Cost of Restaurant POS Systems in 2023
Typical Cost of a Restaurant POS System
For the average restaurant, expect to spend around $50-$500 per month on a POS system for a restaurant. Which comes out to about $600-$6000 per year. There are usually startup hardware costs for a POS system, and this can come to around $500 - $1000.
So in year 1 of using a new restaurant POS system, expect to spend $1100 - $7000 in total. These numbers can very a lot though! The cost of a POS system varies based on the provider, hardware choices, sales volume, and industry.
To determine your needs and estimate costs, we'll break down the many factors that could impact these ranges in this blog post:
What is a POS System?
If you run a retail business that accepts cash or card payments, having a Point-of-Sale (POS) system is likely a necessity. These systems enable you to process payments from your customers and typically consist of two main components: POS software and POS hardware. The requirements differ based on whether you operate an online business or conduct sales in person.
For online businesses, the software portion alone is sufficient, whereas for in-person sales, both the software and hardware components are essential.
To learn more, check-out our latest blog post that breaksdown “What is a Restaurant POS System?” and “How to Pick a Restaurant POS System in 2023?”
What goes into the Cost?
Whether you’re a small or chain restaurant, the typical POS system cost is comprised of these components: software, hardware, installation, payment processing, and add-ons/integrations.
When comparing top POS systems such as Chowbus, Toast, and Square, the typical cost range for each component is as follows:
Software: $50 – $350
Hardware: $300 – $2,000 (sometimes provided free)
Installation: $0 – $700 (sometimes provided free)
Payment Processing: 1.5% – 3.5% per credit card transaction
Add-Ons/Integreations: Varies by provider. Usually custom pricing
POS Cost by Industry
For your own awareness, POS system costs do vary by industry! Below is a breakdown from our research. A key takeaway is that no matter the industry, the components of the POS cost are the same across industries.
5 Factors that Impact POS Cost the Most
#1 - POS Hardware Needs
Unless offered for free, restaurant owners should expect some type of upfront cost for POS hardware. The typical hardware for POS system are as follows, ranked by cost:
Card reader: $30
Barcode scanner: $75
Receipt printer: $100
Kiosk: $500
Touchscreen Tablet: $500 (+$100 for Tablet Stand)
Digital Menu Board: $200–2,000
#2 - Your Restaurant Location Count
More locations equals more scale for everything! Some POS system providers will charge you by location or they will just charge you for the additional hardware that you will need for each location.
#3 - Your POS Register Count
The POS cost can vary a lot between small or larger restaurants. Keep an eye out for deals from POS providers where they may charge you less for each additional register (beyond the first register) or tablet that you use.
#4 - Add-ons
In addition to the hardware and software costs, some POS system providers will offer additional services in these following areas at a discounted rate. These rates are usually standard and listed on their websites.
Gift Card Programs
Marketing services (website building and social media)
And more
#5 - Third-Party Integrations
Integration pricing is usually the most custom among all the costs associated with having a restaurant POS system. The integrations you’re looking for will often vary by POS provider and industry. Long-story short, it varies a lot!
For example, at Chowbus we offer a top POS restaurant system for restaurants. Chowbus POS provides third party delivery integration with over 45 delivery providers including all major marketplace partners such as Grubhub, Doordash, UberEats, Postmates, etc. Our service will allow you to manage all of your third party menus, hours, prices, and sales in the same place at the same time.
Closing Thoughts
In summary, the cost of a restaurant POS system varies depending on factors such as software, hardware, installation, payment processing, and add-ons. On average, expect to spend around $50-$500 per month, totaling $600-$6000 per year. Additional startup hardware costs may range from $500 to $1000.
To learn more about POS systems and what might be the right fit for you, book a POS demo/consultation with Chowbus! We're the #1 POS tech system for US-based restaurants!
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