The thick and thin of EPoS

EPoS systems have evolved to deal with ever more complex levels of service. Noli Dinkovski looks

at what new

developments are in the pipeline

No one can deny that EPoS (electronic point-of-sale) has been revolutionary to the pub trade. Long gone are the days when managed houses tried to run pubs using pen and paper, unable to get a precise handle on stock, staff costs and pub expenditure.

"EPoS was the first device to enable an understanding of what a pub was selling, right down to each individual item," says Mark Isaac, sales manager for UK EPoS manufacturer Zonal. "From there on, stocks began to be based on product sales."

The EPoS world hasn't stood still either: ever more sophisticated terminals are entering the market and software has developed to process increasingly-complex information, all the while becoming further integrated to other systems, such as payroll and accounting packages. It's no wonder then that these days pub operators no longer view EPoS as a necessary evil, but rather a must-have strategic tool.

"EPoS is experiencing a perfect storm in the pub sector," says Asa Cloin, international product manager for Radiant Systems, a US-based EPoS firm that is increasing its UK presence all the time. "With a growing number of food-led pubs, the smoking ban and new electronic payment initiatives, service has never been more complex, so being able to analyse information at the pub and head-office level is vital."

Cloin says a low-cost EPoS shouldn't compromise on reliability or what it can do with the data. One of the most important reliability issues in recent times is the different capabilities of "thick" and "thin" applications.

A thick application is where the EPoS terminal is linked to a server on the pub's site, ie the back office. A thin terminal, on the other hand, has a direct link to the head-office system, usually via a company intranet site, removing the need for a secondary main server.

Reliability issues

Richard Heightman, national sales manager of EPoS hardware manufacturer J2, believes that the big chains are now doing away with back-office applications in their pubs. "Thick terminals usually run on hard drives, using operating systems such as Windows XP. These have a higher cost of ownership than thin terminals, which can run on simpler operating systems such as CE, .NET and XPe," he says. "A cost differential of, say, £60 may not be much when you're buying three software licences, but it's a different story when you need 300."

Thin terminals have the added benefit of being fanless, and Heightman says that not relying on a fan to keep the processor cool makes the terminal much more reliable.

"Because we have a very high level of reliability we are able to offer three-year warranties on all of our products, lowering the cost further," says Heightman.

In contrast, Zonal's Isaac says a different reliability concern exists when linking thin applications to a central server. "If you've got a completely thin client-based system the reality is that you are very vulnerable to communication failure, and if the tills become unusable you'll have a nightmare on your hands."

Isaac believes pubs can operate with thin terminals as long as they are "redundant", in other words that they will carry on trading regardless of any downtime.

Micros deputy managing director Steve Madden says some sort of local server is imperative in a pub environment, where thousands of transactions are flying around on a real-time basis. "It doesn't have to be a huge server - a till can even act as one. This is what we have in one of our systems for smaller operations, where information is picked up on a near real-time basis."

Cloin suggests the best course is to have a mix of thick and thin terminals. "By having both diskless and disk-based PCs, you can appreciate the benefits of extended hardware life-cycles and quick application use without sacrificing reliability or data accessibility."

What the future holds

Heightman concedes that moving all data transfer away from a pub and on to a central server would be a "brave move", but believes it will come. "Just look at how quickly communications technology has moved on - receiving emails on a mobile phone would have been unthinkable a few years ago," he says. "But it's only the reliability that's holding it back. If you talk to most of the estates they want thin terminals at the pub end and everything else pushed back on to an intranet at head office."

There are other developments on the horizon. Isaac claims there is plenty of scope in voice-recognition technology, but problems such as background noise have yet to be resolved.

Issac also believes that chip-and-pin technology is reaching a point where it will be possible to sell an item and have it paid for on the same terminal, a procedure currently prohibited by high-street banks due to security issues. Look out, too, for loyalty cards, prevalent in the retail sector, moving further into hospitality.

"It's an exciting time for EPoS," says Cloin. "And with so many developments, end-users can expect to demand much more from their systems than ever before."

The EPoS providers

Alphameric - Has more than 25 years' experience of the pub trade. Its Caterwide package links EPoS to other areas of the business.

Clarity - Provides PoS and business-management software as well as IT support. Pub trade clients range from small family-run outlets, to major groups.

J2 - Offers integrated touchscreen terminals. Specialises in small, robust PC-based EPoS that is designed to fit neatly under the counter or on top of a cash drawer.

Micros - A US manufacturer of EPoS hardware and software operational applications, as well as a number of back-office applications.

Radiant - Another US firm hoping to make in-roads to the UK market. Claims to offer everything pubs need for EPoS, including hardware, back office, and a selection of hand-held devices and wireless tills.

Zonal - Is one of the leading EPoS suppliers to the UK market, with more than 4,500 sites. Terminals are designed purely for the hospitality industry and you don't need a PC to use them.

XN Checkout - Has more than 35,000 EPoS terminals in the UK, and claims to be the market leader in the managed house sector.