POS Technology


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POS Technology

  1. 1. Table of Contents Restaurant Description POS System Overview 2 Restaurant Interview Results 3 Advantages for POS Upgrade 4 Required Features 5 System Requirement 6 Decision Matrix 7 Solution Recommendation 7 Forecasted Financial Costing 9 Plan of Action 10 People Implication 12 Financial Benefit 12 Page 1 of 17
  2. 2. Restaurant Description Our restaurant is a full service casual dining restaurant located in Bethesda, Maryland. This location is a heavily populated area where many patrons come to enjoy a night out without the busy traffic of the inner city. Our restaurant seats approximately 60 to 100 people depending on the layout of the tables for the evening and if there are any private events booked. Our business will be open for lunch and dinner hours daily, and on Friday and Saturday evenings we are open two hours later than normal for the late night crowds prowling the streets. There will be a small bar area for patrons who care to dine alone and/or have a small meal with a few drinks. The main target market for our restaurant is young adults to middle aged couples, families with teenaged children, and elderly couples. The atmosphere will be somewhat quiet for those who want to enjoy a peaceful meal and will allow for seclusion of privacy if needed. The style will be somewhat contemporary with a slight edge of the newest design. The lighting will be fluorescent and can be controlled according to the main crowd in the restaurant for the evening. For example, on Valentine’s Day when many couples will want a romantic dinner the lighting can be dulled, whereas on an evening with a lot of elderly couples the lighting can become brighter. Our menu is specifically designed with our target markets in mind and offers a large variety of delectable food. The range of our target markets is huge and covers a number of different demographics within our community. Therefore our menu is designed to make it easy for any guest to modify their order as much as they would like with minimal pricing differences. We care about our guests and want them to feel at home in our restaurant. With easy to alter menu options for our guests and a larger variety of selection, our restaurant creates a competitive edge within the community. Page 2 of 17
  3. 3. POS System Overview The Point of Service (POS) System is an important part of technology used in the hospitality industry, especially within restaurants. The POS System’s basic functions are responsible for sending guests’ orders to the kitchen, keeping track of tables’ orders and adding up prices, and settling tables’ transactions. Some POS Systems are advanced enough to keep an up-to-date inventory database for kitchens and bars and inform staff when ordering needs to be done. POS Systems cut back on service time and allow the servers to cater more to their guests instead of spending all their time watching over orders. There are various kinds of POS Systems available in the market for different types of restaurant venues. Finding the perfect POS System for our restaurant is not a task to take lightly. Due to the size and volume of business our restaurant has, we need a system that offers multiple terminals that are easy to navigate with high speed internet access. Guest satisfaction and customer loyalty are some of our top priorities in our restaurant. The smoother our process of order taking is, the easier it will be to create customer loyalty among our guests. Our menu is large so we can accommodate the different tastes of our guests that come from our target markets around the community. We need a POS System that can accommodate our menu size and offer easy ways for the servers to input any modifications our guests’ desire. With our large selection of items and hundreds of different possible menu mix designs, we need a POS System that allows us change our menu at any time and program preset modifications for the servers to use on any item. Page 3 of 17
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  5. 5. Restaurant Interview Results We interviewed various staff members from different positions within the restaurant industry to find any common grounds among different POS Systems. David Kimmell is a cook that works for Brock & Company that uses the simplest form of POS, a cash register connected to scales and credit card systems. Although this method is easy for training and keeps the prices consistent, it has many drawbacks when competing with newer, faster technology. David pointed out the higher rate of human error, approximately 1 out of 15, when entering information into the system. The system is also very unreliable and crashes about twice a month and can take up to two hours to fix. Gillian Grunewald is the GM for Quench in Rockville, MD and she use Future POS in her restaurant. Future POS is user friendly and easy to operate, however it is not a very reliable system. According to the GM the system goes down approximately five times a month and has a slow internet connection. Although the regional account manager is great and can get the system running through a simple phone call, the system often crashes during the middle of service when the servers are busy. Quench uses two terminals for their POS system, one for the front of the house servers and one at the bar for the bartenders. Only one server can put in an order at a time and causes backups during busy hours. Yong Park is a server at Sushi Damo in Rockville, MD who uses Amigo POS system. This POS system is set up to send orders to the corresponding kitchen station printer according to what the guests’ have ordered. This feature cuts back on the total time spent serving the guests as the kitchen staff does not have to delegate out the orders. Amigo also makes it easy for the servers to modify any orders the guests have made with special requests. According to Yong Amigo does not crash very often, generally when there is a power outage or a problem with the internet connection. The only major flaw with Amigo is a printing problem. The printers do not always print out at the correct stations causing confusion in the kitchen. The Executive Chef at The Comus Inn, Elise Wendland, uses Digital Dining in her restaurant. Digital Dining has an easy to use touch screen and does not crash very often, about once every other month. When the system is down it generally takes a phone call and the problem is fixed within 45 minutes. The system allows for easy input of orders and the margin of error is low, approximately 1 out of 50. While Chef Wendland does not have many complaints about her system, she feels it is out of date and does not give her restaurant any kind of Page 5 of 17
  6. 6. advantage. For example Digital Dining does not offer an easy way to modify orders which leaves more room for errors. The front of the house manager Sam Petrella at Dogfish Head in Gaithersburg, MD just recently upgraded to the POSitouch. Sam feels this system gives Dogfish Head a huge advantage in the industry. The system has only crashed once in the four months he has been using POSitouch and was able to be up and running within 30 minutes. The POSitouch offers preset menu modifiers, easy methods to separate checks, allows managers easy/quick access to all the checks, and compiles end of the day numbers through various reports. The system also has automatic modifier screens for each item that are predetermined by the managers and is programmed so every possible modifier is available for the servers to use. The main disadvantages to using POSitouch are the system does not offer a floor plan to use on screen and the checks have to be closed out in a certain order when using multiple payment types or the system will not close the check. Advantages for POS Upgrade Over the past eight years our restaurant has been in business and during our growth stage, we perfected our menu mix and now we want to improve our customer service aspects. We need an up-to-date POS System that gives our restaurant a competitive advantage over our competition. Better technology within our restaurant can improve our guests’ experience as a whole during their visit. The latest in technology is always evolving so we need to make sure our system is compatible with any upgrades that will be offered by the vendor. By choosing to upgrade our existing POS system we will increase our efficiency rate and decrease our labor costs. The overall service time for our guests will greatly decrease along with the error percentage rate from the servers and the kitchen. Trendy POS systems have features for management to program and add modifications keys that are specific to our restaurant. This makes it easier for our service staff to enter orders for the kitchen to prepare and the modifications are easier for the kitchen staff to understand. Page 6 of 17
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  8. 8. Required Features The existing POS system that we have been using in our restaurant is outdated and definitely cannot be compatible with the growing business. Since we have a large variety menu the efficiency of service has always been one of our biggest challenges for our restaurant. Special requests are often overlooked by servers because the current POS system doesn’t have modification functions programmed into the system. Our system always seems to be crushing during the busiest evening services because of our high traffic volume. Our current POS system keeps track of limited sales data which does not provide enough information for our management team to analyze trends for menu mix planning and human resources purposes. Our restaurant definitely requires an updated, full featured, simple to use, and reliable POS System. We need an up-to-date POS System that can increase efficiency and improve customer service and ultimately increase our competitive advantage over our competitors. A full featured system is critical for efficient daily operations, accurate inventory control and effective management planning. The system that our restaurant is looking for also needs to be simple and user friendly, so we don’t end up spending a fortune and long periods of time training our employees. Also, the system needs to be able to keep up with the rapid growing pace of our restaurant. At the same time, the POS system should be able to be compatible with wireless add-ons which will cope with our marketing and service plans in the near future. System Requirements · Operating Systems: Windows XP Pro SP3, XP Embedded, WEPOS, POSReady, Vista SP2, Win 7, Server 2003, Server 2008 Foundation, Server 2008, Server 2008 R2 · CPU: 1.5 GHz or better Intel based · RAM: 1 GB or more · Hard Drive: 2 GB or more free space · Input: Resistive touch screen · Printer: Thermal receipt printer with USB interface · Cash Drawer: Printer driven interface (If cashier ability is needed) Page 8 of 17
  9. 9. Decision Matrix Category Requirement Weight % Micros E7 Scale (1-10) Score POSiTouch Scale (1-10) Score Aldelo Score Scale (1-10) Statistic Product Performance 8% 8 0.64 9 0.72 8 0.64 Statistic Vendor Reputation 7% 8 0.56 9 0.63 8 0.56 Subjective System Cost 5% 10 0.5 5 0.25 8 0.4 Subjective Flexibility of Contract 4% 6 0.24 5 0.2 9 0.36 Subjective Compatibility with other OS 3% 7 0.21 9 0.27 8 0.24 Statistic Security 6% 9 0.54 8 0.48 7 0.42 Statistic Cost of Upgrades 3% 5 0.15 5 0.15 6 0.18 Statistic Employee Training 5% 7 0.35 7 0.35 8 0.4 Statistic Installment 3% 8 0.24 8 0.24 8 0.24 Subjective Warranties 7% 10 0.7 8 0.56 9 0.63 Statistic 2% 7 0.14 8 0.16 7 0.14 Subjective Contingency Plan 6% 4 0.24 7 0.42 6 0.36 Subjective Flow of System Operations System Features and Subjective Addons 7% 9 0.63 9 0.63 9 0.63 6% 5 0.3 8 0.48 7 0.42 Statistic Telephone/Email Support 5% 8 0.4 8 0.4 8 0.4 Statistic Overnight Replacements System Requirements 4% 10 0.4 8 0.32 8 0.32 Subjective Auto Purchase Order Onsite Technician Statistic Availability 2% 5 0.1 8 0.16 10 0.2 4% 7 0.28 7 0.28 7 0.28 Binary Touch Screen 3% 10 0.3 10 0.3 10 0.3 Binary Wireless Handheld Devices 4% 0 0 10 0.4 10 0.4 Binary Receipt Printers 3% 10 0.3 10 0.3 10 0.3 Binary Kitchen Monitors 3% 10 0.3 10 0.3 10 0.3 100% 163 7.52% 176 8.0% 181 8.12% Totals Page 9 of 17
  10. 10. Solution Recommendation Based on the research our team has conducted and the statistics provided on our decision matrix, we have concluded that Aldelo for Restaurant Pro software is the best purchase for our restaurant. Aldelo has 8.12% favorability over Micros E7 with 7.52% and POSiTouch with 8.0%. According to our decision matrix, Aldelo for Restaurant Pro has a distinctive advantage in the following categories: flexibility of contract, cost of upgrades, employee training programs, automatic generation of purchasing orders based on inventory file, and most importantly upgrades with wireless handheld devices. Before our team has conducted any research, we were determined to find a POS system that has a handheld device attachment. Once our restaurant installs this upgrade, our staff can input orders anywhere in the restaurant and focus more on interactions with our consumers. Page 10 of 17
  11. 11. Forecasted Financial Costing Second Year Expenses First Year Expenses Pro 3 Station Restaurant POS SystemCashier/Wait/Bar Stations $5,580 Aldelo Annual Technical Support Contract (3 terminals) $495.00 $885.00 Ethernet Kitchen Printer Kit with 50ft Cable $349.00 3 Aldelo License Fee for PDA Device Menu Programming $395.00 3 Wireless Handheld Devices Software Installation Fee $0.00 Aldelo Annual Technical Support Contract $495.00 Aldelo License Fee per PDA Device $2,274.00 (Partner Tech EM200) $295.00 Handheld Wireless Devices Aldelo Manager Training Session Aldelo Staff Software Training Session $758.00/Device (Partner Tech EM200) $249.00 $75.00 $700 Travel Expense to (Airline tickets, NuRol Headquarters transportation, food.) Hardware Shipping Fee Hardware Installation Fee Total Cost $0.00 $149.99 $9,045.99 Total Cost $3,654.00 Instead of purchasing the hardware, software and printers separately, we have found an Pro 3 Station Restaurant POS System- Cashier/Wait/Bar Stations from NuRol. NuRol is an authorized distributor of Aldelo based on Atlanta, Georgia that carries a variety of POS hardware and software systems. The all in one package includes three Aldelo Pro user licenses, three Page 11 of 17
  12. 12. LCD touchscreen monitors, three complete POS PCs, three thermal printers, two electric cash drawers, three networking kit, all required cables and softwares. By purchasing this package, NuRol has also agreed to provide free installation and training session on the hardware and free installation and set up of the payment processing software. The Aldelo Annual Technical Service Contract provides users with 24/7 live technical support including remote access assistance. The contract also includes the latest software updates during the contract period. We have chosen to purchase the PDA devices from Partner Tech EM-200 because they are one of the certified hardware for use with Aldelo software and its physical attraction. We have decided to slowly purchase the wireless PDA devices because they are high in cost. When we first upgrade to Aldelo for Restaurant Pro, we will only purchase one wireless PDA device for management training and use. After the first year in production, we will purchase three more wireless PDA devices for the head servers to use during their shifts. Partner Tech EM-200 PDA Specification Sheet Page 12 of 17
  13. 13. Plan of Action The implementation of the Aldelo for Restaurant Pro will take approximately two weeks. Implementation Plan In the first week The Aldelo engineers will perform a site survey in the first week. On site surveys are to ensure all prerequisites are in place so they are no surprises on installation days. The technicians will then have a week to gather all information needed to complete a list of information that the restaurant owners have to know about the installations. This will also be the Page 13 of 17
  14. 14. time where the technician discuss and negotiate the installation schedule, customized menu, system components and prices. Menu Programming In the first week Aldelo’s menu programming services includes creating POS database, inputting the menu structure into the database, table layout, basic employee information, front of the house layout, etc. Menu programming implementation saves consumers’ time and maximizes deployment simplicity. To have menu programmed in the first week will create time for manager and employee training in the second week. Site Preparation In the second week To increase financial and time efficiency, site preparation and deployment will take place in the same week. Site preparation and deployment will take place in approximately two days. During site preparation, the technicians will carefully examine and execute step by step installation preparation to prevent any disruptions to operations. To successfully install the new POS system, an uninterruptible power supply is required in case of any power outages. It is our staff’s responsibilities to make sure that the installation site is clear before the installation. Deployment In the second week The actual deployment will be on the second day. The installing spot will be at our old POS system. It is possible that our restaurant will be closed on deployment day so both the technicians and our staff and focus on the new POS system. Acceptance Testing In the second week Acceptance testing will take place the same day of deployment. Aldelo technician(s) will conduct an extensive acceptance on the newly installed Aldelo for Restaurant Pro. They will ensure each of the components functions appropriately defined by the management team of the restaurant. The technicians are responsible for checking the following areas. ← Hardware stability and efficiency- whether the hardware is functioning property and speed of information retrieved is in the correct time interval. ← Software reliability- the accuracy with processing program’s data. ← Data Integrity- whether the software is nicely integrated with the hardware. Management and Staff Training In the second week We have separated the training into two categories: managerial and non-managerial employees. The training sessions will take place at Aldelo’s headquarters in Atlanta, GA. Aldelo manager’s training session is tailored to the restaurant managers and owners who need to have a strong grasp of all aspects of the restaurant’s pos applications. Topics covered in this session Page 14 of 17
  15. 15. will include company set up, sample menu item setup, start and end day procedures, sample transactions, and generation of different reports. Training session for managerial employees may last over two hours. The Aldelo staff software training session is tailored towards the wait staff and cashiers that focus more on transactional features and functions of the POS applications. Topics covered include sales transactions, returns, payment options, work orders, item lookup, and consumer demographics. This training session usually takes forty five minutes. To maximize learning efficiency, the trainer will use manuals, DVDs and videos to approach all aspects of the new POS system including potential problems and solutions. The trainer will also provide real life customers’ scenarios that had occurred with other users of the same software. Duration Expected The restaurant plans to have the newly installed POS system for as long as possible. That is defined as the restaurant staffs are able to maximize efficiency and profit of this newly inputted POS system. However, we will consider new POS system once Aldelo for Restaurant Pro no longer satisfy our needs. Contingency Plan The greatest risk that is associated with Aldelo is possible technical problems. We have an annual technical support contract that offers a 24/7 live call center with technical support services. Technical services are provided via telephone, email and remote access. Included the agreement is the access to the latest software updates during the contact period. Aldelo also provides a complimentary 30 day free support for every new customer. If by any chance the POS system shuts down completely, our staff will simply take orders by hand and send the hard copy of orders to the kitchen. People Implication One of the greatest benefits of having the Aldelo for Restaurant Pro is to increase efficiency and improve customer service. Once the transaction between the order taking process and sending orders to the kitchen is smoothed out, we can also increase customer satisfaction by cutting service time, increase guest turnover ratio during a dining period, generate more revenue per day, and also decrease skills required by our front of the house staff. Despite that we are spending large sums of money to install the new POS system and training program, it is financially more efficient in long term because it reduces the time and procedure a wait staff has to conduct during service, therefore saving time and money. Financial Benefit Aldelo for Restaurant Prof is cost effective because it reduces the cost of ownership. Restaurant owners’ cost of ownership is significantly reduced from reasonable start up investments and lowered ongoing maintenance costs. Application updates are centralized to the server computer only. Therefore, updates on PDA devices are not necessary. The benefits of the new POS system focus on reducing complexity and efficiency of the restaurant. Page 15 of 17
  16. 16. ← Takes care of all point of sale activities ← Accurate recording of reservation and guest lists ← Gift card management ← Provides records of customer tracking ← Provides house account charges ← Inventory and recipe file tracking ← Labor and scheduling control ← Variety of financial reports. Risk Management Evaluation Concerns and Initial Approach to Address Our initial concern of purchasing a new POS system is the amount of money we need to spend and whether it will actually benefit our restaurant. Our budget continues to change as we notice the different components we need to purchase in order for the software to function smoothly. Our decisions continues to change due to the following factors: • We would like to purchase from a authorized reseller which could be more expensive. • We have to purchase hardwares, softwares, user license fees, etc for three stations (Cashier, bar, and wait station). Page 16 of 17
  17. 17. • We have to decide how many staff should attend the training sessions, therefore our projections increased due to travel expenses. • We would like to purchase more PDA devices/ however each license fee and PDA cost over $900. • Whether our staff can get used to the new POS system within short period of time. Contingency Plans In case of any malfunctions with the POS system or internet issues that prevent the POS system to function correctly, our restaurant staff will simply resort to manual payment recording methods and hand written tickets for the kitchen. The restaurant does have a power generator to power the POS system and preserve fresh and perishable products in case of any power outages. However, the restaurant will not operate if there is no power. Page 17 of 17