Technology
4 reasons why restaurants need to migrate POS systems to cloud
The restaurant industry is evolving at a rapid pace and cloud-based POS systems support greater connectivity among digital restaurant products and more robust data capture, areas where restaurants can leverage technology to increase efficiency for better restaurant management and can leverage data to create a more personalized customer experience.
December 2, 2022 by Shannon Chirone — SVP, Marketing, HungerRush
Increasing order volumes, improving operational efficiency, and consolidating systems continues to be top of mind for restaurant operators. Yet, many are still using legacy systems with on-premise hardware when migration to cloud-based POS systems could solve multiple daily pain points. The restaurant industry is evolving at a rapid pace and cloud-based POS systems support greater connectivity among digital restaurant products and more robust data capture, areas where restaurants can leverage technology to increase efficiency for better restaurant management and can leverage data to create a more personalized customer experience. While there are a plethora of reasons why today's operators and owners need to move from on-premise to the cloud, there are four top reasons not to delay the transition any longer.
Centralizing all point-of-sale tasks
In the past few years, operators have embraced an omnichannel mindset for the dining experience. From dine in and take out, to curbside and delivery, orders are placed via multiple digital channels and adds a layer of complexity for POS systems or don't connect to the POS system at all. This also occurs as restaurants aim to create more personalized rewards experiences for guests by adding additional marketing strategies like coupons and brand loyalty programs
Restaurant owners and managers aspire to combine all channels and offerings into one place that can be accessed anytime and anywhere to alleviate the pains of managing different systems and to increase organizational flow. Additionally, with a cloud-based POS, regular system updates can be pushed through virtually, and new offers or settings around ordering channels can be standardized for all locations seamlessly. Streamlining point-of-sale tasks like this, will save owners and operators time by eliminating the need to update on-premise, physical hardware by transitioning to automatic updates and standardization across sites.
Personalization is the key to unique dining experiences
In today's modern world, diners expect to have a personalized experience. To create a truly customized experience for each customer, data is the secret sauce. The challenge for many operators is that they do not own their customer data. Instead, this data is held by third-party apps or delivery partners. By upgrading POS systems to a unified cloud experience, customer data is more centralized, allowing operators to turn those insights around ordering behaviors into customized dining experiences, for both in-person and online diners. Knowing more about customers, such as if they prefer contactless delivery, choose add-on sides and sauces regularly, order specific items more frequently or have allergies or dietary restrictions, all adds up to creating a personalized experience.
Gaining a 360 view of front and back house operations
Any restaurant operator, worker or owner knows that front and back of the house operations are vastly different – yet must work together. Adopting a cloud-based POS will unify front and back of house operations, from front-house operations like managing orders, sales, coupons and loyalty rewards through back-end activities such as food inventory management, scheduling and payroll -- creating a cohesive environment across every location and operation touchpoint is essential. With a cloud-based POS system, operators can streamline operations throughout their establishment to reduce inefficiencies and get a clearer view of everything happening across their business. As we now work through a post-pandemic society, restaurateurs face the challenges of inflation, supply chain constraints, labor shortages and pending recession. Streamlining operations will support owners as they strive to maintain the thin margins of their business.
Driving increased profitability
The bottom line can't be ignored when considering adding to or improving a restaurant's tech stack. Since the pandemic, restaurants have been hit harder than any other industry. After learning to operate under extreme circumstances, restaurants are looking for ways to bounce back and to drive long-term success. Remember the importance of having customer data?
With a cloud-based POS system that helps capture and utilize customer insights, operators can drive more sales and increase brand loyalty through intelligent marketing opportunities. When the customer relationship is in the hands of the operator versus a third party, customer information such as orders, location, frequency and spend can be used to drive loyalty and repeat sales. In addition to customer insights, transitioning to the cloud combines all operations, and doing so cuts down on the cost of using a variety of different services and products. When the POS can evaluate each line item and give an insightful overview of sales and operational costs, restaurants know where to reduce costs and where to invest more money to increase overall revenue.
In the end, it is clear that integrating a cloud-based POS is essential to create a truly connected restaurant experience for diners and operators alike.
About Shannon Chirone
