Restaurant Point-of-Sale Terminal Market Size is USD 29.4 billion by 2028 and at a CAGR of 7.6% during the forecast period.
Point-of-sale is the place located physically for the processing of transactions (Cash register). In traditional restaurants, it could be at the entrance, and the surrounding area of the cash register is called the point of sale. The advancement in technology makes the traditional POS a relic of the past. A point-of-sale system consists of hardware and software and is used to take customer food orders, make payments, manage inventory, and to make many other operations in restaurants.
Rise in demand for the cashless transactions
A decrease in the cash-on-hand due to the increased preference for adopting cashless transactions such as debit or credit card payments or online transactions is fuelling the demand of the market. Restaurants are also promoting convenient and hassle-free payment options at the point-of-sale terminal to make the customer’s experience better. The data of the customers are protected by the restaurant owners to avoid any fraudulent purchases and losses with the help of security features. For monitoring total sales, management of the inventory, payment, and payroll management, and maintaining the customer information for having good customer relationship management, the prevalence of the point of sales terminals is growing, which is elevating the growth rate of the market.
For smooth operations, restaurants are adopting POS terminals to act as a market driver.
The main functions of the POS terminals include billing, recording the sale number, inventory management, and management of the payroll in the restaurants. The recorded data is analyzed periodically to know the pattern of the sales and help the restaurants to manage to fill the tax while keeping track of the records for internal use. Permanent or fixed POS systems can reduce the burden of everyday manual recording of the sales and timely preparation of the tax reports. The regular update of customer purchases can be obtained by integration of the POS system and customer relationship management software (CMR). The adoption of the POS by the restaurants will help to increase their business by the provision of the exact consumer details and making required changes according to the needs of the customers.
A few market restraints included are the high initial investment costs will be a restraint to the small business holders. The cost includes purchasing and installation costs of the hardware, software, and necessary equipment. The integration of the POS system with the already existing system will be a challenge and will become complex. The POS system has huge customer data, and the privacy and security of the data come into play. The systems require continuous maintenance and support for proper functioning will be a cost to the business.
The Restaurant Point-of-sale terminal market would experience significant growth with the emerging opportunities due to the increasing adoption of digital systems to streamline their operations, as seen in many restaurants. The growing trend towards cloud-based systems will be a growth opportunity for the cloud-based POS system to expand the market. The flexibility in the integration of the POS system with other technologies will be a market expansion feature. The customization feature will raise the adoption of POS systems in restaurants as unique needs are present in each restaurant. The emerging countries will provide the opportunity to expand the market into new areas.
COVID-19 Impact on the Restaurant Point-of-Sale Terminal Market
The restaurant point-of-sale terminal market is not much affected by the COVID-19 pandemic. Due to the implementation of the social distancing norms, the restaurants started adopting POS terminals for the smooth functioning of the business and to provide hassle-free experiences to the customers during the pandemic period. The slowdown in the functioning of the business and operations resulted from the decreased demand causing the sale and revenue loss to the market. The pandemic has increased the adoption of the digital menu to avoid physical contact between the customer and waiter and thus reduces the time of meetings by following the norms of the pandemic. Digital payment is another such implementation in restaurants to make the best use of the technology in such situations.
Key developments in the market
In 2022, a Cloud-based software provider in Spain called Openbravo introduced Point-of-sale (POS) to provide rapid services to customers in quick-service restaurants and fast-casual restaurants. The efficiency and profit margin will be enhanced with this new adoption. The scalable architecture of the Openbravo restaurants is a market-favorable character.
In 2020, the acquisition of Shopkeep Inc. by Lightspeed POS Inc., a Canada-based POS and e-commerce software provider. This acquisition would be a market-profitable feature for Lightspeed as it modernizes its operations and helps in working for product innovation.
Restaurant Point-of-Sale Terminal Market Segmentation
By Component
Hardware
Software Services
In 2022, the component segment had the hardware category as the high market share holder of around 67%, and this trend is expected to continue during the projected period. Hardware is further divided into three individual components, namely swipe card machines, touchscreen, and others. The POS system requires extra supplements in the restaurants, like touchscreen displays or tablets would drive the market.
By Deployment Mode
On-Premise
Cloud
The cloud category is expected to have a high CAGR during the forecast period in the restaurant point-of-sale terminal market. The features of the cloud-based include increased visibility, improved data security, reduced downtime during the updates, and a proper streamlining of the operations across various locations of the operating units. The POS benefits in the economic and operational departments will propel the market.
By Type
Fixed POS
Mobile POS
Mobile POS systems are anticipated to have a large share of the market. Wireless devices and smartphone-related devices are referred to as the mobile POS system. Their function is as a cash register and POS terminal wirelessly. The pandemic has increased the number of users using the e-wallet for payment made. In the last three years there is of 24.3% of the total POS transactions have been through the mobile wallet. This could propel the mobile POS shares in the restaurant Point-of-sale terminal market.
By Application
Front End
Back End
The front-end category is dominating the restaurant point-of-sale market during the forecast period in Restaurant Point-of-Sale Terminal Market. It owns a market share of more than 65% in 2022. The front end uses the POS terminal to handle the front-end task like ordering meals, tracking the order, billing, order management, customer interaction, and marketing. The POS system helps in anticipation of the popular menu item, monitoring the food usage, and creating sequential orders with the help of the gathered data will be a favor to the segment development.
By End Users
Full-service Restaurant (FSR)
Quick Service Restaurant (QSR)
Institutional FSR
Others
In the Restaurant point-of-sale terminal market, full-service restaurants (FSR) will be expected to rule the market during the forecast period. As per the 2022 data, the FSR category is expected to have a 41.7% market share. The features of casual dining include affordability and convenient eating options contributing to the high revenue-generating end-user in the segment. There is an increasing demand for casual dining brands like McDonald’s, Dunkin, and Pizza Hut, which had already POS terminals in their various outlets. The QSR (Quick Service Restaurants) is expected to own a large share of the market in the coming years due to the more footprints of people occurring in less time, and the need for the POS system will rise exponentially.
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
The Asia-Pacific region is anticipated to have a large market share in the Restaurant Point-of-sale terminal market. In 2022, the revenue share of the region in the market is 30%. The rapidly evolving food service industry in certain countries like India and China contributes the highest shares of the market. The favorable demographic conditions and increasing disposable personal income are some driving factors of the market in Asia Pacific. North America has a rapidly growing restaurant industry and has a large number of restaurant POS software offering vendors. The presence of a large number of quick-service restaurants and increased adoption of the POS terminals in it makes the U.S. a large market growth contributor. These factors will make North America have a high CAGR in the Restaurant Point-of-sale terminal market.
PAX Technology Limited
Verifone Systems Inc.
Oracle Corporation
NCR Corporation
ShopKeep (acquired by LightSpeed)
Revel Systems
Aireus Inc.
Dinerware, Inc.
Squirrel Systems
Frequently Asked Questions
The rise in demand for cashless transactions and the increasing adoption of POS terminals for smooth operations in restaurants are the key driving factors in the market.
The Asia-Pacific region is expected to have good market growth opportunities.
The high initial investment, installation, and maintenance costs are major restraining factors in the market.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region