Restaurant Point-of-Sale Terminal Market Analysis By Product (Fixed, Mobile), By Component (Hardware, Software), By Deployment (Cloud, On-Premise), By Application (Front-End, Back-End), By End-user (FSR, QSR, Institutional, Others) & Forecast By 2031
- PUBLISHED ON
- 2023-06-06
- NO OF PAGES
- 257
- CATEGORY
- Electronics & Communication
Restaurant Point-of-Sale Terminal Market was valued at USD 23.76 billion in 2022 and expected to grow at a CAGR of 7.4% during the forecast period.
Hardware Components:
Terminal or Touchscreen Display: The primary interface through which restaurant staff can input orders, process payments, and access POS software features.
Cash Drawer: Securely holds cash, coins, and receipts.
Receipt Printer: Prints customer receipts for transactions.
Card Reader: Allows for secure processing of credit and debit card payments.
Kitchen Printer/Display: Sends order details to the kitchen or bar for preparation.
Barcode Scanner: Helps with inventory management by scanning product barcodes.
Software Capabilities:
Order Management: Accepts orders, customizes items, and sends them to the kitchen or bar for preparation.
Menu Management: Allows for easy customization and modification of menu items, pricing, and availability.
Table Management: Tracks table status, assigns tables to guests, and facilitates table transfers and merging.
Payment Processing: Handles various payment methods, including cash, credit cards, mobile payments, and gift cards.
Reporting and Analytics: Generates reports on sales, inventory, employee performance, and other key metrics to aid in decision-making and performance evaluation.
Integration with Other Systems: POS terminals can integrate with customer relationship management (CRM) systems, loyalty programs, accounting software, and third-party delivery services.
Benefits and Advantages:
Streamlined Operations: A POS terminal automates many manual tasks, reducing errors and increasing efficiency in order taking, payment processing, and inventory management.
Improved Order Accuracy: With an intuitive interface and order customization options, POS terminals help minimize order errors and enhance customer satisfaction.
Enhanced Customer Service: POS terminals facilitate faster order processing, table turnover, and payment options, resulting in quicker service and a better dining experience.
Inventory Management: By tracking stock levels and generating reports, POS terminals assist in optimizing inventory, reducing wastage, and ensuring items are always available.
Sales and Performance Analysis: POS terminals provide insights into sales patterns, popular menu items, and employee performance, enabling data-driven decision-making and strategic planning.
Restaurant POS terminals come in various configurations to cater to different types and sizes of establishments, ranging from small cafes to large fine-dining restaurants. The choice of a POS system depends on specific business requirements, budget, and scalability needs.
Report Attributes | Description |
Market Size in 2022 | USD 23.76 Billion |
Market Forecast in 2031 | USD 32.32 Million |
CAGR % 2023-2031 | 7.4% |
Base Year | 2022 |
Historic Data | 2019-2021 |
Forecast Period | 2023-2031 |
Report USP | Production, Consumption, company share, company heatmap, company production capacity, growth factors and more |
Segments Covered | By Product, By Component, By Deployment, By Application, By End-user |
Regional Scope | North America, Europe, APAC, South America and Middle East and Africa |
Country Scope | U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria |
Key Companies | PAX Technology Limited Verifone Systems Inc. NCR Corporation Revel Systems Aireus Inc. Dinerware, Inc. Posist EposNow LimeTray |
Covid-19 Impact:
Shift to Contactless Payments: With increased concerns about hygiene and minimizing physical contact, the demand for contactless payment options has surged. Many restaurants have implemented or accelerated the adoption of POS terminals that support mobile payments, tap-to-pay options, and digital wallets. This has led to an increased demand for POS terminals with integrated contactless payment capabilities.
Online Ordering and Delivery: The pandemic has driven a substantial increase in online food ordering and delivery. Restaurants that previously relied heavily on in-person dining have had to pivot their operations to accommodate online orders. As a result, there has been a greater demand for POS systems that can seamlessly integrate with online ordering platforms and third-party delivery services.
Emphasis on Takeout and Curbside Pickup: Restaurants that were forced to close their dining areas or operate at reduced capacities have shifted their focus to takeout and curbside pickup services. POS terminals with features like order tracking, customer notifications, and curbside pickup management have become essential to efficiently handle these operations.
Enhanced Sanitary Measures: Health and safety measures have become a top priority for restaurants during the pandemic. This includes implementing stricter sanitation protocols for POS terminals. Some establishments have adopted antimicrobial coatings on their touchscreens, implemented regular disinfection routines, or provided disposable styluses or gloves for customer use.
Cost Constraints and Budgetary Concerns: Many restaurants faced financial challenges during the pandemic due to reduced revenues and increased expenses related to safety measures. As a result, there may have been a slowdown in POS terminal upgrades or investments, particularly among smaller businesses that faced financial constraints.
Cloud-Based Solutions and Remote Management: The pandemic has highlighted the importance of remote management capabilities for POS systems. Cloud-based POS solutions that enable real-time monitoring, remote access to sales data, and centralized management have gained prominence, allowing restaurant owners and managers to monitor and control operations even when not physically present at the establishment.
Market Dynamics:
Drivers:
Increasing Emphasis on Efficiency and Productivity: Restaurants are continuously looking for ways to streamline their operations and improve efficiency. POS terminals offer features such as order management, table management, inventory tracking, and reporting capabilities that help restaurants optimize their processes, reduce errors, and enhance overall productivity.
Rise in Online and Mobile Ordering: The growing popularity of online food ordering and mobile apps has led to an increased demand for POS terminals that can seamlessly integrate with these platforms. Restaurants need POS systems that can handle online orders, track delivery or pickup orders, and sync inventory across various channels.
Contactless Payment Adoption: Contactless payment methods, including mobile payments and digital wallets, have gained significant traction, particularly during the COVID-19 pandemic. Restaurants are increasingly adopting POS terminals with contactless payment capabilities to provide a safe and convenient payment experience for customers.
Demand for Data Analytics and Reporting: Restaurants rely on data analytics and reporting to gain insights into their sales, customer preferences, inventory management, and overall performance. POS terminals with advanced reporting features help restaurant owners and managers make data-driven decisions, optimize their menu offerings, and improve customer satisfaction.
Integration with Third-Party Services: Many restaurants now partner with third-party delivery services to expand their reach and offer delivery options to customers. POS terminals that can seamlessly integrate with these services, facilitating order management, tracking, and payment processing, are in high demand.
Enhanced Customer Experience: POS terminals play a crucial role in enhancing the overall customer experience. Features such as order customization, quick payment processing, and seamless communication with the kitchen or bar help restaurants deliver faster service, reduce wait times, and provide a more personalized dining experience.
Compliance with Regulatory Requirements: The restaurant industry is subject to various regulatory requirements, such as sales tax management and reporting. POS terminals that offer built-in compliance features help restaurants stay compliant with these regulations, reducing the risk of penalties and ensuring accurate financial reporting.
Advancements in Technology: Technological advancements, such as cloud-based solutions, mobile POS systems, and the Internet of Things (IoT), have transformed the restaurant POS terminal market. These advancements provide increased flexibility, scalability, and mobility, allowing restaurants to adapt to changing business needs and serve customers more efficiently.
These driving factors collectively contribute to the growth and evolution of the restaurant POS terminal market as restaurants seek innovative solutions to enhance their operations, improve customer service, and stay competitive in a rapidly changing industry.
Restraints:
Cost of Implementation: The initial investment and ongoing costs associated with implementing a POS terminal system can be a significant restraining factor, especially for small and independent restaurants with limited budgets. The costs include hardware, software licensing, training, maintenance, and potential integration with other systems. The perceived high cost of adoption can deter some restaurants from investing in POS terminals or lead them to opt for lower-cost alternatives.
Resistance to Change: Resistance to change and a preference for traditional methods can hinder the adoption of POS terminals. Some restaurant owners and staff may be hesitant to embrace new technology, especially if they are comfortable with existing manual processes or have concerns about the learning curve associated with using a POS system. Resistance from employees can delay or limit the successful implementation of POS terminals.
Complexity and Training: POS terminals often come with advanced features and functionality that require training for effective use. The complexity of the system and the need for staff training can be a challenge, particularly in high staff turnover environments common in the restaurant industry. Restaurant owners may be hesitant to invest in POS terminals due to concerns about the time and effort required for training and onboarding.
Integration Challenges: Restaurants may already have existing systems in place, such as accounting software, inventory management systems, or loyalty programs. Integrating a new POS terminal with these systems can be complex and time-consuming. Compatibility issues or the lack of seamless integration options can discourage restaurants from adopting a POS terminal or lead to delays in implementation.
Connectivity and Reliability: POS terminals rely on stable internet connectivity to function effectively. In areas with poor internet infrastructure or unreliable connectivity, restaurants may face challenges in using cloud-based POS systems or processing transactions smoothly. Downtime or system failures can disrupt restaurant operations, impacting customer service and revenue generation.
Customization and Scalability: Restaurants have unique requirements, and POS systems may not always offer the level of customization needed to cater to specific business needs. Limited customization options can be a restraining factor, as restaurants may seek tailored solutions that align with their operations, menu offerings, and branding. Additionally, scalability may be a concern for growing restaurant chains that require POS systems capable of handling multiple locations and increased transaction volumes.
Regional Analysis:
North America:
The North American market, particularly the United States, has witnessed significant adoption of POS terminals in the restaurant industry. The region's technologically advanced infrastructure, high consumer demand, and widespread acceptance of digital payments contribute to the market growth.
The presence of large restaurant chains, quick-service restaurants (QSRs), and fast-food establishments drives the demand for advanced POS systems with features like order customization, menu management, and integration with third-party services.
The trend towards contactless payments and mobile ordering has gained momentum in this region, further influencing the adoption of POS terminals with integrated payment processing and online ordering capabilities.
Europe:
Europe has a mature and competitive POS terminal market in the restaurant industry. Countries like the United Kingdom, Germany, France, and Italy exhibit strong adoption rates due to their well-established restaurant sectors and high consumer spending on dining out.
The region has witnessed a shift towards mobile payments and online ordering, prompting restaurants to invest in POS systems that support these capabilities.
Regulatory requirements, such as compliance with the General Data Protection Regulation (GDPR), influence the choice of POS terminals that prioritize data security and privacy.
Asia Pacific:
The Asia Pacific region is experiencing rapid growth in the restaurant POS terminal market due to factors such as the expanding middle class, increasing urbanization, and a rising trend of dining out.
Countries like China, India, Japan, and South Korea have a strong presence of both large restaurant chains and small independent establishments, contributing to the demand for POS systems that cater to diverse business sizes and requirements.
Mobile payments, online food delivery platforms, and digital wallets are gaining popularity in the region, driving the adoption of POS terminals that support these payment methods and integrations.
Latin America:
The Latin American restaurant POS terminal market is witnessing growth, driven by the expanding foodservice industry, changing consumer preferences, and a growing adoption of digital payments.
Brazil, Mexico, and Argentina are key markets in the region, with a mix of local and international restaurant chains driving the demand for POS systems that support multi-location management and centralized reporting.
Middle East and Africa:
The Middle East and Africa region show promising growth opportunities in the restaurant POS terminal market, driven by an increasing number of dining establishments, urbanization, and rising tourism.
Countries like the United Arab Emirates, Saudi Arabia, and South Africa have a growing restaurant sector and are witnessing increased adoption of POS systems to improve operational efficiency and enhance the customer experience.
Integration with mobile payment platforms, such as mobile wallets and payment apps specific to the region, is an important consideration in the POS terminal market in this region.
Competitive Landscape:
The global Restaurant Point-of-Sale Terminal market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence.
Some of the key players operating in the market are:
• PAX Technology Limited
• Verifone Systems Inc.
• NCR Corporation
• Revel Systems
• Aireus Inc.
• Dinerware, Inc.
• Posist
• EposNow
• LimeTray
• POSsible POS
• Oracle Corporation
• Posera
• ShopKeep (acquired by LightSpeed)
• Squirrel Systems
• TouchBistro
• Upserve, Inc.
• Others
Segments
By Product
• Fixed
o Self-serve Kiosks
o Cash Counters Terminal
o Vending Machine
By Component
• Hardware
o Swipe Card Machine
o TouchScreen/Desktop
o Others
By Deployment
• Cloud
• On-Premise
By Application
• Front-End
• Back-End
By End-user
• FSR
o Fine Dine
o Casual Dine
• QSR
• Institutional
• Others
By Geography
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
• Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
o Rest of APAC
• South America
o Brazil
o Argentina
o Colombia
o Rest of South America
• MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt
o Rest of MEA
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Case Study- Automotive Sector
One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
Solution
The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
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Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
Frequently Asked Questions
What is the market size and growth projections?
The global Restaurant Point-of-Sale Terminal market was valued at USD 23.76 billion in 2022 and expected to grow at a CAGR of 7.4% during the forecast period.
What are the trends shaping various markets?
Restaurants are continuously looking for ways to streamline their operations and improve efficiency.
Who are the key competitors of market Players?
Some of the major players operating within the market are PAX Technology Limited,Verifone Systems Inc.,NCR Corporation,Revel Systems,Aireus Inc.,Dinerware, Inc.,Posist,EposNow,LimeTray
What are the top performing segments, and countries / regions of each of the markets?
The North American market, particularly the United States, has witnessed significant adoption of POS terminals in the restaurant industry.
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