About the ROI Analysis Tool
Revenue-based ROI model
The ROI Analysis Interactive Dashboard presents a highly visual interpretation of the time required to gain pay-back on the investment in a Point of Sale system and the % return on investment over 5 years, when implemented in an operation that is currently using Manual Systems or an ECR. Parameters that can impact operational returns and thereby the net ROI are pre-set in the model based on industry averages (see next page - Operational Return Parameters - for details), but can be changed to present “What-If” scenarios.
Operational Return Parameters
· Elimination of manual errors : .5% decrease in the bottom-line by the elimination of addition, tax & change computation and pricing errors by using a POS System · Requisition and production controls : 2.0% decrease in bottom-line food & drink costs resulting from forced charging for all items sold, and improving loss due to shrinkage & waste. · Reduction in labor & bookkeeping : 4 hours a day at $6.50/hour in labor cost savings resulting from detailed labor analysis of cover counts, revenue center analysis, hourly reporting, and productivity by server. These factors coupled with automated check issuing and tracking, and speedier check out time. · Profit gain through active marketing : 1.0% gain with a 60% margin. Increased sales revenues due to overall improvements in speed of service, expediting food and beverage orders due to remote printers, and incentive program tracking individual sales items and categories by server. · Soft copy guest check savings : 6,500 monthly guest check usage times $ .037 savings per guest check. Guest check expenses can range from $ .005 to $ .08 per check. Soft guest checks cost $ .003 a piece on the average vs. an average $ .04 for a hard copy guest check.
Step by Step Guide for ROI Analysis
Enter your Annual F&B Revenue and POS System Cost by sliding the levers up or down.
ROI Analysis Tool
Parameters that can impact operational returns are pre-set in the model based on industry averages (see next page Operational Return Parameters - for details), but can be changed to present “What-If” scenarios by opening the Tweaking Operational Return tab at the bottom
Once that parameters have been set, the Months to 100% ROI Gauge will indicate the amount of time in months to pay back the investment in your POS system. In this example, it will take almost 14 months.
ROI Analysis Tool
The Table tab at the top of the screen will show you detailed calculations of your pay back. Gauges will bring you back to the main screen. You can see your ROI over 5 years, as well as Capital payback.
The Operational Returns tab at the top of the screen will show you detailed calculations of your savings. You can see the exact amount for each area by moving your cursor over the columns. Gauges will bring you back to the main screen.
ROI Analysis Tool
Key Benefits of POS
The benefits of a point-of sale (POS) are as simple as eliminating errors between your servers and the kitchen and charging for everything that is served, and knowing that your end-of-day reports are just a few keystrokes away. POS offers this and much more! The most important result is increasing your business's bottom line as your customer satisfaction increases. A POS can help you manage and control all aspects of your business. · Service and Communication - Remote Kitchen and Bar printers provide instantaneous communication. Eliminates mistakes, speeds up service and lets servers spend more time with customers! · Guest Check Control - Track guest checks to ensure full accountability by servers. Allows for almost all situations Split checks, discounts, tax exemption, coupons, promotions, tips, etc. Pre-check system ensures you charge for every item served - nothing is made without being posted to a check first. · Inventory Control - Complete and detailed sales data by item allows you to quickly validate actual stock. Easy to pinpoint areas of waste and/or theft. Daily specials can decrement each time items are sold so servers know when they are no longer available. · Time and Attendance - Software includes all labor-tracking functions. Results in increased productivity and gives you quick and easy access to all labor-related information. · Transaction Processing - Electronic draft capture at each station for faster, easier server access. Eliminates the need for separate credit card authorization terminals and minimizes the extra phone lines required to support them. Eliminates manual fund reconciliation because all transactions are tracked separately and are automatically balanced. · Order Entry - By requesting and prompting for order details automatically, orders are entered correctly with all critical information relayed to the kitchen. Up selling is encouraged. Orders are entered easily by touch screen, alphabetical or PLU (product number). Hand held terminals provide full service tableside, ideal for patios and large bars. · Back Office Administration - The best POS system will dramatically reduce paperwork and provide easy and immediate access to all information: tax reporting, payroll, inventory control and more. Detailed information is at your fingertips : revenue and menu item sales by server, by shift and by outlet, contest reports and much more. · Third Party Software - POS data is easily exported/imported into most third party back office software applications, e.g., accounting, payroll, food and beverage, frequent diner, and more.
Special mention
The ROI analysis tool and information provided in this study was collated with the help of POS Canada is an authorized Maitre'D Reseller since 2002. The company is based in Ontario, Canada, and operates offices across Canada.
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Learn even more about POS.
Consider this tip sheet just the beginning of a fruitful POS process. To learn more about selecting the right POS for your restaurant or restaurant group, talk to a Maitre’D expert at 1-888-404-2662 or visit us online at w w w. m a i t r e d p o s . c o m . Maitre'D Software is a leading provider of POS applications to restaurateurs worldwide. A Microsoft Gold Certified Partner, Maitre'D is an experienced provider of software tools that control costs, improve efficiency and increase restaurant profitability.
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ROI Analysis Tool