How a Handheld POS System Increases your Restaurant Profits

ipos Handheld for restaurant

From a passion project to a bustling restaurant, the dream can quickly become a nightmare if you can’t keep up with demand. The answer? A handheld POS system

When customers are lining up, tables are perpetually full, and your staff hustles to keep up with constant orders, a handheld POS system is the tech solution that will give you a hand. From faster order taking to processing payments quickly, it helps with staff overwhelm and keeps chaos at bay.

But does your restaurant truly need one? If you want to know with facts how a handheld POS System can impact your restaurant’s projections and boost revenue, dive deeper with us in this blog post! We’ll help you assess if it’s the right time to take this technological leap and change the course of your restaurant forever.

Does your Restaurant Need a Handheld POS System?

Speed and accuracy are crucial factors for a thriving restaurant’s success, and with a dependable POS system, you can significantly improve both. 

Handheld POS systems for restaurants are mobile devices designed to take orders, process payments, and manage transactions right at the table. Therefore, it can keep your business running smoothly and successfully. 

These devices empower your wait staff to serve each table directly, boosting flexibility, speed, and accuracy of service. Better yet, these functionalities are complemented by cloud technology, which tracks and maintains data for your business in a central location.

Here is how a handheld POS solution works:

  1. Streamlined Operations:
    • Handheld POS systems streamline the ordering process while servers can input orders directly into the system, reducing the time it takes to send them to the kitchen.
    • Overall, faster service means happier customers and increased table turnover.
  2. Enhanced Accuracy:
    • With handwritten orders becoming ancient history, errors due to miscommunication are virtually eliminated.
    • Accurate orders lead to greater customer satisfaction and repeat business.
  3. Mobility and Flexibility:
    • Servers equipped with handheld POS devices can move freely around the restaurant.
    • This personal touch enhances the dining experience and encourages loyalty.
  4. Data Insights:

How does a Handheld POS System Affect your Operations?

ipos Handheld for restaurant in florida
Every restaurant owner strives for a smooth-running operation. Key performance indicators (KPIs) like table turn rate and customer satisfaction provide valuable insights into achieving those goals. Here’s how a handheld POS system can significantly impact these crucial metrics.
  1. Table Turn Rate (TTR): A handheld POS system can significantly increase the TTR by reducing the time customers spend waiting for their orders or bills. Studies show that waiters using handheld POS systems experience an average order processing time reduction of 20%, increasing table turnover by nearly 17%. This translates to faster table clearing and quicker preparation for the next customers, ultimately leading to a higher TTR.
  2. Average Check Size: With a handheld POS system, servers can have real-time access to menu information, leading upsell more effectively by suggesting add-ons, specials, or higher-priced items.
  3. Customer Retention Rate: As a handheld POS system can reduce wait times and order errors, it leads to higher customer satisfaction. Since it costs 6x to 7x more to acquire new customers than to retain existing ones, by improving customer retention with a handheld POS system, restaurants can potentially save on the costs associated with acquiring new customers.
  4. Labor Productivity: A handheld POS system allows servers to handle more tasks in less time, which means they can serve more customers without compromising service quality.
In conclusion, a handheld POS system can significantly improve your restaurant’s key performance indicators, leading to happier customers, and a more efficient business overall.

How does a Handheld POS System Affect Revenue and Profit Margins?

A study from Wharton School found that using tabletop technology (like handheld POS systems) can improve sales by 9.74% and productivity by 10.77%. Let’s break down how handheld POS systems achieve this.

Revenue and Profit:

  • Revenue: This refers to the total income generated by your restaurant, including food and beverage sales, catering, and events.
  • Profit: This is the money remaining after subtracting all expenses (labor costs, rent, cost of goods sold, etc.) from your total revenue.

How a Handheld POS System Boosts Your Bottom Line:

  • Increased Revenue: Handheld POS systems contribute to higher revenue in three ways:
    • Improved Table Turn Rate: By enabling servers to take orders and process payments directly at the table, service is faster. This allows you to serve more customers per shift, increasing your occupancy rate and, consequently, your revenue.
    • Increased Average Spend per Guest: With real-time menu access, servers can effectively recommend add-ons, specials, or higher-priced items, potentially boosting the average spend per guest.
  • Reduced Expenses: Handheld POS systems not only increase revenue but can also help manage expenses:
    • Reduced Labor Costs: Streamlined order and payment processes improve labor efficiency. Servers can handle more tasks, potentially allowing you to operate with fewer staff during non-peak hours.
    • Lowered Cost of Goods Sold (COGS): Many handheld POS systems offer inventory management features. These can help you track inventory in real-time, identify trends, and make data-driven decisions, potentially reducing waste and lowering your COGS.

In addition, studies show that boosting customer retention by just 5% can increase profits by 25-95%. Satisfied customers are more likely to return, potentially increasing the customer retention rate. 

Handheld POS System vs. Cash Registered: Assessing the Best Solution

Sistema POS - iPos POS

While restaurants are growing, owners have to face the decision of whether their old cash register is sufficient or if they need to evolve into new technologies such as cloud-based handheld POS systems. 

Let’s consider a hypothetical restaurant with 10 tables and a peak hour of serving 50 customers. We’ll use these numbers to calculate the KPIs for both systems:

Metric Handheld POS System Cash Register System
Table Turn Rate (TTR) Higher TTR. Let’s say the handheld POS reduces table time by 15 minutes, so TTR = 60/(45/4) = 5.33 turns/hour. Lower TTR. With a traditional system, if each table takes 1 hour to turn, TTR = 60/(60/4) = 4 turns/hour.
Order Accuracy Higher accuracy. Let’s assume a 98% accuracy rate due to direct system entry. Lower accuracy. With handwritten orders, let’s assume an 85% accuracy rate.
Customer Satisfaction Higher satisfaction. Faster service and accurate orders can lead to a better dining experience. Let’s assume a satisfaction rate of 90%. Lower satisfaction. Longer wait times and potential order errors can lead to a lower satisfaction rate, let’s say 75%.
Labor Efficiency More efficient. Let’s say servers can handle 6 tables at a time, so we need roughly 2 servers during peak hours. Less efficient. With more time spent on order entry and payment processing, servers can only handle 4 tables at a time, so we need 3 servers during peak hours.
Sales Tracking Detailed sales tracking. The POS system can track sales in real-time, providing valuable data for inventory and sales management. Basic sales tracking. A cash register provides a basic record of sales but lacks the detailed data provided by a POS system.

Though cash registers might seem like the budget-friendly option initially, they lead to hidden costs due to inefficiencies and a lack of valuable data.

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The impact of using a handheld POS solution on your restaurant’s operations is undeniably positive. While a handheld POS system may have a higher initial cost than a traditional cash register, the potential savings in labor, improved sales, and increased efficiency far outweigh that investment. 

So, take a deep look into iPos, a comprehensive handheld POS solution specifically designed to streamline your operations and boost your bottom line. Leverage real-time sales data for valuable insights and reduce waste with effortless inventory tracking. Empower your customers with conveniences like secure and diverse payment options, online ordering, and delivery services.

Ready to experience the iPos difference? Request a free demo today and see how iPos can transform your restaurant!

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