Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.
Issue link: https://read.dmtmag.com/i/85691
Seeing POS Cloud computing is coming on strong for point of sale systems, but 'traditional' setups still have their advantages. BY PAN DEMETRAKAKES computing is cloud computing—systems that store soſt ware and data off -site and access them through the Internet. Th is removes the need for hard drives, making devices of all kinds smaller, lighter and less expensive. Point of sale (POS) systems are good candidates for cloud I s POS starting to stand for "Push Out Soſt ware"? One of the greatest recent advances in personal from the cloud transaction function of Square with the sale- JP's Coffee in Holland, Mich. combines the card recording functions of another POS system. computing, since they usually require off site interfaces in any case to process credit information. Now POS users have more options than ever in terms of how much functionality and data they want to reside within their four walls. Th e biggest advantage of a cloud-based POS system for new users is lower upfront costs. Hardware for a typical client-server system, where the cash register is a computer with a hard drive that processes and stores transactions and other data, starts at about $2,000 and can easily go above $5,000. Hardware for a cloud-based system, which usually comprises a tablet like the iPad and peripherals like a connected cash drawer, tops out at about $1,500, says Jason Richelson, CEO of ShopKeep POS. Th e hardware is not only less expensive; it's lighter and have functions that go far beyond transactions, like tracking sales, supplies, employee hours and other metrics. Since interconnectivity is the whole basis of the cloud concept, cloud systems usually make it easy to share data among several stores and for managers to tap into it remotely with smartphones and other mobile devices. "For those guys, the real 'wow' and reason to switch is access to your data in your store," Richelson says. to pay and participate in loyalty programs using their own smartphones or tablets. In specialty coff ee, the biggest recent development in that regard was Starbucks' announcement in August of a partnership with Square Inc., the leading cloud- based POS system. Starting this fall, customers at all Starbucks stores can use Pay with Square, a function of Square that lets them set up accounts and make purchases just by identifying themselves at the counter. Cloud-based POS systems also make it easier for customers easier to move around and replace. Th is makes it simpler to reconfi gure payment stations and even have employees move down long lines holding tablets to take orders. Th ere's also less to go wrong. A computer in a cash register STARBUCKS ON THE SQUARE Starbucks' partnership with Square goes well beyond payment has all the liabilities of any computer, like hard drive crashes and viruses—which your employees could pick up if they get bored and start using your Internet-connected register or other system stations to net-surf. GETTING CONNECTED Another signifi cant advantage of cloud-based systems is interconnectivity, both internally and with customer devices. Th is is especially important because most modern POS systems 14 options. Starbucks is moving all of its credit/debit card functions to Square, meaning that Square will process and store Starbucks card sales data on its own servers. Th is is a coup for Square that has potential benefi ts for all of its other retail customers, because it's a massive increase in scale that will, in theory, lead to greater effi ciencies and lower costs going forward. (In addition, Starbucks is investing $25 million in Square, and its CEO, Howard Schultz, is joining Square's board of directors.) Starbucks' motivation is obvious: the Square deal will reduce its transaction costs. Square charges a fl at rate of 2.75 percent per swipe for all cards, compared with 3.5 percent plus 15 cents per swipe for most major credit cards. (Square just introduced a $275 monthly fl at-fee alternative.)