Restaurant Point Of Sale Terminals Market Analysis Report By Component, By Product, By Deployment, By Application, By End User, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global restaurant point of sale (POS) terminals market was valued at USD 14.4 billion, in 2019 and projected to grow with a CAGR of 6.8% over the forecast period, from 2020 to 2027. The market growth is majorly driven by the growing demand for POS among restaurant owners, as it improves operational efficiency compared to traditional systems. Apart from payment processing and registering, POS performs several front-end and back-end operations such as employee management, inventory management, customer feedback analysis, and sale analysis, thereby, expected to propel the market growth in the next few years.

The POS terminal helps to keep records of inventory, payroll, sales figures, and billing. In addition, it helps restaurant owners in sales tax reporting by storing monthly as well as yearly data thereby, eliminating the need to prepare the sales report daily.

In addition, customer relationship management software is installed in the POS terminal which helps to fetch customer information, sale report and gives regular updates. The CRM-based POS enables tracking of customer purchase patterns which helps owners to customize their menu accordingly. Therefore several benefits associated with the restaurant's POS terminal are projected to drive the market growth over the forecast period.

The successful business of the restaurant is majorly driven by the better management of three essential attributes such as inventory management, customer service, and staff performance. The adoption of POS terminal solutions in restaurants increases the profit and return on investment. It also helps to improve operational efficiency and productivity by reducing billing error and order completion time, enables a quick transition process as well as in identifies hot selling items. The metro cities are a hub for cafes, pubs, nightclubs, luxury restaurants, and fine dining restaurants where people majorly prefer to gather for experiencing delicious food and lousier time on weekends. Therefore, to manage back-end operations to run frond-end operations smoothly, restaurant owners are adopting POS terminal systems.

On the other hand, the market is facing some challenges in terms of market growth owing to growing concerns about data security and safety. POS data breach is one of the major concerns among restaurants across the globe. As in 2019, well-known restaurant chain Catch Hospitality Group including Catch Steak, Catch Roof and Catch NYC experienced malware attacks and exposed customer card information. However, due to the emergence of encryption technology, hackers cannot theft data from POS devices. High dependency on the internet for payment as well as other tasks may hinder the market growth to some extent, as high billing time can affect the payment process.

Product Insights

By product, the market is fragmented into fixed and mobile. Mobile POS is anticipated to grow with a higher CAGR of over 7.0% during the projected period. The adoption of mPOS has increased due to its several benefits such as an increase in table turns, suggestive selling, low operational cost, and improvement in the level of services. Decreasing prices of mobile devices and the growing adoption of wireless technology is projected to surge the demand for mobile POS terminal for restaurant services. In addition by improving order processing, order accuracy, increasing profitability, and sales, a fixed POS terminal gives a high return on investment.

The fixed segment is further fragmented into self-serve kiosks, vending machines, and cash counters terminal. In 2019, this segment held the largest market share and was expected to lead the market throughout the forecast period. In this segment, the cash counter sub-segment held the largest market share, in 2019 while the self-service kiosk sub-segment is projected to exhibit the fastest CAGR during the forecast period. In QSR, increasing demand for a self-service kiosk to curb long queues and to attend to a large number of customers is projected to drive segment growth over the forecast period.

Component Insights

On the basis of components, the market is segmented into hardware and software. The software component segment is projected to grow with a CAGR of more than 7.0% during the forecast period. The increasing need to update POS software in restaurants in order to meet customers’ expectations about mobility security, consumer engagement, and payment is expected to augment the segment growth. Moreover, software developers are coming up with different solutions such as Hotel Property Management System (PMS) which offers advanced features to manage operational activities in the restaurants. In addition, the growing demand for mobile POS which needs only software is expected to drive the segment growth.

The hardware segment is estimated to hold the largest market share by the end of 2025. The hardware segment is further sub-segmented into touchscreen/desktop, swipe card machine, and others. Growing application of mPOS terminals like tablets due to their flexible and easy feature in restaurants helps staff to offer accurate and speedy table services to their customers. Moreover, a card swipe machine provides cashless payment very quickly by using debit or credit cards.

Deployment Insights

By deployment, the restaurant POS terminal market is segmented into cloud and on-premise. In 2019, the on-premise segment accounted for the largest market share and generated revenue of USD 10.04 billion. On-premise is a convectional type deployment that saves data at a local server working at a closed internet server. Due to safety and control, on-premise deployment is majorly preferred by restaurants.

Cloud deployment is expected to emerge as a faster-growing segment over the forecast period. Cloud deployment offers several features like easy integration, an all-in-one solution, and access to real-time data via a web-enabled device, which is expected to drive the segment growth. This deployment allows managing multiple tasks such as orders at the back of the house and financial tracking.

Application Insight

Based on the application, the restaurant POS terminals market is segmented into back-end and front-end applications. In 2019, front-end applications accounted for the largest market share and are expected to retain their position over the forecast period. Growing adoption of the POS terminal for managing front-end operations such as food ordering, tracking sales, payment processing, order management, billion, customer interaction, reporting, and marketing is boosting the segment growth. Moreover, the POS solution helps in managing business operations, improves customer experience, analyses cost, and increases productivity.

The back-end application segment is expected to register a CAGR of more than 7.0% from 2020 to 2027. To run the front-end operation smoothly, back-end operation plays an important role. Back-end operations include account management, payroll, inventory management, and others which are expected to gain traction for segment growth during the forecast period.

End-user Insights

On the basis of end-use, the market is segmented into Full-Service Restaurant (FSR), institutional, Quick Service Restaurant (QSR), and others. FSR segment is further fragmented into causal dine and fine dine. In 2019, the FSR segment accounted for the largest market share of more than 41% and is estimated to retain its dominance during the forecast period. In the FSR segment, the casual dining sub-segment led the market in 2019 and is projected to exhibit the fastest CAGR. This growth is attributed to the convenient and affordable eating options available at a large number of restaurants.

The QSR segment is projected to grow with the fastest CAGR during the forecast period. In the food service industry, QSRs need to offer higher volume products in a short duration at a low price than their competitors. POS terminal helps QSR to meet the rapidly changing customer demands and strengthen their position by minimizing order time along with increasing operational efficiency.

Regional Insights

In 2019, Asia Pacific dominated the global market and accounted for revenue of over USD 4 billion. It is estimated that the Asia Pacific will retain its position over the forecast period owing to the rapidly growing and expanding foodservice sector in emerging countries such as China and India. In these countries, several restaurants are using POS terminal solutions such as tablets and kiosks to place orders, display menus, enhance customer experience, and increasing operating efficiency.

In 2019, North America was the second-largest market shareholder. This is due to the presence of a large number of POS software developers and rapidly growing restaurant services. In addition, the growing demand for POS software in restaurants to overcome daily challenges associated with management and operation is anticipated to further drive the regional market growth. Moreover, the presence of quick-service restaurants in the U.S. is expected to positively impact regional market growth.

Impact of COVID-19

The outbreak of coronavirus has caused massive disruption in the restaurant industry. Many restaurant owners realized that their old business model will not work in post-COVID-19. Due to the adverse impact of coronavirus, consumer behavior is totally changed which has enforced the restaurants to adopt the new technology including POS terminal to manage front-end and back-end operations efficiently. POS terminal in the restaurant is a central hub to manage menu, inventory, payment process, and other operations. With the coronavirus, the major concern is human contact. Hence contactless payment does not require any physical contact between the customer card and the payment terminal. This type of payment is possible through mobile wallets, credit, or debit cards. Restaurants are increasingly using wireless POS terminals integrated with contactless payment technology. Therefore, increasing concern regarding safety and security will drive the demand for POS terminals after reopening the restaurants.

Restaurant Point of Sale Terminals Market Share Insights

The market is highly competitive in nature due to the presence of a large number of players including Posera; ShopKeep; Squirrel Systems; PAX Technology Limited; Verifone Systems Inc.; Aireus Inc.; Harbortouch Payments, LLC; Dinerware, Inc.; POSist, EposNow; Upserve, Inc., Revel Systems; TouchBistro; LimeTray; Ingenico Group; Oracle Corporation; POSsible POS; NCR Corporation; and Toshiba Corporation. Strategies such as product development, partnership, and acquisition are implemented by major market players. For example, in 2019, Qu POS, Inc. developed a POS platform to support restaurants from one central hub in managing omnichannel orders. Moreover, in 2017, NCR Corporation partnered with MONKEY which is a cloud-based software provider. This initiative will help NCR Corporation to manage its orders with the cloud-based platform.

The industry players are also striving to offer new features in the product at a low cost. The Touch Bistro offers POS solutions with tablets with attractive features such as inventory management, cash management, and order tracking for quick-service restaurants. Continuous innovation in products and the growing focus of industry players to provide customized solutions are expected to fuel the demand for POS solutions. For example, Revel Systems formed a partnership with Intuit Inc. in order to develop an online restaurant POS terminal with the name QuickBooks that allows restaurants to track their payment, inventory, CRM information, payroll, and sales.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global restaurant point of sale (POS) terminals market report based on product, component, deployment, application, end-user, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)
    • Fixed
        • Self-serve Kiosks
        • Cash Counters Terminal
        • Vending Machine
    • Mobile

• Component Outlook (Revenue, USD Billion, 2016 - 2027)
    • Hardware
        • Swipe Card Machine
        • Touchscreen/Desktop
        • Others
    • Software

• Deployment Outlook (Revenue, USD Billion, 2016 - 2027)
    • Cloud
    • On-Premise

• Application Outlook (Revenue, USD Billion, 2016 - 2027)
    • Front-End
    • Back-End

• End-Use Outlook (Revenue, USD Billion, 2016 - 2027)
    • FSR
        • Fine Dine
        • Casual Dine
    • QSR
    • Institutional
    • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa