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5 Pitfalls to Avoid When Selecting a Next-Generation Restaurant POS System

by TheDailyHotelier
November 23, 2025
in Innovation & Tech
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5 Pitfalls to Avoid When Selecting a Next-Generation Restaurant POS System
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This text is tailored from the brand new Starfleet Analysis examine “How High-Performing Eating places Optimize the Visitor Expertise,” now available for complimentary entry. Click on here to be taught extra and to obtain.  

As many seasoned restaurant homeowners can attest, the highway to IT optimization could be rife with challenges. Getting on a highway with the very best potential for fulfillment begins by implementing the proper know-how. Listed here are 5 pitfalls to keep away from when deciding on a next-generation, cloud-based restaurant POS system, in response to a new research study.

1. Keep away from a “locked” system. 

Watch out for implementing a brand new POS system that’s “locked” to a particular bank card processor. With a locked system, restaurant homeowners aren’t allowed to buy bank card processor charges. Neither is the POS processor below any obligation to supply aggressive charges. After a given variety of months, the processor can elevate charges. Restaurant clients haven’t any selection however to pay the brand new charges.

Usually, the one solution to escape this disagreeable state of affairs is to pay a large cancellation price. In lots of circumstances, the price is the same as all the steadiness of what could be due for the rest of the minimal three-year contract. Restaurant homeowners and operators who unwittingly discover themselves “caught” with a particular bank card processor can really feel as in the event that they have been conned into signing up for a locked system with out understanding the implications.

Having an unlocked system retains everyone aggressive and permits restaurant homeowners and operators to buy charges. (By the way in which, additionally watch out for free or closely discounted “locked” POS methods as retailers typically find yourself paying larger bank card charges in the long term; some might find yourself paying an extra 15 cents or extra per transaction.)

2. Keep away from a cardholder knowledge “in scope” system. 

Watch out for implementing a brand new POS system that has cardholder knowledge (CD) “in scope.” All transactions, swiped or dipped, must be processed utilizing modern-day know-how, which suggests transmitting a token as an alternative of CD.

Legacy POS methods designed to transmit CD to the processor for approvals and batch settlement are usually extraordinarily weak to reminiscence scrapers. Reminiscence scrapers have their sights set on capturing CD from RAM because it’s being transmitted to the processor. They save the CD to an encrypted file, then transmit the file to a purchaser, or they promote it on the deep net.

No restaurant needs to fall sufferer to being recognized as a “frequent level of buy,” also referred to as an information breach. That’s when issues can get ugly.

3. Keep away from methods that overcharge to course of EMV chip playing cards. 

Watch out for implementing a brand new POS system that requires that the restaurant pay excessive extra ongoing prices to course of EMV chip card transactions. Some POS methods use a third-party firm for the EMV fee resolution. This will likely not appear to be a giant deal, however it may possibly find yourself costing hundreds of {dollars} a yr in extra transaction charges.

4. Keep away from methods that require file server and/or web uptime. 

Watch out for implementing a brand new POS system that requires an “on premise” file server. Again-office computer systems for POS methods are usually a expensive nuisance, contributing to system downtime. Additionally keep away from getting a POS system that fails to operate correctly with the lack of web connectivity.

Sadly, some POS methods can turn out to be all however inoperable when the file server crashes or the web goes down. Orders which are positioned by the server fail to go to the kitchen show stations. Employees checkout report reconciliation turns into a nightmare. It’s expensive to keep up backup catastrophe restoration and {hardware} alternative contracts.

The Home windows® working system working on a file server may also imply having to buy costly tools to keep up PCI compliance. Restaurant homeowners and operators have sufficient on their minds. They need to not have to fret concerning the attainable ramifications of their file server not working or the web taking place. The perfect of right now’s cloud-based POS methods have built-in redundancy and are designed with all contingencies in order that restaurant employees and company aren’t negatively impacted within the case of an outage.

5. Keep away from methods that lack a free open API. 

Watch out for implementing a POS system that doesn’t embrace a free open API. Operators have to have the proper instruments to run their enterprise, a few of which have to combine to their POS methods, akin to accounting, stock, labor scheduling, supply providers, e-mail advertising and branded apps. If the POS system fails to supply a free open API, then there may very well be important prices concerned in getting the integrations wanted and important time spent in having to carry out ongoing handbook duties if the integrations aren’t obtainable.

Tailored from the brand new Starfleet Analysis examine “How High-Performing Eating places Optimize the Visitor Expertise,” with underwriting assist from Heartland. The eBook is now available for complimentary entry. Click on here to be taught extra and to obtain.



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