (and make it clear to your employees) that you will NEVER share or sell their information with anyone.”

CUSTOMER SERVICE
A POS system can also be used to create better customer service, so here are three ways you can use your POS software to improve customer service and set yourself apart from the competition.
1) Tie Caller ID to customer’s profile.
When you pick up the phone you can say things like:
• “By the way, how was the Deluxe Supreme you bought from us last week?”
• “I see your birthday was yesterday, it’s a little late, but happy birthday!”
• Or “How are thing going in the Northlake suburbs?”
• “Will you be having the USUAL today Mrs. Doubtfire?”
The customer will probably hang up the phone (after your conversation) wondering how you remembered or how you quickly found this information about them.
2) Store customers’ personal information.
With personal info, your staff can address call-in customers by full name and, when possible, use other personal or business information about him. Example: “Good evening Mr. Smith. Welcome to our Pizza Dudez,” or, “By the way, Mr. Smith, did you enjoy the wings on your last order?” or, “Was your food hot last Tuesday?” Now, here’s a customer who KNOWS that he’s appreciated at your restaurant, and whenever he’s hungry again, you can count on him calling! Simply remembering a few details about your customers can make a huge difference.
3) Eliminate bogus ‘bad orders’ and identify repeat order replacements to the same customer by calling up digital copies of receipts.
This is probably more important than you might think. In fact, your replacement polices are very important because they can cause you to lose lots of customers or profits. Let’s say a customer buys food from you and it’s cold or the order is wrong. They bring it back or call and don’t have their receipt. If your policy says you can’t replace it because they have no receipt, then you caused something very critical to happen in the customers mind. The next time they are hungry, they will remember... their reaction will most likely be, “I don’t want to have problems again. This time I will go somewhere else.”

And if you should actually go a step further and give the customer a comp to make up for the mistake, you will have a record of it. How many of you have discovered certain customers who had repeatedly called saying their order was wrong? If you handle your ‘bad orders’ properly, you might turn an unsatisfied customer into one of your MOST loyal customers!

EMPLOYEE THEFT
How do you know if your employees are robbing you blind? It is one of the areas where the most money can slip through the cracks. Employees can delete orders, give away food to friends or give discounts, but new innovations in POS systems can help eliminate some concerns. One of the newest features to become available at a very low cost is fingerprint recognition. How does this new tool help? It limits who has the capability to delete orders from the system by allowing you to determine who in the pizzeria has access to this feature and track exactly what was deleted, who did it and when. Fingerprint identification can also be used to clock people in and out for payroll and inform the owner that an employee has clocked in early or that the store is closing early.

In addition to fingerprint recognition, the inventory control features can control excessive comps and freebies by allowing the owner to track what was sold and compare it to inventories. If you only have 10 pounds of wings when you ordered 50, but only 20 pounds were sold, something is up. On a more positive note, a POS lowers unintentional human error. Employees no longer enter what they believe is the correct price into a manual register because the price is already programmed in the POS.

THE FUTURE OF POS
Like any computer, POS systems are constantly reinventing themselves as new technology becomes available. After talking to some industry experts, here is a look into the crystal ball for some things to expect.
Wireless: Wireless networking will become more affordable and secure, meaning that restaurants will be able to put in a totally wireless POS system, including stations, printers and handheld devices.
Biometric Scanning: Biometrics (fingerprint and retina scanning) will become more reliable, enabling POS systems to not only recognize employees, but also customers… theoretically, customers could come in, scan their fingerprint or eye, and then the system will recognize them, place their “standard” order, and also have payment info on file… speeding the process – particularly for counter service…
Kiosks: Kiosks are being used in some arenas now for self-ordering (by the customer). This will become more widespread in the coming years (a lot like airport check-in today…)
Handheld Devices: Over the coming years, we see handheld solutions coming down in cost, but also the ability of customers to place orders directly from a blackberry, a cell phone or other PDA. Also, once the cost of the technology comes down, expect to see more hand-held wireless credit card processing devices for both in-house and deliveries.
GPS: Of course, GPS will be more affordable and reliable, allowing pizza restaurants to use this technology to more effectively track drivers while they are out on deliveries.
Before you run out and start pricing systems, determine what you need, your budget and do some window-shopping. Take the time to call several companies and then narrow them down to four or five of your best choices and start digging in to the details. Also investigate purchase and leasing options. More and more POS companies are offering leasing options that may be appealing. To help you with the process, PMQ has collected some basic information about features for POS systems seen in the pizza industry today along with some company bios. If you have questions, contact the companies either through the email addresses, phone numbers or web sites provided.