ROI GUIDE: IN

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Thank you for downloading the Restaurant Point of Sale Return on Inve
Now, let’s talk numbers.

A restaurant POS system is an integral part of a restaurant. From the servers conductin
operations.

Historically, the purchase of a POS system resulted in high costs, multiple headaches,
game and put more power in the hands of the buyer. No longer are restaurateurs simpl
on that investment is not only expected, it’s required.

Your restaurant technology platform should not only handle the basic functions of opera
customers, encouraging repeat guests, and saving you time managing day-to-day oper

In Toast’s Restaurant Technology Report, 73% of restaurateurs stated their intention to

quarters of your competitors have taken the steps to streamline their operations and ad

The good news is that you’re getting close to an update of your own, and with the right
for your POS system, consider how much money you can gain as a direct result of you

• What’s the value of saving X hours a week?

• Will your investment continue to grow over time as your vendor continues to upgr
• Are you losing money now because you haven’t made a decision?

CLICK HERE TO GET STARTED →

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I GUIDE: INTRODUCTION

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nt of Sale Return on Investment Guide!

t. From the servers conducting transactions to the managers analyzing sales, the POS is at the cent

h costs, multiple headaches, and even more hidden fees. However, the modern POS purchase has c
onger are restaurateurs simply buying a POS – they are investing in one. Thus, a respectable and pr

e the basic functions of operating your restaurant, but also help you grow your business by serving m
me managing day-to-day operations.

teurs stated their intention to update their technology last year. If you weren’t in that group, that mea
mline their operations and advance their technology.

your own, and with the right system, you’ll be back up to speed in no time. To calculate return on inv
gain as a direct result of your investment.

our vendor continues to upgrade the system?

de a decision?

ARTED →

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the POS is at the center of restaurant

n POS purchase has changed the

, a respectable and profitable return

business by serving more

n that group, that means that three

calculate return on investment (ROI)

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 How to Use This Template
This template is meant to be used as a guide when calculatin g your current restaurant POS systems’ ROI or calculating the potential ROI of a POS syste m you’re evaluating. It includes statistics on 10 ways your POS syste m
can pay you back over time, shows total cost of your software-as-a-service system over 5 years, and finally calculates your ROI percentage and bo ttom line added revenue.

Part 1: In this sheet, titled 'Calculator', enter your restaurant’s information, such as annual sales or average ticket number, in the cells h ighlig hte d and outlined in blu e. T he added revenue or savings will automatically
calculate and show as numbers highlighted in yellow.
Part 2: T he yellow calcu lations o utlin ed in orang e will be used in the analysis section (located in the follow ing sheet, titled 'Analysis') where you can find your ROI summary, payback period evaluation and breakdow n of
return on each dollar invested.

Note: Not all POS systems offer integrated inventory tracking, digital receipts, gift cards, loyalty programs, or online ordering. If the system you’re evaluating doesn’t, delete the default in fo rmation and bypass these sections.

PART 1: CALCULATIONS

To begin, enter your restaurant's total

$500,000
annual sales

1. Customized Menu Increases Throughput and Efficiency View Source

Reduce the number of buttons your s ervers push in the haywire of y our busiest shifts. With a well-designed POS interface, y ou can reduce the amount of time it takes to enter an order by 10% , thus
freeing up your tables for even more guests.

Annu al Sales on Busy

Increase By You Earn Period
Days (Ex. Fri & Sat)

$75,000 x 10% $7,500 Per Year

$625 Per Month
$20.55 Per Day

2. Intuitive POS Eliminates Manual Errors View Source

With an intuitiv e POS system, it's less lik ely your s taff w ill c ommit addition mistakes or purposefully mark down an item for their friends. Rather than using a calculator to add up a guest check , the
POS sys tem will automatic ally determine the amount owed. Industry standard estimates, based on c heck audits, indicate savings as 1% of restaurant s ales v olume.

Annual Sales Increase By You Save Period

$500,000 x 1% $5,000 Per Year

$417 Per Month
$14 Per Day

“My recommendation to people buying a POS system is, above and beyond anything else, to call and get references. If we had called a few references before we went with our last system,
FEATURED CASE STUDY Read More →
it would ha ve saved us $100,000 and a year of headache. I called three references for Toast and the y were all glowing ." - Eric Kinniburgh, C OO of Ba reburger

3. Product Mix Reporting Will Decrease Bottom Line Food & Drink Costs

With a modern cloud-bas ed POS, all items ordered are properly recorded into the restaurant POS with tablet or terminal devices in the bar or dining areas , and immediately communicated to kitchen
printers and monitors. This eliminates shrinkage and improv es was te control. The restaurant POS can then provide acc urate inventory and purchasing data based on this information, giv ing restaurant
owners m ore power over their food and drink c osts, whic h tend to be approximately 35% of sales. According to the N ational Res taurant Ass oc iation, a 2% decrease in bottom-line food and drink costs
results from forced charging of all items served.

Avg. Food & Decr ease

Annual Sales You Save Period
Bev Cost C osts By

$500,000 x 35% x 2% $3,500 Per Year

$292 Per Month
$10 Per Day

FEATURED RESOURCE Menu Engineering Bootcamp Download Now →

4. Real-Time Labor and Productivity Reporting Will Help You Create Intelligent Employee Schedules

Labor cost savings resulting from detailed labor analysis, revenue center analys is , hourly reporting, and produc tivity by server and cashier gives insights into real-time labor c ost perc entage, or how
labor is translating into sales. With this information, restaurant owners c an make data-driven decisions about whether there are too many or too few people working at a given time, which can create
opportunities to decrease labor and increase top-line revenue. These labor insights can save an es timated 30% labor hours per month, as you will be s pending les s on labor during slow er times and
making the most out of your staff.

Total Annual Labor Avg. Hour ly % Labor You Save Period

Hou rs Labor Cost Hour s Saved

Avg. Workers/Hour 4 $37,440 Per Year

Hours Open/Week 80 $3,120 Per Month
Number of Weeks 52 $103 Per Day
Total Annual Hours 16640 x $7.50 x 30%

FEATURED CASE STUDY Learn how Ben Kaplan of the Barbara Lynch Gruppo uses his POS system's report on sales performance to pinpoint areas where a particular server might need additional training. Read More →

5. Close-Out Requirements Prevent Employee Theft

The National Restaurant Association estimates that internal employee theft is res ponsible for 75% of inventory shortages and about 4% of restaurant sales. There are many way s your POS system
can prevent employee theft, such as enacting blind closeouts, which require employees to reconcile cash at the end of their shift w ithout notify ing them of the exact amount they are expec ted to return.
Your POS s ystem s hould also track voids, so y ou can notice right away if an employee is voiding transac tions frequently and if they’re doing it at odd hours.

Annual Sales Factor You Save Period

$500,000 x 4% $20,000 Per Year

$1,667 Per Month
$55 Per Day

FEATURED CASE STUDY See how customer-facing terminals increased tips by 3 times the amount for The Paris Creperie. Read More →

6. Inventory Management Reduces Food Costs View Source

According to Toas t's Restaurant Tec hnology Report, restaurateurs name inventory management integration as ther most important POS feature integration in a POS purchas e. Inventory management
and menu engineering can greatly decreas e your food costs as well as increase y our specific menu items' profitability. With the s witch from no or little inventory c ontrol to a w ell-managed inventory
control system integrated within your POS, it's possible to shave off approximately 3% of your food c os t. Typically, the cost of food and beverages in a restaurant is 35% of their total sales. With the
right data about your inventory control, you can manufacture a profitable menu.

Annual Sales Avg. Food & Fo od & Bev You Save Period
Bev Cost C osts Saved

$500,000 x 35% x 3.00% $5,250 Per Year

$438 Per Month
$14 Per Day

FEATURED CASE STUDY "People who aren’t using inventory are really missing out. Having live access to all that information is what makes Toast so valuable for us.” - Max Seel, CTO at Oath Craft Pizza Read More →

7. Additional Profit Due to Speed of Entry With Handheld POS Tablets View Source

Some POS s ystems offer handheld tablets, allowing serv ers to rem ain in the dining room to ac tively market your most profitable items rather than walk ing back and forth between the POS sy stem and
waiting to process orders there. Your res taurant can turn tables 15-20% faster at your busiest times bec ause of the c us tomers' ability to order and pay at the table. For quick service restaurants, these
tablets assist in "line busting" during y our busiest hours, so employees take orders midway through the line and the kitchen gets to work faster.

Annu al Sales on Busy

Factor You Save Period
Days (Ex. Fri & Sat)

$75,000 x 15% $11,250 Per Year

$938 Per Month
$31 Per Day

FEATURED CASE STUDY "We were at a point where I thought we had kind of plateaued. Then Toast came along, and that number's up twenty percent." - Joe Guenther, Owner of O'Maddy's Bar & Grille Read More →

8. Integrated Credit Card Processing Guarentees You the Best Rates View Source

The number of credit card trans actions is on the uptick as the world shifts towards a c ashless s oc iety. T he c onfusion ov er fluctuating rates, different vendors, and varying c ard proc ess ing fees are only
worsened by heightened fees restaurateurs are tricked into paying. Additionally, some processors charge up to 2.75% or more. Integrating the proces sing into your POS can save you - on av erage -
0.25% on your processing fees .

Annual Credit C ard Percent You Save Period

Sales Retain ed

$300,000 x 0.25% $750 Per Year

$63 Per Month
$2 Per Day

FEATURED RESOURCE The Guide to Restaurant Credit Card Processing Download Now →

9. Restaurant Loyalty Programs Increase Check Amount View Source

Restaurant loyalty programs help you build a customer contac t database of hundreds of thousands of guests that have dined at your restaurant and us e rich data to market to these customers,
understanding who y our most frequent or highes t s pending customers are and what preferenc es they hav e. On average, consumers spend 46% more with businesses who have loyalty programs.

Additional Lo yalty
Avg. Check Factor You Save Period
Customers / Year

1,000 x $20 x 46% $9,200 Per Year

$767 Per Month
$25 Per Day

“My colleagues who have strug gled with adoption of loyalty programs in the past are really impressed with Toast’s loyalty module. I can easily pull up our most loyal customers and see that
FEATURED CASE STUDY Read More →
they have spen t $1 ,20 0 at our restaurant this year and have redeemed all those rewards!"" - Stuart Ward, Ow ner of Moonie's Burger H ouse

10. Integrated Digital Gift Cards Increase Profit as Customers on Average Spend More Than the Gift Card Amount View Source

Some POS s ystems offer integrated digital and phy sical gift cards. According to Toast Data, guests spend 72% on average when paynig with a gift card. Calculating this added revenue is a two-s tep
process: start by finding the average value of your gift cards sold based on your annual gift card s ales and the sum of each gift c ard value. Then, us e total gift c ards sold and average gift card v alue to
calculate total revenue from gift c ards.

Avg. Value
# of Gift
Annual Digital Gift Card Sales o f Gift
Cards Sold
Car ds So ld
$20,000 / 1,000 $20

Avg. Gift
# of Gift Cards Sold Percent Percent You Earn Period
Card Value

1,000 x 72% x $20 x 20% $14,400 Per Year

$1,200 Per Month
$39.45 Per Day

FEATURED RESOURCE How to Improve Your Gift Card Program Read More →

11. Save Money from Vendors with Integrated Online Ordering Software View Source

Save money by having online ordering integrated within your POS system ins tead of paying for an outs ourced vendor. External vendors charge an av erage of 13% commission on every order. Lower
rates are available, but translate into lower s earch results. Some of these online ordering vendors also charge an implementation fee and a monthly servic e fee, or inc rease commission rates as more
orders are placed. With y our own online ordering system in your POS, you can by pass all these costs. You'll also control your own page and keep item avaiability updated in real time. This - c ombined
with the imagery you can upload yours elf - is why online ordering sales are 23% larger than in store sales.

Curr ent
Annual Online In creased You Save Period
Com mission
Ordering Sales Charge Ticket Siz e

$50,000 x 13% + 23% $18,000 Per Year

$1,500 Per Month
$49 Per Day

“T he fact that I can update my menu in Toa st and it automatically updates my online ordering has probably saved me five to six hours a w eek.” - Matt Stanfield, Mattenga's Pizzeria. Readm
FEATURED CASE STUDY Read More →
more to see why online checks at Mattenga’s Pizzeria average 38% higher than in-store checks.

12. Go Green (and Save Your Green) With Digital Receipts. View Source

53% of restaurant-goers prefer digital receipts in the form of text or email, while 18% prefer no rec eipt at all. By doing away with your paper receipts, you'll save money on ink and paper for every
single transaction. If each time an order comes through one foot of rec eipt paper is printed (think receipt, split checks, and copies of the credit card slip), think of how much you could c ut your
expenses by incorporating a digital-only receipt program. Industry estimates put one foot of receipt paper at 0.5 c ents .

Nu mber o f Or der s Per Days Open Receip t Cost You Save Period
Day Each Year Per Order

100 x 360 x $0.005 $180 Per Year

$15 Per Month
$0.49 Per Day

Bonus! Digital Receipts Increase Tip Percentage, Keeping Employees Happy View Source

Remember, your restaurant POS purchase benefits not only y ou, but your employ ees. With faster table turn times and digital print, email and text receipts, your staff can make an estimated 30% more
in tips daily. As you can imagine, this would make your staff so much happier. They may even stay longer as a result, saving y ou tim e and money on hiring and training.

Annual Sales Current Tip % New Tip % Lift in Tip % Increased Period
Tip

$500,000 15% 20% 30% $22,500 Per Year

$1,875 Per Month
$62 Per Day

Some additional areas that you can save money on that aren't as universally quantifiable include the following:

Easy menu edits: Save hours of speaking with support each year and make changes to your menu yourself

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Security: Partner with PCI-compliant tec hnology v endors to keep your data secure. Depending on the lev el of liability y our company is susceptible, this could sav e you and/or your
restaurant thousands or even millions of dollars.

CLICK HERE FOR ROI ANALYSIS →

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 PART 2: ANALYSIS

Total Cost Analysis

Total Upfront Investment includes price of hardware, software, implementation, training, kitchen printers, and routers for the software. The cost of a POS system varies by vendor, and cloud-based
systems require a monthly subscription fee. Again, please input your own numbers in the highlighted cells. If you don't have a monthly software or modules fee, please change the number to 0.

Total Upfront Investment for System $8,000.00

Monthly Software Fee $250.00
Monthly Modules Fee $200.00

Cost of System in 1st Year $13,400.00

Cost of System in Following Years $5,400.00
Total Cost of System Over 5 Years $35,000.00

Return on Investment Summary

Total Savings (and Added Earnings) Over 1 Year:

1. Increasing Throughput $7,500.00

2. Eliminating Manual Errors $5,000.00
3. Product Mix Reporting $3,500.00
4. Real-Time Labor and Productivity Reporting $37,440.00
5. Close-Out Requirements Prevent Theft $20,000.00
6. Inventory Management Reduces Food Costs $5,250.00
7. Speed of Entry and Ease of Use With Tablets $11,250.00
8. Credit Card Savings $750.00
9. Loyalty Earnings $9,200.00
10. Integrated Digital Gift Cards $14,400.00
11. Integrated Online Ordering Software $18,000.00
12. Paperless Receipts $180.00
TOTAL RETURN $123,270.00

Your Estimated POS Return on Investment:

OVER 1 YEAR OVER 5 YEARS

Total Estimated Saving $123,270.00 $616,350.00

LESS: Total Cost of System $13,400.00 $35,000.00

Net Savings $109,870.00 $581,350.00

Estimated Return on Investment (%) 820% 1661%

How Long Will It Take You to Pay Back the System?

IN DAYS IN MONTHS

Estimated Savings in 5 Years $616,350.00 $616,350.00

Savings $337.73 $10,272.50

Total Cost of System for 5 years $35,000.00 $35,000.00

Payback Period
104 3
Days Months

For every dollar you invest, how much money do you get back?

Total Cost of System for 5 Years $35,000.00

Total Savings in 5 years $616,350.00

Bottom Line $17.61 back per dollar invested