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Updated Jan 26, 2024

5 Reasons You Need a Mobile POS System for Your Restaurant

Donna Fuscaldo, Business Operations Insider and Senior Analyst

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Current point-of-sale (POS) systems have the technology to improve customer retention, protect customer data and drive sales, especially for restaurant owners. But you need to make sure you’re getting the right fit for your situation: what if your restaurant runs on the go? What if you don’t want to pay for POS hardware? Enter mobile POS systems: they run on tablets or smartphones and they mean restaurant owners can have it all with lower upfront costs and great POS software.

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What is a mobile POS system?

There are clear benefits to using a mobile POS but, before we get to that, let’s look at what a mobile POS system is, how it works and how much it costs.

A mobile POS, or mobile POS, is a POS system that uses a smartphone or tablet to act as a register and accept payments on the go. A mobile POS accepts credit cards and contactless payments.

“The best mobile restaurant POS systems can operate seamlessly on relatively cheap hardware and deliver an easy-to-use interface that drastically increases the value to the operator,” said Rory Crawford, CEO of BevSpot, a Boston-based restaurant software management company.

The best mobile POS card readers can accept the following payment types:

  • Credit and debit cards with an EMV chip or magnetic stripe
  • Contactless credit cards
  • Digital wallets like Apple Pay and Google Pay, which use near-field communication (NFC) technology to facilitate contactless payments
  • Samsung Pay, which uses magnetic secure transmission technology to facilitate contactless payments
  • Quick response (QR) codes, which allow a customer to scan a QR code to make payment or use a discount

How are mobile POS systems different from stationary models?

What sets a mobile POS apart from a stationary POS system is the portability of the hardware. POS systems usually have a terminal, cash drawer and receipt printer. The hardware has a fixed location within the restaurant or store. With a mobile POS, the terminal is portable. You can take it with you to a trade show or multiple other locations.

TipTip

Are you looking to accept payments on the fly? A mobile POS system that connects to a smartphone or tablet is the answer for merchants and restaurant owners who don’t want to be tethered to one workspace.

Both mobile POS and POS systems use software that provides the ability to process payments, track inventory and run reports. A mobile POS is best for businesses that want to complete transactions on the go, such as a landscaper, food delivery service or retailer that wants to move customers through the checkout process faster. Chick-fil-A is one example of a fast-food restaurant that uses mobile POS systems to take and process orders in its drive-thru line.

Mobile POS systems are also popular with market vendors, home repair services and food trucks. [Check out our review of Lightspeed for the best mobile options.]

What are unattended POS systems?

A growing trend in the mobile POS market is unattended POS systems that enable self-ordering and self-checkout. They have become increasingly popular during the COVID-19 pandemic.

Merchants and restaurant owners can implement the technology with POS systems that have built-in kiosk and mobile features. With a kiosk module, you can set up tablets and/or smartphones to act as self-service ordering and payment stations. Mobile features allow customers to place and pay for purchases online.

Did You Know?Did you know

An unattended POS system enables self-ordering and self-checkout, which has become popular during the COVID-19 pandemic.

How do mobile POS systems work?

Getting a mobile POS system up and running is simple. You choose your mobile POS software provider, download the app and connect your card reader to the mobile device. Once that’s complete, you can start accepting payments. Mobile POS systems rely on Wi-Fi or a data connection to process payments. Some offer an offline mode that lets you continue to accept payment if your internet connection drops while others provide some functionality but don’t allow you to accept and process payments offline.

Bottom LineBottom line

Mobile POS systems are simple to use. Once you download the mobile POS software and connect your card reader, you can begin accepting payments.

What are the best features of a mobile POS?

There are many reasons restaurants and merchants have been adopting mobile POS systems at a fast clip. According to Statista, the transaction value of mobile POS payments is projected to have a compound annual growth rate of 17.45% through 2027. By 2027, Statista projects the number of mobile POS users will reach 94.7 million.

Various features make mobile POS popular. Here’s a look at the big ones:

  • Mobility: A mobile POS gives you the freedom to ring up purchases on the fly. You aren’t tethered to a specific location. Your sales associates don’t have to be stuck behind a register. Queues get shorter, checkout has less friction and trade shows and events are no longer a logistical nightmare when you have a mobile POS.
  • Fast checkout: The last thing any business owner wants is a frustrated customer and long lines can create that. If your business uses a mobile POS, you can cut down on the time it takes customers to check out. The quicker you get customers through the purchasing process, the better off your business will be.
  • Inventory management: Mobile POS software does much more than ring up sales. It can track and manage inventory, send alerts when stock is low and automate reordering. With retailers that use a mobile POS, sales staff can check if any given product is in stock and, if it’s not, order it to be shipped to the customer, all within seconds.
  • Advanced reporting: Depending on your budget and level of service, a mobile POS can run advanced and custom reports on your sales. These insights can help you plan stock, take advantage of a trend or cut back when sales are slow.
  • Cost: Mobile POS systems tend to be cheaper than traditional POS systems. Your tablet acts as the terminal, requiring only a card reader for its other hardware. You still have the option to add peripherals like a cash register and printer to your mobile POS at an extra cost.
TipTip

The standout features that make mobile POS popular include portability, speedy checkout, inventory management tools and advanced reporting.

What are the benefits of using mobile POS for your restaurant?

There are some clear advantages to using a mobile POS system for your restaurant. Here are five of the main benefits.

1. Lower setup costs and easy implementation

One of the benefits of mobile POS is that it’s cheaper and easier to get started with the system. Instead of installing brand-new hardware, you can often download an app or work directly with your POS provider to set up software on mobile devices you already have. In businesses like restaurants, which already have tight margins, a switch to a mobile POS solution can be a good way to reduce overhead. It could also give you greater flexibility down the line.

“Mobile POS systems are compatible with all devices, so restaurant owners don’t need to worry about investing in additional proprietary hardware or equipment to integrate a POS system into their existing operations,” said Mary Fabro, chief marketing officer of Hostme. “That means owners don’t need to lock themselves into any additional vendor contracts.”

2. Ease of use

Mobile POS solutions usually are intuitive and easy to use. In addition to making it easier for your staff to learn how to use it, this means you can process transactions quicker, turn tables faster and increase the efficiency of your system.

Many mobile POS systems also feature paperless options, so customers can opt for email or text receipts. Eliminating steps in the checkout process means your team can focus on taking orders and your customers can get their food quickly. 

Some mobile POS systems are known as at-table solutions, which means guests can pay using a business’s device directly at their table.[Are you looking for a new POS system? Learn what we recommend as the best POS system for your restaurant.]

“Restaurants gain greater waitstaff efficiency [with these systems], affording them the time to provide more in-person service instead of ushering checks,” said Erik Ploof, vice president of business development and marketing for TableSafe.

3. Transparent operations

It’s important to have clear information from and about your POS system. These mobile systems can provide useful reports and more transparent records of operations. By prioritizing reports, you can get better insights into each terminal, how your staff is leveraging this technology and how to retain customers.

“Mobile POS systems give restaurant owners or managers the ability to closely monitor their establishment’s operations, even when he or she is not onsite at the restaurant,” Fabro said.

4. Integrations

Because mobile POS solutions utilize the latest technology, it’s easy to keep them up to date and integrate them with other platforms your business uses, such as accounting software and order management software. By using mobile POS technology, you can create another data trail to integrate with your operations.

“These mobile POS systems are also much easier for other critical mobile restaurant systems ― including staffing management, online ordering and delivery and cost management ― to integrate with than traditional systems, which provides the user with greater overall value,” Crawford said.

5. Customer service

Perhaps the biggest benefit of using a mobile POS system is customer service. Customer profiles can be linked in the software, letting you set up reward programs for repeat visitors. You can also store valuable customer information so you can treat them like family when they visit your establishment. If you keep your software up to date, it also helps keep customer payment information secure.

“Restaurant operators can gain greater efficiencies and increased customer satisfaction, both of which contribute to a stronger bottom line,” Ploof told Business News Daily. “It’s really about giving consumers peace of mind.”

Key TakeawayKey takeaway

Restaurant owners have come to rely on mobile POS systems for several reasons. They’re easier to set up and use, they support a wide selection of third-party integrations and they can facilitate rewards and loyalty programs.

Ready for flexibility, multiple payment formats and better operations?

Mobile POS systems allow for flexibility for restaurant owners in more ways than one. Users can take systems with them as they move around their facilities and they can accept payment in multiple formats like contactless credit cards and digital wallets. Restaurant owners can streamline their processes further with unattended POS systems. Mobile POS systems can improve business agility and operations through quicker transactions, inventory management and even generation of advanced reports on sales. Think about it: choosing a POS system with the right features for your business can help you take your restaurant operations up a notch and then some.

Matt D’Angelo and Elizabeth Crumbly contributed to this article. Source interviews were conducted for a previous version of this article.

Donna Fuscaldo, Business Operations Insider and Senior Analyst
Donna Fuscaldo has spent 25 years immersed in the intersecting worlds of business, finance and technology. As an expert on business borrowing, funding and investing, she counsels small business owners on business loans, accounting and retirement benefits. For more than two decades, her trusted insights and analysis have appeared in The Wall Street Journal, Dow Jones Newswires, Bankrate, Investopedia, Motley Fool, Fox Business and AARP. In addition, Fuscaldo has used her personal and professional experience to provide guidance on employment matters for the likes of Glassdoors and others. With a bachelor of science in communication arts and journalism, she is skilled at breaking down complex subjects related to business and careers for practical application.
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