Restaurant Point-of-Sale Terminal Market Size, Share & Trends, COVID-19 Impact Analysis | 2021-2028

Restaurant Point-of-Sale Terminal Market Size, Share & Trends, COVID-19 Impact Analysis | 2021-2028

Summary of the Report

The global restaurant point-of-sale terminal market was valued at USD 15.46 Billion in 2020. It is expected to grow at a compound annual rate (CAGR of 6.4%) between 2021 and 2028. Due to temporary closures and a lack of dine-in customers, the COVID-19 pandemic had a negative impact on the restaurant industry. Several restaurants were able to survive the pandemic thanks to digital ordering channels and POS for contactless payments. Its efficient management system is backing the increasing demand for Point-of-Sale terminals. This is in contrast to traditional cash registers or manual systems. The POS system provides many functions, including sales analysis, inventory management and customer feedback. This is driving the market growth.

Restaurant POS terminal functions include billing, recording sales figures, and payroll management. Inventory control is also important to ensure that the business runs smoothly. The POS system records daily sales and inventory data to help restaurateurs track sales patterns and track monthly and annual sales. The installation of POS systems, whether mobile or fixed, can help reduce the time and effort required to record sales and prepare tax reports. Integration of Customer Relationship Management software (CRM) into the POS system automatically retrieves customer information. This allows for regular updates and preparation of sales reports. The added benefit of installing aPOS system is the ability to extract insights about customer preferences and sales trends. This will help to increase the market growth.

To increase product demand, restaurants need to streamline their business operations. Restaurant owners have implemented point-of-sales systems to improve efficiency, reduce billing time, monitor order completion times, and prevent order errors during peak hours. In every country, the capital cities are home to fine dining restaurants, cafes, and breweries. These places are popular with families, friends, and colleagues who meet regularly for work or leisure. Restaurant staff must be able to quickly order and bill customers to provide a wonderful dining experience. A POS system manages the back-end preparation to ensure a smooth operation at the front-end during busy hours. The market will grow over the next few years due to a rise in dine-in restaurants and nightclubs, among other things. COVID-19’s short-term impact will be a hindrance, but the market will soon recover with large-scale vaccination programs.

Due to the COVID-19 pandemic, which forced people to stay inside and avoid outdoor activities, restaurant POS terminal sales declined. While online ordering was a great tool for many restaurants, it also caused revenue losses that led to a decline in the sales of new POS systems. The POS vendors are updating their systems to assist restaurants in adapting to changing dining environments. The restaurant industry is expected to recover and increase demand for mobile terminals in 2021.

Product Insights

Over the forecast period, mobile terminal demand is expected to grow at a rate of 5.0%. This growth can be attributed to higher table turns, better service, lower operation costs, accurate dish information, suggestive sales, and mobility to attend customers. Restaurant owners have been more open to mPOS terminals due to their affordability and the advancement of wireless technology. Restaurant owners have been encouraged to use POS terminals for their restaurants due to the increased Return on Investment (ROI) over the long-term and the additional insights that can be used to improve order accuracy, revise the menu based on customer preferences, increase sales and profitability, as well as to rationalize order processing.

Fixed product segments can be sub-segmented as cash counter terminals, self-service kiosks, and vending machines. In 2020, the fixed product segment was the biggest market. Market size increased due to the introduction of point-of-sale terminals in larger restaurants that have many outlets and serve large numbers of customers. From 2021 to 2028, the self-service kiosk market is expected to experience the highest CAGR of 6.0%. Industry demand is expected to be driven by the growing demand for self-service kiosk systems that allow customers to quickly check out without waiting in long lines and can manage more customers.

Component Insights

The component segment can be divided into hardware and software. In 2020, the hardware segment accounted for over 67.0% of the market. There are three types of hardware: touchscreen/desktop and swipe card machine. To complete the POS system, restaurants need additional hardware. This includes a touchscreen monitor, tablet, cash drawers, EFTPOS, and receipt printer. Market growth is expected to be driven by the improvements in each of these devices, such as OLED display and touch screen, thermal printer, EFTPOS, and touch payment EFTPOS.

Over the forecast period, the software segment will see a 5.0% CAGR. To facilitate business management, the hardware of the POS system can be supported by custom restaurant point-of-sale software. The demand for POS software will be driven by customer expectations regarding security, identity, payment methods, and rewards. Software that can be customized to suit the needs of specific restaurants is another reason for POS software being in high demand.

Deployment Insights

The deployment segment can be divided based on on-premise and cloud deployment modes. Over the forecast period, the cloud segment will experience a CAGR of 6.0%. Cloud-based deployment provides increased data visibility and mobility for businesses, as well as improved data security. It also allows for simplified information across multiple locations. For quick-service restaurants that offer high-end cuisine, the security, economic and operational advantages of POS on the cloud are evident.

In 2020, the on-premise market dominated with a 70.0% revenue share. Restaurants that are concerned about data security still prefer on-premise deployment. The legacy POS system stored data on the closest server or local database, which makes it difficult to access the information in the event of a loss. On-premise deployment is preferred because it allows full control over the system, customization and no downtime. Also, the system can be installed and used on a non-exclusive, perpetual basis.

Application Insights

The application segment can be divided into two parts: the front and back end. In 2020, the market share for front-end segments was more than 62%. The main reason behind the adoption of the restaurant POS terminal was to perform front-end operations such as food ordering and billing, tracking sales, payment process, order management, customer interaction, reporting, marketing, and reporting. Segment growth will be supported by the ability to track and analyze the popularity of each menu item as well as the generation of sequential orders.

In the 2021-2028 forecast period, the back-end segment saw a 6.0% CAGR. To manage the front-end of a restaurant, it is essential to implement a POS system. This will ensure that orders are prepared correctly and arrive on time. The implementation of a back office POS system improves efficiency and relieves the front-end POS terminal of administrative tasks. Back-end restaurant POS systems are highly sought after because of the need to protect staff’s privacy and prevent them from having access to sensitive information.

End-user insights

Full-Service Restaurant (FSR), Quick Service Restaurants (QSR), and institutional FSR are all examples of the end-user segment. Further sub-segments of institutional FSR include casual dining and fine dining. FSR accounted for more than 39.0% of global revenue share in 2020. Due to the availability of affordable and convenient food options, as well as rising brands like McDonald’s and Dunkin, which have adopted POS terminals for large outlets, the casual dining segment was the top revenue contributor.

Over the forecast period, the fastest-growing segment in Quick Service Restaurants (QSR), is expected to be the QSR. QSR was the top revenue contributor due to its convenience and growing casual dining brands like McDonald’s, Wendy’s, and Pizza Hut that have adopted POS terminals for large outlets. QSRs must also attend to a greater number of customers in a shorter time. This requires the support of POS systems to help assess customer needs, take fast orders, reduce order turnaround times, and provide quicker customer service.

Regional Insights

In 2020, the Asia Pacific remained as the largest market for restaurant POS terminals accounting for over 30% of the revenue share. The fastest projected CAGR is due to the rapid expansion and evolution of the foodservice industry in countries such as India, China and Brazil, which are experiencing favorable demographic conditions and higher disposable income. COVID-19, however, has had a negative impact on market growth. The restaurant industry saw slow business and revenue losses. Many small-scale Asian restaurants have begun to use digital kiosks and tablets POS systems to show menus, place orders, improve operational efficiency and enhance customer experience. As normalcy returns, the market will recover and customers can order take-out and dine out again.

In 2020, North America was second in revenue. Regional growth is driven by the rapidly expanding restaurant industry and the high number of vendors that offer restaurant POS software. The market will be further driven by the increasing demand for restaurant POS software that can help with managing and operating restaurants. A large number of fast-service restaurants have adopted POS terminals in the United States, while others are switching to mobile POS terminals. This is also why the U.S. contributed to the market growth.

Market Share Insights & Key Companies

Global competition is fierce. The key industry competitors are: PAX Technology Limited, Verifone Systems Inc., Posist; EposNow, NCR Corporation, Revel Systems, Aireus Inc., Aireus Inc., Dinerware, Inc., Harbortouch Payments, LLC, LimeTray, POSsible POS, Oracle Corporation, Posera, Ingenico Group, ShopKeep (acquired in LightSpeed); Squirrel Systems, Toshiba Corporation, TouchBistro, and Upserve, Inc. To gain market share, the vendors chose to combine acquisition, partnership and new product development strategies. TouchBistro, for example, acquired TableUp in Boston in August 2020 to integrate TableUp’s solution into its POS restaurant management system. TouchBistro also launched “Restaurant Recovery Navigator” in April 2020 as an information resource that will assist restaurateurs with planning their business during the current pandemic.

Companies also sought to provide additional features at affordable prices. The Touch Bistro is a tablet-based POS system that allows for order tracking, cash management, inventory control, and other features. It can be used by Quick Service Restaurants (QSRs). The market will continue to grow due to constant innovation and manufacturers’ focus on custom solutions. Revel Systems and its partner Intuit Inc. created QuickBooks, an online restaurant point-of-sale (POS) system that allows restaurants to sync sales, inventory, payments, payroll, CRM information, and more. The following are some of the major players in the global restaurant point-of-sale terminal (POS) market:

  • PAX Technology Limited
  • Verifone Systems Inc.
  • NCR Corporation
  • Revel Systems
  • Aireus Inc.
  • Dinerware, Inc.
  • Posist
  • EposNow
  • LimeTray
  • POSsible POS
  • Oracle Corporation
  • Posera
  • ShopKeep (acquired from LightSpeed)
  • Squirrel Systems
  • TouchBistro
  • Upserve, Inc.
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