Restaurant Point Of Sale Terminal Market Size, Share & Trends Analysis Report By Product (Fixed & Mobile), By Component, By Deployment, By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global restaurant point of sale terminal market size was valued at USD 20.31 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.0% from 2023 to 2030. Due to temporary closures and a decline in dine-in customers, the COVID-19 pandemic influenced the restaurant industry's business. While adopting POS for contactless payments, the development of digital ordering channels enabled businesses to escape the harsh realities of the pandemic.

The effective administration facility of modern Point-of-Sale (POS) terminals, as opposed to manual systems or traditional cash registers, supports the rising demand for them. Functions of the POS system include sales analysis, inventory management, customer feedback, and personnel management analysis, which are propelling the market's expansion.

To maintain business operations, the restaurant POS terminal performs functions including billing, recording sales data, payroll management, and inventory control. Restaurant owners can manage sales tax reporting and measure their monthly and annual revenues by tracking daily sales and inventory data which is recorded in the POS system. Therefore, installing fixed or portable POS systems can lessen the amount of time spent on repetitive, manual operations like registering sales and creating tax reports.

To produce regular updates and prepare sales reports, the Client Relationship Management (CRM) software integration in the POS system also automatically retrieves customer information. Thus, the additional benefit of using a POS system to extract data on client preferences and sales patterns is anticipated to boost the market growth.

To boost product demand, restaurants must enhance their business processes. As a result, restaurant owners have applied point-of-sale systems to run further effectively by cutting down on billing time, keeping track of order completion times, and avoiding order errors at peak periods. All country's major cities serve as the centers for dining establishments, coffee shops, breweries, nightclubs, and pubs, where people frequently gather with friends, family, and coworkers for socializing or business meetings.

Thus, to provide a pleasant eating experience, restaurant workers must maintain efficient order and billing facilities. During peak times, a POS system works to control the back-end setup for a seamless front-end operation. A rising number of dine-in restaurants and nightclubs among others will promote market growth over the next few years. The impact of COVID-19 resulted in a short-term obstacle. However, the market growth began recovery with large-scale vaccination programs.  

The restaurant POS terminal industry’s growth plummeted due to the COVID-19 pandemic which forced people to stay at home and avoid outside activities. Although the online ordering system helped many restaurants keep their operation on track, the revenue loss led to the declined sale of new POS systems. As countries such as China, Japan, South Korea, the U.S., Russia, the U.K., and Germany are recovering from the pandemic and have fully operated restaurants; POS vendors are adding new features to help restaurants adapt to the challenge of dining. In 2022, the restaurant sector is expected to revive and boost the demand for mobile POS terminals across various types of restaurants.

Product Insights

The demand for mobile terminals is anticipated to register a CAGR of 8.3% over the forecast period. The growth is attributed to increased table turns, improved service levels, less operation cost, available accurate dish information, suggestive selling, and mobility to attend customers. The affordability of owning mobile devices like smartphones and tablets and the boost of wireless technology have contributed to the increased adoption of mPOS terminals among restaurant owners.

Additionally, the higher Return on Investment (RoI) in the long run and additional insights to improve order accuracy, revise menus based on customer preference, increase sales and profitability, and streamline order processing have compelled restaurateurs to adopt restaurant POS terminals.

The fixed product segment is sub-segmented into cash counter terminals, self-serve kiosks, and vending machines. The fixed product segment accounted for the largest market share in 2022. The market size witnessed a rise, which is primarily attributed to the implementation of point-of-sale terminals in more prominent restaurants that serve a large number of customers and have multiple outlets to manage.

The self-service kiosk segment is projected to register the highest CAGR surpassing 9.5% from 2023 to 2030. The growing demand for self-service kiosk systems to facilitate quick checkouts, while avoiding waiting in long queues for customers and the ability to manage a greater number of customers for businesses is expected to play a key role in driving industry demand.

Component Insights

The component segment is bifurcated into hardware and software. The hardware segment captured the largest market share surpassing 68.62% share in 2022. The hardware segment is divided into three categories: swipe card machines, touchscreen/desktop, and others.

The POS system for restaurants must be supplemented with extra hardware, such as a touchscreen display or tablet, EFTPOS, cash drawer, and receipt printer. The introduction of OLED displays and touch screens, thermal receipt printers, and touch payment EFTPOS systems, along with many other advancements, are projected to spur market expansion.

The software segment is anticipated to register a CAGR exceeding 5.0% over the forecast period. The hardware of the POS system is supported by custom restaurant point-of-sale software to facilitate the management of the business operation.

The need to meet customer expectations related to the security of their card and identity information, payment method and rewards is expected to drive the demand for POS software. Additionally, the need for software based on the type of restaurant is another factor boosting the demand for customized POS software.

Deployment Insights

The cloud segment is anticipated to exhibit a CAGR exceeding 9.2% over the forecast period. Cloud-based deployment offers increased data visibility, mobility for businesses, improved data security, decreased downtime during updates and streamlined information across multiple locations. The security, economic and operational benefits of implementing POS on the cloud have become apparent for quick-service restaurateurs to upscale culinary experiences.

The on-premise segment dominated the market with a revenue share of 75.2% in 2022. On-premise deployment remains a popular choice among restaurants skeptical of data security. The legacy POS system stored information on the nearest server or local database like a computer drive which limits accessibility in the absence of the device. The on-premise deployment is still preferred as it offers full control of the system, freedom to customize, and no downtime as no internet connection is required. Also, the system is purchased on a perpetual, non-exclusive license basis for installation and use.

Application Insights

The front-end segment accounted for a market share of more than 69.9% in 2022. The main function of the restaurant POS terminal is to handle front-end tasks including ordering meals, billing, tracking sales, processing payments, managing orders, interacting with customers, reporting, and marketing. Additionally, it is anticipated that the requirement to monitor food usage, create sequential orders, and gather information about the most popular menu item is expected to favor segment growth.

The back-end segment registered a CAGR of over 8.4% during the forecast period. Adopting a POS system is vital for managing the front end of restaurants since it offers accurate order preparation on time. By removing administrative duties from the front-end POS terminal, a back-office POS system improves operational efficiency. The need for back-end restaurant POS systems has been fueled in part by the desire to protect management's privacy and restrict employee access to important company data due to the possibility of data breaches.

End-user Insights

The end-user segment includes Full-Service Restaurants (FSR), Quick Service Restaurants (QSR), and institutional FSR. Institutional FSR is further sub-segmented into casual dine and fine dine. The FSR segment ruled the market in 2022 accounting for over 42.1% of the global revenue share. The casual dining segment dominated as the highest revenue contributor owing to affordable and convenient eating options and rising casual dining brands such as Pizza Hut, McDonald's, Wendy’s, and Dunkin that have readily adopted POS terminals for their numerous outlets.

The Quick Service Restaurant (QSR) segment growth is expected to augment at the highest CAGR over the forecast period. The QSR segment emerged as the highest revenue contributor. Moreover, the QSRs are required to attend to a larger number of customers frequently in a short duration which needs the support of POS systems to assess customer requirements, take quick orders, reduce the order turnaround time, and provide faster customer service.

Regional Insights

The Asia Pacific remained the largest market for restaurant POS terminals in 2022, accounting for more than 30% of the total revenue share. It is projected to expand at the fastest CAGR during the forecast period due to the rapidly growing and evolving food service industry in countries, such as India and China, as a result of positive demographic conditions and increased disposable income.

However, COVID-19 negatively impacted market growth as the restaurant sector witnessed slow business and subsequent, revenue loss. Various small-scale restaurants in Asian countries have started using digital kiosks and tablet-based POS systems to display menus, place orders, increase operational efficiency, and enhance customer experience. The market is expected to revive post-pandemic as normalcy returns and customers start dining out and having takeaway orders.

North America was the third-largest revenue contributor in 2022. The rapidly growing restaurant industry and the presence of the highest number of vendors offering restaurant POS software are driving regional growth. Additionally, the rising demand for advanced restaurant POS software in the region to ease everyday challenges related to restaurant operations and management is expected to drive the market further.

The U.S. contribution to the market growth is also attributed to the presence of a large number of quick-service restaurants in the country that have adopted POS terminals while some of them are shifting to mobile POS terminals. This is expected to promise lucrative growth opportunities in the restaurant point-of-sale terminal market during the forecast period.

Key Companies & Market Share Insights

The global market is highly competitive. The vendors opted for a mix of acquisition, partnership, and new product development strategies to gain a competitive edge in the market. For instance, in May 2022, Verifone a payment solution provider partnered with Lavu, a restaurant software seller for facilitating cross-distribution of a unified point-of-sale and high-end payment experience for its clients.

The companies also focused on providing products with additional features at affordable prices. The Touch Bistro provides a tablet-based POS solution with features, such as order tracking, cash management, inventory management, and others, for Quick Service Restaurants (QSRs). Constant innovations and the focus of manufacturers on providing customized solutions are anticipated to drive market growth further.

For instance, Revel Systems with its partner Intuit Inc. developed QuickBooks, an online restaurant POS system that enables restaurants to seamlessly synchronize their sales, inventory, payment, payroll, and CRM information. Some prominent players in the global restaurant point-of-sale terminal market include:

• PAX Technology Limited

• Verifone Systems Inc.

• NCR Corporation

• Revel Systems

• Aireus Inc.

• Dinerware, Inc.

• Posist

• EposNow

• LimeTray

• POSsible POS

• Oracle Corporation

• Posera

• ShopKeep (acquired by LightSpeed)

• Squirrel Systems

• TouchBistro

• Upserve, Inc.

Recent Developments

• In June 2023, ShopKeep, currently acquired by LightSpeed, announced the launch of its latest powerful restaurant solution, the Next Generation Lightspeed Restaurant. This is restaurant-based POS system to offer rapid payment and ordering options through smartphones.

• In May 2023, Revel Systems announced its partnership with IPORT to uplift in-store experiences with the implementation of point-of-sale hardware at restaurants and retail stores

• In May 2023, Pax Technology Limited unveiled the Elys Workstation L1400 which is a revolutionary point of sale system for the integration of managing different businesses including restaurants.

• In August 2022, NCR Corporation declared the expansion of its partnership with Wendy to offer data services through the NCR Commerce Platform. This platform ensures Wendy to gain access, manage, and use data that are recorded through the NCR Aloha point of sale.

• In May 2022, Squirrel Systems announced the latest edition of its Squirrel Cloud POS, designed for restaurants to provide better operations for serving guests at bar, counter, table, and enable delivery options as well.

• In April 2022, TouchBistro announced the launch of TouchBistro Marketing to connect restaurants with their customers. This platform integrates with the restaurant management platform including point-of-sale, online ordering, payment, reservations, and others.

• In September 2021, Posist expanded its Cloud Kitchen Management Software for the F&B sector. This software provides a cloud-based POS terminal to restaurants for integrations, online ordering, kitchen management, restaurant branding, and others.

Restaurant Point Of Sale Terminal Market Report Scope

Global Restaurant Point Of Sale Terminal Market Segmentation

The 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 2018 to 2030. For this study, Grand View Research has segmented the global restaurant point-of-sale terminal market report based on component, product, deployment, application, end-user, and region.

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Fixed

    • Self-serve Kiosks

    • Cash Counters Terminal

    • Vending Machine

  • Mobile

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardware

    • Swipe Card Machine

    • TouchScreen/Desktop

    • Others

  • Software

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud

  • On-Premise

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Front-End

  • Back-End

• End-User Outlook (Revenue, USD Billion, 2018 - 2030)

  • FSR

    • Fine Dine

    • Casual Dine

  • QSR

  • Institutional

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • UAE

    • Saudi Arabia

    • South Africa