Restaurant Point-of-Sale Terminal Market Size, Share & Trends Report

Restaurant Point-of-Sale Terminal Market Size, Share & Trends Analysis Report By Component, By Product (Fixed, Mobile), By Deployment, By Application, By End User, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-487-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 174

Report Overview

The global restaurant point-of-sale terminal market size was valued at USD 15.46 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. The COVID-19 pandemic impacted the business of the restaurant sector due to the temporary shutdowns and lack of dine-in customers. However, the adoption of digital ordering channels helped a few restaurants survive the pandemic while using POS for contactless payments. The increasing demand for improved Point-of-Sale (POS) terminals is backed by its efficient management facility in comparison to the manual systems or traditional cash register. The POS system functions such as sales analysis, inventory management, customer feedback, and employee management analysis which is impelling the market growth.

U.S. restaurant POS terminals market size, by product, 2016 - 2028 (USD Billion)

The restaurant POS terminal functions involve billing, recording sales figures, payroll management, and inventory control to ensure business function. Everyday sales and inventory data recorded in the POS system are analyzed to track the sales pattern and help restaurateurs manage sales tax reporting as well as track their monthly and annual sales. Hence, the installation of fixed or mobile POS systems can reduce everyday tedious and manual tasks recording sales and preparing tax reports. Additionally, integration of Customer Relationship Management (CRM) software in the POS system automatically fetches customer information to create regular updates and prepare sales reports. Thereby, the added advantage of installing a POS system to extract insights related to customer preference, and sales trends are expected to augment the market growth.

Restaurants need streamlined business operations to boost product demand. Hence, restaurateurs have deployed point of sales systems to operate with improved efficiency by reducing billing time, monitoring the order completion time, and avoid order error during peak hours. Metropolitan cities in every country are the hubs for fine dining restaurants, cafes, breweries, nightclubs, and pubs where people congregate regularly with family, friends, or colleagues for leisure time or official meet, respectively. Hence, restaurant staff needs to maintain quick order and billing facilities to offer a great dining experience. A POS system strives to manage the back-end preparation for a smooth front-end operation during busy hours. A rise in the number of dine-in restaurants, nightclubs among others will contribute to the market growth over the next few years. The impact of COVID-19 will result in a short-term impediment; however, the market will soon hit recovery with large-scale vaccination programs.  

The restaurant POS terminal market growth slumped due to the COVID-19 pandemic that forced people to stay indoors and avoid outside activities. Although the online ordering system helped many restaurants to keep the operation on track, the revenue loss led to the declined sale of new POS systems. As the countries such as China, Japan, South Korea, the U.S., Russia, the U.K., Germany, and other countries are recovering from the pandemic and have fully operated restaurants, the POS vendors are adding new features to help restaurants adapt to the challenge of dining. In 2021, 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 expected to register a CAGR surpassing 5.0% over the forecast period. The growth is attributed to increased table turns, improved service level, 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 menu based on customer preference, increasing sales and profitability, and rationalizing order processing have compelled the restaurateur to adopt restaurants POS terminals.

The fixed product segment is sub-segmented into cash counters terminal, self-serve kiosks, and vending machine. The fixed product segment accounted for the largest market in 2020. The market size witnessed a rise primarily attributed to the implementation of point of sale terminals in bigger restaurants that serve a large number of customers and have multiple outlets to manage. The self-service kiosk segment is expected to register the highest CAGR exceeding 6.0% from 2021 to 2028. The growing demand for self-service kiosk systems to facilitate quick checkout with waiting in long queues and manage a greater number of customers 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 exceeding 67.0% share in 2020. The hardware segment is classified into touchscreen/desktop, swipe card machine, and others. Restaurants need additional hardware to complete the POS system which includes, touchscreen monitor or tablet, cash drawer, EFTPOS, and receipt printer. The improvement in these devices individually such as the introduction of OLED display and touch screen, thermal receipt printer, and touch payment EFTPOS is expected to drive market growth.

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 type of restaurants is another factor boosting the demand for customized POS software.

Deployment Insights

The deployment segment is segmented based on cloud and on-premise deployment modes. The cloud segment is anticipated to exhibit a CAGR exceeding 6.0% 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 by exceeding a revenue share of 70.0% in 2020. 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 the 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 requires, also the system is purchased on a perpetual, non-exclusive license for installation and use.

Application Insights

The application segment is bifurcated into the back end and front end. The front-end segment accounted for a market share of more than 62.0% in 2020. The primary reason for the adoption of the restaurant POS terminal is to carry out front-end operations, such as food ordering, billing, tracking sales, payment processing, order management, customer interaction, reporting, and marketing. Additionally, the need to gain insight on the most popular menu item, track food usage, and generate sequential order is expected to favor the segment growth.

The back-end segment registered a CAGR of over 6.0% during the forecast period 2021 to 2028. The adoption of a POS system to ensure correct order preparation on time is quintessential to manage the front-end of the restaurant. Implementation of a back-office POS system enhances operation efficiency and frees up the front-end POS terminal from managing administrative tasks. The need to maintain privacy for management and limit access to sensitive business information away from staff due to the threat of data breach is also instrumental in boosting the demand for back-end restaurant POS solutions.

End-user Insights

The end-user segment includes Full-Service Restaurant (FSR), Quick Service Restaurant (QSR), and institutional FSR. Institutional FSR is further sub-segmented into casual dine and fine dine. The FSR segment dominated the market in 2020 accounting for over 39.0% of the global revenue share. The casual dining segment emerged as the highest revenue contributor owing to affordable and convenient eating options and rising casual dining brands such as McDonald's, Wendy’s, Pizza Hut, and Dunkin that have readily adopted POS terminal for their large outlets.

Global restaurant POS terminals market share, by end user, 2020 (%)

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 owing to convenient eating options and rising casual dining brands such as McDonald's, Wendy’s, Pizza Hut, and Dunkin that have readily adopted POS terminal for their large outlets. Moreover, the QSRs are required to attend to a larger number of customers frequently in a short duration which needs the support of the POS system to assess customer requirements, take quick orders, reduce order turnaround time and provide faster customer service.

Regional Insights

The Asia Pacific remained the largest market for restaurant POS terminals in 2020 accounting for more than 30% of revenue share. It is projected to expand at the fastest CAGR during the forecast period due to the rapidly expanding and evolving foodservice industry in countries, such as India and China, as a result of favorable demographic conditions and increased disposable income levels. However, COVID-19 has negatively impacted the market growth as the restaurant sector witnessed slow business and revenue loss. Various small-scale restaurants in Asian countries have started using digital kiosk and tablets bases POS systems to display menu, place orders, increase operational efficiency, and enhance customer experience. The market is expected to revive post-pandemic as the normalcy returns and customers start dining out and having takeaway orders.

North America was the second-largest revenue contributor in 2020. 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.

Key Companies & Market Share Insights

The global market is highly competitive. Some of the key industry competitors include PAX Technology Limited; Verifone Systems Inc.; Posist; EposNow; NCR Corporation; Revel Systems; Aireus Inc.; Aireus Inc.; Dinerware, Inc.; Harbortouch Payments, LLC; LimeTray; POSsible POS; Oracle Corporation; Posera; Ingenico Group; ShopKeep (acquired by LightSpeed); Squirrel Systems; Toshiba Corporation; TouchBistro; and Upserve, Inc. 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 August 2020, TouchBistro acquired TableUp, a Boston-based loyalty and marketing solutions provider to integrate TableUp solution in its POS restaurant management platform. Moreover, in April 2020, TouchBistro unveiled “Restaurant Recovery Navigator” as a go-to information source that will help restaurateurs plan their business amidst the pandemic that affects their future growth.

The companies also focused on providing a product 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 in the market and the focus of manufacturers on providing customized solutions are anticipated to drive the market further. For instance, Revel Systems with its partner Intuit Inc. developed QuickBooks, an online restaurant POS system that enables restaurants to spontaneously sync their sales, inventory, payment, payroll, and CRM information. Some prominent players operating in the global restaurant point-of-sale (POS) terminal market are:

  • 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.

Restaurant Point-of-Sale Terminal Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 16.83 billion

Revenue forecast in 2028

USD 25.95 billion

Growth rate

CAGR of 6.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, competitive ranking, competitive landscape, growth factors, and trends

Segments covered

Product, component, deployment, application, end-user, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; France; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

Ingenico Group (acquired by Worldline); PAX Technology Limited; Verifone Systems Inc.; NCR Corporation; Revel Systems; Aireus Inc.; Aireus Inc.; Dinerware, Inc.; Posist, EposNow; Harbortouch Payments, LLC; LimeTray; POSsible POS; Oracle Corporation; Posera; ShopKeep (acquired by LightSpeed); Squirrel Systems; Toshiba Corporation; TouchBistro; and Upserve, Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global restaurant point-of-sale terminal market report based on product, component, deployment, application, end-user, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Fixed

      • Self-serve Kiosks

      • Cash Counters Terminal

      • Vending Machine

    • Mobile

  • Component Outlook (Revenue, USD Million, 2016 - 2028)

    • Hardware

      • Swipe Card Machine

      • Touchscreen/Desktop

      • Others

    • Software

  • Deployment Outlook (Revenue, USD Million, 2016 - 2028)

    • Cloud

    • On-Premise

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Front-End

    • Back-End

  • End-user Outlook (Revenue, USD Million, 2016 - 2028)

    • FSR

      • Fine Dine

      • Casual Dine

    • QSR

    • Institutional

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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