The cash register used to be ubiquitous in grocery stores. But shifts in retail trends and customer expectations mean they may no longer be sufficient to meet business requirements.
While large supermarket chains have long switched from grocery store cash registers to point-of-sales (POS) systems to improve operational cost-efficiency and customer experience, the decision may not be so clear-cut for smaller chains and independent operators.
Should you stick with the cash register or upgrade to a POS system? Here’s an overview of each option and a comparison to help you make the best decision for your business.
Grocery Store Cash Register vs. POS System: What are the Differences?
A cash register is a business machine with a money drawer. It calculates the amount for each sale, adds taxes, logs each transaction, and records how much money comes in and goes out of the business. It can also generate receipts and perform basic sales tracking functions.
Most of today’s grocery store cash registers are electronic. These standalone machines aren’t connected to a network or back-end system. The basic models only handle cash transactions, but you can add hardware like credit card readers, barcode scanners, or scales to augment their functionalities.
POS systems perform all the functions you can expect from a top-of-the-line cash register and a lot more. They often come with an easy-to-use touchscreen interface and provide detailed reporting. They include card and barcode scanners, chip readers, and a computer system to connect the front-end experience to your back-end operations.
Some POS systems, like our very own RORC, also offer or connect to other features like:
- inventory management,
- accounting,
- loyalty programs,
- multi-location management,
- personalization,
- automation, and
- multi-channel sales capabilities to help merchants improve operational cost efficiency.
Grocery Store Cash Register vs. POS System: A Comparison
Let’s look at how the two options stack up against each other based on these key criteria:
Features and Functionalities
A basic cash register can ring up sales and has a secure drawer to keep the cash. A more advanced system may allow you to customize tax requirements or provide basic sales tracking and reporting.
A POS system has all the functions of a cash register. Plus, you can track inventory, run a loyalty program, collect customer data, get real-time analytics and reporting, manage multiple locations, and support various promotions.
Flexibility and Scalability
A grocery store cash register is straightforward — what you see is what you get. If you need new features, you have to buy a new machine. On the other hand, a cloud-based POS system allows you to add or remove functionalities by simply updating the software to meet seasonal demands and support your growth plan.
Plus, a POS system allows you to manage multiple locations via a single dashboard from anywhere. You can make decisions on a dime based on real-time data and ensure all your stores offer the same pricing and promotions for a consistent brand experience.
A cloud-based POS system makes it even easier to scale and adapt. For instance, you can quickly add new features, such as self-checkout lanes, to respond to evolving customer expectations and stay ahead of the curve without a substantial upfront investment.
Software Integrations
You can’t connect a grocery store cash register to a network or sync it with your back-office software (e.g., accounting, inventory management, etc.) Instead, you must manually transfer transaction data from your reports to other applications, which is time-consuming, labor-intensive, and error-prone.
A cloud-based POS system can integrate with different software applications to streamline workflow and avoid costly errors. Or you can use an all-in-one solution like DUMAC’s RORC, which combines all essential functions (e.g., accounting interface, loyalty program, mobile shopping, eCommerce, web reporting) for seamless operations.
Total Cost of Ownership
A grocery store cash register typically costs a few hundred dollars and doesn’t require any ongoing fees. On the other hand, a POS system is more expensive to set up. You may need to purchase hardware upfront and pay a monthly or annual fee to use the services.
Alternatively, you can access a cloud-based POS system, such as RORC, as a subscription-based service. You don’t have to purchase expensive equipment upfront, while the subscription fee covers ongoing maintenance – helping you reduce IT overhead.
Overall, the total out-of-pocket is typically lower for cash registers. However, the advanced features you get from a POS system can help you improve customer experience and operational efficiency to drive sales and increase profitability.
Future-Proof Your Business With a Robust POS System
While it may be tempting to stick with what has worked for decades, the time has come when grocery stores must update their technologies to meet consumer expectations.
A robust, cloud-based POS system provides the latest technologies you need to grow and scale your business. You can streamline operations, increase efficiency, and deliver a modern customer experience to stay competitive and relevant now and in the future.
Learn more about RORC and get in touch to see how we can help you upgrade your operations.
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