Pizza How To Choose Pos

A guide from Pizza Marketplace
Purchasing the Right POS System
INSIDE: Your complete guide to buying the best point-of-sale system from tips for an effective POS search to a purchase checklist to guidelines for deciding when to upgrade the POS system Developed and Published by: Sponsored by:
Contents
Page 3 Page 4 Page 5 Introduction Chapter 1 |
About the sponsors Possibilities: What a point-of-sale system can do for you
Everywhere at once A crystal ball for sales Systematize for savings, market for growth Knowing your neighbors Boosting business though online ordering
Page 13
Chapter 2 |
Necessities: Choosing a POS system that ts your needs

Get what you need Seeing is understanding
Page 21
Chapter 3 |
Shopping around: Buying a POS system

Buy it or lease it? The installation Software updates and upgrades
Page 27
Chapter 4 |
Improvements: Upgrading your POS system

Wish list Parts arent just parts
Page 31
Appendix |
Related articles from Pizza Marketplace

Promoting via point-of-sale Choosing a pizza POS provider Online ordering outlay offers potential payoff Selling pizzas by e-mail
A Guide by Pizza Marketplace
Sponsored by FireFly Technologies
About the sponsors

FireFly Technologies produces the Phoenix pointof-sale system, an innovative and comprehensive Web-browser-based software solution developed specically for the pizza industry. FireFly offers the most experienced development and installation team in pizza POS technology. The company provides a comprehensive solution of software development, computer hardware assembly, implementation, data conversion, training and support. It also provides technical support and equipment for users of the RapidFire POS system. Pizza Marketplace is the worlds rst and only Web site devoted to publishing fresh, original news and in-depth articles centered on the pizza industry. Launched in November 2001, the Web site has quickly become a leader in electronic publishing for the foodservice industry. Its content, updated every business day, is free to site visitors and read by industry professionals worldwide.
Published by NetWorld Alliance 2009 www.networldalliance.com All photos courtesy of Firey Technologies, unless otherwise specied. Updated by Richard Slawsky, editor, Pizza Marketplace Written by Steve Coomes, contributing writer Dick Good, CEO Tom Harper, president and publisher Bob Fincher, executive vice president and general manager, Technology Division Paul Barron, executive vice president and general manager, Foodservice Division Joseph Grove, vice president and associate publisher
Introduction
ince its commercial launch in America more than 100 years ago, the pizza industry has enjoyed dramatic advances in the equipment invented to help operators improve their businesses. The planetary mixer, the conveyor oven and the dough sheeter are just a few machines that primed pizza for the ultimate in customer service delivery, which arrived in the 1950s. But while operators mastered great food and service, many knew they could improve as business managers. An MBA has never been necessary for the task, but the devil in the details of food and labor cost management has proven a demon indeed. The math behind the madness is simple but time-consuming, and staying ahead of the paperwork has always been challenging. Advances in cash registers during the 1960s and 1970s helped by providing an accurate total of each days sales. But it wasnt until NCR and IBM merged registers with computers around 1980 that the machines began tracking items sold as well. That change triggered the slow transition away from tedious paper ling systems to storing information on computers for quick retrieval, and that marked the dawn of the modern point-of-sale machine. Not only could it track sales, it charted sales trends and stored the operations customer
database. By the 1990s, POS systems were scheduling labor and tracking food costs and inventory. In 2009, POS systems are technological marvels that report current activity while forecasting future sales. Training employees to use them is a breeze, and they make ordinary operators look like marketing geniuses and Wharton grads. Wondering whether a POS would improve your business? Keep on reading, for youll nd plenty of answers to that question. And if youre in the market for a POS upgrade, theres plenty here for you to learn, too. What was a great system 10 years ago is a dinosaur now, so read further to see whats new. Wed like to thank FireFly Technologies, whose kind sponsorship of this guide enables us to provide it to you at no cost.
Updated by Richard Slawsky, editor, Pizza Marketplace Written by Steve Coomes, Contributing writer
Chapter 1
Possibilities: What a point-of-sale system can do for you

costs precisely all of which add oncelost income to the bottom line. By simplifying the collection and storage of detailed customer information, it becomes a marketing powerhouse allowing any operator to target customers with customized deals created at a moments notice. And with its ability to draw on sales history, it can predict sales going forward with amazing accuracy.
f a pizza operator is fortunate, his business will operate for many years. Over that time, hell replace ovens, mixers and refrigerators as they wear out or, hopefully, to accommodate for growth. But for a long-time pizza operation, adding a point-of-sale system to the mix represents anything but a continuation of business as usual. The owner whos kept his books with a pencil-and-paper ledger or even an Excel spreadsheet suddenly sees hours disappear from the task of assembling the P&L statement. Managers accustomed to end-of-day closeout procedures done manually will nish in 30 minutes what once took hours and the result will be error-free. The owner interested in that nights sales report never has to come to the store because he can view it through a Web browser from the comfort of his home. And someone new to the restaurant industry, either as an independent operator or a franchisee of an established chain, will nd a POS system to be an indispensable assistant, providing a wealth of business data at the touch of a button. When maximized fully, a modern POS is a cyber-supervisor capable of boosting a pizzerias prots by minimizing losses on one hand and boosting sales on the other. It reduces mistakes, catches errors before they become losses, tracks labor and food
It will change the way your business works, said Barry Barckley, products manager for Hillsboro, Ore.-based FireFly Technologies, maker of the Phoenix Point-of-Sale system. Many operators know a POS will increase order accuracy and speed, but those attributes are just basic features, he said. This is a tool to improve your whole operation, not just one or two areas.
Chapter 1 Possibilities: What a point-of-sale system can do for you
Cheech Kehoe hasnt forgotten the early years of running Big Daddys Pizza without a POS system. The Burlington, Vt., operator relied on threepart, handwritten guest checks for every order, a system he said could cause trouble even before the tickets made it to the kitchen. We had to deal with everyones handwriting styles, so legibility was an issue all the time, Kehoe said. Somebody didnt write down a pizza that was supposed to have half of this and half of that, and so wed end up sending out a whole one of those. With a POS system, Kehoe said such errors are down by 90 percent, plus order times have been slashed by twothirds. Before we had the system, I was looking at three minutes per phone call if everything went well, he said. Now, if its an existing customer calling, our systems last-order recall pops up, and I can usually have it done in 30 seconds. That the POS can tell an operator so much about his business, help him analyze a warehouse of data, and then guide and improve the operation is where a system pays for itself in spades. Operators say the convergence of a younger and computer-literate workforce with advanced, Web-pagelike user interfaces common on modern
POS systems has simplied the ordertaking process dramatically. Early POS systems used computer keyboards for data input, but contemporary units are manipulated quickly and easily via touchscreens. Brad Ridgeway, director of operations for 11-unit Mackenzie River Pizza Co. in Bozeman, Mont., said user-friendliness was essential to the purchase of his rms current POS system.
Before we had the system, I was looking at three minutes per phone call if everything went well. Now, if its an existing customer calling, our systems last-order recall pops up, and I can usually have it done in 30 seconds.
Cheech Kehoe, operator of Big Daddys Pizza Order-takers had to be able to learn the system quickly from trainers charged with explaining it swiftly. Key to accomplishing that feat, he added, was the systems customizability. The computer is completely set up the way our menu is, and that makes it very easy to navigate, Ridgeway said. We have it broken down into menu categories. So if someones taking an order for pasta, she has no reason to go into the pizza or beverage screen. Its very simple.

Seven-unit Dominos Pizza franchisee Jason Shifett said the visual nature of modern POS systems makes rapid order-taking a snap. With some practice, you can pretty much memorize what windows are going to come up and when, said Shifett, who operates out of Olive Branch, Miss. When you know where the buttons are, you can complete an order in about 45 to 60 seconds.
Everywhere at once
Unlike a simple cash register, which doesnt know whose hand is in the till, a point-of-sale system is nearly impossible to rob because it requires approved access for every transaction. Knowing every cent will be accounted for sends some treasured employees scurrying when the POS arrives, said Duessa Holscher, a partner with FireFly Technologies. Weve been told by some of our customers that long-term managers will sometimes quit when an owner gets a POS system, she said. They leave because they cant steal anymore. While a basic cash register makes it simple for a counter worker to cancel a transaction and pocket the cash, a POS system requires management approval for voids. Even if the cooks in the back collude with the manager to steal food or cash, all voids can be called up easily by the system for the owners review of every transaction. In addition, many POS systems can be linked to digital video surveillance systems that monitor every voided ticket. With a simple command to view voids, the system collects those scenes for rapid review by the operator and makes watching hours of videotape a thing of the past. Holscher said a POS system helps operators discern true theft from honest mistakes as well. Sometimes ordertakers mistakenly apply coupons to items not meant to be discounted, while others do the same intentionally in order to steal the difference between the original price and the bargain. The system can easily track such a pattern of errors and ultimately nger the perpetrator. Kehoe said hes condent his POS system is a theft deterrent, but hes added some verbal reinforcement of no-theft policies as well. If our cooks

make anything without a make ticket for it from the POS, theyre red. And only managers can do no sales. Somebody just cant pop the register whenever they want. Barckley said a growing number of FireFly customers want the ability to access their POS systems remotely via the Web. Multiple-unit operators want the ease of monitoring their facilities from a single ofce, while others, who are accustomed to using the Web for business, are simply conditioned to having access to information whenever they want. Bottom line: Remote management allows them access to real-time data all the time. Jennifer Dowling, co-owner of Tinook Inc., operator of multiple restaurant concepts including Big Cheese Pizza in Gallup, N.M., said her systems remote management feature allows her to change menu prices from the head ofce. What I like about it is your computer becomes a terminal in that restaurant, so what youre seeing is whats actually on the screen, Dowling said. I can actually do (database) maintenance while offsite, and that lets the manager run the store instead of worrying about the POS system. Richard Bobo, ofce administrator for Wicks Pizza in Louisville, Ky., said he uses remote management to add and subtract items from the companys menu at three of its four locations simultaneously. He also uses it to ensure delivery drivers licenses are up to date. If a drivers license is about to expire, we send him an interofce e-mail reminding him to get it renewed, Bobo said. If the drivers license expires, or if other employees fail to maintain their proper safe alcohol service or health board certications, the system can be programmed to lock them out automatically.
A crystal ball for sales

Marico Thomas owns the ve-unit Upper Crust Gourmet & Pizza company in Bermuda, and he uses his POS system to forecast sales. Drawing on sales history recorded for several years by his system, Thomas can generate detailed reports that compare the past to his current sales trends, which also allows the system to predict with a great deal of accuracy how much business hell do in the future. Armed with such information, the system then suggests labor and production needs. I can get good comparisons to my near history, such as the same day last week compared to today, or I can go further back to look at the same day last year, Thomas said. I can go a few weeks back from today to look and see if there are any trends, and I can look at that same period last year or the year before

to see trends there. It gives you a rm feel for where you are and where you should be. It tells you overall how youre doing according to your plans. David Henderson, vice president of eld technology for Capital Pizza, a 97-unit Pizza Hut franchisee in Wichita, Kan., said he uses his POS system to produce tight labor schedules. By telling the system the percentage of net sales including taxes and benets costs he wants to spend on labor, the system helps his managers build a labor schedule. As one of our managers is doing the schedule, it gives him a complete picture of what the cost really is. Its not a guess, Henderson said. A manager knows if he puts another driver or cook or server on, hes added this much to his labor that day. That information is in his face on the screen. By pulling from sales and labor history, the system also suggests how many drivers, cooks or servers should be scheduled for each shift every day. The system will even tell the operator if it believes hes scheduled too few workers for each shift. making pizzas, he wanted to make money. He knew tending ovens and tossing dough would earn him a living, but he believed a POS system and its target-marketing capabilities would make him wealthy. He was right. The business I bought was struggling big time, so I knew that if I was going to grow the thing, I had to market it, said Karington, a self-taught marketer who lives in Las Vegas. I wasnt concerned with ovens, and I wasnt concerned with making pizza. I could nd people to do that for me. What I wanted to buy was a point-ofsale system and a customer database that would let me get the word out in a very precise way. Karingtons pizzeria eventually became a chain of four outlets, which he later so d o t dy p o t e credits uc sold for a tidy prot. He c ed ts much
Systematize for savings, market for growth

Marketing consultant and speaker Kamron Karington tells pizza operator audiences nationwide that when he bought his rst pizza store several years ago, he wasnt interested in

of the companys success to marketing programs he developed and ran with the help of his POS system. People in this business spend so much money on traditional advertising while ignoring the goldmine of a database they have in their POS system, he said. Retailers would kill for the customer data a POS system captures every time somebody calls and places an order. It gets their phone number, their address and their preferences. What else do you need to be able to market to them? Theyve told you exactly what they want! A POS system allows an operator to track and market to customers who havent ordered in some time, a tactic commonly called awakening lazy customers. Armed with such information, experienced POS users will mail postcard offers to customers whove not ordered in 30, 60 or 90 days; those whove been away the longest get more deeply discounted offers. The system also allows the operator to market effectively by drawing on order history and customer preference. A pizza operator can tell his POS to show every order placed for gourmet pizzas in the last 30 days, and those customers can receive a deal on a high-end pie. By the same token, the system can show customers whove never ordered side items and generate enticements for wings and breadsticks. Such laser-guided marketing happens only with a POS system and a wellgroomed database, Karington said. Marketing is the only thing you do in this business that makes money and grows your business, he said. And if you really want to do that, you have to have a POS system and learn how to use its marketing function. I can tell you this much, you wont get the same results from traditional advertising.
Knowing your neighbors

More and more, pizzeria operators are integrating Internet-based mapping technology with their POS systems to glean information about their customers. Not only can mapping technology show where a restaurant's customers live, parameters can be dened to show average order prices in a particular area, and marketing campaigns can be designed with that information in hand. The resulting information can be used to decide what areas to target with coupons or door-hangers and to know what type of offers to use in a particular area. Mapping software also can be a valuable tool for increasing driver safety. Because the system ags fraudulent addresses, drivers can avoid being lured to a trouble spot looking for an address that does not exist.
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A POS pays for itself

The following chart shows a very conservative estimate of how a POS system can pay for itself and boost prots. Eliminates errors: Two orders per day x $1 each error = $2 Ensures everything is paid for: Two orders per day x $3 for each error = $6 Takes orders faster: Two extra orders per day x $10 each = $20 Eliminates theft and fraud: One prank, bad check or pocketed ticket = $15 Improves labor management: Two hours labor savings per day x avg. $7/hr. = $14 Total single-day savings/gains = $57 Annual savings/gains based on 360 business days = $20,520 the cost of a high-end POS system
The use of mapping software helped Karington boost sales at his pizzeria, Wasatch Pizza, from $3,000 a week to more than $30,000 a week in three years. By combining his customer database with mapping technology, Karington was able to tailor his marketing efforts to his customers' ordering habits. For example, if a customer's average ticket was less than $13, they got an offer for a basic pizza for $9.99. If their ticket average was higher, they received an offer for something more expensive. Hull, Iowa-based Pizza Ranch uses customer sales and demographics analysis to market to specic guest segments, crafting targeted messages
and offers to increase order size and frequency. "It lets us separate facts from assumptions," said Jon Moss, Pizza Ranch brand director. "It helps us assess whether a particular new product warrants being added to the menu and lets us measure customer retention and acquisition."
Boosting business though online ordering

Many POS systems today incorporate the ability to integrate with an online ordering system, which have been demonstrated time and time again to boost ticket averages and order frequency. Despite all the suggestive selling done with recorded messages
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and phone scripts for CSRs, nothing sells as effectively as lingering over the menu on the Web, especially one with detailed full-color pictures. "I think the customer is more relaxed in front of the computer," said Jodi Aufdencamp, co-owner of four-unit Mama Mimi's Take 'N Bake Pizza in Columbus, Ohio. "They don't have to worry about a line of people behind them waiting to order." And because the system collects an e-mail address with each online order, an operator can quickly build a marketing database that can be tapped at a moment's notice. An e-mail blast sent out on Friday morning can mean the difference between a slow lunch and a packed house. In published reports on PizzaMarketplace.com, Papa John's ofcials claimed online check averages are 10 percent to 15 percent higher than those placed at the counter or over the phone because customers can see the full menu, specials and all. Allowed to shop at their own pace, customers discover items they didn't know were there before and give them a try. "We see our customers skew a little bit more toward our specialty pizzas when they order online," said Chuck Hammers, founder and CEO of Pizza My Heart in Los Gatos, Calif. "They've got the time to look and say, 'Boy, that looks good. Maybe I'll give that a try.'"
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Chapter 2
Necessities: Choosing a POS system that fits your needs

back-of-house administrative work whatever it is, you need to know that. The problem, he said, is very few operators do that. Most often theyre focused on the systems attributes, such as its ease and speed of use, etc. Those qualities are important, of course, but they wont change the way your business runs, he said. What will alter the business dramatically is how the operator culls data for reports, creates labor schedules or forecasts sales. After they have the system, theyre asking, Where am I going to get these numbers? he said. For a mom-andpop operation with a single unit, that might not be as critical. But if you have
ts one thing for a pizza operator to think, I need a POS system. But its another thing entirely to know exactly what system is needed for that business. Its easy to be dazzled by the lights, bells and whistles ashing away in a demonstration or be wowed with promises of great service and technical support. But the question, Do I really need all this? cant be ignored. No matter how desperately an operator might need a system, both manufacturers and users advised POS shoppers to research all or most of the options available and to solicit multiple opinions from users of those systems before spending any money. No less than a few months investigation is recommended, some said, while others typically POS users looking to upgrade to higher-performing systems will spend as much as a year in the hunt.
How does one start this lengthy journey of discovery?

FireFlys Barry Barckley said operators must accept the fact ahead of time that whatever system they get will change their business dramatically. Take a look at what systems and processes are in place now in your business, and then learn how that will change with a new system, he said. That might be in the way it takes orders, generates reports, does
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Chapter 2 Necessities: Choosing a POS system that fits your needs

ve, 10, 15 or 20 restaurants, that could be pretty disruptive to the way you run the business. Youve got to be aware of those things beforehand, and youve got to be willing to adjust and understand how the changes are going to happen. Barckley recommended POS shoppers take the time to write out a detailed analysis of how their business runs today and then estimate the impact of a new POS system. Operator Marico Thomas, who has used four different makes of POS systems in his restaurant career, made a wants and needs list when researching his most recently purchased system. Write it down before you start looking, and when you know what you want, visit every provider online to try and get as much information on what features are available that t your needs, Thomas said. Do a comparison on how important each feature is to you and your business, and if its missing a feature, evaluate how valuable that feature really is. The question I ask is whether itll cost me money to not have it. Key to making an informed decision, Thomas added, is to avoid seeing a system before studying its features in person. Seeing before studying, he said, positions the buyer to be seduced by gadgets when they need to make an honest evaluation of what their needs are rst. There is some sex appeal in these POS systems, so seeing them is like watching a beautiful girl walk by. You need to know more about what youre getting into. POS systems are complex computers loaded with abilities that even the sharpest of operators arent always able to utilize, said FireFlys Duessa Holscher. So shoppers should take their understanding of whats available and be bold in asking a lot of questions. Theres always the risk of getting overwhelmed by all the details, she said. So its really important to understand what you need. But then there are operators like Kevin Knudsen, who eagerly dive into the deluge of particulars. The more information there is, the more I have to make a better decision, said Knudsen, vice president of DaVincis Pizza in Lincoln, Neb., Having too much information doesnt bother me.
Get what you need

A turnkey POS system is expensive. At a cost of $10,000 to $20,000 for a three- or four-terminal system that might have a central server, wise operators should focus on buying what they need before buying what theyd like.
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In conducting a needs assessment, Holscher said operators should analyze their businesss current requirements for a POS. Second, they should project how much the business is expected to grow in the next one to three years, and then factor in some wiggle room for even more growth. Thats the challenge: buying enough to help your business and accommodate for growth, but not so much that youve got way more than your business needs, she said. Having such information about your business handy during the research process is important. To help make a recommendation, a POS provider should ask for your weekly sales average and your average sales on your busiest day. Why the latter number? Because the system must be able to handle peak demand. Buying a POS system that cant keep up on your busiest night is like buying an oven thats adequate during the week, but cant handle the load on Friday night, Thomas said. A system must be versatile and robust, able to manage the ow of orders and the details of inventory and labor. A POS system should have an equally capable customer database, one that can meet an operations current needs immediately, while having enough capacity and exibility for the future. Though pizza is largely a cash business, credit card use is increasing steadily. Some POS systems offer integrated credit card processing, which can lower transaction times and save money typically spent on leasing external card readers.
Take a look at what systems and processes are in place now in your business, and then learn how that will change with a new system. That might be in the way it takes orders, generates reports, does back-of-house administrative work whatever it is, you need to know that.
Barry Barckley, products manager for FireFly Technologies Most all POS systems are equipped to handle counter service and dinein service. But if your pizzeria offers delivery, be certain your new POS system can manage that as well. Know also that such added functionality may increase the systems price. In addition, beware of the multitude of systems on the market designed for general restaurants but that address pizza delivery with add-on components. Mackenzie Rivers Brad Ridgeway said his company made the mistake of buying such a system several years ago.
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We do delivery, pick-up and dine-in, so we needed something to handle all three, he said. But what we got just was not very compatible to what were trying to do. It functioned more like something designed for a steakhouse, and it was not delivery-friendly or pickup friendly. A system must be versatile and robust, able to manage the ow of orders and the details of inventory and labor. In assessing what an operator wants from a POS, Holscher said she asks potential customers how hands-on they are in the operation. If theyre there daily and really understand the ow of sales, labor and food cost, they probably can get by on a minimal POS. They feel they have a pretty good handle on the business, theyre not having theft issues, theyre right on top of it, she said. But when they want to be less hands-on, when they want time away from the business, thats the time they may want something to mind the business for them. Tom Jans, owner of TJs Take and Bake Pizza, bought a fairly minimal POS system he assembled himself two years ago. For $3,000, he got pizzeria-specic POS software and all the appropriate hardware for a threeterminal system. Jans, a self-dubbed non-computer person, said setting it up took time, but it saved him thousands in cash. Id worked in retail for a long time, so I knew the necessity of marketing my business and I wanted a system, said Jans, whose shop is in Hilton Head, S.C. But I also knew I didnt need a $15,000 system for a take-and-bake shop, so I started looking around. After hiring someone to run the necessary cables for his system and set up his network, Jans spent two solid days of dedicated work inputting the data for his menu and order-input sequence. Though he called the effort worthwhile, he said there probably arent many pizza operators whod do the same. Holscher agreed, saying nearly every operator she talks to wants the system to arrive ready to work for them, not the other way around. When you set it up yourself the right way, youre doing stuff that takes an IT department at most companies to understand, she said. Youre setting up a pretty complex system, and the typical pizza guy is not going to know how to do that. The question is, then, do you want a turnkey solution where the company comes in, sets everything up in a couple days time and youre enjoying the benets of it right away? Or do you want to spend the time to save the money doing it yourself? Shawn Pratt, operations partner with Pizzicato Gourmet Pizza in Portland,
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Tips for an effective POS search

Purchasing a POS is a big investment, but unfortunately, there are no Consumer Reports comparisons on the subject. Where can you nd a company that is right for you, and how will you learn the truth about their product? Here are some suggested resources: Attend pizza industry tradeshows. Read pizza industry publications, such as PizzaMarketplace.com. They have dozens of in-depth stories about POS systems, as well as advertisements for POS manufacturers. Visit chat rooms to learn opinions of POS users. Try attending a POS customer meeting or user group. Ask POS companies for user references and talk to other owners about their experiences. Ask industry experts and consultants for recommendations. FireFly Technologies Ore., had POS needs far greater than Jans; the company has 15 units that have several POS terminals in each. Tired of making system updates at each individual store, Pratt sought a centralized server system that could be managed via the Web from Pizzicatos headquarters. All our pages are loaded from that centralized server to the Web and then to every terminal; we dont have servers in the stores, Pratt said. That cuts the cost of replacing hardware, which breaks down in this environment. But those hardware savings come at a price, Knudsen added. There are some downfalls to this new technology, he said. If the centralized server loses its Internet connection, then all the stores are down. Still, the benets outweigh the risks, and at the end of the day, not having the hardware in the stores and opening up the space to use for storage is a huge benet.
Seeing is understanding
Big Daddys Pizzas Cheech Kehoe said he spent about a year looking for the perfect POS system. After gathering information from multiple POS providers, he immediately weeded out systems not specically designed for
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a pizzeria. As he studied the attributes of each nalist, he auditioned some systems online or through DVDs mailed to him. For live demonstrations, he visited POS retailers in his area. Knudsen chose a more hands-on approach and attended pizza-centered tradeshows. There he visited with vendors, saw demonstrations and auditioned systems himself. Being there also gave me a chance to talk to other users there in the booth, guys who use it now, Knudsen said. Id tell them I was looking for more information and theyd answer my questions, too. As Kehoe and Knudsen narrowed down their options, they asked providers for user references who could verify whether the sales pitches they heard were true. Such requests are common, said Holscher, and a companys willingness to let their customers talk to prospects is a pretty good measure of a vendors condence in a product. A crucial question to ask, she added, is about support. You want to know if theyre going to be there for you when you have trouble on a busy night, she said. Were I looking into it, Id call their support team on a Friday night and see if you get an answer. Just tell them, I dont have your system, but Im thinking about buying it. So I wanted to call and see how nice you are. Kehoe did the same thing. I called the service lines at different companies and timed how long I had to wait. Pratt learned the hard way just how bad customer support can be. Not only was Pizzicatos former POS system difcult to use, when problems arose, getting timely help was next to impossible. Sometimes it would take four hours to get a call back. It was a nightmare, Pratt said. If you needed to add an item or make changes to your system, it took a day to generate. We need things to happen immediately. They made promises they could not keep, so when we went looking for a new system, I knew what to ask for. When users of other POS systems switch to Phoenix, Holscher said, more often than not, the change is made because of poor customer support. Its rare that people say they wanted to stop using a system because they didnt like this feature or that feature. The problem is usually that they didnt like the company they were dealing with, she said. We hear all the time, I had a computer break, and they wouldnt help me with it. Nobody called me back. Service after the sale often makes or breaks how people like their POS system. If you think your system will be the one that doesnt malfunction, dont fool yourself, she added. Technical support is essential and ongoing because
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computers break, especially in a restaurant environment. The hot, dusty, greasy nature of the surroundings is only made worse by power surges brought on by the operation of heavier equipment, such as mixers and refrigerator compressors. The toughness of tech gear is tested to the max in such a setting. You need to look at their warranty policy and see what happens when a terminal goes down, she said. If you have ve terminals, you can almost bet that one is going to go down in a twoyear period. Debbie Taranto-Antoun, who coowns one of three Tarantos Pizzerias in Powell, Ohio, was in the market for a new POS system recently. Not surprisingly, good support was at the top of her demands list. I have such lousy tech support with the system I have now that I hesitate to call them anymore because its a huge headache, she said. Im not a computer person and I dont expect my employees to know them either. So when our system goes down, I want help right then. I dont want to wait all night. But since nothing is ever permanently perfect, operators like Kehoe said theres a balance to be struck between needing help and expecting to get it. When I got the Phoenix system, they were up-front about the fact that
POS purchase checklist

Dont forget these essentials: POS software for each workstation Dedicated server (main computer) Server software Workstation computers Keyboards Mouse Touch monitors Cash drawers Kitchen printers or monitors Receipt printers Report printer Card readers Employee swipe cards Network router Battery backup Surge protectors Data backup Communications tools Virus protection Data conversion Customer database Menu setup On-site installation On-site training Support agreement Software maintenance (updates) Hardware maintenance and replacement FireFly Technologies
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learning and maintaining this system is a process; its not as though the machine just shows up and everything runs smooth and beautifully forever, he said. When problems have occurred, he said hes always gotten the help he needs. If I dont get someone on the line immediately, I never wait more than 20 minutes to get a call back. And I really love the fact that when I call there for help, I talk to a human being who knows me. Its cool to hear, Hi, Cheech.
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Chapter 3
Shopping around: Buying a POS system

Server products, ask for proof that the software youre getting is legal and be sure its licensed to you. Additionally, dont be afraid to negotiate on price. A POS system is a major investment, and the industry is highly competitive. Providers commonly are willing to wheel and deal on price to get new business. And while some may not come down on the cost, they may throw in some free software features or hardware components to sweeten the deal.
fter an operator has chosen the system he wants, the nal contract including the product cost and all other feebearing terms of the deal must be hammered out. A good rule of thumb to keep in mind during the purchase is this: The more complex the system, the more complex the agreement. So be wise and get the following: A detailed breakdown of specic costs. Know exactly what you are getting and what you are paying for. This includes ensuring there are no additional unexpected costs, such as cabling, training or travel expenses for installers/trainers. Full knowledge of warranty policies for every piece of equipment. What applies to a touchscreen likely wont cover a hard drive. A plan of action for replacement of equipment in the event of a failure. Ask who will supply the equipment and who pays the cost in full or in part. A sound grasp of the technical support agreement. Know what youre getting for either a monthly fee or a one-time lump-sum payment. There may be a limit on how much support you receive for what youre paying, so understand whos accountable for what and at what cost. Since most POS systems run on Microsoft Windows and/or Microsoft
Technology in business is an ongoing expense. So why not spread it out on a monthly basis and free up cash for other things?
Duessa Holscher, managing partner with FireFly Technologies
Buy it or lease it?

Spending $15,000 to $20,000 for a high-performance POS system is a signicant expenditure for the average pizza shop, especially if the new owner buys it outright. When Jason Shifett switched to the new POS system mandated by Dominos Pizza, he said he paid for it all in cash. Such a move made scal sense to him given the potential tax write-offs and his cash ow position. Computers are about outdated the day you buy them, so I just like to go for it
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Chapter 3 Shopping around: Buying a POS system

and get the expense out of the way, he said. Since they last only three to ve years, I just plan for it to happen. But, really, its something that needs to be considered on an individual basis. If purchased outright, the Internal Revenue Service allows operators to deduct all or a large portion of an equipment purchase within the year of purchase. Were an operator to do so, the cost of a $15,000 system deducted in a single year at a normal business tax rate of 30 percent would drop the businesss annual tax bill by $4,500. About 75 percent of all FireFly customers lease their systems in order to keep their cash ow strong, Holscher said. Such operators view such a large,
Getting the most out of your system

Follow these tips to get the most out of your new POS system: Invest in training and support: Trainers will teach you the systems basics up-front. Support provides a safety net for any questions or issues that arise later on. Both are well worth the expense. Really get to know your system: Read the manual, talk to support staff and explore the systems many features. Youll be pleasantly surprised at how much time and money a POS system can save you when you use its many features. Expect some employee fallout: Adjusting to a new system takes time, but order-takers soon will be navigating the system like pros. Be patient while the bugs are worked out: No system or installation is perfect, and it takes time to iron out the wrinkles. Technical support can be an invaluable aide in getting things just the way you want them. Be realistic: A lower-end system will require more ongoing maintenance from you than will a full-service solution. You get what you pay for. Take advantage of any training opportunities: Look for conferences, training videos or other tools your vendor may offer. Ask vendors if they have additional manuals, documentation or training materials. Get to know your system: Learn your systems advanced features once the dust settles following the initial start-up. You purchased the system for its strengths in marketing, inventory, employee scheduling and remote access. So set a goal to learn one new feature each month until you are fully using all your system has to offer. FireFly Technologies
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POS-buying timeline
A POS system is not an impulse purchase. Plan on the entire research-and-purchase process taking quite a while, and plan ahead if you are trying to meet a store opening deadline. Following are some suggested time allotments for each step in the process: Two weeks: Initial research online to select top three to four companies to contact. Two weeks: Wait for demo info and materials to arrive. Two weeks: Follow up, review pricing, etc. Two weeks: Call references for users of systems from top two choices, make nal decision. One week: Complete nal paperwork and obtain lease approval. Six weeks: Typical POS company lead time to order equipment, build menu and schedule installer. One week: Install. Grand total: 15 weeks nearly four months! FireFly Technologies one-time cash outlay as detrimental to their nancial position. They see leasing as a normal business expense they can pay for on a monthly basis, and a few hundred dollars a month is very affordable, she said. The benet the system brings to your business easily justies the cost of the lease. For example, if an operator leased a system for $400 a month, his cost per day is $15. Any POS system worth its salt, Holscher said, will save an operator a lot more money than that every day just in food cost and labor. Were not even talking about what they do to help grow the business. Plus, just like buying it, its a tax write-off. Holscher said most leases run four or ve years, but that operators often buy their equipment near the end of the lease, when much of the cost is depreciated. Technology in business is an ongoing expense, she said. So why not spread it out on a monthly basis and free up cash for other things? Holscher said she's also seeing an increase in alternative funding companies like "Business Backer" that offer nancing and tap into an
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operator's credit card receipts for repayment, taking a small percentage each day before the deposit even hits the operator's bank account. "This can be another effective way to pay for a system if you don't qualify for a traditional lease," she said. If you are planning a grand opening, time the systems delivery so the trainer/installer will be present for support when you go live. Facing realworld problems with expert help at your side creates a more valuable learning experience than just having him or her around during dry-run training sessions. There are always things that need to be adjusted, Holscher said. Every operator wants things a little different for his operation, and after having done thousands of these, you pretty much know whats going to come up. Having the support there to make changes as you see the need for them is important. Replacing an older system poses different problems since the operation is up and running and any downtime is costly. Ideally, a pizzeria would close for a day or two while the installation occurs, but Holscher said most operators are reluctant to do that. Quite
The installation
Whether youre installing a POS system in a yet-to-be opened pizzeria or replacing an older system, it is crucial the installation be scheduled appropriately. After signing a contract to purchase a system, it will take an average of one to two months before a full-service system (including hardware, software and on-site training) can be delivered. Before the system arrives, Holscher said, it will be congured to the operators specs, including the addition of the pizzerias menu.
Getting wired
Ensure your facility is fully wired before the POS installer arrives. Cabling: Most POS companies require your building is prewired with CAT5 network cable to all computer and printer locations. Electrical: Make sure your system is up to par for sensitive computer equipment by installing a grounded circuit dedicated only to the POS system. Internet: If your system will use broadband Internet, schedule your broadband installation right away as waits for this service can be 60 days.
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simply, it costs them revenue and it frustrates customers. Therefore, she suggested operators require the POS vendor propose a plan for transitioning from the old system to the new one. Some essential points to address: Ask if the new one can be set up alongside the old one to allow both to run during training. Ask how the installer will train on the new system before the old one is removed. Ask how the data stored in your old system will be converted for use in the new one. Operators should staff heavily during the installers visit to allow time for detailed training and Q&A sessions. Include any ofce personnel, such as bookkeepers, who may be required to use the system for reporting. Their questions will differ greatly from the order-takers and likely be more technical. Anticipate higher labor costs during this period and consider it an investment in improving your business. It makes little sense to have a top-ight system your employees cant run effectively. Surprisingly, Holscher said, while many operators demand employees be present for training, some avoid the process altogether. To me, at least, its amazing to think anyone would spend thousands of dollars on the system and not show up for the training, she said. We really recommend they be there for at least the last two days of training typically a Wednesday or Thursday when the hardware installation is nished and theres a strong focus on software conguration and training.
Software updates and upgrades

A good POS vendor will supply regular updates and upgrades to the system software. Depending on the technical support agreement between the vendor and the end user, as well as the nature of the change to the software, upgrades and updates may be free or come with a fee. Since a POS provider is essentially a software developer, DaVincis Kevin Knudsen believes it should produce a minimum of one update per quarter, or theyre not keeping up with the times. I like to see that kind of improvement. But when it comes to purchasing feebased upgrades, hes careful about what he buys and why. To make it worth buying, you must get a return on your investment, he said. Will it improve your management, your efciency, the way you handle labor? If so, then the cost of an upgrade will be offset by those improvements, and its probably a good idea to buy it.
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Holscher said that while ongoing development is an important part of the POS investment, most high-end systems on the market already contain more features than any operator can use. That can make constant updates more trouble than they are worth if software bugs are introduced, they require more training or change how an operator is used to running the system. A POS system can provide detailed labor information to help operators schedule staff according to business demands. While FireFly does provide quarterly updates, with most enhancements coming directly from customer suggestions, we try to balance the focus on new features with an emphasis on making existing features easier, simpler and more powerful, she said. Some good questions to ask a POS provider, she added, are, Do customers have input or a say in the direction of new features? If customers have ideas or suggestions, how likely are they to be added to the system in the future?
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Chapter 4
Improvements: Upgrading your POS system

system when its hardware began falling apart. Like a lot of computer systems, it had long exceeded its typical ve-year lifespan. It was deteriorating faster than we could keep up with, and nding anyone to troubleshoot problems with a DOS system was just about impossible, Bobo said. We already knew what we wanted in an upgrade, so it was just a matter of nding it.
eciding whether its time to upgrade a POS system to something newer isnt all that difcult, users said. When you look around your pizzeria and see greenscreen monitors, sodden keyboard interfaces and DOS or NT boot-up screens, its tough to deny theres a digital dinosaur in your pizzeria. Most operators admit that the real reason they resist getting the latest model is the nancial commitment required. In one of his stores, Dominos franchisee Jason Shifett has had the same system another franchisee had when I bought his store. I know its out of date and my database is junk too, but I dont want to make the investment knowing were going to convert to the Dominos system next year. But Shifett said the old system isnt all that bad; its slow but very reliable, and that counts for a lot when youre running some of Dominos busiest stores. If its sound and solid and I know it wont fail, its better than having a system that might have some bugs to work out, which he said Dominos current system had in recent years. But Ive heard from other franchisees that its near awless now, so Im looking forward to the change. Richard Bobo got seriously motivated to replace Wicks Pizzas DOS-based
If youre serious about your business, youll have a modern POS in the rst place. But if you want longterm results, you dont want to buy an outdated system thats based on DOS or NT. When problems occur, and they will with even the most modern systems, I dont see how youll nd anyone to service it.
Duessa Holscher, managing partner with FireFly Technologies
And even if an old-time DOS system works, youll not nd a modern peripheral to work with it, FireFlys Duessa Holscher said. Much to her surprise, there are POS vendors still selling DOS-based systems out there, but she warns buyers to avoid them at all cost. If youre serious about your business, youll have a modern POS in the rst
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Chapter 4 Improvements: Upgrading your POS system
Questions to ask when shopping for a POS

When you do decide to nally invest in a new system, ask the following: Can the new POS system provider convert data from your old system? How similar is the front-end order ow so that employees will easily adapt to the new system? How similar are the features, and does the new system have all the features your old system does? Can your menu be set up similarly to the old way so that training is easier? If so, how will the trainer do this? Can the company look at your old system ahead of time to make sure everything is set up the same? FireFly Technologies
place, she said. But if you want longterm results, you dont want to buy an outdated system thats based on DOS or NT. When problems occur, and they will with even the most modern systems, I dont see how youll nd anyone to service it. Mackenzie Rivers Brad Ridgeway said worn-out hardware is a pretty good indicator that software improvements arent far away either. But what makes his boss approve the expense for upgrades is when customer trafc starts to outpace the POS systems capabilities. In hopes of maintaining short- and long-term system integrity, he rst consults with his current POS vendor to see if upgrades are available, but if it looks like the upgrades overall are going to be signicant in cost, well look elsewhere and see if theres anything better out there.
Wish list
If you suspect your system is outdated, but youre not up to speed on recent advances in POS systems, then visit a pizza tradeshow. Not only will it be an eye-opening experience, its likely to generate some POS envy. Modern system basics include caller ID, marketing modules, labor and sales forecasting tools. High-end options include remote system access, head ofce tools and open platforms ready for Internet ordering all things that werent available just a few years ago. Such upgrades cost big money, but as DaVincis Kevin Knudsen put it, Youre going to spend money to make money, and if it improves efciency, youll do more business, which pays for the POS.
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Upper Crust Gourmet & Pizza owner Marico Thomas said upgrades are necessary when the POS system isnt helping an operator run his business at maximum efciency and protability. In choosing upgrades, he looks rst for weaknesses in his business and then seeks a POS system that can offset them. The investment shouldnt be the issue, because youre going to spend the money anyway, he said. Either youre going to lose money because you dont have a POS system or youre going to buy a POS system. Which would you rather do? Tarantos Pizzerias ailing POS system is at that point, said co-owner Debbie Taranto-Antoun. Shes dreaming of her next system, which she said will have both caller ID and a mapping feature for Tarantos delivery zones, features she said will eliminate a nagging customerservice problem. If someone calls from outside our delivery area, a new system will tell the girls on the phones whether that customer is in our delivery area, she said. But right now, if they dont know the street address is outside our delivery area, we wind up calling the customer back and telling them we cant deliver there. Thats bad service.
Parts arent just parts

A good sign of system obsolescence is an increasing inability to get replacement parts. And as advancing technology widens the gap between newer software and older hardware, peripherals sometimes struggle to cooperate with systems, and that can lead to a system crash. Surng eBay to nd parts for your ailing system isnt the best of use of an operators time, but Holscher said it happens. And even if a lucky eBay nd bails you out temporarily, will you nd the tech support to make the installation or future repair? Merely sticking ngers in the digital dike will eventually drag down the business as both operators and employees get frustrated with the inability to serve customers.
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Upgrade now or later?

Single-store pizza companies
If you own one store, your decision to upgrade your POS will be inuenced by the following: Growth in sales and size: Is your business outpacing the ability of your system to handle the increasing customer load and internal management logistics? Increasing regularity of system failures: Regular crashes, especially during peak times, are proof the system is probably maxed out. A lack of modern features: Ever wish your system could forecast sales and labor or provide maps for delivery drivers? Maybe its time to consider a system that does that and more. Age of the system: Just because computer technology becomes outdated in three to ve years doesnt always mean a new system is necessary. But if youre running on a DOS- or NT-based system, not only is it time for a full upgrade, youre limiting your business growth and your ability to manage it as effectively as possible. Junky, cluttered customer database: A direct marketing plan is ineffective if an operators customer database isnt usable or up to date. Older systems databases are difcult to maintain and hard to clean up. If youre convinced that marketing with your POS will drive prots and it will having a clean and easily manageable database could be all the reason needed to get a new system. Aging hardware: If your system isnt touchscreen-driven, its a safe bet your systems due to be replaced. Not only are replacement components next to impossible to nd for older systems, nding techs to service them is equally challenging. Out of business: If the POS vendor is out of business or not producing new enhancements, enough said.
Multistore pizza companies

If you own multiple stores, replacing your existing POS system is a task that takes on multiple dimensions. A companywide transition to a new system depends on several factors: Employee training/ability to work at different stores Different reporting and communications methods across stores Different conguration of menus, items, pricing and coupons for each location Careful planning will ensure a smooth transition to your new POS system at all locations. Plan to install the new system in one or two stores at rst to be sure the menu and system features are set up correctly. Then schedule installations for the rest of your stores over the course of several weeks or months, or as long as is reasonable, so your staff has a clear idea of the plan. This includes your corporate ofce accounting staff who will be working with data from two systems. FireFly Technologies
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Appendix
By Richard Slawsky
Related articles from Pizza Marketplace

said. That is a huge loss because it is very powerful for the people who use it. Saving money, watching food cost and controlling labor is important, but building sales is critical, she said. The best way to do that is to reach out to existing customers. Protecting the customers you have and make sure they are keeping you at the top of their mind is the wisest use of your marketing dollar, Holscher said. Every extra sale that comes in the door is going to help.
Promoting via point-ofsale

This story was originally published Oct. 14, 2008 on PizzaMarketplace.com.
hen pizzeria operators shop for a new point-of-sale system, they generally are wowed by sales pitches about the systems high-tech marketing and costcontrol features. But when they get the POS set up in the restaurant, those features often go unused. With the economy in the doldrums and consumers cutting back on spending, now might be a good time to take another look at what your POS system has to offer. The marketing features of modern POS systems tend to be the main feature operators neglect, said Duessa Holscher, managing partner of Hillsboro, Ore.-based FireFly Technologies. FireFly produces the popular Phoenix POS system. Of the customers for whom we install POS systems, maybe 10 percent use that feature, even though everyone talks about it and loves it in the sales process, she said. When it comes down to actually spending the time to do it, a lot of people never take the time, Holscher
Boosting order frequency

A large part of making good use of a POS systems marketing features is just a matter of getting into the habit, Holscher said. For instance, in our system we have an alert that shows up on your main manager page that says you had ve new customers or 10 new customers that day, she said. You can click on that and print out mailing labels for those customers. Operators can keep a stack of postcards or menus ready to go and make that part of your routine every day. It will take three minutes, and people see a huge return by doing that, she said. Hank Paustenback, who owns eight Macianos Pizza and Pasta locations,
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Appendix Related articles from Pizza Marketplace

uses his systems e-mail marketing feature to encourage existing customers to order more frequently. Paustenbacks restaurants use the Pizza Director POS system from Needham, Mass.-based FoodTec Solutions. Whenever anyone orders online, they have to register and give us their address, telephone number and e-mail address, he said. With that, we do mass e-mails with coupons and other offers and also we do menu mailers from the information the system stores. Paustenback tracks how long it has been since a particular customer has ordered and targets the lazy customer with an e-mail coupon. We typically start with the people who order most often and work our way towards the people who order least, he said. she said. That is a great way to collect information from dining room customers, because that encourages them to let you know who they are. The Phoenix system, for example, automatically tracks customer purchases and can associate a certain number of points with those purchases. "We're integrating a new points program that rewards points for every dollar spent," said Matt Ulrey, IT consultant for Columbus, Ohio-based Flyers Pizza. "If I accumulate 500 points, for example, then I get a $5 coupon. It's a great way to beat out the competition." Despite the tough economy, if an operators POS system lacks marketing features, it may be time to consider upgrading to a new system, You really have to look at how you can be efcient, how you can increase sales and be more competitive that the next guy, Holscher said. If you look into some of those features and start spending some time learning how to use them and take advantage of them, they are going to pay for themselves. Richard Slawsky is the editor of PizzaMarketplace.com.
Building a database
Collecting the names, address and e-mail addresses of delivery customers is easy. Collecting that information from dine-in customers takes a bit more creativity. Business-card shbowls, guest books and giveaways are a good way to collect names and addresses from those customers, Holscher said. A lot of people are putting into place customer loyalty programs,
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the provider either does not have many happy customers or is a small player. Take that under consideration. Dont call through the list from top to bottom. Select referrals randomly from within the printed list. Second, call until you have spoken to at least three business owners who are unhappy with the company's software and/or service. You will often learn more from negative responses than positive ones.
Choosing a pizza POS provider

By Kevin Clements This story was originally published Dec. 9, 2008 on PizzaMarketplace.com. hoosing a point-of-sale system is probably one of the most important decisions an operator will make. Pizzerias that provide delivery service need to go with a "pizza POS" product that is also designed to handle dine-in service in the manner the restaurant desires. While the top dine-in POS products may work well for other types of restaurants, theyre not designed for pizza and have weak pizza ordering and delivery management software modules. Here are a few suggestions to weed out POS software products that may not meet your needs.
Ask plenty of questions

In the process of trying to reach the owner, take the opportunity to ask the manager on duty what he or she thinks of the POS system and support. While the responses may not always be as accurate or in-depth, they are important for several reasons: First, the GMs and shift managers are often much more candid. Second, they know how often calls to support are required. Third, many POS problem are ignored or averted by rebooting the system or some other workaround. Here are a few important questions to ask: General: How is the support? Specic: Do you reach a support tech immediately or does one call you back later? If they do not take your call immediately, how long does it take them to get back to
Choosing the best provider

The rst step is to get a list of referrals from the top POS software companies on your list, but change up the rules. Most companies will provide you with a list of their faithful customers. Ask the POS software company for a list of at least 20 referrals from the same state and 30 additional referrals from your region of the country. If the company cannot come up with a list this large,
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you? Are they knowledgeable? How long does it take them to resolve your issues? General: What do you like and dislike about the POS software? Specic: Is it easy to use? Do the screens respond quickly? Can it handle a busy environment? Does it have any bugs that you know of? Here are some more specic questions: How is the delivery and driver dispatch software? Is it intuitive for employees? Is it easy to manage? How hard or easy is it to cash out/ balance a drivers money? Does it prevent driver theft and coupon scams? How is the dine-in software? How does your business do table service? (This varies across businesses.) Is it easy for your servers to use? Is it easy to recall and add to tickets? Does it allow you to split tickets quickly? How so? How is the cash handling and balancing? Is it easy to use? Is it accurate? How is the back ofce area? Is it easy to use? Is it exible? Are the reports accurate? unhappy customers. Determine if these are real issues. And if you believe they are, are they deal-breakers? After narrowing the list, ask the POS software provider company about your remaining concerns. Also, post your concerns on pizza blogs or chat rooms. The problems could simply be that the system was not set up properly or the current owner/manager did not receive training from the POS provider. On the other hand, if the problem is echoed by multiple users and people from chat rooms, consider that your concerns may well be valid.
Once the deal is done

Youll also want a very experienced installer to do a full installation. Experienced installers set up one to three restaurants every month. After a year or more, they have the experience to handle a busy location and can customize the settings of the POS system in a manner best suited to your restaurant. Kevin Clements is a contributing writer for PizzaMarketplace.com.
The next step

Finally, review your ndings. How many positive responses did you get before coming up with negative ones? Try to read between the lines with
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use computer networks running outside the restaurant, there's little to no actual investment required on behalf of the operator. Services commonly are paid for on a contracted monthly basis: some by a at rate, others on a fee-pertransaction cost and still others using some measure of both. Such contracts typically don't include fees from credit card transactions. While all providers' rates vary, wellmanaged online ordering channels become new prot centers, according to Deborah Sellers, owner of Sellers Markets in San Francisco. "Probably 35 percent of all our orders come from online now," Sellers said. "There's no question our business increased as a result of this." She attributed the signicant portion of orders to her Web site's ability to handle a large number of lunch orders within a narrow window of time, a task she believes even several human ordertakers at the phones couldn't do. "We're located in the Financial District of the city, so our customers have very little time to eat, and they all want to come in at the same time," Sellers said. "If they can't call in or the line is too long at the door, that discourages people and they might go elsewhere. We accommodate for that with online ordering. It's critical for our business."
Online ordering outlay offers potential payoff

By Steve Coomes This story was originally published Jan. 13, 2009 on PizzaMarketplace.com.
hile people visit restaurants mainly for the food they provide, research shows that service and convenience strongly inuence where they ultimately choose to eat. A simplied meal experience is essential for busy, time-poor customers, and anything that shaves minutes or seconds off that effort is valuable.
In the past few years, online ordering has evolved into an ideal tool allowing operators to do just that, and in the process it's become an affordable and protable sales channel. Modern online ordering systems are stored on servers outside the restaurant, leaving operators tethered to the system only via video terminal, printer, fax or the Internet. Ultimately, that means minimal expenses for the operator, reduced costs overall and a greater return on investment.
High return for a small expense

Unlike the substantial investment required to equip a new restaurant, minimal capital outlay is needed to launch an online ordering system. Since most online ordering systems
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Jodi Aufdencamp, co-owner of four-unit Mama Mimi's Take 'N Bake Pizza in Columbus, Ohio, said she didn't think her company needed online ordering until she discovered how many hits her company's Web site got each month. When it dawned on her that customers only could look but not buy, she started searching for a way to provide a purchasing option. Yet without a complex, networked point-of-sale system in her stores, she imagined a cost-prohibitive investment would be required to get it going. "We always like to be a step ahead of our competitors, but we didn't see how we could compete with online ordering because we thought surely it was too expensive," she said. Aufdencamp was surprised to discover the affordability of implementing online ordering. "I said, 'Let's get it going!'Now Internet orders account for about 5 to 7 percent of our total ordersNo doubt it's paying for itself." customers are routed to the restaurant via one of the following means: A fax machine An IP printer connected directly to the Net A video order monitor, often a touchscreen Directly to the restaurant's electronic ordering and/or POS system The rst two are the lowest-cost means of receiving online orders. However, they require the added steps of a quick conrmation call to let customers know their orders have been received, and the reentry of the order into a POS system or cash register at the restaurant. The electronic monitor also requires a conrmation call, though the nal order is "pushed" electronically to the restaurant's POS system rather than reentered. The fully integrated option sends all orders directly to the restaurant's makeline without any human intervention, and conrmation is handled automatically by a computer and typically through e-mail. Paul Fournier, vice president of nineunit D Brian's Deli in St. Paul, Minn., said not only was the fax delivery the lowest-cost option available, he said he and his staff preferred it because of its simplicity and the way it t the company's existing kitchen system.
The basics
One reason the operator investment is so low is most modern online ordering systems reside with the provider, not inside the restaurant. The online ordering provider houses the system's servers and network in a central location that transmits orders to its restaurant clients all over the country. Using those networks, orders from
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"Since we handwrite all our (customer orders), there wasn't a need to have something more elaborate like e-mail," Fournier said. "We position the fax machines strategically (on the makeline) in every one of our stores so everyone can see them. If we used e-mailI fear we'd miss that kind of an order." Since D Brian's began accepting Internet orders four years ago, Fournier said the cost of the initial investment continues to shrink with the evergrowing volume of orders pouring in from the Net. "Our catering volume has increased substantially every year for a long time, and that is denitely attributable to the convenience of the online order engine," he said. Many customers use its 24-hour capabilities to place orders after hours. "We don't want them calling and (nding) we're not there or we're busy and then they decided to call somewhere else. This allows them to order when they want. That's a huge convenience." Steve Coomes is a contributing writer to PizzaMarketplace.com.
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"It's a hot topic right now. With costs rising so much in the pizza business, it only makes sense that pizzeria owners would be looking for lower-cost marketing methods," she said. Mozzarella di Bufala has built its pointof-sale e-mail database from 200 customers a year ago to between 300 and 400 now. The company uses a POS from SpeedLine Solutions. Three or four hundred names is not a massive database, but Teles said it already has yielded results. The company used the database to target customers who had not visited the restaurant in the previous 60 to 90 days. Those customers were offered a large pepperoni pizza and a 2-liter bottle of Coke for $12.99, which was an $8 savings. About 20 percent of the customers took advantage of the offer. Sending an e-mail to up to 500 customers at a time costs about $12 a month, Teles said. Reaching the same number of people by direct mail would cost $800.
Selling pizzas by e-mail

By Annemarie Mannion This story was originally published May 20, 2008 on PizzaMarketplace.com.
hether it is by direct mail or advertising in the local newspaper, traditional ways of marketing have not gone by the wayside, but pizzerias are exploring using e-mail databases to reach customers and persuade them to place an order. E-mail marketing is on the rise, and many pizzeria owners want to be in on it. "People still like to get a postcard. But e-mail is going to be the thing of the future," said Ilana Teles, marketing manager for Mozzarella di Bufala, a family-run pizzeria in San Francisco. Sue Litour, president of Passport Pizza, agrees. Her company has eight pizzerias in Michigan and has collected several thousand names in its new e-mail database. "It's an important facet of business. Business is changing, and there are other venues besides direct mail that we want to explore," she said. Jennifer Wiebe, marketing manager for point-of-sale system provider SpeedLine Solutions, said there are many reasons why pizzerias are exploring e-mail marketing.
Keep it simple
When building an e-mail database, Teles recommends limiting it to people who really want to be part of it. "We want quality, not quantity," she said. "We use only permission-based e-mail. We don't sign up anyone unless they want to hear from us."
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Customers who visit the pizzeria's Web site can sign up to be on the list, or they can do it in the restaurant by completing a survey. Make up a simple form a contest entry form and a shbowl work great, said Wiebe. But plenty of people will be happy to receive offers by e-mail without a giveaway. Pizza operators also can ask customers placing phone orders if they want to be added to the e-mail list. The ability to target people is an advantage of the POS system. Some pizza operators collect e-mail addresses in a spreadsheet. That allows them to send mass e-mails to their full list, Wiebe said. But it doesnt allow them to target messages to specic customer groups. The POS system includes much more detailed customer information than you could maintain manually in a spreadsheet. Litour said they decided to use the POS system because they want to reach particular customers and lure them back with special offers. She also wants to get to know them better and build long-term relationships with them. We want to be able to send out e-mails for birthdays or anniversaries. We want to keep our customers coming back, she said. Now that they have several thousand names in their database, Litour said they are in the process of looking for an e-mail marketing service. Teles agreed that using a service increases the effectiveness of e-mail marketing. It increases our delivery rate. We have less than 3 percent of our e-mails bounce back, she said. An e-marketing service provides tools to upload and manage lists, designs templates for your e-mails and offers other features to unsubscribe, Wiebe said. But a better solution for more sophisticated marketing is to use a company that specializes in restaurant e-marketing. They have the expertise and ready-to-use templates for restaurant promotions, e-coupons and newsletters that will make your life much easier, Wiebe said. Teles recommends learning as much as possible about e-marketing. Her pizzeria uses Constant Contact, an e-mail marketer that also provides free live coaching for anyone who wants to learn about e-marketing. You need to get yourself educated. Take some webinars, she recommended. E-mail marketing, along with other marketing efforts such as recently
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redesigning their Web site and sending direct mail offers, is reaping rewards for Mozzarella Di Bufalo. Revenues are up between 10 and 15 percent over last year, Teles said. Annemarie Mannion is a contributing writer for PizzaMarketplace.com.
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Pizza How To Choose Pos

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A guide from Pizza Marketplace

Purchasing the Right POS System

Purchasing the Right POS System

Necessities: Choosing a POS system that ts your needs

Shopping around: Buying a POS system

Improvements: Upgrading your POS system

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