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How to Choose the Right Point-of-Sale (POS) for Your Restaurant: Cloud-Based or Legacy?

Lisa Lam • February 18, 2025

Are you a restaurant owner searching for the perfect Point-of-Sale (POS) system?

Whether you're opening a new restaurant or looking for a cost-effective upgrade, the POS you choose can make or break your business.


The right POS can streamline operations, enhance customer experience, and boost profitability. On the flip side, the wrong one could slow you down and even jeopardize your success.


Choosing the right POS system isn’t a decision to take lightly. Your POS is the heart of your business operations, and it requires careful research to find the system that aligns with your needs. One of the first decisions you’ll face is whether to go with a cloud-based POS or a legacy POS.


Let’s break it down to help you make the best choice for your restaurant.


What is a Point-of-Sale (POS) System?


A Point-of-Sale (POS) system is a combination of hardware and software that manages transactions in your business. It’s more than just a cash register—it calculates prices, accepts payments, generates receipts, and tracks sales, inventory, and customer data.


POS systems are used across industries, but for restaurants, they’re essential for managing everything from orders to customer loyalty programs.


In this guide, we’ll explore the differences between cloud-based and legacy POS systems, their pros and cons, and which might be the best fit for your restaurant—whether you run a quick-service restaurant (QSR), a fast-casual eatery, a full-service establishment, or even a food truck.


What is a Legacy POS?

A legacy POS, also known as a traditional POS, stores data on local servers and operates on a closed internal network. It doesn’t rely on the internet, making it a reliable choice for businesses in areas with poor connectivity.

Pros:


  • Stability: Works even during internet outages.
  • Customization: Highly customizable to fit your restaurant’s unique needs.
  • Data Control: All data is stored locally, giving you full control.
  • Lower Long-Term Costs: No recurring subscription fees.
  • Hardware Compatibility: Works with a wide range of hardware.


Cons:


  • High Upfront Costs: Significant initial investment in hardware and software.
  • Maintenance Costs: Ongoing maintenance and potential hardware replacements.
  • Limited Remote Access: Management can only be done on-site.
  • Manual Updates: Requires manual updates, which can lead to downtime.
  • Scalability Limitations: Expanding to new locations can be costly and complex.


What is a Cloud-Based POS?

A cloud-based POS is a web-based software that stores data online, allowing you to manage your restaurant operations from any device with an internet connection. Think of it like Apple’s iCloud, but for your restaurant. It runs on a Software-as-a-Service (SaaS) model, meaning you pay a subscription fee to use it.


With a cloud-based POS, you can update menus, manage inventory, and access sales data remotely—whether you’re at home, on vacation, or managing multiple locations.

Pros:


  • Remote Access and Flexibility: Manage your restaurant from anywhere.
  • Real-Time Data and Reporting: Make informed decisions with up-to-date sales and inventory data.
  • Automatic Updates: No downtime; your system is always up-to-date.
  • Enhanced Security: Data encryption and automatic backups keep your information safe.
  • Scalability: Easily add new locations or features as your business grows.
  • Lower Upfront Costs: Subscription-based pricing means less initial investment.


Cons:


  • Dependence on Internet Connectivity: A stable internet connection is a must.
  • Ongoing Subscription Costs: Monthly fees can add up over time.
  • Data Privacy Concerns: Some owners worry about storing sensitive data online.
  • Limited Customization: May not offer as much customization as legacy systems.


Cloud-Based POS vs. Legacy POS: What’s the Difference?

Feature Cloud-Based POS Legacy POS
Data Storage Stores data online (in the cloud) Stores data on local servers
Internet Dependency Requires an internet connection Operates offline
Accessibility Accessible from anywhere with an internet connection On-site access only
Updates Automatic updates Manual updates
Scalability Highly scalable; easy to add new locations or features Less scalable; requires additional hardware/software for expansion
Security Advanced security features like encryption and automatic backups Direct control over data, but manual backups required

How to Choose Between Cloud-Based and Legacy POS for Your Restaurant?

Factor Cloud-Based POS Cloud-Based POS
Business Type Ideal for multi-location chains, QSRs, and fast-casual restaurants Best for single-location or independent restaurants
Budget Lower upfront costs, but ongoing subscription fees Higher upfront costs, but lower long-term expenses
Operational Needs Remote access, real-time data, and flexibility Stability, local control, and customization
Scalability Highly scalable; perfect for growing businesses Less scalable; better for stable, single-location operations
Customer Experience Supports loyalty programs, online ordering, and digital integrations Tailored for in-house operations and traditional customer service

Common Restaurant Types Using Each POS

Cloud-Based POS Legacy POS
Quick-Service Restaurants (QSRs): Fast food chains, food trucks, and smoothie bars benefit from real-time data and multi-location management. Independent, Single-Location Restaurants: Family-owned diners and local bistros value stability and control.
Fast-Casual Restaurants: Chipotle, Panera Bread, and similar chains use cloud-based POS for handling in-person and online orders. Fine Dining Restaurants: Upscale establishments prefer customization for table management and wine pairing.
Multi-Location Chains: Starbucks and Domino’s rely on cloud-based systems for centralized data management. Rural Eateries: Restaurants in areas with unreliable internet benefit from offline operation.
Cafes and Coffee Shops: Perfect for managing loyalty programs and inventory.
Delivery-Focused Restaurants: Seamlessly integrates with third-party delivery platforms.

Conclusion: Which POS is Right for Your Restaurant?

The choice between a cloud-based and legacy POS system ultimately depends on your restaurant’s unique needs, goals, and budget.


Cloud-based systems offer flexibility, scalability, and remote access, making them ideal for growing businesses.


Legacy systems, on the other hand, provide stability, customization, and control, which may be better suited for single-location or traditional restaurants.


At ZBS POS, we understand that no two restaurants are the same. That’s why we offer both cloud-based and legacy POS systems to meet your specific needs. Whether you’re looking for a system that grows with your business or one that offers unmatched stability, we’ve got you covered.




restaurant receipt showing total, cash, and charge

Understanding Surcharges, Convenience Fees, and Cash Discounts: A Guide for Restaurant Owners

By Lisa Lam • February 18, 2025
We’ve all been there. You’re at your favorite restaurant. The food was great, the service was perfect, and you’re ready to pay. But then—you spot an extra charge on the bill. Maybe it’s a “3% credit card fee” or a “convenience fee” for paying online. It’s frustrating, right? If this has happened to you, you’re not alone. More restaurants and businesses are adding fees like these. They’re trying to cover the cost of credit card processing fees. Here’s the thing: Every time a customer pays with a card, a portion goes to card networks and payment processors. These fees might seem small, but they add up fast. For restaurant owners, it can really hurt your profits. So, what’s the solution? How can you cover these costs without upsetting your customers? In this blog, I’ll break it all down for you. I’ll explain the difference between surcharges, convenience fees, and cash discounts. I’ll also share tips on how to use them in your restaurant. By the end, you’ll know:  Which strategy works best for your business. How to keep your customers happy while covering costs.
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How Restaurants Can Prepare for the Tariff Challenge: Predictions and Strategies

By Lisa Lam • February 18, 2025
Let’s be honest—running a restaurant is already a high-wire act, and the looming threat of tariffs is adding even more uncertainty to the mix. With Trump’s recent tariff laws and the potential for new ones on the horizon, the economic landscape feels like a ticking time bomb. While no one has all the answers yet, the predictions are clear: tariffs could lead to higher prices across the board, and consumers are likely to tighten their wallets. For restaurants, that’s a scary thought. The truth is, we’re in a “wait-and-see” phase. And one thing is certain: restaurant owners are bracing for impact. According to an Alignable survey of over 3,700 small business owners, one-third of independent restaurants expect sales declines if substantial tariffs are imposed on goods from China, Canada, and Mexico. The main fear? Tariffs will drive up costs everywhere, from ingredients to equipment, and consumers will become more cautious with their spending. Unfortunately, dining out is often seen as a luxury—one of the first things people cut back on when budgets get tight. So, what can restaurants do to prepare for this uncertain future?  While there’s no concrete answer, there are strategies to help you stay ahead of the curve. Let’s dive in.
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5 Lunar New Year Marketing Ideas for Restaurants

By Lisa Lam • January 24, 2025
But there's an emerging holiday marketing trend you might be overlooking: Lunar New Year. Now, before you say, "But my restaurant isn't an Asian cuisine spot," hold that thought. This isn't about cultural appropriation—it's about cultural celebration, creativity, and yes, some seriously smart business moves.
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