POS System Providers in the Region which are that of Micros, Aloha and Aldelo - Research Paper Example

Executive Summary Restaurant Point-of-sale (POS) systems have steadily emerged as a norm within the industry because of the numerous benefits that are associated with their installation and execution. By providing both managerial, operational and technical assistance POS systems can enhance revenues and minimize costs thereby, enhancing restaurant profits. This report examines three POS system providers in the region which are that of Micros, Aloha and Aldelo and assesses their product portfolio in accordance with the specific criteria of costs, capabilities, security and technical support. The conclusions of the report establish that because of excellent technical support, an extensive product portfolio and trusted POS systems, Micros POS system is the option which is the most appropriate choice to implement in the present scenario. Table of Contents 1. Introduction 4 2. Methodology 5 3. Criteria 5 4. Conclusion 5 5. Recommendations 6 6. Discussion 6 6.1 Analysis of Specific Options and Criterions 6 6.1.1 Costs 6 6.1.2 Capabilities 7 6.1.3 Security 8 6.1.4 Technical Support 9 6.2 Evaluation of Options 9 6.2.1 Micros 9 6.2.1.1 Costs 9 6.2.1.2 Capabilities 9 6.2.1.3 Security 10 6.2.1.4 Technical Support 10 6.2.2 Aloha 10 6.2.2.1 Costs 10 6.2.2.2 Capabilities 10 6.2.2.3 Security 11 6.2.2.4 Technical Support 11 6.2.3 Aldelo 11 6.2.3.1 Costs 11 6.2.3.2 Capabilities 12 6.2.3.3 Security 12 6.2.3.4 Technical Support 12 References 13 Appendices 14 Appendix A 14 Appendix B 15 1. Introduction Point-of-sale or POS systems are a key consideration for the purposes of enhancing the effectiveness of restaurant business operations and day-to-day activities (Walker 369). Since the significance of implementing a comprehensive POS system has been recognized and acknowledged across the restaurant and hospitality industry, the execution of this framework cannot be ignored by the organization if it intends to establish itself as a competitive force within the industry. In the current scenario none of our 5 full-service chain restaurants are conducting their operations with the aid of a POS system. Due to this factor, administrative functions within the restaurant including the management of sales and scheduling of orders is being negatively impacted. Additionally, as the popularity of our food is growing across the region primarily because of word-of-mouth and social media marketing the dine-in service in all of our restaurant chains has been reporting a consistently upward trend in the influx of customers, most of which are families and place orders for multiple meals at the same time. Owing to this rise in sales, our restaurant managers have recently lodged complaints stating that in the absence of a system to govern inventory processes and customer checks, instances of alleged theft have been rising which is an alarming prospect for the organization. As noted by Walker, “In today’s increasingly competitive restaurant industry, investment in quality POS system is a standard component of operational costs” (369), whereby, owners recognize the purchase of a POS system as an investment that could assist the maximization of profits by eliminating managerial, administrative and operational inefficiencies which contribute towards a rise in costs. In the light of this understanding this feasibility report assesses three renowned and leading POS systems in the industry which are that of 1) Micros 2) Aloha and 3) Aldelo to recommend the final selection of one of these choices to the organization for overcoming current issues. 2. Methodology The evaluation of selected options in the study has been performed by defining specific criterion and conducting secondary research through company websites and relevant literature to establish the feasibility of each option. In order to ensure that the objectivity of research is not compromised, the analysis of a US patent (publication number US20100259496 A1) for an order receiving apparatus and method invented by Shimizu et al. has also been conducted to identify the integral elements and characteristics of a highly suitable POS system. Accordingly the accumulated information has been linked with the specific criterion and discussed with respect to the available options to arrive at objective and valid conclusions. 3. Criteria The criteria that were employed to assess the feasibility of each option are as follows: cost, capabilities, security and technical supports. 4. Conclusion The performance of each POS system option depended upon the requirements and needs of the organization such that while, Micros and Aloha offered a range of solutions for various restaurant sizes, Aldelo’s product portfolio was limited to bars and quick service restaurants. 5. Recommendations The report recommends the Micros POS system as a viable option for our 5 full-service chain restaurants because of its established and reliable position in the industry, excellent technical support and extensive product portfolio to suit varying needs. 6. Discussion This section of the feasibility report focuses on establishing how the gathered factual information, data and evidence were linked with each option to present appropriate recommendations. Thus, in this part of the report the identified criterions for evaluation have been examined and then applied to Micros Systems, Aloha Systems and Aldelo Systems. 6.1 Analysis of Specific Options and Criterions 6.1.1 Costs Cost is a critical consideration for selecting a POS system that suits the requirements of the restaurant however, it is important to highlight that in the matter of selecting a suitable option both the cost of purchase and the cost of installation must be considered. While, the cost of purchase is fixed for the entire system, the cost of installation can be deemed as variable because it depends upon a number of factors. Walker asserts that this aspect is primarily concerned with the number of stations needed (379). Therefore, for a casual dining restaurant which has the capacity to seat 125 customers at once the number of stations required can range anywhere between two and three stations that must be placed in the main dining spot and the bar in addition with the placement of printing devices in the kitchen as well as in the station that is used by the restaurant manager (379). Walker tabulates that the estimated cost for a system that meets this description would stand at $18,000 - $20,000 (379). Since our organizations governs the management of 5 full-service chain restaurants which includes a bar and dining area, it can be identified that installation costs would be incurred for the placement of two stations – one in the bar and one in the dine-in area. 6.1.2 Capabilities The conclusive capabilities of a an effective POS system that have been examined for the purposes of this feasibility report include the integration of an order receiving apparatus and an order receiving procedure (Shimizu et al.). According to Dahmer and Kahl, the acceptance of an order from the customer by the server in a POS system is conducted by utilizing each server’s unique authorization card to trigger the server’s point of access which is present in dining rooms. As demonstrated by the picture below the server swipes the card to identify the number of guests with the table number and creates a specific account for the customers to enter details about the order (Dahmer and Kahl). (Image Source: Dahmer and Kahl) While, the aforementioned picture depicts what is known as a ‘server terminal’, certain systems also allow restaurants to choose from a range of ‘handheld servers’ in which the server enters similar information about the customer’s order details that is to be entered in a server terminal (Dahmer and Kahl). However, handheld servers are deemed as more convenient and efficient because of their portability. According to the argument of Walker the capabilities of a POS system must “…enable the enhanced management of the total guest experience, table and kitchen operations, back-office systems, business intelligence, and gift and loyalty programs” (369). As per the research of Shimizu et al. these elements of an effective model are present in POS systems that assist customer service through the availability of numerous facilities and hardware including printing devices, live cameras and separate stations for each appropriate location of the restaurant in addition with server terminals to transmit information. Shimizu et al. claim that the presence of these features creates what is termed as a ‘customer service supporting system’ which has the capability to improve the restaurant’s ability to offer an ideal customer experience. 6.1.3 Security The security of a POS system is associated with ensuring that customer information such as credit card details are not compromised if a client wishes to opt for a credit card as a mode of payment. Other considerations include the possibility of a security breach by anonymous intrusion that could render the entire system ineffective or unworkable that could result in lost sales or the minimization of the likelihood of a competitor hacking into the POS system to steal critical data regarding the restaurant. 6.1.4 Technical Support The criteria of technical support includes assessing the quality of technical assistance given by the provider of POS systems, the response time of technical support teams in case of emergency and additional costs (if any) for requesting technical support after the expiration of warranty period. 6.2 Evaluation of Options 6.2.1 Micros 6.2.1.1 Costs As Micros has been producing several POS systems to fulfill the requirements of small, medium-sized and large restaurants, the price range for a Micros POS system station is variable and depends upon the client’s unique needs. However, on the estimated cost for a system as per online listings ranges between $5,000 - $6,500 depending upon the number of facilities (stations, printers etc) the system comprises of. A drawback of Micros in terms of costs is that the company imposes additional charges for upgrading modules thus, if this process becomes expensive for the buyer then certain key features of Micros maybe unavailable. 6.2.1.2 Capabilities Micros provides a complete order receiving equipment and order placement method with their POS systems that comprise of back-office systems and table and kitchen functions. In addition with this factor, FOH tasks can also be conducted through Micros however; the company’s POS system has been linked with poor reviews with regard to the management of FOH tasks. Nonetheless, the system which is offered by this company can be deemed as comprehensive and extensive because it offers a wide collection of modern POS system features but it is important to highlight that gift and loyalty management features and inventory monitoring only become available once additional payment is made since these features are not preinstalled (Micros A). 6.2.1.3 Security Micros certifies that its POS systems are aligned with the latest security and protection software to ensure that privileged client information is not comprised by intruder attacks. 6.2.1.4 Technical Support The company offers 24-hour-support for its North American clients who can gain access to the helpdesk by calling on a toll free number. The comprehensive range of system support includes installation of system, system configuration, maintenance of software and hardware and management of network (Micros B). 6.2.2 Aloha 6.2.2.1 Costs The cost bracket in which Aloha’s POS systems fall can be declared as lower than the prices which are offered by Micros that is between the $3500 and $5000 range as per online listings however, Aloha POS systems do not offer high value for money because of the provision of limited features for the price in comparison with Micros. 6.2.2.2 Capabilities Aloha’s unique selling point lies in the user friendly nature of not only the software but the entire system which aids employee training through the provision of manuals and uncomplicated options for recording transactions and placing orders. While, the company does not charge for the placement of new modules, the drawback of this system in comparison with Micros is that while, Micros provides owners with the liberty to continue operations without a mandatory upgrade of software this offer is not extended by Aloha thereby, making frequent updates and system rebooting necessary after negligible modifications in system specifications. 6.2.2.3 Security Due to technological progress in system security software, Aloha POS systems have been designed to restrict invasion of privacy. 6.2.2.4 Technical Support In comparison with Micros, Aloha POS systems’ technical support is limited to system installation and configuration. Unlike, its competitor, Aloha does not offer personalized technical services or customization of software as per restaurant needs. 6.2.3 Aldelo 6.2.3.1 Costs Since Aldelo is a new entrant in the POS system market it seems to have adopted the costing strategy of penetration whereby, its system is priced much lower than competitors at in the $1500 to $2000 range. 6.2.3.2 Capabilities Aldelo’s range of POS system is not as comprehensive as the product portfolio of competing firms – Micros and Aloha. Thus, the Aldelo Restaurant Point of Sale only offers an extensive range of table services that can operate efficiently for bars (Aldelo) but not for dine-in restaurants that serve a large clientele. 6.2.3.3 Security As Aldelo has only entered the POS system market in recent years it is difficult to establish whether its commitment of offering a guaranteed secure service is rightful, however, it can be established that as a new organization the firm does not have the resources to design POS systems that can match Micros in terms of security offerings. 6.2.3.4 Technical Support The firm promises 24-hour technical support to clients through the establishment of an official helpdesk to satisfy queries. References Walker, John R. The restaurant: from concept to operation. John Wiley and Sons, 2007. Dahmer, Sondra J., and Kurt W. Kahl. Restaurant service basics. Wiley, 2008. Shimizu, Kenji, et al. "Order receiving apparatus and order receiving method." U.S. Patent Application 12/755,715. Aldelo. Intuitive Restaurant Point of Sale – Aldelo POS. Aldelo, L.P. 2014. Retrieved from [11th March, 2014] Micros A. Solutions. Micros Systems Inc. 2014. Retrieved from [11th March, 2014] Micros B. Support. Micros Systems Inc. 2014. Retrieved from [11th March, 2014] Appendices Appendix A Appendix B Technical Support Provider System Installation System Configuration Personalized Software Development Network Assistance Micros Aloha Aldelo Read More