pizza how to choose pos

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Developed and Published by:

A guide from Pizza Marketplace

INSIDE: Your complete guide to buying the best point-of-sale system from tips for

an effective POS search to a purchase checklist to guidelines for deciding when to

upgrade the POS system

Sponsored by:

Purchasing the Right POSSystem
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2A Guide by Pizza Marketplace | Purchasing the Right POS System | Sponsored by FireFly Technologies

Contents Purchasing the Right POS SystemPage 3 About the sponsors

Page 4 Introduction

Page 5 Chapter 1 | Possibilities: What a point-of-sale system can do for you

Everywhere at once

A crystal ball for sales

Systematize for savings, market for growth

Knowing your neighbors

Boosting business though online ordering

Page 13 Chapter 2 | Necessities: Choosing a POS system that fits your needs

Get what you need

Seeing is understanding

Page 21 Chapter 3 | Shopping around: Buying a POS system

Buy it or lease it?

The installation

Software updates and upgrades

Page 27 Chapter 4 | Improvements: Upgrading your POS system

Wish list

Parts arent just parts

Page 31 Appendix | Related articles from Pizza Marketplace

Promoting via point-of-sale

Choosing a pizza POS provider

Online ordering outlay offers potential payoff

Selling pizzas by e-mail


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3A Guide by Pizza Marketplace | Purchasing the Right POS System | Sponsored by FireFly Technologies

About the sponsors

Published by NetWorld Alliance

2009 www.networldalliance.com

All photos courtesy ofFirefly Technologies, unless otherwise specified.

Updated by Richard Slawsky, editor, Pizza Marketplace

Written by Steve Coomes, contributing writer

Dick Good, CEO

Tom Harper, president and publisher

Bob Fincher, executive vice president and general manager, Technology Division

Paul Barron, executive vice president and general manager, Foodservice Division

Joseph Grove, vice president and associate publisher

FireFly Technologies produces the Phoenix point-of-sale system, an innovative and comprehensive

Web-browser-based software solution developed

specifically for the pizza industry. FireFly offers the

most experienced development and installation team

in pizza POS technology. The company provides a

comprehensive solution of software development,

computer hardware assembly, implementation, data

conversion, training and support. It also provides

technical support and equipment for users of the

RapidFire POS system.

Pizza Marketplace is the worlds first and only Web

site devoted to publishing fresh, original news and

in-depth articles centered on the pizza industry.

Launched in November 2001, the Web site has

quickly become a leader in electronic publishing for

the foodservice industry. Its content, updated every

business day, is free to site visitors and read by

industry professionals worldwide.


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A Guide by Pizza Marketplace | Purchasing the Right POS System | Sponsored by FireFly Technologies 4

Introduction

Since its commercial launch

in America more than 100years ago, the pizza industry

has enjoyed dramatic advances

in the equipment invented to help

operators improve their businesses.

The planetary mixer, the conveyor

oven and the dough sheeter are just

a few machines that primed pizza for

the ultimate in customer service

delivery, which arrived in the 1950s.

But while operators mastered great

food and service, many knew they

could improve as business managers.

An MBA has never been necessary for

the task, but the devil in the details of

food and labor cost management has

proven a demon indeed. The math

behind the madness is simple but

time-consuming, and staying ahead

of the paperwork has always been

challenging.

Advances in cash registers during the

1960s and 1970s helped by providing

an accurate total of each days sales.

But it wasnt until NCR and IBM merged

registers with computers around 1980

that the machines began tracking items

sold as well.

That change triggered the slow

transition away from tedious paper

filing systems to storing information

on computers for quick retrieval, and

that marked the dawn of the modern

point-of-sale machine. Not only could

it track sales, it charted sales trends

and stored the operations customer

Updated by

Richard Slawsky, editor,Pizza Marketplace

Written by

Steve Coomes,

Contributing writer

database. By the 1990s, POS systems

were scheduling labor and tracking foodcosts and inventory.

In 2009, POS systems are

technological marvels that report

current activity while forecasting future

sales. Training employees to use them

is a breeze, and they make ordinary

operators look like marketing geniuses

and Wharton grads.

Wondering whether a POS wouldimprove your business? Keep on

reading, for youll find plenty of answers

to that question. And if youre in the

market for a POS upgrade, theres

plenty here for you to learn, too. What

was a great system 10 years ago is a

dinosaur now, so read further to see

whats new.

Wed like to thank FireFly Technologies,whose kind sponsorship of this guide

enables us to provide it to you at no

cost.


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Chapter 1 Possibilities:What a point-of-sale system can do for you

If a pizza operator is fortunate, his

business will operate for manyyears. Over that time, hell replace

ovens, mixers and refrigerators as they

wear out or, hopefully, to accommodate

for growth.

But for a long-time pizza operation,

adding a point-of-sale system to the mix

represents anything but a continuation

of business as usual. The owner whos

kept his books with a pencil-and-paperledger or even an Excel spreadsheet

suddenly sees hours disappear

from the task of assembling the P&L

statement. Managers accustomed to

end-of-day closeout procedures done

manually will finish in 30 minutes what

once took hours and the result will

be error-free. The owner interested

in that nights sales report never has

to come to the store because he can

view it through a Web browser from the

comfort of his home.

And someone new to the restaurant

industry, either as an independent

operator or a franchisee of an

established chain, will find a POS

system to be an indispensable

assistant, providing a wealth of

business data at the touch of a button.

When maximized fully, a modern

POS is a cyber-supervisor capable

of boosting a pizzerias profits by

minimizing losses on one hand and

boosting sales on the other. It reduces

mistakes, catches errors before they

become losses, tracks labor and food

costs precisely all of which add once-

lost income to the bottom line.

By simplifying the collection and

storage of detailed customer

information, it becomes a marketing

powerhouse allowing any operator to

target customers with customized deals

created at a moments notice. And with

its ability to draw on sales history, it

can predict sales going forward with

amazing accuracy.

It will change the way your business

works, said Barry Barckley, products

manager for Hillsboro, Ore.-based

FireFly Technologies, maker of the

Phoenix Point-of-Sale system.

Many operators know a POS will

increase order accuracy and speed, but

those attributes are just basic features,

he said. This is a tool to improve your

whole operation, not just one or two

areas.


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Chapter 1 Possibilities: What a point-of-sale system can do for you

Cheech Kehoe hasnt forgotten the

early years of running Big Daddys

Pizza without a POS system. The

Burlington, Vt., operator relied on three-

part, handwritten guest checks for every

order, a system he said could cause

trouble even before the tickets made it

to the kitchen.

We had to deal with everyones

handwriting styles, so legibility was

an issue all the time, Kehoe said.Somebody didnt write down a pizza

that was supposed to have half of this

and half of that, and so wed end up

sending out a whole one of those.

With a POS system, Kehoe said such

errors are down by 90 percent, plus

order times have been slashed by two-

thirds.

Before we had the system, I waslooking at three minutes per phone call

if everything went well, he said. Now,

if its an existing customer calling, our

systems last-order recall pops up,

and I can usually have it done in 30

seconds.

That the POS can tell an operator so

much about his business, help him

analyze a warehouse of data, and

then guide and improve the operationis where a system pays for itself in

spades.

Operators say the convergence of

a younger and computer-literate

workforce with advanced, Web-page-

like user interfaces common on modern

POS systems has simplified the order-

taking process dramatically. Early POS

systems used computer keyboards

for data input, but contemporary units

are manipulated quickly and easily via

touchscreens.

Brad Ridgeway, director of operations

for 11-unit Mackenzie River Pizza Co. in

Bozeman, Mont., said user-friendliness

was essential to the purchase of his

firms current POS system.

Order-takers had to be able to learn

the system quickly from trainers

charged with explaining it swiftly. Key to

accomplishing that feat, he added, was

the systems customizability.

The computer is completely set up

the way our menu is, and that makes it

very easy to navigate, Ridgeway said.

We have it broken down into menu

categories. So if someones taking an

order for pasta, she has no reason to

go into the pizza or beverage screen.

Its very simple.

Before we had the system, I was

looking at three minutes per phone

call if everything went well. Now, if

its an existing customer calling, our

systems last-order recall pops up,

and I can usually have it done in 30

seconds.

Cheech Kehoe, operator of Big Daddys Pizza


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Seven-unit Dominos Pizza franchisee

Jason Shifflett said the visual natureof modern POS systems makes rapid

order-taking a snap.

With some practice, you can pretty

much memorize what windows are

going to come up and when, said

Shifflett, who operates out of Olive

Branch, Miss. When you know where

the buttons are, you can complete an

order in about 45 to 60 seconds.

Everywhere at once

Unlike a simple cash register, which

doesnt know whose hand is in the

till, a point-of-sale system is nearly

impossible to rob because it requires

approved access for every transaction.

Knowing every cent will be accounted

for sends some treasured employees

scurrying when the POS arrives, said

Duessa Holscher, a partner with FireFly

Technologies.

Weve been told by some of our

customers that long-term managers will

sometimes quit when an owner gets

a POS system, she said. They leave

because they cant steal anymore.

While a basic cash register makes it

simple for a counter worker to cancel a

transaction and pocket the cash, a POS

system requires management approval

for voids. Even if the cooks in the back

collude with the manager to steal food

or cash, all voids can be called up

easily by the system for the owners

review of every transaction. In addition,

many POS systems can be linked to

digital video surveillance systems that

monitor every voided ticket. With a

simple command to view voids, the

system collects those scenes for rapid

review by the operator and makes

watching hours of videotape a thing of

the past.

Holscher said a POS system helps

operators discern true theft from honest

mistakes as well. Sometimes order-

takers mistakenly apply coupons to

items not meant to be discounted,

while others do the same intentionally

in order to steal the difference between

the original price and the bargain. The

system can easily track such a patternof errors and ultimately finger the

perpetrator.

Kehoe said hes confident his POS

system is a theft deterrent, but hes

added some verbal reinforcement of

no-theft policies as well. If our cooks



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make anything without a make ticket for

it from the POS, theyre fired. And onlymanagers can do no sales. Somebody

just cant pop the register whenever

they want.

Barckley said a growing number of

FireFly customers want the ability to

access their POS systems remotely via

the Web.

Multiple-unit operators want the ease

of monitoring their facilities from asingle office, while others, who are

accustomed to using the Web for

business, are simply conditioned to

having access to information whenever

they want. Bottom line: Remote

management allows them access to

real-time data all the time.

Jennifer Dowling, co-owner of Tinook

Inc., operator of multiple restaurantconcepts including Big Cheese Pizza

in Gallup, N.M., said her systems

remote management feature allows her

to change menu prices from the head

office.

What I like about it is your computer

becomes a terminal in that restaurant,

so what youre seeing is whats actually

on the screen, Dowling said. I can

actually do (database) maintenancewhile offsite, and that lets the manager

run the store instead of worrying about

the POS system.

Richard Bobo, office administrator for

Wicks Pizza in Louisville, Ky., said he

uses remote management to add and

subtract items from the companys

menu at three of its four locationssimultaneously. He also uses it to

ensure delivery drivers licenses are up

to date.

If a drivers license is about to expire,

we send him an interoffice e-mail

reminding him to get it renewed, Bobo

said. If the drivers license expires,

or if other employees fail to maintain

their proper safe alcohol service orhealth board certifications, the system

can be programmed to lock them out

automatically.

A crystal ball for sales

Marico Thomas owns the five-unit

Upper Crust Gourmet & Pizza company

in Bermuda, and he uses his POS

system to forecast sales. Drawing on

sales history recorded for several yearsby his system, Thomas can generate

detailed reports that compare the past

to his current sales trends, which also

allows the system to predict with a great

deal of accuracy how much business

hell do in the future. Armed with such

information, the system then suggests

labor and production needs.

I can get good comparisons to my near

history, such as the same day last week

compared to today, or I can go further

back to look at the same day last year,

Thomas said. I can go a few weeks

back from today to look and see if there

are any trends, and I can look at that

same period last year or the year before



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to see trends there. It gives you a firm

feel for where you are and where youshould be. It tells you overall how youre

doing according to your plans.

David Henderson, vice president of

field technology for Capital Pizza, a

97-unit Pizza Hut franchisee in Wichita,

Kan., said he uses his POS system

to produce tight labor schedules. By

telling the system the percentage of net

sales including taxes and benefi

tscosts he wants to spend on labor,

the system helps his managers build a

labor schedule.

As one of our managers is doing

the schedule, it gives him a complete

picture of what the cost really is. Its not

a guess, Henderson said. A manager

knows if he puts another driver or cook

or server on, hes added this much to

his labor that day. That information isin his face on the screen. By pulling

from sales and labor history, the system

also suggests how many drivers, cooks

or servers should be scheduled for

each shift every day. The system will

even tell the operator if it believes hes

scheduled too few workers for each

shift.

Systematize for savings, marketfor growth

Marketing consultant and speaker

Kamron Karington tells pizza operator

audiences nationwide that when he

bought his first pizza store several

years ago, he wasnt interested in

making pizzas, he wanted to make

money. He knew tending ovens andtossing dough would earn him a living,

but he believed a POS system and

its target-marketing capabilities would

make him wealthy. He was right.

The business I bought was struggling

big time, so I knew that if I was going to

grow the thing, I had to market it, said

Karington, a self-taught marketer who

lives in Las Vegas.I wasnt concerned with ovens, and I

wasnt concerned with making pizza.

I could find people to do that for me.

What I wanted to buy was a point-of-

sale system and a customer database

that would let me get the word out in a

very precise way.

Karingtons pizzeria eventually became

a chain of four outlets, which he latersold for a tidy profit. He credits much



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of the companys success to marketing

programs he developed and ran withthe help of his POS system.

People in this business spend so much

money on traditional advertising while

ignoring the goldmine of a database

they have in their POS system, he

said. Retailers would kill for the

customer data a POS system captures

every time somebody calls and places

an order. It gets their phone number,their address and their preferences.

What else do you need to be able

to market to them? Theyve told you

exactly what they want!

A POS system allows an operator

to track and market to customers

who havent ordered in some time, a

tactic commonly called awakening

lazy customers. Armed with such

information, experienced POS userswill mail postcard offers to customers

whove not ordered in 30, 60 or 90

days; those whove been away the

longest get more deeply discounted

offers.

The system also allows the operator

to market effectively by drawing on

order history and customer preference.

A pizza operator can tell his POS to

show every order placed for gourmet

pizzas in the last 30 days, and those

customers can receive a deal on a

high-end pie. By the same token, the

system can show customers whove

never ordered side items and generate

enticements for wings and breadsticks.

Such laser-guided marketing happens

only with a POS system and a well-groomed database, Karington said.

Marketing is the only thing you do in

this business that makes money and

grows your business, he said. And

if you really want to do that, you have

to have a POS system and learn how

to use its marketing function. I can tell

you this much, you wont get the same

results from traditional advertising.

Knowing your neighbors

More and more, pizzeria operators are

integrating Internet-based mapping

technology with their POS systems

to glean information about their

customers. Not only can mapping

technology show where a restaurant's

customers live, parameters can be

defined to show average order pricesin a particular area, and marketing

campaigns can be designed with that

information in hand.

The resulting information can be used

to decide what areas to target with

coupons or door-hangers and to know

what type of offers to use in a particular

area.

Mapping software also can be avaluable tool for increasing driver

safety. Because the system flags

fraudulent addresses, drivers can avoid

being lured to a trouble spot looking for

an address that does not exist.



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The use of mapping software helped

Karington boost sales at his pizzeria,

Wasatch Pizza, from $3,000 a week

to more than $30,000 a week in threeyears. By combining his customer

database with mapping technology,

Karington was able to tailor his

marketing efforts to his customers'

ordering habits.

For example, if a customer's average

ticket was less than $13, they got an

offer for a basic pizza for $9.99. If

their ticket average was higher, they

received an offer for something moreexpensive.

Hull, Iowa-based Pizza Ranch uses

customer sales and demographics

analysis to market to specific guest

segments, crafting targeted messages

and offers to increase order size and

frequency.

"It lets us separate facts from

assumptions," said Jon Moss, Pizza

Ranch brand director. "It helps us

assess whether a particular new

product warrants being added to the

menu and lets us measure customer

retention and acquisition."

Boosting business though

online ordering

Many POS systems today incorporatethe ability to integrate with an online

ordering system, which have been

demonstrated time and time again

to boost ticket averages and order

frequency. Despite all the suggestive

selling done with recorded messages

The following chart shows a very conservative estimate of how a POS system can pay

for itself and boost profits.

Eliminates errors: Two orders per day x $1 each error = $2

Ensures everything is paid for: Two orders per day x $3 for each error = $6

Takes orders faster: Two extra orders per day x $10 each = $20

Eliminates theft and fraud: One prank, bad check or pocketed ticket = $15

Improves labor management: Two hours labor savings per day x avg. $7/hr. = $14

Total single-day savings/gains = $57

Annual savings/gains based on 360 business days = $20,520 the cost of a high-end

POS system

A POS pays for itself



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and phone scripts for CSRs, nothing

sells as effectively as lingering over themenu on the Web, especially one with

detailed full-color pictures.

"I think the customer is more relaxed

in front of the computer," said Jodi

Aufdencamp, co-owner of four-unit

Mama Mimi's Take 'N Bake Pizza in

Columbus, Ohio. "They don't have to

worry about a line of people behind

them waiting to order."And because the system collects

an e-mail address with each online

order, an operator can quickly build a

marketing database that can be tapped

at a moment's notice. An e-mail blast

sent out on Friday morning can mean

the difference between a slow lunch

and a packed house.

In published reports onPizzaMarketplace.com, Papa John's

officials claimed online check averages

are 10 percent to 15 percent higher

than those placed at the counter or over

the phone because customers can see

the full menu, specials and all. Allowed

to shop at their own pace, customers

discover items they didn't know were

there before and give them a try.

"We see our customers skew a littlebit more toward our specialty pizzas

when they order online," said Chuck

Hammers, founder and CEO of Pizza

My Heart in Los Gatos, Calif. "They've

got the time to look and say, 'Boy, that

looks good. Maybe I'll give that a try.'"



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Chapter 2 Necessities:Choosing a POS system that fits your needs

Its one thing for a pizza operator to

think, I need a POS system. Butits another thing entirely to know

exactly what system is needed for that

business. Its easy to be dazzled by

the lights, bells and whistles flashing

away in a demonstration or be wowed

with promises of great service and

technical support. But the question,

Do I really need all this? cant be

ignored.

No matter how desperately an

operator might need a system, both

manufacturers and users advised POS

shoppers to research all or most of the

options available and to solicit multiple

opinions from users of those systems

before spending any money. No less

than a few months investigation is

recommended, some said, while

others typically POS users looking to

upgrade to higher-performing systems

will spend as much as a year in the

hunt.

How does one start this lengthy

journey of discovery?

FireFlys Barry Barckley said operators

must accept the fact ahead of time that

whatever system they get will change

their business dramatically.

Take a look at what systems and

processes are in place now in your

business, and then learn how that

will change with a new system, he

said. That might be in the way it

takes orders, generates reports, does

back-of-house administrative work

whatever it is, you need to know that.

The problem, he said, is very few

operators do that. Most often theyre

focused on the systems attributes,

such as its ease and speed of use,

etc. Those qualities are important, of

course, but they wont change the way

your business runs, he said. What will

alter the business dramatically is how

the operator culls data for reports,creates labor schedules or forecasts

sales.

After they have the system, theyre

asking, Where am I going to get these

numbers? he said. For a mom-and-

pop operation with a single unit, that

might not be as critical. But if you have


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Chapter 2 Necessities: Choosing a POS system that fits your needs

five, 10, 15 or 20 restaurants, that could

be pretty disruptive to the way you runthe business. Youve got to be aware of

those things beforehand, and youve got

to be willing to adjust and understand

how the changes are going to happen.

Barckley recommended POS shoppers

take the time to write out a detailed

analysis of how their business runs

today and then estimate the impact of a

new POS system.Operator Marico Thomas, who has

used four different makes of POS

systems in his restaurant career,

made a wants and needs list

when researching his most recently

purchased system.

Write it down before you start

looking, and when you know what

you want, visit every provider onlineto try and get as much information

on what features are available that

fit your needs, Thomas said. Do a

comparison on how important each

feature is to you and your business,

and if its missing a feature, evaluate

how valuable that feature really is. The

question I ask is whether itll cost me

money to not have it.

Key to making an informed decision,Thomas added, is to avoid seeing a

system before studying its features in

person.

Seeing before studying, he said,

positions the buyer to be seduced by

gadgets when they need to make an

honest evaluation of what their needs

are first. There is some sex appeal inthese POS systems, so seeing them

is like watching a beautiful girl walk by.

You need to know more about what

youre getting into.

POS systems are complex computers

loaded with abilities that even the

sharpest of operators arent always

able to utilize, said FireFlys Duessa

Holscher. So shoppers should take theirunderstanding of whats available and

be bold in asking a lot of questions.

Theres always the risk of getting

overwhelmed by all the details,

she said. So its really important to

understand what you need.

But then there are operators like Kevin

Knudsen, who eagerly dive into the

deluge of particulars.

The more information there is, the

more I have to make a better decision,

said Knudsen, vice president of

DaVincis Pizza in Lincoln, Neb.,

Having too much information doesnt

bother me.

Get what you need

A turnkey POS system is expensive.

At a cost of $10,000 to $20,000 for

a three- or four-terminal system that

might have a central server, wise

operators should focus on buying what

they need before buying what theyd

like.


15/40


In conducting a needs assessment,

Holscher said operators should analyzetheir businesss current requirements

for a POS. Second, they should project

how much the business is expected

to grow in the next one to three years,

and then factor in some wiggle room for

even more growth.

Thats the challenge: buying enough to

help your business and accommodate

for growth, but not so much that youvegot way more than your business

needs, she said.

Having such information about your

business handy during the research

process is important. To help make

a recommendation, a POS provider

should ask for your weekly sales

average and your average sales

on your busiest day. Why the latter

number? Because the system must beable to handle peak demand.

Buying a POS system that cant keep

up on your busiest night is like buying

an oven thats adequate during the

week, but cant handle the load on

Friday night, Thomas said.

A system must be versatile and robust,

able to manage the flow of orders and

the details of inventory and labor. APOS system should have an equally

capable customer database, one that

can meet an operations current needs

immediately, while having enough

capacity and flexibility for the future.

Though pizza is largely a cash

business, credit card use is increasingsteadily. Some POS systems offer

integrated credit card processing,

which can lower transaction times and

save money typically spent on leasing

external card readers.

Most all POS systems are equipped

to handle counter service and dine-

in service. But if your pizzeria offers

delivery, be certain your new POS

system can manage that as well. Know

also that such added functionality may

increase the systems price.

In addition, beware of the multitude of

systems on the market designed for

general restaurants but that addresspizza delivery with add-on components.

Mackenzie Rivers Brad Ridgeway

said his company made the mistake

of buying such a system several years

ago.

Take a look at what systems and

processes are in place now in your

business, and then learn how that

will change with a new system. That

might be in the way it takes orders,

generates reports, does back-of-house

administrative work whatever it is,

you need to know that.

Barry Barckley, products manager

for FireFly Technologies



16/40


We do delivery, pick-up and dine-in,

so we needed something to handle allthree, he said. But what we got just

was not very compatible to what were

trying to do. It functioned more like

something designed for a steakhouse,

and it was not delivery-friendly or pick-

up friendly.

A system must be versatile and robust,

able to manage the flow of orders and

the details of inventory and labor.In assessing what an operator wants

from a POS, Holscher said she asks

potential customers how hands-on

they are in the operation. If theyre

there daily and really understand the

flow of sales, labor and food cost, they

probably can get by on a minimal POS.

They feel they have a pretty good

handle on the business, theyre nothaving theft issues, theyre right on top

of it, she said. But when they want to

be less hands-on, when they want time

away from the business, thats the time

they may want something to mind the

business for them.

Tom Jans, owner of TJs Take and

Bake Pizza, bought a fairly minimal

POS system he assembled himself

two years ago. For $3,000, he gotpizzeria-specific POS software and all

the appropriate hardware for a three-

terminal system. Jans, a self-dubbed

non-computer person, said setting it up

took time, but it saved him thousands in

cash.

Id worked in retail for a long time, so

I knew the necessity of marketing mybusiness and I wanted a system, said

Jans, whose shop is in Hilton Head,

S.C. But I also knew I didnt need a

$15,000 system for a take-and-bake

shop, so I started looking around.

After hiring someone to run the

necessary cables for his system and

set up his network, Jans spent two

solid days of dedicated work inputtingthe data for his menu and order-input

sequence. Though he called the effort

worthwhile, he said there probably

arent many pizza operators whod do

the same.

Holscher agreed, saying nearly every

operator she talks to wants the system

to arrive ready to work for them, not the

other way around.

When you set it up yourself the right

way, youre doing stuff that takes an

IT department at most companies to

understand, she said. Youre setting

up a pretty complex system, and the

typical pizza guy is not going to know

how to do that.

The question is, then, do you want a

turnkey solution where the company

comes in, sets everything up in acouple days time and youre enjoying

the benefits of it right away? Or do you

want to spend the time to save the

money doing it yourself?

Shawn Pratt, operations partner with

Pizzicato Gourmet Pizza in Portland,



17/40


Ore., had POS needs far greater than

Jans; the company has 15 units that

have several POS terminals in each.

Tired of making system updates at

each individual store, Pratt sought a

centralized server system that could be

managed via the Web from Pizzicatos

headquarters.

All our pages are loaded from that

centralized server to the Web and thento every terminal; we dont have servers

in the stores, Pratt said. That cuts

the cost of replacing hardware, which

breaks down in this environment.

But those hardware savings come at a

price, Knudsen added.

There are some downfalls to this new

technology, he said. If the centralized

server loses its Internet connection,

then all the stores are down. Still, the

benefits outweigh the risks, and at the

end of the day, not having the hardware

in the stores and opening up the space

to use for storage is a huge benefit.

Seeing is understanding

Big Daddys Pizzas Cheech Kehoe

said he spent about a year looking for

the perfect POS system. After gathering

information from multiple POS

providers, he immediately weeded out

systems not specifically designed for

Purchasing a POS is a big investment, but unfortunately, there are no

Consumer Reports comparisons on the subject. Where can you find a company

that is right for you, and how will you learn the truth about their product? Here

are some suggested resources:

Attend pizza industry tradeshows.

Read pizza industry publications, such as PizzaMarketplace.com.

They have dozens of in-depth stories about POS systems, as well as

advertisements for POS manufacturers.

Visit chat rooms to learn opinions of POS users.

Try attending a POS customer meeting or user group.

Ask POS companies for user references and talk to other owners about

their experiences.

Ask industry experts and consultants for recommendations.

FireFly Technologies

Tips for an effective POS search



18/40


a pizzeria. As he studied the attributes

of each finalist, he auditioned somesystems online or through DVDs mailed

to him. For live demonstrations, he

visited POS retailers in his area.

Knudsen chose a more hands-on

approach and attended pizza-centered

tradeshows. There he visited with

vendors, saw demonstrations and

auditioned systems himself.

Being there also gave me a chance totalk to other users there in the booth,

guys who use it now, Knudsen said.

Id tell them I was looking for more

information and theyd answer my

questions, too.

As Kehoe and Knudsen narrowed down

their options, they asked providers

for user references who could verify

whether the sales pitches they heardwere true. Such requests are common,

said Holscher, and a companys

willingness to let their customers talk

to prospects is a pretty good measure

of a vendors confidence in a product.

A crucial question to ask, she added, is

about support.

You want to know if theyre going to

be there for you when you have trouble

on a busy night, she said. Were Ilooking into it, Id call their support team

on a Friday night and see if you get

an answer. Just tell them, I dont have

your system, but Im thinking about

buying it. So I wanted to call and see

how nice you are.

Kehoe did the same thing. I called the

service lines at different companies andtimed how long I had to wait.

Pratt learned the hard way just how bad

customer support can be. Not only was

Pizzicatos former POS system difficult

to use, when problems arose, getting

timely help was next to impossible.

Sometimes it would take four hours

to get a call back. It was a nightmare,

Pratt said. If you needed to add an

item or make changes to your system, it

took a day to generate. We need things

to happen immediately. They made

promises they could not keep, so when

we went looking for a new system, I

knew what to ask for.

When users of other POS systems

switch to Phoenix, Holscher said, more

often than not, the change is madebecause of poor customer support.

Its rare that people say they wanted

to stop using a system because they

didnt like this feature or that feature.

The problem is usually that they didnt

like the company they were dealing

with, she said. We hear all the time,

I had a computer break, and they

wouldnt help me with it. Nobody called

me back. Service after the sale oftenmakes or breaks how people like their

POS system.

If you think your system will be the

one that doesnt malfunction, dont fool

yourself, she added. Technical support

is essential and ongoing because



19/40


computers break, especially in a

restaurant environment. The hot, dusty,greasy nature of the surroundings is

only made worse by power surges

brought on by the operation of

heavier equipment, such as mixers

and refrigerator compressors. The

toughness of tech gear is tested to the

max in such a setting.

You need to look at their warranty

policy and see what happens when aterminal goes down, she said. If you

have five terminals, you can almost bet

that one is going to go down in a two-

year period.

Debbie Taranto-Antoun, who co-

owns one of three Tarantos Pizzerias

in Powell, Ohio, was in the market

for a new POS system recently. Not

surprisingly, good support was at the

top of her demands list.

I have such lousy tech support with

the system I have now that I hesitate

to call them anymore because its a

huge headache, she said. Im not a

computer person and I dont expect

my employees to know them either. So

when our system goes down, I want

help right then. I dont want to wait all

night.

But since nothing is ever permanently

perfect, operators like Kehoe said

theres a balance to be struck between

needing help and expecting to get it.

When I got the Phoenix system,

they were up-front about the fact that

Dont forget these essentials:

POS software for each workstation

Dedicated server (main computer)

Server software

Workstation computers

Keyboards

Mouse

Touch monitors

Cash drawers

Kitchen printers or monitors

Receipt printers

Report printer

Card readers

Employee swipe cards

Network router

Battery backupSurge protectors

Data backup

Communications tools

Virus protection

Data conversion

Customer database

Menu setup

On-site installation

On-site training

Support agreement

Software maintenance (updates)

Hardware maintenance and replacement


POS purchase checklist



20/40


learning and maintaining this system

is a process; its not as though themachine just shows up and everything

runs smooth and beautifully forever, he

said. When problems have occurred,

he said hes always gotten the help he

needs.

If I dont get someone on the line

immediately, I never wait more than

20 minutes to get a call back. And I

really love the fact that when I callthere for help, I talk to a human being

who knows me. Its cool to hear, Hi,

Cheech.



21/40


After an operator has chosen

the system he wants, thefinal contract including

the product cost and all other fee-

bearing terms of the deal must be

hammered out. A good rule of thumb

to keep in mind during the purchase

is this: The more complex the system,

the more complex the agreement. So

be wise and get the following:

A detailed breakdown of specifi

c

costs. Know exactly what you are

getting and what you are paying

for. This includes ensuring there

are no additional unexpected costs,

such as cabling, training or travel

expenses for installers/trainers.

Full knowledge of warranty policies

for every piece of equipment. What

applies to a touchscreen likely wont

cover a hard drive.

A plan of action for replacement of

equipment in the event of a failure.

Ask who will supply the equipment

and who pays the cost in full or in

part.

A sound grasp of the technical

support agreement. Know what

youre getting for either a monthly

fee or a one-time lump-sum

payment. There may be a limit on

how much support you receive for

what youre paying, so understand

whos accountable for what and at

what cost.

Since most POS systems run on

Microsoft Windows and/or Microsoft

Chapter 3 Shopping around: Buying a POS system

Server products, ask for proof that

the software youre getting is legaland be sure its licensed to you.

Additionally, dont be afraid to negotiate

on price. A POS system is a major

investment, and the industry is highly

competitive. Providers commonly are

willing to wheel and deal on price to

get new business. And while some may

not come down on the cost, they may

throw in some free software features or

hardware components to sweeten the

deal.

Buy it or lease it?

Spending $15,000 to $20,000 for a

high-performance POS system is a

significant expenditure for the average

pizza shop, especially if the new owner

buys it outright. When Jason Shifflett

switched to the new POS system

mandated by Dominos Pizza, he said

he paid for it all in cash. Such a move

made fiscal sense to him given the

potential tax write-offs and his cash flow

position.

Computers are about outdated the day

you buy them, so I just like to go for it

Technology in business is an ongoing

expense. So why not spread it out on

a monthly basis and free up cash for

other things?

Duessa Holscher, managing partner

with FireFly Technologies


22/40


and get the expense out of the way, he

said. Since they last only three to fiveyears, I just plan for it to happen. But,

really, its something that needs to be

considered on an individual basis.

If purchased outright, the Internal

Revenue Service allows operators

to deduct all or a large portion of an

equipment purchase within the year of

purchase. Were an operator to do so,

the cost of a $15,000 system deductedin a single year at a normal business

tax rate of 30 percent would drop the

businesss annual tax bill by $4,500.

About 75 percent of all FireFly

customers lease their systems in order

to keep their cash flow strong, Holscher

said. Such operators view such a large,


Follow these tips to get the most out of your new POS system:

Invest in training and support: Trainers will teach you the systems basics up-front. Support

provides a safety net for any questions or issues that arise later on. Both are well worth the

expense.

Really get to know your system: Read the manual, talk to support staff and explore the

systems many features. Youll be pleasantly surprised at how much time and money a POS

system can save you when you use its many features.

Expect some employee fallout: Adjusting to a new system takes time, but order-takers soon will

be navigating the system like pros.

Be patient while the bugs are worked out: No system or installation is perfect, and it takes time

to iron out the wrinkles. Technical support can be an invaluable aide in getting things just the

way you want them.

Be realistic: A lower-end system will require more ongoing maintenance from you than will a

full-service solution. You get what you pay for.

Take advantage of any training opportunities: Look for conferences, training videos or other

tools your vendor may offer. Ask vendors if they have additional manuals, documentation or

training materials.

Get to know your system: Learn your systems advanced features once the dust settles

following the initial start-up. You purchased the system for its strengths in marketing, inventory,

employee scheduling and remote access. So set a goal to learn one new feature each month

until you are fully using all your system has to offer.


Getting the most out of your system


23/40


one-time cash outlay as detrimental totheir financial position.

They see leasing as a normal business

expense they can pay for on a monthly

basis, and a few hundred dollars a

month is very affordable, she said.

The benefit the system brings to your

business easily justifies the cost of the

lease.

For example, if an operator leased asystem for $400 a month, his cost per

day is $15. Any POS system worth

its salt, Holscher said, will save an

operator a lot more money than that

every day just in food cost and labor.

Were not even talking about what they

do to help grow the business. Plus, justlike buying it, its a tax write-off.

Holscher said most leases run four

or five years, but that operators often

buy their equipment near the end of

the lease, when much of the cost is

depreciated.

Technology in business is an ongoing

expense, she said. So why not spread

it out on a monthly basis and free upcash for other things?

Holscher said she's also seeing

an increase in alternative funding

companies like "Business Backer"

that offer financing and tap into an

A POS system is not an impulse purchase. Plan on the entire research-and-purchase process

taking quite a while, and plan ahead if you are trying to meet a store opening deadline. Following

are some suggested time allotments for each step in the process:

Two weeks: Initial research online to select top three to four companies to contact.

Two weeks: Wait for demo info and materials to arrive.

Two weeks: Follow up, review pricing, etc.

Two weeks: Call references for users of systems from top two choices, makefi

nal decision.

One week: Complete final paperwork and obtain lease approval.

Six weeks: Typical POS company lead time to order equipment, build menu and schedule

installer.

One week: Install.

Grand total: 15 weeks nearly four months!



POS-buying timeline


24/40


operator's credit card receipts for

repayment, taking a small percentageeach day before the deposit even hits

the operator's bank account.

"This can be another effective way to

pay for a system if you don't qualify for

a traditional lease," she said.

The installation

Whether youre installing a POS

system in a yet-to-be opened pizzeriaor replacing an older system, it is

crucial the installation be scheduled

appropriately. After signing a contract

to purchase a system, it will take an

average of one to two months before a

full-service system (including hardware,

software and on-site training) can be

delivered.

Before the system arrives, Holscher

said, it will be configured to the

operators specs, including the addition

of the pizzerias menu.

If you are planning a grand opening,

time the systems delivery so thetrainer/installer will be present for

support when you go live. Facing real-

world problems with expert help at your

side creates a more valuable learning

experience than just having him or her

around during dry-run training sessions.

There are always things that need to

be adjusted, Holscher said. Every

operator wants things a little differentfor his operation, and after having done

thousands of these, you pretty much

know whats going to come up. Having

the support there to make changes as

you see the need for them is important.

Replacing an older system poses

different problems since the operation

is up and running and any downtime is

costly. Ideally, a pizzeria would close

for a day or two while the installationoccurs, but Holscher said most

operators are reluctant to do that. Quite

Ensure your facility is fully wired before the POS installer arrives.

Cabling:

Most POS companies require your building is prewired with CAT5network cable to all computer and printer locations.

Electrical: Make sure your system is up to par for sensitive computer

equipment by installing a grounded circuit dedicated only to the POS

system.

Internet: If your system will use broadband Internet, schedule your

broadband installation right away as waits for this service can be 60 days.


Getting wired


25/40


simply, it costs them revenue and it

frustrates customers.

Therefore, she suggested operators

require the POS vendor propose a plan

for transitioning from the old system to

the new one. Some essential points to

address:

Ask if the new one can be set up

alongside the old one to allow both

to run during training.

Ask how the installer will train on

the new system before the old one

is removed.

Ask how the data stored in your old

system will be converted for use in

the new one.

Operators should staff heavily during

the installers visit to allow time for

detailed training and Q&A sessions.

Include any office personnel, such as

bookkeepers, who may be required

to use the system for reporting. Their

questions will differ greatly from

the order-takers and likely be more

technical.

Anticipate higher labor costs during this

period and consider it an investment in

improving your business. It makes little

sense to have a top-flight system youremployees cant run effectively.

Surprisingly, Holscher said, while

many operators demand employees

be present for training, some avoid the

process altogether.

To me, at least, its amazing to think

anyone would spend thousands ofdollars on the system and not show up

for the training, she said. We really

recommend they be there for at least

the last two days of training typically

a Wednesday or Thursday when

the hardware installation is finished

and theres a strong focus on software

configuration and training.

Software updates and upgrades

A good POS vendor will supply regular

updates and upgrades to the system

software. Depending on the technical

support agreement between the vendor

and the end user, as well as the nature

of the change to the software, upgrades

and updates may be free or come with

a fee.

Since a POS provider is essentially asoftware developer, DaVincis Kevin

Knudsen believes it should produce a

minimum of one update per quarter, or

theyre not keeping up with the times. I

like to see that kind of improvement.

But when it comes to purchasing fee-

based upgrades, hes careful about

what he buys and why.

To make it worth buying, you must geta return on your investment, he said.

Will it improve your management, your

efficiency, the way you handle labor? If

so, then the cost of an upgrade will be

offset by those improvements, and its

probably a good idea to buy it.



26/40


Holscher said that while ongoing

development is an important part ofthe POS investment, most high-end

systems on the market already contain

more features than any operator can

use. That can make constant updates

more trouble than they are worth if

software bugs are introduced, they

require more training or change how an

operator is used to running the system.

A POS system can provide detailedlabor information to help operators

schedule staff according to business

demands.

While FireFly does provide quarterly

updates, with most enhancements

coming directly from customer

suggestions, we try to balance

the focus on new features with an

emphasis on making existing features

easier, simpler and more powerful,she said. Some good questions to ask

a POS provider, she added, are, Do

customers have input or a say in the

direction of new features? If customers

have ideas or suggestions, how likely

are they to be added to the system in

the future?



27/40


Chapter 4 Improvements:Upgrading your POS system

Deciding whether its time to

upgrade a POS system tosomething newer isnt all that

difficult, users said. When you look

around your pizzeria and see green-

screen monitors, sodden keyboard

interfaces and DOS or NT boot-up

screens, its tough to deny theres a

digital dinosaur in your pizzeria.

Most operators admit that the real

reason they resist getting the latestmodel is the financial commitment

required.

In one of his stores, Dominos

franchisee Jason Shifflett has had the

same system another franchisee had

when I bought his store. I know its out

of date and my database is junk too,

but I dont want to make the investment

knowing were going to convert to the

Dominos system next year.

But Shifflett said the old system isnt

all that bad; its slow but very reliable,

and that counts for a lot when youre

running some of Dominos busiest

stores.

If its sound and solid and I know it

wont fail, its better than having a

system that might have some bugs

to work out, which he said Dominoscurrent system had in recent years. But

Ive heard from other franchisees that

its near flawless now, so Im looking

forward to the change.

Richard Bobo got seriously motivated

to replace Wicks Pizzas DOS-based

system when its hardware began falling

apart. Like a lot of computer systems, ithad long exceeded its typical five-year

lifespan.

It was deteriorating faster than we

could keep up with, and finding anyone

to troubleshoot problems with a DOS

system was just about impossible,

Bobo said. We already knew what we

wanted in an upgrade, so it was just a

matter offinding it.

And even if an old-time DOS system

works, youll not find a modern

peripheral to work with it, FireFlys

Duessa Holscher said. Much to hersurprise, there are POS vendors still

selling DOS-based systems out there,

but she warns buyers to avoid them at

all cost.

If youre serious about your business,

youll have a modern POS in the first

If youre serious about your

business, youll have a modern POS in

the first place. But if you want long-

term results, you dont want to buy

an outdated system thats based on

DOS or NT. When problems occur, and

they will with even the most modern

systems, I dont see how youll find

anyone to service it.


with FireFly Technologies


28/40


place, she said. But if you want long-

term results, you dont want to buy

an outdated system thats based on

DOS or NT. When problems occur, and

they will with even the most modern

systems, I dont see how youll findanyone to service it.

Mackenzie Rivers Brad Ridgeway said

worn-out hardware is a pretty good

indicator that software improvements

arent far away either. But what makes

his boss approve the expense for

upgrades is when customer traffic

starts to outpace the POS systems

capabilities. In hopes of maintaining

short- and long-term system integrity,he first consults with his current POS

vendor to see if upgrades are available,

but if it looks like the upgrades overall

are going to be significant in cost,

well look elsewhere and see if theres

anything better out there.

Wish list

If you suspect your system is outdated,

but youre not up to speed on recent

advances in POS systems, then visit

a pizza tradeshow. Not only will it be

an eye-opening experience, its likely

to generate some POS envy. Modern

system basics include caller ID,

marketing modules, labor and sales

forecasting tools. High-end options

include remote system access, head

office tools and open platforms ready

for Internet ordering all things that

werent available just a few years ago.

Such upgrades cost big money, but asDaVincis Kevin Knudsen put it, Youre

going to spend money to make money,

and if it improves efficiency, youll do

more business, which pays for the

POS.

Chapter 4 Improvements: Upgrading your POS system

When you do decide to finally invest in a new system, ask the following:

Can the new POS system provider convert data from your old system?

How similar is the front-end order flow so that employees will easily adapt to the new system?

How similar are the features, and does the new system have all the features your old system

does?

Can your menu be set up similarly to the old way so that training is easier? If so, how will

the trainer do this? Can the company look at your old system ahead of time to make sureeverything is set up the same?


Questions to ask when shopping for a POS


29/40



Upper Crust Gourmet & Pizza owner

Marico Thomas said upgrades arenecessary when the POS system isnt

helping an operator run his business at

maximum efficiency and profitability.

In choosing upgrades, he looks first for

weaknesses in his business and then

seeks a POS system that can offset

them.

The investment shouldnt be the issue,

because youre going to spend themoney anyway, he said. Either youre

going to lose money because you dont

have a POS system or youre going to

buy a POS system. Which would you

rather do?

Parts arent just parts

A good sign of system obsolescence

is an increasing inability to get

replacement parts. And as advancing

technology widens the gap between

newer software and older hardware,

peripherals sometimes struggle to

cooperate with systems, and that can

lead to a system crash. Surfing eBay to

find parts for your ailing system isnt the

best of use of an operators time, but

Holscher said it happens.

And even if a lucky eBay find bailsyou out temporarily, will you find the

tech support to make the installation or

future repair? Merely sticking fingers

in the digital dike will eventually drag

down the business as both operators

and employees get frustrated with the

inability to serve customers.

Tarantos Pizzerias ailing POS system

is at that point, said co-owner DebbieTaranto-Antoun. Shes dreaming of her

next system, which she said will have

both caller ID and a mapping feature for

Tarantos delivery zones, features she

said will eliminate a nagging customer-

service problem.

If someone calls from outside our

delivery area, a new system will tell

the girls on the phones whether thatcustomer is in our delivery area,

she said. But right now, if they dont

know the street address is outside our

delivery area, we wind up calling the

customer back and telling them we

cant deliver there. Thats bad service.


30/40



Single-store pizza companies

If you own one store, your decision to upgrade

your POS will be influenced by the following:

Growth in sales and size: Is your business

outpacing the ability of your system to handle

the increasing customer load and internal

management logistics?

Increasing regularity of system failures:

Regular crashes, especially during peak

times, are proof the system is probably maxed

out.

A lack of modern features: Ever wish your

system could forecast sales and labor or

provide maps for delivery drivers? Maybe its

time to consider a system that does that and

more.

Age of the system: Just because computer

technology becomes outdated in three to five

years doesnt always mean a new system is

necessary. But if youre running on a DOS- or

NT-based system, not only is it time for a full

upgrade, youre limiting your business growth

and your ability to manage it as effectively as

possible.

Junky, cluttered customer database: A direct

marketing plan is ineffective if an operators

customer database isnt usable or up to

date. Older systems databases are difficult

to maintain and hard to clean up. If youre

convinced that marketing with your POS will

drive profits and it will having a clean

and easily manageable database could be all

the reason needed to get a new system.

Aging hardware: If your system isnt

touchscreen-driven, its a safe bet your

systems due to be replaced. Not only are

replacement components next to impossible to

find for older systems, finding techs to service

them is equally challenging.

Out of business: If the POS vendor is

out of business or not producing new

enhancements, enough said.

Multistore pizza companies

If you own multiple stores, replacing your existing

POS system is a task that takes on multiple

dimensions. A companywide transition to a new

system depends on several factors:

Employee training/ability to work at different

stores

Different reporting and communications

methods across stores

Different configuration of menus, items, pricing

and coupons for each location

Careful planning will ensure a smooth transition

to your new POS system at all locations. Plan

to install the new system in one or two stores at

first to be sure the menu and system features are

set up correctly. Then schedule installations for

the rest of your stores over the course of severalweeks or months, or as long as is reasonable,

so your staff has a clear idea of the plan. This

includes your corporate office accounting staff

who will be working with data from two systems.


Upgrade now or later?


31/40


Appendix Related articles from Pizza Marketplace

Promoting via point-of-saleBy Richard Slawsky

This story was originally published Oct. 14, 2008

on PizzaMarketplace.com.

When pizzeria operators shop

for a new point-of-sale

system, they generally are

wowed by sales pitches about thesystems high-tech marketing and cost-

control features. But when they get the

POS set up in the restaurant, those

features often go unused.

With the economy in the doldrums and

consumers cutting back on spending,

now might be a good time to take

another look at what your POS system

has to offer.

The marketing features of modern

POS systems tend to be the main

feature operators neglect, said


of Hillsboro, Ore.-based FireFly

Technologies. FireFly produces the

popular Phoenix POS system.

Of the customers for whom we install

POS systems, maybe 10 percent use

that feature, even though everyonetalks about it and loves it in the sales

process, she said.

When it comes down to actually

spending the time to do it, a lot of

people never take the time, Holscher

said. That is a huge loss because it is

very powerful for the people who use it.

Saving money, watching food cost

and controlling labor is important, but

building sales is critical, she said. The

best way to do that is to reach out to

existing customers.

Protecting the customers you have and

make sure they are keeping you at the

top of their mind is the wisest use of

your marketing dollar, Holscher said.

Every extra sale that comes in the door

is going to help.

Boosting order frequency

A large part of making good use of a

POS systems marketing features is

just a matter of getting into the habit,

Holscher said.

For instance, in our system we havean alert that shows up on your main

manager page that says you had five

new customers or 10 new customers

that day, she said. You can click on

that and print out mailing labels for

those customers.

Operators can keep a stack of

postcards or menus ready to go and

make that part of your routine every

day.

It will take three minutes, and people

see a huge return by doing that, she

said.

Hank Paustenback, who owns eight

Macianos Pizza and Pasta locations,


32/40


uses his systems e-mail marketing

feature to encourage existingcustomers to order more frequently.

Paustenbacks restaurants use the

Pizza Director POS system from

Needham, Mass.-based FoodTec

Solutions.

Whenever anyone orders online,

they have to register and give us their

address, telephone number and e-mail

address, he said. With that, we domass e-mails with coupons and other

offers and also we do menu mailers

from the information the system stores.

Paustenback tracks how long it has

been since a particular customer has

ordered and targets the lazy customer

with an e-mail coupon.

We typically start with the people who

order most often and work our waytowards the people who order least, he

said.

Building a database

Collecting the names, address and

e-mail addresses of delivery customers

is easy. Collecting that information from

dine-in customers takes a bit more

creativity.

Business-card fishbowls, guest books

and giveaways are a good way to

collect names and addresses from

those customers, Holscher said.

A lot of people are putting into

place customer loyalty programs,

she said. That is a great way to

collect information from dining roomcustomers, because that encourages

them to let you know who they are.

The Phoenix system, for example,

automatically tracks customer

purchases and can associate a certain

number of points with those purchases.

"We're integrating a new points program

that rewards points for every dollar

spent," said Matt Ulrey, IT consultant forColumbus, Ohio-based Flyers Pizza. "If

I accumulate 500 points, for example,

then I get a $5 coupon. It's a great way

to beat out the competition."

Despite the tough economy, if an

operators POS system lacks marketing

features, it may be time to consider

upgrading to a new system,

You really have to look at how you

can be efficient, how you can increase

sales and be more competitive that the

next guy, Holscher said. If you look

into some of those features and start

spending some time learning how to

use them and take advantage of them,

they are going to pay for themselves.

Richard Slawsky is the editor of

PizzaMarketplace.com.



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Choosing a pizza POSproviderBy Kevin Clements

This story was originally published Dec. 9, 2008

on PizzaMarketplace.com.

Choosing a point-of-sale

system is probably one of the

most important decisions an

operator will make.Pizzerias that provide delivery service

need to go with a "pizza POS" product

that is also designed to handle dine-in

service in the manner the restaurant

desires. While the top dine-in POS

products may work well for other types

of restaurants, theyre not designed for

pizza and have weak pizza ordering

and delivery management software

modules.

Here are a few suggestions to weed out

POS software products that may not

meet your needs.

Choosing the best provider

The first step is to get a list of referrals

from the top POS software companies

on your list, but change up the rules.

Most companies will provide you with a

list of their faithful customers. Ask the

POS software company for a list of at

least 20 referrals from the same state

and 30 additional referrals from your

region of the country. If the company

cannot come up with a list this large,

the provider either does not have many

happy customers or is a small player.Take that under consideration.

Dont call through the list from top to

bottom. Select referrals randomly from

within the printed list. Second, call

until you have spoken to at least three

business owners who are unhappy with

the company's software and/or service.

You will often learn more from negative

responses than positive ones.

Ask plenty of questions

In the process of trying to reach the

owner, take the opportunity to ask the

manager on duty what he or she thinks

of the POS system and support. While

the responses may not always be as

accurate or in-depth, they are important

for several reasons:

First, the GMs and shift managers

are often much more candid.

Second, they know how often calls

to support are required.

Third, many POS problem are

ignored or averted by rebooting the

system or some other workaround.

Here are a few important questions to

ask:

General: How is the support?

Specific: Do you reach a support

tech immediately or does one call

you back later? If they do not take

your call immediately, how long

does it take them to get back to


34/40


you? Are they knowledgeable? How

long does it take them to resolveyour issues?

General: What do you like and

dislike about the POS software?

Specific: Is it easy to use? Do the

screens respond quickly? Can it

handle a busy environment? Does it

have any bugs that you know of?

Here are some more specific questions:

How is the delivery and driver

dispatch software? Is it intuitive for

employees? Is it easy to manage?

How hard or easy is it to cash out/

balance a drivers money? Does

it prevent driver theft and coupon

scams?

How is the dine-in software?

How does your business do table

service? (This varies acrossbusinesses.) Is it easy for your

servers to use? Is it easy to recall

and add to tickets? Does it allow

you to split tickets quickly? How so?

How is the cash handling and

balancing? Is it easy to use? Is it

accurate?

How is the back office area? Is it

easy to use? Is itflexible? Are thereports accurate?

The next step

Finally, review your findings. How

many positive responses did you get

before coming up with negative ones?

Try to read between the lines with

unhappy customers. Determine if these

pizza how to choose pos

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