Impact of Point-of-Sale-Systems (POS) in Traditional and Fast Food Restaurants

Research Paper Outline (RPO)

Tamara D. Williams

Texas A&M University-Central Texas

ACCT 5303 Accounting and Management

Dr. David Ritter


Impact of Point-of-Sale-Systems (POS) in Traditional and Fast Food Restaurants

I. What is a Point-of-Sale-Systems

A. Software and Hardware Components of POS Systems

Point of Sale (POS) System Definition – Entrepreneur Small Business Encyclopedia. (2018). Retrieved from

Describes the broad definition of what POS really is, what you can do with a POS system, and why they make life a little easier.

Maggard, M. J. (1981). Determining Electronic Point-of-Sale Cash Register Requirements. Journal Of Retailing57(2), 64.

This described and used a methodology to determine the number of electronic point-of-sale (EPOS) cash registers that should be allocated to a store’s front-end register configuration in a multi-unit retailing firm, like a chain of discount department stores.

The model incorporates both revenue and cost functions, resulting in a breakeven value. This value is then used as the “cut-off value” for accepting or rejecting a specific EPOS register configuration for a given arrival rate (transaction count) and customer service level. Based upon assumed peak-hour arrival rates and spec Wed customer service levels, the minimum number of required EPOS registers is determined via simulation.

II. What is the history of Point-of-Sale-Systems

A. Early Systems

1. Check-out Counter / Cashier

B. Current Technology

1. Handheld / Wireless

2. Coupons

Manion, C., & DeMicco, F. J. (2004). Handheld Wireless Point of Sale Systems in the Restaurant Industry. Journal of Foodservice Business Research7(2), 103-111. doi:10.1300/J369v07n0207

Surprisingly, portable control systems have been around for more than 20 years. The first mobile system on the market used keypads to enter PLU codes for articles and infrared transmitters/receivers to transmit information between handheld computers and the Point of Sale (POS) system. Portable wireless POS systems are a mobile version of a point-of-sale system defined as the time and place where a transaction is performed. Point of sale computer systems includes; cash registers, optical readers, magnetic card readers and special terminals. Portable wireless POS systems used for hospitality, especially catering, is the primary focus of this article. This includes events such as food ordering and the inventory/order process. Customers are the reason why restaurants are in business, and the time saved using a portable device (unlike an order in a traditional POS system of more than four minutes per order) can be used to serve customers better. These four minutes also allow you to prepare beverages and meals faster and, throughout the night, these minutes result in higher sales volume and more profit. These are the benefits that translate into cost savings and a return on investment for the purchase of a portable point-of-sale system.

Dickinger, A., & Kleijnen, M. (2008). Coupons Going Wireless: Determinants of Consumer Intentions to Redeem Mobile Coupons. Journal of Interactive Marketing22(3), 23-39.

A study of data collected from a survey of 370 mobile phone users in Austria it examined consumers’ intentions to use mobile coupons (m-coupons). The results show that consumer attitudes toward coupons influenced if they would use the coupon. The process of exchange for coupons strongly affects the attitude of consumers towards coupons. Also, consumers fear mobile spam.

The results indicate that companies should not overwhelm consumers with m-coupons, evaluate the usability of m-coupons to choose the right offers, and educate their consumer on how to use m-coupons.

III. Point of Sale (POS) Technology

A. Impact

1. Strategies

2. Relationships

Lynch, J. E. (1990). The Impact of Electronic Point of Sale Technology (EPOS) on Marketing Strategy and Retailer-Supplier Relationships. Journal Of Marketing Management6(2), 157-168.

EPOS is an established and rapidly growing feature of the UK retail scene with a wide range of potential impacts across the whole value chain. This paper focuses on the more immediate impact of EPOS on the marketing strategies of retailers and their suppliers and on the retailer-supplier relationship. Emphasis is given lo the potential which EPOS presents for the development of new approaches to channel co-operation and for the building of new patterns of strategic alliance

Reinartz, W., & Imschloß, M. (2017). From Point of Sale to Point of Need: How Digital Technology Is Transforming Retailing. Gfk Marketing Intelligence Review, Vol 9, Iss 1, Pp 42-47 (2017), (1), 42. doi:10.1515/gfkmir-2017-0007

The 21st century and how digitization the has changed point-of sale to point of need.

IV. Marketing / Consumer Behavior

A. Marketing

1. Distribution

B. Consumer Behavior

1. Buying Habits

NIKOLOVA, H. D., & INMAN, J. J. (2015). Healthy Choice: The Effect of Simplified Point-of-Sale Nutritional Information on Consumer Food Choice Behavior. Journal Of Marketing Research (JMR)52(6), 817-835. doi:10.1509/jmr.13.0270

Grocery retailers are joining the fray against obesity by offering a wide range of health and wellness programs at the point of sale. However, the success of such programs in promoting healthy choices remains an open question. The authors examine the effectiveness of a growing health and wellness initiative: a simplified nutrition scoring system. They present a conceptual framework that predicts the effect of such a scoring system on shoppers’ food decisions and their sensitivity to price and promotion, as well as the moderating influence of category-level factors.

Using a large-scale quasi experiment and panel data across eight product categories for more than 535,000 members of a grocery chain’s frequent shopper program, the authors demonstrate that the point-of-sale nutrition scoring system helped consumers make healthier food choices, such that they switched to higher-scoring products in the post-roll-out period. The results also reveal that shoppers became less price sensitive and more promotion sensitive following the introduction of the food scoring system. The authors discuss implications for research and practice.

Pantano, E., & Naccarato, G. (2010). Entertainment in retailing: The influences of advanced technologies. JOURNAL OF RETAILING AND CONSUMER SERVICES, (3). 200.

In recent years, the importance of a pleasant shopping experience has increased. As a result, many researchers are focusing on the best application of pleasurable elements in retail outlets to keep existing consumers and attract new ones.

The purpose of this article is to analyze how the introduction of advanced technologies changes the context of distribution and affects the consumer’s buying experience. In particular, three aspects of the results emerge from a theoretical point of view: new benefits for retailers (the ability to quickly obtain information on consumer behavior and preferences); the improvement of the point of sale; and positive influences on the consumer buying experience.

V. Point of Sale in the Restaurant Industry

A. Impact

1. Positive / Negative

B. Recommendations

1. Process of technology

Ansel, D., & Dyer, C. (1999). A Framework for Restaurant Information Technology. Cornell Hotel & Restaurant Administration Quarterly40(3), 74.

Restaurant managers should evaluate the decision to use information technology (IT) in the restaurant sector based on a framework that emphasizes a holistic approach. Rather than making piecemeal improvements, conservators should consider all aspects of restoration operations. These include business resource planning for expanded office functions, production systems, including demand forecasting, meal planning, and control and cooking processes.

Defines a framework for an integrated approach to systems planning to encourage the adoption of value-added information technology (IT) in the foodservice sector. The prediction that the restaurant industry must widely adopt IT; Strategies that will guide future investments Examples of restaurants that have embraced information technology in their business systems.

Pervasive computing puts food on the table. (2003). IEEE Pervasive Computing, Pervasive Computing, IEEE, IEEE Pervasive Computing, (1), 9. doi:10.1109/MPRV.2003.1186719

Why would a curator replace 50c tablets without a wireless network, a Palmtop PDA, touch screen terminals, and back-office servers? The author speaks with Alex Malison, executive director of Action Systems Incorporated, who has implemented this system for restaurant operations, as well as restaurant owners and servers, who use it in the restaurant.

The management functions for monitoring sales and open checks in real time, which allows quick verification of order fulfillment.

Moon, Y. J., Kim, W., & Ham, S. (2014). Users’ intentions to employ a Point-Of-Sale system. Service Industries Journal34(11), 901-921. doi:10.1080/02642069.2014.915947

This study proposes that task, technology, and individual characteristics affect the Point-Of-Sale (POS) utilization of employees in service industry, specifically in restaurants. The integrated technology acceptance model and task–technology fit (TTF) model is appropriate for explaining service employees’ behavioral intentions to use POS. Data were obtained from 167 service employees.

VI. Conclusion

Comments are closed.