Eye On Restaurant POS: Full-Service Eateries Rebound As They Adopt New Payments Tech

Full-service restaurants, one of the hardest-hit merchant segments at the outset of the Covid-19 pandemic, showed signs of a rebound in 2021, according to research by TouchBistro Inc., a provider of POS and restaurant-management applications.

Findings from TouchBistro’s third annual “State of Full-Service Restaurants Report” reveals that 74% of full-service restaurants have managed to maintain or increase their sales during the pandemic. And while profit margins remain down, declining 10% in 2021, last year’s decline was less severe than the 12% decline in 2019.

As restaurants adjusted their business model during the pandemic, many implemented new POS systems to help them better service customers. More than two-thirds (67%) of restaurants changed their point-of-sale systems in the past year, and nearly all full-service restaurants implemented some form of contactless payment, according to the report. Overall, the number of restaurants that say they still accept cash has declined substantially from 84% in 2019 to 70% in 2021.

“This shift towards contactless payments like mobile pay and tap-to-pay is only expected to grow as consumers become more used to using these flexible payment options when dining out,” the report from Toronto-based TouchBistro says.

Online ordering technology has become a must-have for full-service restaurants. Currently, 95% of full-service restaurants use one or more online ordering platforms and 57% of restaurateurs say they conducted anywhere from 21% to 40% of their business through online ordering platforms.

“This suggests that the demand for takeout and delivery options is unlikely to go away any time soon (if ever), and that restaurateurs need to figure out how to harness the power of these essential platforms,” the report says.

Uber Eats is the most popular ordering platform, with 59% of full-service restaurants using its online ordering and delivery platform. Of the restaurants using online ordering platforms, 34% say sales have increased 21% to 25% as a result.

Loyalty programs have also gained popularity during the pandemic, with two in five implementing a loyalty program in the last one to two years. Overall, 57% of full-service restaurants report offering a loyalty or rewards program.

In related news, NCR Corp. has the largest share of POS software installations in restaurants globally, accounting for 25% of these installations, according to the Global POS Software 2021 Report from RBR, a London-based research and consulting firm. NCR’s share of the restaurant POS installations is four points higher than the nearest competitor, according to RBR. Atlanta-based NCR has installations in more than 100,000 restaurant sites, including independent operators, domestic chains, and international brands globally.