GVR Report cover U.S. Restaurant Point Of Sale Solution Market Size, Share & Trends Report

U.S. Restaurant Point Of Sale Solution Market Size, Share & Trends Analysis Report By Product, By Component (Hardware, Software, Services), By Deployment, By End-user, And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-355-3
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 75

Report Overview

The U.S. restaurant point of sale solution market size was valued at USD 3.42 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2021 to 2028. The demand for POS solutions in the U.S. can be attributed to the move toward a cashless economy and the rising adoption of technologies in businesses. The increased adoption of cashless transactions in the U.S.in recent years has helped drive the adoption of point of sale (POS) solutions, with the COVID-19 pandemic further boosting the move toward contactless payments. The pandemic has also favored the growth of the restaurant POS solution market by fueling the demand for payment wallets and budget-friendly mPOS terminals.

U.S. restaurant point of sale solution market size, by product, 2018 - 2028 (USD Billion)

The restaurant industry in the U.S. has grown to cater to the increasing population with a busy lifestyle. According to National Restaurant Association, the U.S. restaurant industry was projected to make USD 899 billion in sales in 2020. However, the COVID-19 pandemic shook the industry, leading to the shutdown of more than 110,000 restaurants permanently or for long-term across the country. To revive the industry, the government has given safety instructions and lifted strict lockdown to allow restaurant operate at full capacity. Moreover, the home delivery culture in the U.S. has risen tremendously, boosting the quick service restaurants demand. To keep up with the changing dynamics and growing restaurant’s needs, the POS solution vendors are launching solutions for better control of back-end and front-end operation.

The rising demand for NFC-ready POS terminals has helped the POS terminal industry increase its foothold in the U.S. market. Increased availability of POS terminals accepting contactless payments with cards featuring NFC-enabled contactless payment services such as MasterCard PayPass, UnionPay QuickPass, and Visa PayWave has transformed the U.S. payment industry. Thus, a major increase in deployment of POS terminals, specifically contactless features enabled terminals was noted in the country. Moreover, a considerable decline in the prices of NFC-enabled POS terminals has boosted their adoption over the years.

The COVID-19 pandemic severely impacted the foodservice industry in the country and led to the shutdown of multiple restaurants. According to Firefly, Datassential’s proprietary database,10.2% percent of the U.S. full-service and limited-service restaurants, as well as food trucks, have permanently closed in the country as of December 2020. The remaining restaurants survived the pandemic by adopting the digital ordering channel. As the U.S. is focusing on fully vaccinating its population, the restaurant sector is expected to bounce back, which could positively impact the U.S. restaurant POS solution market.

Component Insights

The market is segmented into three main components, namely, hardware, software, and services. In 2020, the hardware component segment accounted for the highest market share of more than 50% and is expected to exhibit a significant CAGR over the forecast period. Hardware components of a restaurant POS system are available in silos as well as an individual system. An all-in-one POS system is more preferred by vendors to avoid computability issues arising from integrating different systems. Moreover, many vendors offer integrated POS solutions in all0inone POS system that can be further customized according to business-specific requirements.

The promising growth prospects of the software segment can be attributed to the growing demand for POS devices requiring tailor-made solutions according to industry functions. Moreover, cloud computing technology advancements have triggered an increase in the usage of Software-as-a-Service (SaaS) platform-based POS systems. Cloud-based POS software are capable of integrating screen terminals and barcode scanners across POS systems and further provides data restoring and backup features. Software services include timely upgrades while the hardware requires maintenance and repair services.

Product Insights

Based on product, the market is segment includes fixed POS terminal and mobile POS terminal. The fixed POS terminal segment led the market with the largest revenue share of over 75% in 2020. A fixed POS terminal comprises devices such as a PC monitor, cash drawer, processing unit, barcode reader, pole display, printer, and keyboard among others. Large businesses in the need for continuous power supply, are complex infrastructure and high maintenance started opting for widely POS system to streamline the business function. Moreover, large restaurant businesses wary of security concerns deployed fixed POS terminals to deploy solution within the vendor firewall. Hence, large scale businesses expansion is further expected to boost the demand for fixed POS terminals.

The mPOS terminal segment is expected to exhibit the highest CAGR over the forecast period. mPOS terminals offer low cost of installation and mobility, allow ease of payment during busy hours, help avoid loss of sales due to delays, and help improve customer satisfaction. Sale and payment transactions can be carried out at any part of a store or in the field using mPOS terminals, which are expected to be the key driving force for mobile and wireless terminals.

Deployment Insights

The deployment segment is bifurcated into the cloud and on-premises. The POS software deployment mode, on-premises for the U.S. restaurant industry, contributed highest revenue share of more than 75% in 2020. The large restaurant chains running multiple stores opt for on-premises deployment to protect data within its firewall and access POs system without relying on completely on internet connectivity. The large volumes of confidential customer financial and identity data are of prime importance for QSR and FSRs. The small and medium size restaurant businesses still prefer cloud deployment as it is an economical choice considering the budget constraint.

Small and medium size restaurants prefer cloud deployment mode as it helps them leverage Software as a Service (SaaS) capability on the existing infrastructure including smartphones, personal computers, and tablets. The rapid adoption of cloud-based POS solutions is favored due to low installation cost and high RoI. Moreover, deployment on cloud eliminates the need for data center or professional to manage data on premises. However, software deployed on the cloud need strong internet connectivity to function throughout the business operation. Weak internet connectivity can hinder transaction and other process, halting the business functions.

End-user Insights

The end user segment encompasses quick Service Restaurant (QSR), Full-Service Restaurant (FSR), institutional, and others. The FSR segment held the largest revenue share of more than 35% in 2020. The FSR segment is further bifurcated into fast dine and casual dine. Technology is reshaping the way restaurants manage activities such as payment processing, taking orders, inventory management, and customer engagement. As U.S. restaurants have been at the forefront of the adoption of POS solutions, the development of these terminals into a comprehensive management platform is driving the demand in the market. The transition from fragmented POS systems into an all-in-one technology platform not only supports payments but tasks such as ordering, gift card processing, loyalty programs, and CRM.

U.S. restaurant point of sale solution market share, by end-user, 2020 (%)

The QSR segment is expected to exhibit highest the CAGR over the forecast period.POS systems for QSRs act as a central communication hub for restaurants that offer services via drive-thru or serve on-the-go food. These terminals record online or in-person orders for the kitchen, process payment, create sales analysis reports, and track sales and employee working hours. The availability of an increasing number of systems with all these functionalities to run a small or large QSR is driving the market growth. Lightspeed, Toast Inc., Revel System, TouchBistro, Lavu, and Square are some of the most popular and preferred POS solution providers in the U.S. market.

Key Companies & Market Share Insights

Some of the major players in the market are NCR Corporation; Square Inc.; Oracle Micros; and TouchBistro. Industry players have been adopting strategies such as partnerships, new product launches, and acquisitions to gain a competitive edge and increase their market share. For instance, In December 2020, Lightspeed acquired Upserve Inc., a restaurant management cloud-software company.

The prominent vendors in the U.S. market partner with payment providers, application integrators, or distributors to increase their revenue and improve payment facilities. In November 2020, Helcim Inc. launched QR code functionality for its business customers. Merchants using the company’s Hosted Payment Pages, Helcim’s Online Store, and Online Food Ordering solutions could leverage the new functionality for faster and contactless payment. The launch helped the company attract new customers while strengthening its present customer base. Some of the prominent players operating in the U.S. restaurant point of sale solution market are:

  • Ingenico (acquired by Worldline)

  • PAX Technology

  • Clover Network Inc.

  • Lightspeed

  • Square Inc.

  • TouchBistro

  • Toast, Inc.

  • Helcim Inc.

  • Revel System

  • Bepoz America LLC

  • Oracle

U.S. Restaurant Point Of Sale Solution Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 3.63 billion

Revenue forecast in 2028

USD 4.74 billion

Growth rate

CAGR of 3.9% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Product, component, deployment, end-user

Country scope

U.S.

Key companies profiled

Ingenico (acquired by Worldline); PAX Technology; Clover Network Inc.; Lightspeed, Square Inc.; TouchBistro; Toast, Inc.; Helcim Inc.; Revel System; Bepoz America LLC; Oracle Oracle

Customization scope

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

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the U.S. restaurant point of sale solution market report based on product, component, deployment, and end-user:

  • Component Outlook (Revenue, USD Million, 2017 - 2028)

    • Hardware

    • Software

    • Services

  • Product Outlook (Revenue, USD Million, 2017 - 2028)

    • Fixed POS

    • Mobile POS

  • Deployment Outlook (Revenue, USD Million, 2017 - 2028)

    • Cloud

    • On-premises

  • End-user Outlook (Revenue, USD Million, 2017 - 2028)

    • FSR

      • Fine Dine

      • Casual Dine

    • QSR

    • Institutional

    • Others

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