{"id":3928,"date":"2022-11-11T08:01:16","date_gmt":"2022-11-11T08:01:16","guid":{"rendered":"https:\/\/www.app2food.com\/blog\/?p=3928"},"modified":"2025-04-08T10:45:47","modified_gmt":"2025-04-08T10:45:47","slug":"how-much-will-implementing-a-point-of-sale-pos-system-cost-your-restaurant-business","status":"publish","type":"post","link":"https:\/\/www.app2food.com\/blog\/how-much-will-implementing-a-point-of-sale-pos-system-cost-your-restaurant-business\/","title":{"rendered":"How much will implementing a Point of Sale (POS) system cost your restaurant business?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A Point of Sale (POS) system is critical for any restaurant and should be treated as one of the most important investments when starting a restaurant business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yet, with the wide range of options for POS systems, there\u2019s now no one-size-fits-all answer to the question, \u201chow much does it cost to implement a POS system for your restaurant?\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are cloud-based POS systems that aren\u2019t tied to any hardware, making them more affordable options. On the other side of the spectrum, there are also advanced hardware-based POS systems that are designed for reliability and scalability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meaning, ultimately, how much you <\/span><i><span style=\"font-weight: 400;\">should<\/span><\/i><span style=\"font-weight: 400;\"> spend on a POS system will depend on your restaurant business\u2019s size, location, target market, and other factors, and choosing the best one for your restaurant can be easier said than done.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With that being said, in this article, we will discuss everything you need to know about investing in a POS system, including but not limited to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Different types of POS systems and their typical price ranges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Different pricing models for POS systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Factors that constitute a POS system\u2019s price<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">How to evaluate your restaurant\u2019s needs in choosing the ideal POS system<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Without further ado, let us begin this article from the basics: what are the different types of POS systems?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Different Types of POS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Despite the wide variety of POS systems available in the market, we can differentiate them into just three big categories:<\/span><\/p>\n<ol>\n<li><b> mPOS<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">mPOS stands for <\/span><i><span style=\"font-weight: 400;\">mobile POS<\/span><\/i><span style=\"font-weight: 400;\">, and as the name suggests, this type of POS runs as a mobile app on a mobile device like a smartphone or tablet. You use <\/span><i><span style=\"font-weight: 400;\">your own<\/span><\/i><span style=\"font-weight: 400;\"> mobile device, and in many cases, the mPOS app itself is free, and you\u2019ll only need to pay a payment processing fee per transaction. This model may or may not be more cost-effective, depending on the frequency and size of the transactions in your restaurant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In practice, this mobile device will function as the POS terminal (cashier machine) that operates wirelessly over Wi-Fi. Typically they are relatively affordable, although not as affordable as cloud-based POS systems that don\u2019t offer any hardware tie-in, but the main advantage of the mPOS system is its portability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many mPOS providers will send you a credit card reader (that you can attach to the smartphone or tablet) for free, and most will work with a portable printer (for your receipts.)\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Ideal for:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Smaller restaurants do not manage a lot of inventory.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Food trucks and other types of mobile restaurants, due to the mPOS\u2019s portability and the ability to run wireless<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ol start=\"2\">\n<li><b> Cloud-based POS<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Cloud-based POS systems have been really popular in recent years, especially thanks to their cost-effectiveness.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a cloud-based POS system, the POS software\/application is delivered over the cloud, and you can use your own device (PC, laptop, tablet, or even mobile device),\u00a0 so it\u2019s more versatile than an mPOS.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another key characteristic of a cloud-based POS is that <\/span><i><span style=\"font-weight: 400;\">all<\/span><\/i><span style=\"font-weight: 400;\"> data is stored in the cloud, so you can easily access and monitor your transactions in real time on any device. This will also make it easier if you need to switch to another device.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most cloud-based POS systems are offered with a recurring subscription model. Many are offered at a (very) affordable price, and some are open-sourced and free. However, there are also those offered at a premium price.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Ideal for:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Businesses wanting to access data (sales, inventory, etc.) anytime and from anywhere<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Restaurants wanting to save on initial costs (i.e., lower hardware costs)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Restaurants who\u2019d like more versatility in their day-to-day operations<\/span><\/li>\n<li aria-level=\"2\"><\/li>\n<\/ul>\n<ol start=\"3\">\n<li><b> Traditional (hardware-based) POS<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">This type of POS system offers a package of hardware and software solutions, and in some cases, the provider may also allow you to create a custom combination of hardware, payment processing system, and software features of your choice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically this type of POS system would require the highest upfront investment, but you\u2019ll also get the most freedom in getting the best possible solution according to your needs.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Ideal for:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Restaurants that have the funds for a long-term investment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Restaurants that need custom-tailored features or peripherals (i.e., custom kitchen printers, handheld inventory devices, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Restaurants that need full-service POS consulting (which may be provided by these vendors.)<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>POS Systems: What Constitute Their Prices<\/b><\/p>\n<p><span style=\"font-weight: 400;\">As you can see from the different types of POS above, POS systems consist of 2 main components: software and hardware. However, when it comes to cost, there can also be additional factors to consider depending on the type of POS systems and custom features you\u2019d like to implement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below, we will discuss these different cost components in greater detail:<\/span><\/p>\n<ol>\n<li><b> Software cost<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">There are open-source POS software solutions that are available for totally free (although the <\/span><a href=\"https:\/\/www.app2food.com\/pos-integration\"><span style=\"font-weight: 400;\">restaurant POS integration<\/span><\/a><span style=\"font-weight: 400;\"> vendor may charge transaction fees or other fees.) On the other hand, there are POS systems that charge more than $200\/month for software services alone.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can categorize POS software solutions into three major types, each with different costs:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cloud software. <\/b><span style=\"font-weight: 400;\">The POS software is delivered over the cloud and is not installed on on-premises devices. Typically cloud POS software follows the SaaS subscription model, so you pay a (relatively small) monthly subscription fee, which can be as low as under $5\/month.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>On-premises software. <\/b><span style=\"font-weight: 400;\">The POS software is hosted on an on-premise device or hosted on a local server. Typically offered with a one-time fee that is relatively expensive or bundled with a POS hardware solution.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Hybrid software. <\/b><span style=\"font-weight: 400;\">As you might have guessed, this type of POS software provides a combined experience between a cloud-based application and on-premise software.<\/span><b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">On-premises solutions typically offer higher initial costs, but you\u2019ll also get more versatility in using different types of hardware and additional peripherals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nowadays, however, many restaurants prefer the versatility and cost-effectiveness of cloud-based solutions, especially for smaller and startup restaurants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, we can summarize that the software aspect of the POS system could cost between $0 to upwards of $300\/month.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"2\">\n<li><b> Hardware cost<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In the context of POS systems, any device you use to facilitate transactions in the restaurant, from taking orders to updating inventory to processing payments.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even if you opt to use a cloud-based or software-only POS system, you\u2019ll need to <\/span><i><span style=\"font-weight: 400;\">at least<\/span><\/i><span style=\"font-weight: 400;\"> invest in a tablet or smartphone, but most restaurants typically require the following pieces of hardware:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Credit card reader. <\/b><span style=\"font-weight: 400;\">There are standalone card readers, but there are also portable ones that attach to smartphones or tablets. Costs between $20-$50 per device.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Tablet or smartphone. <\/b><span style=\"font-weight: 400;\">Pretty self-explanatory, starting from below $100\/device.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Kiosk hardware. <\/b><span style=\"font-weight: 400;\">Not mandatory, starting from $200 to $700.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Tablet stand. <\/b><span style=\"font-weight: 400;\">For setups that use tablets as cashiers or input devices on guests\u2019 tables. Starting from $50.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Receipt printer. <\/b><span style=\"font-weight: 400;\">\u00a0May need dedicated printers for the kitchen and for guests\u2019 receipts. Starting from $35.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Cash drawer. <\/b><span style=\"font-weight: 400;\">From under $10 to above $200.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Terminal POS or touchscreen. <\/b><span style=\"font-weight: 400;\">Starting from $250 to above $1,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Digital menu board. <\/b><span style=\"font-weight: 400;\">Not mandatory, depending on the type of restaurant you run. Starting from $200 to above $2,000.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Depending on the type of restaurant you open, you may decide to process payments by the table or let your guests order from cashiers, which may dramatically alter your hardware setup. Also, if your restaurant has multiple chains, you will need to implement the POS hardware across multiple locations, which may require you to invest in more cost-effective setups.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below, we\u2019ll share rough guidelines for the average POS hardware costs based on the size of your restaurant:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Food truck\/startup\/fast food restaurant:\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Tablet\/smartphone<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Card reader<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"4\"><span style=\"font-weight: 400;\">Total: \u00b1$600<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Small established restaurant:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Tablet<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Card reader<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Receipt printer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Cash drawer<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"4\"><span style=\"font-weight: 400;\">Total: \u00b1$1,000<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Medium-sized restaurant:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">2 tablets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">2 card readers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Receipt printer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Cash drawers<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"4\"><span style=\"font-weight: 400;\">Total: \u00b1$1,400\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Large restaurant:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">3 terminal POS systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">3 card readers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">3 receipt printers<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"4\"><span style=\"font-weight: 400;\">Total: \u00b1$5,000<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When weighing<\/span><\/p>\n<ol start=\"3\">\n<li><b> Additional cost components<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In addition to costs related to hardware and software, different POS vendors may involve other fees and costs, including:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Payment processing fee. <\/b><span style=\"font-weight: 400;\">The POS vendor may charge a fee to process payment transactions, especially credit card transactions. In the US, the standard credit card processing fee is around 2.5%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Installation fee. <\/b><span style=\"font-weight: 400;\">The POS vendor may charge a fee for installation assistance per location, which can easily inflate if you have multiple locations for your restaurants. Additional hardware installed in more locations (i.e., additional card readers or receipt printers) will also cost you more.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>User accounts. <\/b><span style=\"font-weight: 400;\">Some POS vendors may require you to pay more for additional logins for more employees, for example, if you\u2019d like multiple employees to monitor transactions and inventory. Before committing to a plan, confirm how many users you\u2019ll need to access the POS software at any given time, and check whether the plan limits the number of employee accounts for individual plans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Integrations. <\/b><span style=\"font-weight: 400;\">The POS vendors may charge extra for integrations with eCommerce or CRM platforms, among other solutions. If you need the POS to integrate with your existing applications or solutions, make sure to check with the POS vendor whether there are any additional integration costs. For example, the popular<\/span><a href=\"https:\/\/www.app2food.com\"> <b>online ordering solution App2Food<\/b><\/a> <span style=\"font-weight: 400;\">offers integration with many popular restaurant POS systems for a small monthly fee.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Custom and additional features. <\/b><span style=\"font-weight: 400;\">Different POS vendors may offer additional features like inventory management, analytics\/reports, <\/span><a href=\"https:\/\/www.app2food.com\/marketing\"><span style=\"font-weight: 400;\">restaurant marketing tools<\/span><\/a><span style=\"font-weight: 400;\">, and referral\/<\/span><a href=\"https:\/\/www.app2food.com\/loyalty\"><span style=\"font-weight: 400;\">restaurant loyalty management<\/span><\/a><span style=\"font-weight: 400;\"> for extra fees. Some vendors may also offer the ability to add custom features according to your restaurant\u2019s unique needs (of course, for a fee.)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Wrapping Up\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While there\u2019s no one-size-fits-all answer to how much implementing a POS system will cost you, in general, we can determine a POS system\u2019s cost by weighing these things:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Hardware cost. <\/b><span style=\"font-weight: 400;\">Even if you\u2019re considering a software-only (i.e., cloud-based) POS system, you\u2019ll still need to invest in some hardware, at least a smartphone. The bigger the scale of your restaurant and the number of locations you have, the more you\u2019ll need to spend on hardware devices.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Software cost. <\/b><span style=\"font-weight: 400;\">You\u2019ll either need to pay a one-time fee or a recurring subscription fee to use the POS system.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Additional features. <\/b><span style=\"font-weight: 400;\">You may need to pay extra for additional and\/or custom features on the software.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Quantity\/size. <\/b><span style=\"font-weight: 400;\">Larger restaurants or multiple restaurant locations may require you to invest in more hardware devices and user licenses, which will translate into higher overall costs.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">With so many different POS vendor options available in the market, you have the option to invest in a POS system that is completely tailored to your restaurant\u2019s exact needs. So, take your time to figure out your option, and make sure you really understand your needs and requirements before committing to a POS vendor.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While finding the right POS system for your restaurant can be quite a daunting process, the tips we have shared above should provide you with a solid knowledge into how much you should spend when implementing a POS system.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Point of Sale (POS) system is critical for any restaurant and should be treated as one of the most important investments when starting a restaurant business. Yet, with the wide range of options for POS systems, there\u2019s now no one-size-fits-all answer to the question, \u201chow much does it cost to implement a POS system&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3924,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-3928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-restaurant-marketing"],"_links":{"self":[{"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/posts\/3928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/comments?post=3928"}],"version-history":[{"count":2,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/posts\/3928\/revisions"}],"predecessor-version":[{"id":4882,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/posts\/3928\/revisions\/4882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/media\/3924"}],"wp:attachment":[{"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/media?parent=3928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/categories?post=3928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.app2food.com\/blog\/wp-json\/wp\/v2\/tags?post=3928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}