Do You Need a Cash Register or POS System, and What's the Difference Anyway?

I can't tell you how many times I've heard the statement, "I don't know if I need a cash register or a POS [point-of-sale] system." It seems there has been longstanding confusion when it comes to defining cash registers and POS systems.

Well, I've got news: All cash registers are point-of-sale systems -- as are credit card terminals, kiosks and other devices, which allow the operator to enter a sale and tender a payment. The term "POS" gathered prominence in the early 1970s when manufacturers began developing cash registers that went beyond simple guest check tracking. These new POS registers featured remote kitchen and bar order printing, time and attendance tracking, and individual server tracking. In the late 1970s and early 1980s, other manufacturers joined in on the craze by enhancing the basic point-of-sale features and in some instances incorporating video order systems and back office functions such as reporting, polling and inventory control. Many of these first POS systems, advanced as they may have been for their time, might still be considered cash registers by today's standards.

Depending on the size and style of your restaurant, you might need all of the functions offered by a POS system. Let your operation drive your technology, not vice versa. -- Joe Erickson

The Evolution of the POS System

The 1990s ushered in a new era of POS with the introduction of the personal computer (PC). Software developers began creating POS programs that ran on standard PCs with operating systems such as MS-DOS, Concurrent DOS, UNIX and AIX. These software-based POS systems ran on "open architecture" (nonproprietary computer code) equipment such as IBM, Compaq or even "white box" (a device dedicated to a particular function) computers assembled by local POS or computer dealers. Proprietary systems manufacturers also began developing software-based programs and the manufacturing of equipment, which used standard operating systems. It wasn't long before touch-screen technology was integrated, spurring a revolution in the POS industry.

Developers could now create intuitive programs designed to reduce training and simplify kitchen and bar order processing. Although touch-screen systems were used in both table-service (TS) and quick-service restaurants (QSR), it was the table-service demand that drove the features development for touch-screen POS. No longer was simplified order processing and remote printing the primary concerns for operators making POS decisions. Operators needed more advanced features in their POS. Separate checks, hold and fire, detailed reporting, table transfer, tip tracking, accounts receivable, integrated credit card processing and a host of other demands directed the growth of POS as we know it today.

So, what is the difference in cash registers and POS? The answer requires a two-part explanation. We need to examine "functionality" and "hardware" as separate issues. Recognition of both is necessary to understand how these differences may affect your operation.