The ROI of Upgrading Your POS: A Case Study
Published On By Yashwant
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Investing in a new Point of Sale (POS) system can seem daunting, but the return on investment (ROI) can be substantial.

Let’s look at a real-world example of how upgrading to a modern POS system transformed one restaurant’s operations and bottom line in India.

Meet Neeraj Sharma and Hot N’ Fast

Neeraj Sharma is the owner of Hot N’ Fast, a popular quick-service restaurant in Gurugram, Haryana serving burgers, pizzas, rolls, and beverages. Before upgrading their POS, Hot N’ Fast faced several challenges:

  • Long online orders and queues during peak hours, especially during college lunch breaks
  • Frequent order mix-ups during the busy dinner rush
  • Difficulty managing inventory for various menu items
  • Limited insight into sales data across different food categories

The Upgrade

Neeraj decided to invest in a modern POS system with the following features:

  • Self-service kiosks for faster ordering
  • Kitchen display system
  • Integrated inventory management
  • Comprehensive analytics

The initial investment was ₹45,000 for hardware and software.

The Results

After six months of using the new POS system, Hot N’ Fast saw significant improvements:

1. Increased Customer Throughput

  • Before: Serving an average of 200 customers per day
  • After: Serving an average of 275 customers per day
  • Result: 37.5% increase in daily customers served

2. Reduced Order Errors

  • Before: 7% of orders had errors
  • After: Less than 1.5% of orders had errors
  • Result: Improved customer satisfaction and reduced food waste

3. Optimized Inventory

  • Before: 8% of ingredients wasted weekly
  • After: Less than 3% of ingredients wasted
  • Result: Approximately ₹20,000 saved per month

4. Increased Average Check Size

  • Before: ₹250 per order
  • After: ₹300 per order (due to upselling prompts and combo suggestions)
  • Result: 20% increase in average revenue per order

5. Labor Cost Savings

  • Before: 25% of revenue spent on labor
  • After: 22% of revenue spent on labor (due to improved efficiency)
  • Result: 3% reduction in labor costs

The Bottom Line

In the first year after upgrading their POS system, Hot N’ Fast saw:

  • Revenue increase: ₹42,12,500 (factoring in more customers served and higher check averages)
  • Cost savings: ₹7,80,000 (from reduced food waste and labor costs)
  • Total benefit: ₹18,92,000

Subtracting the initial investment of ₹45,000, the net benefit was ₹18,92,000.

Hot N’ Fast saw an impressive 42% profit growth in just the first year after upgrading their POS system.

While every restaurant’s results will vary, this case study demonstrates the potential for significant returns when investing in a modern POS system.

From increased efficiency to better decision-making capabilities, the right POS can transform your business.

Neeraj Sharma of Hot N’ Fast says, “Upgrading our POS system was one of the best business decisions I’ve made. It’s not just about the numbers – though they’re impressive – it’s about providing a better experience for our customers and making our daily operations smoother. We’ve even been able to handle the rush during IPL match days without breaking a sweat!”

Ready to see what a new POS system could do for your restaurant? Contact us today for a personalized ROI projection and to learn more about our solutions tailored for the Indian market.

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