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Cloud-Based vs. On-Premise: Which Point of Sale System is Best for Your Restaurant?


an image of a restaurant crew using eatOS ai-enabled Point of Sale System

The best point-of-sale system for restaurant is like picking the perfect sous chef—it's all about being the most reliable, efficient, and fitting for the unique flair of your craft. With two main options, however, it might get a bit confusing: cloud-based and on-premise systems. Wading through all the tech jargon can be compared to trying to make sense of a foreign language review from a critic. No sweat, fellow restaurateur!


This guide will break it down—the pros and cons of each system—so that you're left with a crystal-clear vision of what point of sale will have your kitchen singing like a perfectly prepped mise en place.


Cloud-Based Point of Sale: The Agile Advantage


Imagine a world in which all your data pirouettes across the internet, are ready to be accessed from any device anywhere. That is the magic of cloud-based point-of-sale systems. These are the restaurant world's nimble ninjas, custom-made for owners who crave mobility and flexibility.


Cloud-based systems are much like your favorite food truck–always on the move and ready to roll its wheels. From your phone, tablet, or laptop, get instant access to sales data, inventory management tools, or even adjust menus. It's a game-changer for busy restaurateurs who need to stay connected in real-time but might be elbows-deep in a vat of demi-glace. A recent analysis by Polaris Market Research projects that the global market for restaurant point-of-sale terminals will grow to USD 44.86 billion by 2032. In terms of revenue, the fixed point-of-sale terminal dominated the global market in 2024. Throughout the forecast period, North America is anticipated to contribute the most to the global market's revenue.


Automatic Updates and Security


No more contacting the IT guy (or gal)! All updates are automated in cloud-based systems, so you will always have access to all the latest features and security patches. Your key data is safely stored off-site, protecting you from local hardware failures or, gasp, break-ins.


Simplified Scalability


Growing pains? No sweat! Cloud-based systems scale with your restaurant's growth. Add another terminal when things get crazy busy, or open a new location? Easy peasy with a cloud-based system.


Affordability 


Cloud-based systems usually have a monthly subscription price attached, so they're easier on the upfront budget versus an on-premise system. This can be a huge advantage for new restaurants or those with limited capital.


However, there's a flip side to the cloud-based coin. Let's take a gander at a few potential drawbacks:


Dependence On the Internet


Uh oh, internet outage! While most cloud-based systems offer some offline functionality, a complete internet blackout can bring your ops to a screeching halt. In areas where restaurants have spotty internet, this can be a big concern.


Potential Security Concerns


Although security is a priority for cloud providers, some restaurateurs still feel queasy about handing over their data. Course; do your homework and choose a reputable cloud-based point of sale provider with an excellent record for strong security measures in place.


On-Premise Point of Sale: The Sturdy Stalwart


On-premise point-of-sale systems are the OG of restaurant tech. These reliable workhorses bring on that sense of control some restaurateurs appreciate, including offline functionality.


No internet, no problem! On-premise systems store data locally, so your restaurant can continue to operate even if the wifi goes kaput. This is a lifesaver during peak hours or in places with spotty internet.


Customization Options


On-premise systems often have increased possibilities of customization. This can be perfect for restaurants with unique needs or those that want complete control over their data.


Possible Cost Savings (in the Long Run)


Although hardware and software are pretty pricy up front, on-premise systems are cost-effective in the long run compared with cloud-based ones and their monthly subscription fees.


There are even a few downsides that should be considered:


Requisite IT Expertise


An on-premise system requires more technical expertise to set it up, maintain it, and update it. This may mean extra costs for hiring IT support.


Scalability Challenges


On-premise systems are more complex to add a new terminal or expand to another location. New hardware and software need to be purchased and configured.


Conclusion: It Depends on Your Recipe for Success


So what is your point of sale hero? Need a cheat sheet? Here you go:


Opt for Cloud-Based if: You value mobility, affordability, and automatic updates. Your internet connection is pretty reliable.


Choose On-Premise if: You need full offline capability and high customization. You have the budget available for up-front costs and in-house IT expertise.


  a crew using eatOS robust point of sale system.

Wait No Longer!


Picking out the perfect point-of-sale system is a recipe for restaurant success. Don't just wing it! Take a minute to schedule a demo with eatOS and learn more about how this system can be advantageous for the growth of your restaurant.



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