Restaurants today face pressures on multiple fronts: From diners’ rising expectations for a seamless and convenient customer experience to cost pressures that continue to accelerate the need to maximize operational efficiency. And leaders are looking to innovative technologies to help.
Handheld POS technology plays a pivotal role in enabling restaurateurs to meet these often-competing demands. And a new survey of 75 restaurant and 75 hotel food and beverage leaders, conducted by Informa TechTarget on behalf of Toast and FreedomPay, explored how leaders are already using handheld POS technology — and how it’s impacting their organization — and the largely-untapped opportunities to further boost outcomes.
Restaurants have widely adopted handheld POS technology for a number of use cases
Leaders are well aware of the competing demands they’re facing, and they’re looking to handhelds for help. Nearly half of restaurant executives (47%) cite improving service speed, staff efficiency, and productivity as one of their top three reasons to invest in handheld POS devices. They’re also seeking to speed up ordering and payment processing (43%) or to improve communication with the kitchen (40%) by deploying handhelds.
When it comes to how they’re using handheld POS technology, payments are top of mind. Among leaders who use the technology in their organization, 100% use handheld POS technology to accept payments, 96% use it to help customers split bills or manage checks, and 89% use it to apply promotions or discounts.
But the uses extend beyond payments to other elements of the customer experience, as well. More than 8 in 10 restaurant leaders said their organization uses handheld POS technology for tableside ordering or to submit orders directly to the kitchen (87% and 83%, respectively) — ultimately, creating a streamlined ordering experience that can help reduce the risk of order errors.
Leaders are seeing financial gains, as well as improvements in CX and operational efficiency
While handheld POS devices can improve outcomes across multiple aspects of the business, restaurant and hotel food and beverage leaders are noticing significant financial benefits.
Leaders report double-digit topline growth
When asked how handheld POS devices impacted financial performance, 59% of surveyed executives report that deploying handheld POS technology boosted revenue by at least 10%. However, several organizations reap even larger advantages, and 22% said that handhelds increased revenue by 15% or more.
These gains were driven primarily by faster table turns, enabling greater sales volume, as well as improved capture of all billable items. But leaders reported other financial advantages, too, including reduced costs associated with errors, comps or refunds (71%), and lower labor costs through improved staff efficiency (61%)
They’re also able to create a more convenient guest experience
The guest experience is at the heart of many organizations’ digital transformations, including adopting handheld POS technology. And executives report several advantages on this front.
More than two-thirds (68%) of executives said handheld POS technology has had a “very significant” or "transformational" impact on the guest experience. These gains were driven primarily by faster and more accurate service, a smoother dining and service flow and a more convenient payment experience.
Finally, leaders report operational gains from handheld POS technology
Speedy, efficient service is at the heart of operational excellence — so it’s perhaps no surprise that executives overwhelmingly reported improvements in their operations as a result of deploying handheld POS technology.
Nearly three-quarters (74%) of executives said handheld POS technology has had a “very significant” or "transformational" impact on operational performance. These improvements were driven, in part, by fewer order errors and more accurate service. But leaders also reported higher-level strategic benefits, including better handling of peak periods and high-volume service and improved staff productivity and task management.
Still, restaurants report room for improvement
While handheld POS technology can directly transform the waitstaff and guest experience, it also offers strategic benefits. Innovative solutions can integrate with other aspects of the business, serving as a “control center” with reporting and insights to inform strategic decision-making.
But this potential remains underutilized in restaurants today. Just over half of restaurant leaders (52%) use handhelds as a source of reporting and performance insights. And relatively few restaurant leaders use the technology to stay agile — for example, by updating menus in real time to reflect item availability (59%) or for data capture and loyalty program enrollment (52%).
Learn how to drive restaurant business transformation
Handheld POS technology is already delivering significant value, including double-digit revenue growth. But restaurant leaders can unlock even more value by tapping into underutilized opportunities for growth.
The report “The New Standard of Convenience: How handheld POS tech is redefining service in restaurants and hotels” delves deeper into how restaurants can maximize ROI from their investment in handheld POS technology — with insights from real executives across the industry.
