Expert Tips to Maximize Your Restaurant POS System
I tell restaurant owners all the time that their POS system is the most important piece of equipment they will ever purchase for their restaurant. The POS system is much more than a glorified cash register; it’s data central. It holds the key data you can use to change your business, prevent theft and make meaningful changes to your operations.
In this episode of my podcast, The Restaurant Prosperity Formula, I review some of the most powerful and little-known reports your POS system has to offer. This includes four underutilized, yet essential, reports that are critical to harnessing the power of your POS system. With only the reports you have at your fingertips in your POS system, you will have the building blocks of informed decision-making so you can lead with confidence, and ensure efficiency, profitability and success in your restaurant.
Four powerful POS system reports
Transfer report: This report is crucial for monitoring internal item movements, revealing patterns that could indicate issues such as staff giveaways or theft. By fostering a culture of responsibility and integrity, you can address potential problems before they escalate.
No sale report: Monitoring the integrity of your cash register is vital. Frequent "no sales" could suggest misuse or potential theft. This report helps reinforce a culture of honesty and accountability among your staff.
Comp report: This report delves into complimentary items, detailing what was comped, why, and by whom. Tracking comps is essential for understanding customer satisfaction, staff discretion, and identifying potential quality issues or excessive giveaways.
Void report: Critical for monitoring errors and potential misuse, the void report highlights the frequency, reason, and responsibility for voids. It helps with early detection of issues such as staff giving away free items or avoiding bills.
More POS system reports for food and labor cost
Next, I explain how to use your PMIX report. The PMIX (item-by-item sales mix) report is a comprehensive tool providing deep insights into your restaurant's food cost. There are several ways to leverage this report:
The key item tracker for theft detection: Monitor high-cost or high-demand items to quickly identify inconsistencies that may indicate theft or misuse.
Setting par levels: Analyze sales data to identify trends and determine optimal stock levels for each item, balancing customer demand and capital efficiency.
Food cost management: Combine the PMIX report with recipe cards to master your food cost. This analysis helps identify profitable dishes, reduce portion sizes, or change ingredients to optimize costs.
Menu re-engineering: Use the PMIX report to make data-driven decisions for menu changes, optimizing offerings based on customer preferences and profitability.
Integration with food costing software: Integrating the PMIX with food costing software provides a real-time view of ideal versus actual product usage, crucial for pinpointing discrepancies and ensuring kitchen efficiency.
You can also leverage the PMIX report for labor costs.
Beyond sales and inventory, your POS system plays a crucial role in labor management. Peters highlights key features:
Calculating labor cost: Analyze dollars per labor hour worked to understand the true cost of labor in relation to sales.
Efficiency analysis: Track hours worked against revenue to determine labor efficiency during different sales periods.
Spotting time clock theft: Use labor reports to identify potential theft at the time clock, such as employees punching in too early or using incorrect job codes.
Integrating labor data: Combine labor data with other POS reports for comprehensive analysis, providing a bigger picture of how labor directly affects overall profitability.
By tapping into these reports and tools and all the information they offer, you can make informed, data-driven decisions, leading to increased efficiency, profitability, and overall success.