Over the past six years, I’ve seen firsthand how technology has revolutionized restaurant operations. Point of Sale (POS) systems have evolved from basic cash registers to powerful tools that streamline everything from order management and payments to inventory tracking.
The global restaurant POS systems market was valued at $14.4 billion in 2023 and is projected to grow from $15.38 billion in 2024 to $26.03 billion by 2032, expanding at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032. This growth underscores the increasing number of restaurants that recognize the value of investing in the right point-of-sale (POS) systems to enhance operational efficiency, improve customer experiences, and ultimately increase restaurant revenue.
In this article, I’ll break down the various costs involved in setting up a restaurant POS system, the factors that contribute to these costs, and how you can make an informed investment that best suits your business needs.
Key Takeaways
- Monthly Subscription vs. Commission-Based Pricing: There are two pricing models for restaurant POS systems: a monthly subscription fee and a subscription fee with commissions on orders.
- Avoid Commission-Based Pricing for POS Systems: Avoid POS systems that charge commissions on orders. With hundreds or thousands of orders, you could end up paying thousands of dollars per month (instead of just hundreds).
- Restaurant POS System Subscription Cost: Subscription costs generally range from $15 to $100 per month. However, some sources report that POS software for restaurants can cost between $60 and $250 per month, depending on the features included. The final monthly price often depends on establishment size, operational complexity, and desired features.
- Restaurant POS System Hardware Cost: The hardware costs are typically a one-time fixed expense, starting at $700, and can exceed $1,000. The total cost will depend on your hardware requirements.
- Key Price Components: Restaurant POS system costs include software licensing fees, commissions, hardware expenses, installation and setup costs, ongoing maintenance and support fees, and potential add-ons or integrations, such as online ordering systems, payment processing solutions, and inventory management features.
- Choose Cloud-Based POS: Avoid POS systems that require installation and opt for those that operate in the cloud.
- Evaluate Needs and Budget: Carefully assess your business needs, restaurant budget, and restaurant goals to determine the most cost-effective POS system for your business.
What is a Restaurant POS System?
A restaurant POS (point-of-sale) system is a software and hardware solution that streamlines various operations within a restaurant, including order processing, payment transactions, inventory management, and reporting. It acts as a central hub for handling customer orders, tracking sales, and providing essential data for restaurant management.
The system typically includes a touchscreen terminal or tablet for order input, integration with kitchen printers or displays, and connectivity to payment processors.
Advanced POS systems may offer features such as table management, online ordering systems, restaurant reservation systems, menu customization, staff management, and integration with other business tools.
What Does a Restaurant POS System Do?
Online ordering POS systems serve as a central hub for managing customer orders, tracking sales, and accepting payments. However, POS solutions for restaurants have become increasingly advanced, encompassing various functionalities within a single platform.
You may wonder what the features of the POS system are, beyond its basic functionality. These can include:
- Reporting and analytics (sales reports, trends, popular items, restaurant labor costs, etc.)
- Table management
- Online ordering system and restaurant delivery software
- Creating and customizing a restaurant menu
- Staff management
- CRM and restaurant loyalty program management
- Tableside ordering
- Inventory management
- Customer self-service (like self-ordering kiosks or mobile apps that empower customers to independently place orders and make payments, resulting in reduced wait times and improved convenience)
How Much Does a POS System Cost for a Restaurant?
As I mentioned earlier, restaurant POS systems typically have a monthly software cost ranging from $60 to $250. Other sources report that software costs range from $15 to $100 per month.
In addition to these recurring fees, a one-time fixed hardware cost is typically required, ranging from $700 to over $1,000.
In addition to the software and hardware costs, some POS systems charge a commission fee on transactions, typically ranging from 2.6% + 15¢ to 3.5% + 15¢, in addition to the monthly subscription fee.
Many POS providers also offer optional add-ons, for example, a delivery management system with a driver app, which can cost approximately $14 per month.
Instead of focusing solely on the least expensive pricing option, it’s crucial to analyze the restaurant POS system prices in relation to the value they will bring to your business. That’s why considering how the different restaurant costs contribute to the overall value is essential.
The restaurant POS systems cost varies based on the restaurant’s requirements and the size of the establishment. For example, small businesses like food trucks probably will need a single register and can opt for handheld POS tablet packages.
On the other hand, large restaurants and franchise restaurants may require multiple terminals to meet their needs. Therefore, the POS costs of these establishments must be multiplied by the additional registers required.
Point of Sale (POS) software typically ranges from $29 to $100 per month for small businesses with a single register.
When selecting a restaurant POS system, several key factors should be considered. One of the key factors influencing the prices of restaurant POS systems is the type of POS system itself.
What Are the POS Hardware Types?
Each type of POS hardware offers unique features and benefits tailored to your restaurant’s specific needs and size. We can distinguish between the two main types of POS hardware:
1. Tablet Systems
These POS systems are commonly known as software-as-a-service (SaaS) or cloud-based POS systems. Users can access data from anywhere, thanks to the Internet connection. These systems store data on remote servers.
2. Legacy Systems
These POS systems have a closed internal network. They store data on internal servers, which are located in your restaurant. Legacy restaurant POS systems consist of large hardware terminals that require manual updates.
POS system hardware comprises the physical components necessary to operate a point-of-sale system. These components include
- Touchscreen Terminals or Tablets
- Cash Registers or Cash Drawers
- Card Readers or Payment Terminals
- Receipt Printers
- Barcode Scanners
- Kitchen Printers or Displays
- Handheld Devices
- Kitchen Display Systems (KDS)
- Customer Displays
- Wireless Access Points
The specific POS hardware components required for a given POS system can vary depending on the business’s needs and preferences. Collectively, POS hardware components enable the smooth operation of a point-of-sale system.
Certain types of hardware, like mobile POS systems, may include a built-in credit card reader. However, other hardware components, such as cash drawers and receipt printers, may need to be purchased separately.
Depending on the POS system, you might find all-in-one hardware sets that include a cash drawer and receipt printer, or you may need to acquire them individually.
Here you can learn more about the types of POS systems.
How Much Does POS System Hardware Cost?
POS companies often provide hardware bundles, where multiple components are offered together, while additional add-ons are available as individual line items. Discounts may be available for bulk orders of hardware items, encouraging businesses to purchase larger quantities at reduced prices.
The POS hardware costs can vary depending on the components required, brand, quality, and additional features.
Below, I’ve created a table with the names of POS hardware components and their corresponding cost ranges.
| Component Name | Cost Range |
|---|---|
| Touchscreen Terminals or Tablets | – Basic Models: $350 to $800 for a terminal and credit card reader bundle. – Terminal Bundles: $800 to $1,000 for terminal, case, stand, credit card reader, receipt printer, and cabling. – High-end Models: $1,000 to $6,000 depending on specifications and features. |
| Cash Registers | From $100 to $1,500, mostly ranging from $100 to $300, depending on features and security. |
| Cash Drawers | From $39 to $1,000, depending on size, security features, and durability. |
| Barcode Scanners | From $150 to $350, depending on the type (wired or wireless) and scanning capability. |
| Receipt/Ticket Printers | From $150 to $400, depending on type (thermal or impact) and printing speed, can go up to $600 for advanced models. |
| Card Readers or Payment Terminals | From $50 to $500, depending on type (magnetic stripe, EMV chip, or contactless). Handheld POS systems typically cost around $600. |
| Handheld POS System / Handheld Devices | A handheld POS system costs around $600, with additional networking hardware ranging from $200 to $800. Handheld devices typically range from $200 to $1,000 depending on specs. |
| Kitchen Printers | From $200 to $500, depending on type and features. |
| Customer Displays | From $150 to $500, depending on size and functionality. |
| Kitchen Display Systems (KDS) | – Low-end models: $100. – Subscription-based pricing: $20 to $30/month/device, or $600 to $800 upfront. – High-end models: $600 to $1,500. |
| Router | From $200 to $400. |
Sources: Toast, Expert Market, NerdWallet
What Is POS System Software?
It refers to the system or platform that allows customers and employees to place orders and accept payments. POS software empowers businesses to streamline operations and enhance efficiency through various features. It’s not worth investing in hardware if your system’s software is not fast and regularly updated.
Key functionalities commonly found in POS software include
- Order processing: Restaurant staff can input and process customer orders quickly
- Payment processing: POS software is integrated with payment processors, facilitating the payment for orders. Various payment methods are included (cash, credit cards, mobile wallets, and other payment methods).
Additional features of POS software could be:
- Inventory management: POS systems track inventory levels, manage stock, generate purchase orders, and provide real-time updates on product availability.
- Online ordering feature: Some POS systems are integrated with food delivery apps and/or online ordering systems, making the data flow seamless and enhancing the efficiency of restaurant operations.
- Reporting and analytics: Most POS providers’ software collects data and generates reports and information on sales, inventory, and other key restaurant performance indicators, enabling restaurant analytics.
- Customer Relationship Management (CRM): Some POS systems include restaurant CRM, which facilitates the creation of personalized restaurant promotions and loyalty programs for customers.
- Loyalty program: Many POS systems have built-in restaurant loyalty programs that allow restaurants to increase the number of repeat customers.
- Gift cards: Many POS systems are integrated with gift card programs. Customers can purchase gift cards and use them as a form of payment.
How Much Does POS Software Cost?
POS software is typically priced through monthly or yearly subscription plans. The prices vary depending on the software vendor and the features included. Before choosing the best POS system for your restaurant, ensure you understand what the price includes.
A given POS system provider might offer a lower price, but, at the same time, updates and software upgrades might be paid extra for. The same applies to the support when a system breaks. Ensure that any support and new releases are included in the pricing offered by vendors.
Below, I’ve created a table with approximate price ranges for standard POS system software and KDS.
| Software Type | Cost Range |
|---|---|
| POS Software | $0 to $400 per month, usually the POS system software subscription costs are around $65-$70 per month per device |
| KDS Software | $30 to $200 per month per terminal or user |
| Delivery Management & Driver App Software | From $12 to $70 |
| Loyalty Program Software | From $19 to $45 |
| Delivery Dispatch (Third-party delivery services) | From $19 to $85 |
| Website Builder Software | From $9 to $19, or 2.9% + 30¢ per transaction |
Sources: UpMenu, Toast, Expert Market, NerdWallet
As you can see, POS system software subscriptions typically cost around $65 to $70 per month per device. You may also find free plans; however, in this case, a transaction fee typically contributes to the overall cost of the POS software.
The price of Kitchen Display System (KDS) software can vary based on the desired features, the complexity of kitchen operations, and the software provider. Typically, KDS software costs between $30 and $200 per month per terminal or user.
As mentioned earlier, credit card processing fees also directly influence the cost of a restaurant POS system. Your bank or POS supplier can provide payment processing, and they will impose a fee for processing each credit card transaction.
The credit card processing fees charged to restaurants can vary depending on several factors, including the chosen payment processor, transaction volume, the types of cards accepted, and the pricing structure.
Typically, credit card processing fees in the restaurant industry range from 1.5% to 3.5% of the transaction amount, depending on the payment processor and its pricing structure.
Before selecting a POS system for your restaurant, check the credit card processing fees.
Apart from credit card processing fees, ensure that any repair and/or maintenance costs are included in the point-of-sale (POS) pricing. Consider the following questions while comparing different POS system offers:
- Is there any phone or email support?
- If your system breaks down, will someone from the POS provider come to your restaurant to resolve the issue?
- Are system updates included in the pricing, or are they an additional cost?
Don’t forget about additional POS features. For example, selecting a POS system already integrated with an online ordering system is widespread. Thanks to that, customers can visit your restaurant’s website and place an online order.
You can review this list of the best restaurant POS systems to help you make an informed choice for your business.
Lastly, another factor that influences the cost of a POS system is its installation. You should check what is required to install the POS system in your restaurant.
Below, I’ve created a list of questions that should help you evaluate the installation process.
- Will someone come to your establishment to install the system, or is it your responsibility to do so?
- If someone comes to do this, are there any time limits?
- If you exceed them, is it an extra cost?
- Will somebody train you and your employees?
- Is the restaurant training an additional cost or already included in the pricing?
- How about creating a restaurant menu? Will the POS vendor do this for you, or do you need to do this yourself?
- Will there be any ongoing support for system maintenance and troubleshooting after installation?
- How long will the entire installation process take, and will it interfere with your business hours?
- Does the POS provider offer a trial or demo period before installation to ensure it meets your needs?
The installation costs can range from $0 if it’s included in the cost of POS hardware and software, up to $700.
Installation is typically billed by the hour, with remote installation being the more affordable option. It usually costs around $75 per hour for remote installation and $125 per hour for onsite installation.
The cost of building a restaurant menu depends on:
- The number of menu items
- The menu complexity
- Customization options offered by POS providers
Creating a restaurant menu within a POS system can have a one-time cost ranging from $100 to $500 for a short and simple menu, with around $400 for a complete menu setup in the POS system.
In contrast, more complex or customizable menus may incur even higher expenses.
