Short answer
A restaurant POS (point of sale) system is the software and hardware a restaurant uses to take orders, send them to the kitchen, split bills and take payment. A modern restaurant POS also runs the kitchen display, table plan, online orders, inventory, staff hours and sales reports, so the whole restaurant works from the same live information.
What POS means in a restaurant
POS stands for point of sale, the moment and place a sale happens. In a shop that's the till. In a restaurant the sale stretches across the whole meal: a table is seated, drinks are ordered, food is fired, plates come back, the bill is split three ways and someone leaves a tip. The restaurant POS is the system that follows that whole journey.
That's why restaurant POS systems are different from retail ones. A shop scans a barcode and takes payment in seconds. A restaurant has to know which table ordered what, which seat it's for, when the kitchen should start it, and who's paying for which part.
How a restaurant POS works, step by step
Here's a typical dinner service, seen through the POS:
- Seating. The host opens table 6 on the floor plan. It turns from free to seated.
- Ordering. A server takes the order on a handheld or at a terminal, adding modifiers ("medium rare", "no onions") and seat numbers.
- Sending to the kitchen. The POS sends each item to the right station, as a ticket on a kitchen display screen (KDS) or on a printer. Drinks go to the bar, steaks to the grill.
- Cooking and timing. The kitchen marks items as done. Mains can be held until the server fires them. The POS times every ticket.
- The bill. The server prints or shows the bill, splits it if needed, and applies discounts or service charge.
- Payment. Guests pay by cash, card, wallet or gift card. The POS records each payment against the order; card payments usually happen on a separate terminal.
- After the sale. Stock is deducted by recipe, loyalty points are added, and the sale appears in reports straight away.
- End of day. The manager counts the drawer and prints the Z report: the day's totals by payment method, tax, discounts and refunds.
What a restaurant POS is made of
Software is the heart of it: the menu, the order screen, the kitchen display, reports and settings. In a cloud POS it runs in a browser or app and stores data online.
Hardware is whatever runs the software and handles the physical side:
- Terminals: touchscreens, tablets or computers where orders are entered
- Handhelds: phones or small tablets for tableside ordering
- Kitchen display screens, or kitchen ticket printers
- Receipt printers and cash drawers
- Card terminals from your bank or payment provider
- Optional extras: customer-facing displays, self-order kiosks, bump bars for the kitchen
Our restaurant POS hardware guide goes through each one.
Services sit behind it: payment processing, online ordering, delivery-app connections, accounting and tax-authority links.
What a modern restaurant POS does
Old POS systems mostly took orders and printed tickets. Modern ones run most of the restaurant:
| Area | What the POS does |
|---|---|
| Front of house | Orders, modifiers, courses, seats, splits, payments, tips |
| Kitchen | Station routing, ticket timers, bump and recall, prep times |
| Tables | Floor plan, table status, transfers, bookings, waitlist |
| Online | Your own ordering page, QR table ordering, kiosks, delivery apps |
| Back office | Inventory by recipe, purchasing, food cost, waste |
| People | Staff roles and PINs, rotas, clock in and out, tip reports |
| Guests | Profiles, allergies, loyalty points, gift cards, offers |
| Money | Cash management, X and Z reports, tax reports, accounting exports |
You don't need all of that on day one. But it helps to choose a system that can grow into it, so you don't have to switch POS again in two years.
Cloud POS vs traditional POS
A traditional (legacy) POS runs on a server in the back office, with software licensed per terminal and installed by a technician. Data stays on site.
A cloud POS runs on ordinary tablets and computers, stores data online, updates itself, and lets you see your sales from anywhere. The good ones keep working offline when the internet drops. Most new restaurants now choose cloud. We compare the two in cloud vs legacy POS, and cover the other types in types of restaurant POS systems.
Why it matters
A good POS doesn't just ring up sales. It:
- Reduces mistakes, because orders go to the kitchen exactly as entered
- Speeds up service, especially with handhelds and kitchen screens
- Protects your cash, with PINs, manager approvals and an activity log
- Tells you what's working, from best-selling dishes to the hour you should add a cook
- Saves admin time, with tax reports and accounting exports ready at the end of the day
There are trade-offs, which we cover honestly in benefits and disadvantages of a restaurant POS.
How much it costs
Cloud restaurant POS software usually costs from nothing (with paid processing or add-ons) to a few hundred dollars a month per location, plus hardware and card fees. EvronDesk costs US$29 to US$99 a month per location. The full breakdown is in how much a restaurant POS costs.
Frequently asked questions
What does POS stand for in a restaurant?
POS stands for point of sale: the place, and the system, where a sale is made. In a restaurant it usually means the software and screens staff use to take orders, send them to the kitchen and take payment.
What is the difference between a POS and a cash register?
A cash register records sales and holds cash. A restaurant POS also sends orders to the kitchen, manages tables, splits bills, tracks stock, handles online orders, stores guest details and produces detailed reports.
Do small restaurants need a POS system?
Almost always. Even a small café benefits from accurate orders, kitchen tickets, card payment records, tax reports and knowing what sells. A cloud POS on one tablet costs less per month than a single lost order a day.
What is a POS terminal in a restaurant?
A POS terminal is the device staff use to enter orders, usually a touchscreen, tablet or handheld. Many modern restaurants use ordinary iPads or Android tablets as terminals.