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Goodbye, POS: The Restaurant Management System (RMS) is the Future

When McDonalds became the first restaurant in the world to adopt the digital point of sale (POS) system in 1973, it was a game-changing moment. In the fifty years since, POS systems have evolved to encompass a wide array of features, used by almost every restaurant in the United States.

But the POS model has hit a brick wall it cannot overcome, and as the restaurant industry evolves to demand greater interoperability with other essential systems, it’s time we make the next leap in restaurant technology innovation.

We’re proud to enable restaurants to achieve a more profitable future with the next evolution of the POS: the Restaurant Management System, or RMS for short.

This represents a paradigm shift in how owners manage restaurants—from single-unit locations to large enterprise businesses—and it’s going to unlock countless new doors. We’ll get into the details, including… 

  • Why the POS system has met its natural end (we honor the life it lived!)
  • A new framework for data-driven restaurant management
  • 5 brand new opportunities that an RMS enables for restaurants

The grass really is greener, and we’re excited to share why.

It’s The End Of The Road For The Restaurant POS 

Think of your POS as a doorway between your business and customers. Customers walk through the door (make a transaction) to access your food. In this limited sense, the POS is an incredible tool for creating better customer experiences.

Over time, however, the POS system has become bloated with features and tools that are only loosely connected—and those loose connections come with notable limitations.

  • Reporting data in your POS is incomplete. Your POS primarily tracks sales that happen through that doorway. But what about online sales, third-party delivery, or bulk orders from catering customers? The ways customers buy are changing rapidly, and the POS doorway just isn’t designed to fit them all.
  • Marketing and loyalty opportunities are cut short. POS systems only communicate with customers that have walked through that doorway, and are often limited to single locations (a big yikes for multi-unit operators). Most restaurants use more than one tool to manage rewards, loyalty, and marketing—and those tools rarely play nice together, so you’re left with incomplete data in each system and inefficient growth.
  • Inventory tracking is inefficient. Some POS systems remove items from inventory when they’re sold via that doorway (which seems handy at first), but what about other ways you use food? Corporate catering, waste and spoilage, moving ingredients from one location to another—POS inventory systems can’t handle all this variation.

And we haven’t even touched on employee scheduling, human resources, payroll, delivery driver management, and other business workflows. You’ll have to find external tools to manage those systems, and most of them don’t integrate completely with POS software, leaving you with no way to see, learn from, and make decisions based on all your business data.

When the POS system is used as if it’s the center of gravity for your business, and all the other tools revolve around it, you’re left with disjointed functionality, messy data, and limited growth potential.

But when you have clean data that flows freely from one system to the next—without having to be funneled through the small POS system doorway—you’re able to see clearly, make connections, and implement improvements like never before.

We’re hosting a webinar that walks through real-world examples of how an RMS bypasses these data limitations to help you take command of your business in unprecedented ways. 👉 Sign up to join us right here.

The RMS Re-Imagines Information Flow In Your Business

The POS doorway analogy is well-understood, but we want to take it further. The point of sale may be an important door for customers who want to engage with your business, however it’s not the only door to your business.

Your restaurant is a palace of doors, with all kinds of information flowing in and out from them.

  • Online orders, handheld tablets, and third-party delivery platforms represent additional ordering doorways
  • Food and supplies enter your business through the inventory and purchasing doors
  • Employees come in through scheduling and HR
  • In-house delivery drivers have a door of their own
  • And your reporting and analytics need to see all those doors in one place

The Restaurant Management System removes the POS as the center of gravity and puts it where it belongs: a module within your greater business ecosystem.

It’s no longer behaving as the primary doorway of your business to the outside world, but a doorway among many.

So what then is the new center of gravity for your restaurant business?

All your business data in the cloud.

The RMS model creates a common language that all your business systems speak, then hosts all that data in the cloud so that every system is constantly giving and receiving new information.

Your sales, ingredients, customers, staff, finances—all of it together makes up the hub. The spokes are the tools that let you manage those various systems and workflows with seamless integration.

5 New Opportunities The RMS Model Enables

With a Restaurant Management System, all the spokes of your business have a way to communicate perfectly with each other. This means you can connect and gain insights from tools in whole new ways.

Here are a few examples.

  • Digital, delivery, and in-person orders all go to the same place. The dreaded “wall of tablets” from order sources is a nightmare for order accuracy and back-of-house efficiency. With an RMS, all your point-of-sale doorways lead to the same kitchen workflow, ensuring orders don’t get lost, your kitchen staff doesn’t have to juggle ten order sources, and sales reporting always shows you the full picture.
  • You can fully own the delivery experience (and stop giving away 30% of every order). Third-party delivery platforms charge hefty commissions, then rob you of customer data, so you’re left crossing your fingers that they order again. With an RMS that has a delivery driver module, you’re able to accept and fulfill your own delivery orders, then market to those customers later—you’re in complete control.
  • Customers get a personalized experience everywhere. Whether they’re ordering in-store, from a mobile app, or your website, customers can receive personalized experiences that increase spend and loyalty—all because those various doorways are connected to the hub and sharing customer data in real-time.
  • Optimize inventory and purchasing to reduce waste and increase margins. Food waste and over-purchasing are the silent killers of profit margins. With an RMS that connects inventory, purchasing, and all your points of sales, you can understand trends and predict demand with greater confidence.
  • All your business intelligence lives in one space. Once all your business data is funneled to the hub, it can be organized, viewed, and acted upon without roadblocks. No more separate spreadsheets for twelve locations, or comparing POS data, loyalty data, and online sales data from different sources. It’s all there, from single store reports to business-wide growth, ready to be accessed from anywhere.

And this is only the tip of the iceberg.

The power of the RMS is so wide-reaching that it’s impossible to cover all the ways it can transform your business in a single article.

That’s why we’re hosting a webinar that walks through real-world examples of how an RMS helps you integrate systems in new ways and take command of your business like never before. 
Want to see an RMS in action? 👉 Sign up to join us right here.

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