When choosing a POS (Point of Sale) system for your restaurant, understanding the full cost involved is often the first thing restaurateurs need to know. Here’s a breakdown of what you can expect to spend for a POS system, such as 3S POS, from the initial purchase to ongoing maintenance and additional features.
Initial Hardware Costs
Your hardware needs will vary depending on your restaurant size and setup. As well as the functionality within your POS system you require. Here’s what you might need:
- POS terminals - £500 to £2,500
- Cash drawers - £100 to £300
- Receipt printers - £150 to £400
- Kitchen display systems (KDS) - £200 to £1,000 per screen
- Barcode scanners - £100 to £300
- Credit card readers - £50 to £200
A mid-sized restaurant might spend anywhere from £3,000 to £10,000 on hardware if they need 3 terminals, 3 receipt printers, 2 KDS screens and related peripherals.
Software Costs
POS software is where the magic happens. Pricing varies based on features and whether you opt for a one-time purchase or a subscription.
- One-time purchase - £1,000 to £5,000 for a lifetime license
- Subscription - £50 to £300 per terminal per month
Add-Ons
- Online ordering - £20 to £50 per month
- Inventory management - £40 to £100 per month
- Loyalty programs - £20 to £60 per month
For 3 terminals, your monthly software cost will likely be between £150 to £600, depending on the features you select.
Installation & Setup Costs
Getting your POS system up and running can involve several steps, each with its own cost.
- Professional installation - £300 to £500
- Staff training - £100 to £1000
Installation and training for a small to mid-sized restaurant could cost £500 to £1,500.
Ongoing Maintenance & Support
Maintaining your POS system involves recurring costs that can add up over time.
- Support fees - £20 to £100 per month
- Software updates - £100 to £300 annually (if not included in your subscription)
- Hardware repairs - £50 to £2,500 depending on what needs fixing
Expect to pay £40 to £200 per month for support and updates.
Additional Costs for Advanced Features
Depending on your needs, you might want to invest in advanced features.
- Online ordering integration - £50 to £150 per month
- Customer loyalty programs - £20 to £60 per month
- Inventory management - £30 to £100 per month
- Third-Party integrations variable - Often a one-time fee or added to your monthly subscription
Adding online ordering and inventory management could increase your monthly costs by £80 to £250.
Hidden Costs
Beyond the obvious, there are some costs that can sneak up on you.
- Transaction fees - 1.5% to 3% per transaction if your POS provider processes payments.
- Downtime - If your system goes down, it could halt operations, leading to lost sales.
- Contractual obligations watch - out for long-term contracts with early termination fees.
If you process £100,000 in card payments monthly, transaction fees could range from £1,500 to £3,000.
Total Cost Estimation
To give you a clearer picture, here’s an example of what the total cost of a POS system might look like for a mid-sized restaurant.
- Hardware - £3,000 to £10,000
- Software - £150 to £600 per month
- Installation and training - £500 to £1,500
- Maintenance and support - £40 to £200 per month
- Additional features - £100 to £300 per month
- Estimated first-year costs - £6,000 to £15,000 (including hardware and first year of software, installation and training)
- Estimated ongoing costs - £250 to £1,000 per month (for software, support and additional features)
ROI Over 5 Years
Investing in a POS system is a long-term commitment and the return on investment (ROI) over five years can be substantial.
- Total investment - £18,000 to £45,000 (including ongoing costs for five years)
- Potential savings - By reducing errors, improving efficiency and managing inventory better, a well-implemented POS system can save you £10,000 to £20,000 annually. Over five years, that’s £50,000 to £100,000 in savings.
- Revenue growth enhanced - customer service, faster transactions and better loyalty programs can potentially increase revenue by 5% to 10% annually.
Net Gain After accounting for the initial and ongoing costs, your POS system could provide a net gain of £30,000 to £80,000 over five years, depending on how effectively you use the system.
Conclusion
A POS system is a big investment—but it's an important one for any restaurant. Initial costs can be high—£6,000 to £15,000 in the first year—but most restaurants will be able to recover the initial investment within the first 5 years of deployment due to added benefits. No matter which POS system you select, don't forget to consider hidden costs such as transaction fees and subscription fees.
For almost 20 years, 3S POS has offered one of the most flexible EPOS systems to international brands such as Caffe Concerto, Chaiiwala, Heavenly Desserts, Pepe’s Piri Piri, GDK and thousands more delighted customers.
If you are looking for an Restaurant POS System that will not just help you accept payments but includes inventory management, multi-site management, loyalty programs, and much more, speak to our sales for a free demo.