Global Restaurant POS Software Market - 2022-2029
The restaurant POS software market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).
A POS software is a point of sale approach that processes the transactions at a restaurant. Initially, restaurant billing software was a traditional point of sale that generated a receipt and accepted orders. However, with the introduction of cloud technology, the POS system became a complete restaurant management system. The software is available with various features such as Stock & Inventory Management, Smart Reporting & Analytics, Customer Relationship Management and more.
The software can be integrated into multiple third-party applications such as Online Ordering, E-wallets, Table Reservations, Loyalty Programs, etc. restaurant POS machine is an end-to-end solution for restaurant management. Restaurant point of sale software provides restaurant and bar servers an easy way to take orders and process payment for multiple checks simultaneously.
The global restaurant POS software market is boosted by the need to increase restaurant operation efficiency.
Need for increasing the efficiency of the restaurant operations
Efficiency is one of the critical factors for running a restaurant. Successfully managing a restaurant business also implicates effectively working the admin and the inventory side to maximize profits and minimize wastage. Running a successful restaurant business is often delicate, but introducing a point-of-sale system into the industry could change the work by streamlining many vital components.
According to Toast's Restaurant Success report, 52% of restaurant owners cite high operating and food costs as challenges to their bottom line. In response, restaurateurs are opting for using point of sale systems to track inventory, process payments and analyze sales. Moreover, with software, restaurant owners can efficiently accept online orders, handle employees and otherwise try to squeeze every bit of profit per operating dollar.
One of the most significant challenges of managing a POS system is the possibility of cyberattacks. POS systems have a large attack surface from the terminal to endpoints where data is stored. It only requires one unsecured access point to provide hackers access to an entire network of POS systems, thus installing malware. POS security is problematic because of the sheer volume of known and unknown threats associated with POS system data's value for cybercriminals. In addition, the threats numbers for POS systems continue to rise because new POS malware is being developed or updated all the time.
Despite these challenges, restaurants enterprises that rely heavily on POS systems should prioritize POS security. The systems handle sensitive customer data and a breach of customer payment information can be costly. By implementing measures to safeguard POS systems and transactions and training staff on POS security policies, businesses can drastically decrease their likelihood of experiencing an expensive POS security incident.
COVID-19 Impact Analysis
The market for restaurant POS software has grown exponentially during the covid-19 outbreak. Government rules and regulations have posed significant challenges for restaurant reopenings. For instance, capacity limits and physical distancing rules mean that many restaurants need to reconfigure their spaces, completely changing the dine-in experience.
Point of sale systems has become a key differentiator for restaurants worldwide. The systems allow restaurateurs to meet numerous practical needs such as growing profits, running efficient and organized businesses and enhancing bookkeeping. With the rise of COVID-19, the closure of many restaurants and the evolution of the online ordering and delivery market, restaurant POS software has become very important. POS systems are equipped with cutting-edge features, such as rearranging tables, adjusting bar seating, entrances and exits, host stands, hand-sanitizing stations and more. Modern restaurant POS systems are provided with floor plans and table management software that can be utilized to keep track of the ongoing changes. The software can also assist staff move parties and managing sections throughout the service.
The restaurant POS software market is segmented into quick-service restaurants and full-service restaurants by restaurant type.
Expanding sales of fast-food restaurants is boosting the need for restaurant POS software
In 2020, the fast-food industry worldwide generated over US$ 570 billion in revenue, which was more than the economic value of most countries. Many fast-food restaurants have integrated a POS system to manage such a vast number of customers. According to the PYMNTS Restaurant Readiness Index, almost 61% of quick-service restaurants have already begun using POS systems.
Various leading fast-food chains have been using POS software to manage their operations. In 2021, Slice, the online ordering platform for pizzerias, announced a new point-of-sale system designed specifically for those businesses and a rewards program for diners. In U.S., KFC currently uses Oracle's MICROS RES POS system. The POS software is an intelligent system that has helped enhance customer experience and speed up transactions across KFC's restaurants. Starbucks utilizes the LS Nav POS software system made by LS Retail Pvt. Ltd. The software has a unified commerce platform that helps manage the needs, front house, back office, product replenishment and financial management of the Starbuck restaurant.
Restaurants are finding new ways to increase revenues and gain a competitive advantage in boosting the sales of North America
With around 1 million restaurants in the U.S battling it out for gaining a competitive advantage, finding new ways to increase revenues, reduce operating costs and enhance the guest experience's overall quality is top of mind for most restaurant operators. The growing sales of restaurants are a significant factor in the market's growth. For instance, in 2022, commercial food service sales in Canada are forecast to grow to $74.6 billion, which represent a 21.6% increase over 2021,
The various new software has been launched in the market due to huge market potential. For instance, in 2021, Lightspeed Commerce Inc., the commerce platform for merchants worldwide to simplify and create exceptional customer experiences, announced the launch of the all-new Lightspeed Restaurant, unified hospitality commerce and point-of-sale platform.
The restaurant POS software market is fragmented with the presence of global companies. The market is gaining competitiveness with the sudden shift towards automation in the sector. In addition, some of the players contributing to the market's growth are Clover Network, Inc., Toast, Inc., POSist Technologies Pvt. Ltd, TouchBistro Inc, Oracle, Infor., Toshiba Tec Corporation, NCR Corporation, Appetize Technologies, Inc. and others. The players are adopting various strategies to dominate the market, such as launching new services are contributing to the global growth of the restaurant POS software market.
Overview: Toast is a technology platform that integrates restaurant POS, front of the house, back of the house and guest-facing technologies with a rich marketplace of third-party applications to enable successful restaurants of all sizes. Toast was nominated to the Forbes Fintech 50 in 2019, the SXSW Interactive Innovation Finals in 2019, the Forbes Cloud 100 in 2018 and the 2017 Deloitte Fast 500 as the third fastest-growing technology business in North America.
Product Portfolio: The company uses restaurant POS software to help restaurants enhance operations and revenue and deliver excellent guest experiences by integrating technology with a commitment to customer success.
Key Development: In 2019, Toast Inc raised US$ 250 million in Series E funding. The funds, led by Tiger Global Management and TCV, along with existing investors, put its valuation at US$ 2.7 billion.
Visualize the restaurant POS software market segmentation by the operating system, deployment, restaurant type, application and region, highlighting the key commercial assets and players.
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