Bar management is no easy task, with various jobs for your bartenders to manage while maintaining top-class customer service and pouring the perfect drink. Bar owners often look for tools to make their small business operations more manageable and streamlined. A bar POS system could be just the thing.
If you’re considering setting up a bar POS system but don’t know where to begin, this simple guide will tell you everything you need to know: what they are, why you need one, typical pricing structures, and what integrations and features to look for.
A bar POS system is a point-of-sale system that lets you process payments, keep track of sales, and manage your business. The POS system is the hardware and software that makes these tasks possible.
Think of a POS system as an intuitive cash register with extra functionality. Most are cloud-based systems that allow you to take cash or contactless payments, with debit and credit card processing options and various other tools — inventory tracking, sales reporting, customer management, and more.
You can set up a POS system on dedicated hardware or download POS software onto an iPad, Android tablet, or desktop computer.
Not all bar POS systems are created equal; different POS providers have different features. Look at the functionality of a few options and choose POS software with everything you need.
The first — and arguably most important — function you want your bar POS system to have is the possibility to process various payment options.
Fewer people use cash to pay for things in their day-to-day lives, with an estimated 41% of Americans using cash less than once a week. Instead, consumers are opting to pay with contactless technology or by card. Keep this in mind and choose a POS system that can process these payments quickly and easily.
Buy software and hardware to process payments from:
Credit cards
Debit cards
Contactless technology (including smartphones and smartwatches)
Cash (you’ll need to buy a cash drawer)
Gift cards (if you use these in your bar)
The ordering features you’ll need can depend on the order system you use in your bar. For example, a mobile POS will be better than a static system if you offer tableside ordering. If you provide online ordering, ensure your bar POS system can process this.
Many POS systems also offer the option to open a bar tab or offer discounts on menu items at certain times (i.e., if you run a happy hour deal).
Good POS systems come with built-in sales reporting software. Each time you make a sale, data is added to the system to produce sales reports that update instantly.
This type of software can save you time and allow you to view real-time sales information with just a few taps — no more filling out lengthy spreadsheets to track sales or using a calculator to figure out your bottom line!
Another feature of high-quality bar POS systems is an integrated inventory management system. With the right POS software, you can track inventory in real time to see what you have in stock and what you need to reorder.
To set it up, enter your current stock levels and specify which menu items use which inventory. Each time you make a sale, your inventory levels will update immediately. This is handy for bar managers who want to automate their inventory processes. Some POS systems can even be set up to automatically reorder products when they’re low in stock — you just need to set up the proper permissions.
Some bar POS systems come with tools to help you manage your customer database and set up a customer loyalty program. Rewards programs can be a great way to encourage return visitors, and with the right POS software, it’s easy to get started.
Customers can earn points for every dollar they spend at your bar on drinks, food, or any merchandise you sell. They can then spend those points to get money off a bar tab or save them for a reward.
Research into consumer habits suggests that rewards program customers spend up to 66% more to maximize their loyalty benefits. With an easy-to-use loyalty program, you could enjoy higher levels of income.
Finally, your bar’s POS system must work with any other hardware or software you may use.
To set up a self-service kiosk, for instance, you need POS software that integrates with the kiosk software. Square POS works seamlessly with KioskBuddy to provide an easy-to-use self-service solution. Customers can place and pay for orders themselves on the customer-facing display, but bar managers can still reap the benefits of the POS software’s additional features.
If your bar offers food, you’ll also want to ensure your POS software works with your kitchen display system (KDS). Many POS providers sell integrated hardware that’s specifically designed for use with their products.
Pricing for bar POS systems varies depending on the provider. Some charge a monthly fee, while others charge a percentage value for every sale processed. Certain operators use both — a monthly cost for special features plus a processing fee for every sale.
In addition to paying for the software, you’ll have to factor hardware costs into your budget. Depending on your bar setup, you may want a full POS terminal with add-ons like a cash drawer, card reader, and receipt printer. Small businesses might be better suited to a simpler setup, using a tablet mount with an integrated card reader.
Let’s look at the pricing structures for some of the best bar POS systems.
The restaurant POS from Square is a good solution for bar managers. The basic plan has no monthly fee but charges 2.6% plus $0.10 to process in-person payments. Sales reporting is included, but loyalty programs and marketing tools have an extra cost ($45 per month and $15 per month, respectively).
More advanced plans with additional features start at $60 per month, but you’ll need to pay the per-transaction processing fees on top of this.
You can download the POS software onto an iPad or tablet, meaning you may not need to pay for extra hardware if you already have this.
If you’re trying to keep costs low, a Square Kiosk mount is useful hardware that allows you to process contactless and card payments. It costs $149 and gives you the ability to attach your iPad POS to a wall or countertop.
Toast’s POS system also offers a free plan. Its processing fees are 2.99% of a sale plus $0.15, so it’s a more expensive option than Square.
However, the use of hardware is included in this. Even with no money down, you’ll be provided with a countertop POS system or mobile POS. Other hardware may not be compatible with the Toast software, so any add-ons you need are best purchased directly from Toast.
Monthly plans with extra functionality start at $69 a month plus processing fees.
TouchBistro doesn’t have a free version, so prices begin at $69. Loyalty programs, marketing features, and gift card functionality cost extra, so you’ll need to factor this in if you want a versatile POS. Your payment processing fees will be based on factors like your credit history and sales volume.
Inventory management, menu management, and tableside ordering systems are included in the standard monthly cost.
Lightspeed Restaurant POS, formerly known as Upserve, is also $69 a month for a basic plan (called the Essentials plan). Processing fees are 2.6% plus $0.10 on top of this monthly cost.
The Essentials plan doesn’t allow customers to order and pay at the table, and rewards program functionality isn’t included. If you want these extra features, you’ll have to upgrade to the Plus or Pro plans, which cost $189 and $399 a month, respectively.
Choosing the right POS system for your bar can be overwhelming. Think carefully about the features that are important to you and consider how far your budget can stretch.
Square’s Restaurant POS system is a user-friendly POS solution that’s affordable and easy to set up. It also integrates with other software, meaning you can use it in conjunction with a KDS or self-service kiosk.
KioskBuddy is a self-ordering solution that turns your tablet into a self-service station. Customers can place and pay for their bar orders with just a few taps, and it works perfectly with Square POS to give you access to essential payment processing tools.
Sign up for KioskBuddy today and enjoy a 30-day free trial.