Restaurant Point-of-Sale (POS) Terminals Market Trends

Growth Drivers

• Growing use of contactless payments- Contactless payments already gained a high popularity before the pandemic, but after the COVID-19 pandemic, this data has increased its utilization which acted as a growth driver and made this mode of payment the preferred mode of payment for many customers. This has led to an increased demand for POS terminals that enable contactless functionality. According to Worldwide India, In January 2020, only 25% of the transactions in supermarkets were contactless, but this percentage rose to 31% by January 2022.
• High Demand for automation- Automation is becoming increasingly popular in the food service industry, and the pandemic has hastened this transition. This has driven the demand for POS terminals that can enable and facilitate automation. Such terminals can help reduce labor costs, improve the accuracy and speed of operations, and provide a better customer experience. This trend will continue to boost the growth of the US restaurant POS terminals market Growing demand for omni-channel retailing- Omni-channel retailing, allows the combination of various sale channels (in-store, online, and mobile) to create a seamless shopping experience for customers and is gaining popularity. This has driven the demand for POS terminals that can support such omnichannel transactions. As the demand for omnichannel retailing continues to grow in the coming years, the demand for POS terminals compatible with omnichannel systems will also increase.
• Growth of online food delivery apps: Online food delivery apps have gained massive popularity in recent years, and the COVID-19 pandemic has driven this trend even further. This has driven the demand for POS terminals that can serve as a link between the restaurant and the food delivery service, allowing for a seamless ordering and payment process for the customers. This trend will continue to drive the growth of the US restaurant POS terminal market in the coming years.

Challenges

• Difficulty in maintaining and updating software- POS terminal systems, like any other software and hardware system, require a regular update and maintenance to keep the system functional and up-to-date. This is a challenge for several restaurants, as the software can be a bit complex and the updating process can be very long and costly, this asks for trained personnel to handle it, which can act as a restraining factor for the restaurant POS terminals market
• Limited availability of skilled labor- The adoption of POS terminal systems requires trained and skilled staff to utilize the system's features and capabilities.
• Limited compatibility with the existing systems.
• Complexity and learning curve.