Restaurant Point Of Sale Terminal Market Report Scope & Overview:

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The Restaurant Point of Sale Terminal Market Size was valued at USD 21.49 Billion in 2023 and is expected to reach USD 48.46 Billion by 2032 and grow at a CAGR of 9.5% over the forecast period 2024-2032.

The Restaurant POS Terminal Market has experienced significant growth, driven by the adoption of cloud-based POS systems, which offer real-time data access, inventory management, and integrated payment solutions. For example, systems like Toast, tailored for restaurants, offer free starter POS options and pay-as-you-go hardware setups, making them accessible for small restaurants while scaling to meet the needs of large enterprises. Toast’s offerings, such as online ordering, delivery management, and employee management tools, make it an ideal solution for growing restaurant chains. Similarly, Shopify has emerged as a leader for omnichannel businesses, with plans starting at USD 29 per month and processing rates of 2.9% per transaction. Shopify's recent updates in September 2024 introduced more automation functions, which streamline marketing and operational efficiency. This scalability appeals to mid-sized businesses looking for powerful e-commerce and in-person payment integrations.

As fast-growing restaurant chains, like Habit Burger and Shake Shack, expand globally, experiencing rapid growth, driven in part by the fast expansion of restaurant chains. For example, in 2023, brands like HTeaO, which grew its U.S. units by 47.1%, and increased sales by 53.6%, highlight the demand for scalable POS solutions to support such growth. Other fast-growing chains like Dutch Bros. Coffee and Jersey Mike's Subs plan to open 150 to 350 new locations in 2024. These expansions require modern POS systems to manage high transaction volumes, inventory, and customer service efficiently, further fueling the POS market's expansion.

Restaurant Point Of Sale Terminal Market Dynamics

Key Drivers:

• Growth in Cloud-Based and Mobile POS Adoption

Restaurant acceptance of POS cloud-based technology is accelerating along the lines of scalability, cost-effectiveness, and instant availability of data. With cloud solutions, restaurants can manage many locations from one location, and this does streamline processes and cut costs related to upfront infrastructure.  Cloud technology will generate USD 3 trillion in business value in 2023, will be unlocked by cloud technology-that is a tremendous impact on all kinds of industries, from retail and hospitality to healthcare, restaurants being no exception as the phase-out continues of their traditional, on-premise POS systems. For instance, handheld POS devices and QR code-based ordering systems are significant in Enhancing Service Efficiency and ensuring customer satisfaction.

Restaurants that installed Handheld POS Systems and self-service kiosks experienced a 5% to 10% increase per table, as it primarily relied on higher table turnovers and upselling potential supported by digital devices. As of 2023, 43% of the restaurants have migrated to Cloud-Based POS Systems. A higher adoption rate of over 60% is expected for the period between 2026 and 2027, which depicts faster-than-ever growth for the market. Growing restaurant chains like Shake Shack and Habit Burger expanding outside of North America would drive demand for scalable, high-performance POS systems capable of handling high transactions as fast growth elsewhere expands the global reach of restaurants.

• Rising Consumer Expectations Drive Advanced POS Adoption

Restrain:

• Market Saturation Challenges in the Restaurant POS Terminal Sector

High saturation in the Restaurant POS Terminal Market makes decision-making a burden for restaurateurs because there are so many companies. More than 100 companies are engaged in offering POS solutions for the restaurant sector, accompanied by rich features and a range of pricing terms. Such diversity could be a reason for confusion and indecision, as it is reported that 60% of restaurateurs felt overwhelmed when deciding on the selection of the POS solution, often causing delays in implementing the system. The percentage is still high for disaffection since 30% of the restaurants have expressed dissatisfaction with their chosen system as either a poor fit or functionality.

However, the Extreme Competition has resulted in very competitive pricing, where the real worth of every solution is placed before difficult decisions. In recent times, data showed that around 40% of restaurant operators felt that the cost of switching systems was too high, which always confirmed a reluctance to switch existing setups even if they were not quite satisfied.

Restaurant operators must carry out extensive research and analysis as the market grows to successfully manage this complexity. This allows them to make Intelligent Decisions in terms of what is needed versus what is offered in terms of improvement in operational efficiency and customer experience, thereby placing them firmly in the driver's seat in an ever-changing landscape.

Restaurant Point Of Sale Terminal Market Segmentation Overview

By End-Use

The FSR segment maintained the highest share in 2023 with 34.75% of the overall revenue earned. The demand for sophisticated technology will improve the customer experience while reducing the burden of operational endeavours thus promoting growth in this segment. Major players like Toast and Square have introduced their own advanced POS systems with integrated loyalty programs, advanced analytics, and mobile payment, thus satisfying the different needs of FSRs. The U.S. food service and drinking place sales amount to as high as 1.09 trillion U.S. dollars in 2023. As many as 13.2 million U.S. restaurant employees catalysed this industry. another thriving section of the U.S. food service industry is the full-service restaurant or FSR sector. The output of the U.S. full-service restaurant industry increased to over 78 billion U.S. dollars in 2023.

The QSR segment of the Restaurant POS terminal market is expected to grow at a CAGR of 11.22% over the forecast period. It would essentially be because consumers have begun demanding fast convenience in dine-in and take-out options. Importantly, Domino's is one of the companies that have optimized POS to include contactless payments and delivery options, which are in line with increasing digital ordering needs. As stated by Deloitte, 40% of consumers would prefer to order from the restaurant's website directly.

By Application Type

In 2023, the front-end application segment of the Restaurant Point of Sale (POS) market dominated with a substantial revenue share of 69%. This segment includes customer-facing technologies, such as order-taking systems and payment processing, which are crucial for enhancing customer interaction and service speed. The blog discusses key statistics regarding front-end performance. It mentions that a 1-second delay in page response can lead to a 7% reduction in conversions. Moreover, 53% of mobile users abandon a site that takes longer than 3 seconds to load. The article emphasizes the significance of metrics like Time to First Byte (TTFB) and First Contentful Paint (FCP), which help developers understand user experience more effectively.

The Back-End segment of it is expected to grow at a CAGR of 11.17% during the forecast period. Growth in this market is due to the increasing need for solutions with strong data management and analytics in the restaurant sector. Companies like Revel Systems are unveiling improved back-end features offering detailed sales analytics and inventory tracking, which helps restaurant operators streamline their operations. However, if you own a retail store, you can now take this out of your physical store using the online ordering feature. E-commerce sales are up 18% for 2020 and a total of USD 709.78 billion in sales.

Restaurant Point Of Sale Terminal Market Regional Analysis

In North America, the restaurant POS terminal market has shown substantial growth, driven by widespread adoption of digital payment solutions, especially across the U.S. and Canada. The region benefits from high technology adoption, with cloud-based POS systems and mobile integrations gaining traction among restaurant operators looking for operational efficiency. The U.S. remains a primary market due to its expansive restaurant industry and early adoption of POS innovations, contributing to the region’s dominance in market share.

The Asia Pacific region, meanwhile, is experiencing rapid growth fueled by a booming food and beverage industry and increasing investments in digital infrastructure. Emerging markets like China and India lead this growth, as numerous restaurant chains and small to medium-sized businesses upgrade their POS systems to meet rising customer demand for digital payment options. Governments’ push towards digitalization and the shift towards cashless transactions in markets like China also contribute significantly. With an expanding urban population and growth of quick-service restaurants, the Asia Pacific is expected to see the fastest CAGR in the restaurant POS terminal market over the next few years.

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Key Players 

Some of the major players in the Restaurant Point of Sale Terminal Market are:

• Square (Square POS, Square for Restaurants)

• Toast (Toast POS, Toast Kitchen Display System)

• Lightspeed (Lightspeed Restaurant POS, Lightspeed Loyalty)

• Revel Systems (Revel POS, Revel Analytics)

• Clover (Clover Station, Clover Go)

• ShopKeep (ShopKeep POS, ShopKeep Payments)

• NCR Corporation (NCR Aloha POS, NCR Silver)

• AccuPOS (AccuPOS Restaurant POS, AccuPOS Cloud)

• Bepoz (Bepoz POS, Bepoz Loyalty)

• TouchBistro (TouchBistro POS, TouchBistro Reservations)

• Oracle Hospitality (Oracle MICROS POS, Oracle Simphony)

• Lightspeed (Lightspeed Restaurant, Lightspeed eCommerce)

• Epos Now (Epos Now Restaurant POS, Epos Now Payments)

• Positouch (Positouch POS, Positouch Online Ordering)

• Harbortouch (Harbortouch POS, Harbortouch Online Ordering)

• Zomato (Zomato Order, Zomato Analytics)

• Sapaad (Sapaad POS, Sapaad Online Ordering)

• Epicor (Epicor POS, Epicor Catering and Events Management)

• Fivestars (Fivestars Loyalty Program, Fivestars POS Integration)

• Grubhub (Grubhub POS Integration, Grubhub Analytics)

Recent Trends

• In January 2024, ParTech, Inc. recently launched the PAR Wave, an All-In-One touch panel designed with innovative hardware components specifically tailored for hospitality. This is the overall essence of performance, security, functionality, and new design aimed at helping restaurant operations meet their needs.

• Snack POS, the provider of restaurant point-of-sale systems, partnered in August 2023 with PAX, the provider of secure electronic payment terminal solutions, in launching Europay, MasterCard, and Visa (EMV) enabled terminals to restaurants for safer payment and convenience for both the customers and the businesses.