Taking stock of progress

EPoS terminals are becoming ever more popular in sole-trader outlets, but it's important the system fits the business. Graham Ridout reports

A s the EPoS market has matured more sole traders and small multiple outlet operators are turning to EPoS technology. "People are realising that they need more control over their business," says Micros-Fidelio deputy managing director Steve Madden. They want to know specifically the breakdown of sales, what products are selling well, and what the trends and trading patterns are within the business."

Madden notes that many sole traders are not on the premises all the time and having a web-based system helps them keep track of their business. Micros-Fidelio has targeted the sole/small operator with its Micros e7 system, which doesn't have all the bells and whistles required by large multiple chains. Instead, e7 has the core programs.

He says the functions that licensees want most are those covering the sales inventory and stock control. Employees have to log in to make a sale and the data can then be analysed to reward efficient members of staff, as well as to identify anyone who is fiddling the stock. The log-in and attendance data can also be used for payroll processing as it automatically records the hours worked and overtime due.

Madden says a ball-park figure for supplying and configuring two terminals, with a printer for the kitchen and one for receipts, would be around £6,500. "Some people might be wary of the upfront cost, but one year down the road they will be making money," he says. "Between 3% and 6% of a pub's on-costs can be saved by having a proper inventory and stock control.

"The best advice that I can give to people is to forget about the technology and think what you are trying to achieve. What are the issues that you want to solve and how will the EPoS system make your business function better?"

It is the same story at Wallasey-based EZ Touch. There, Paul Roberts notes: "Up to five years ago, many licensees used to have conventional cash registers because stock control was not high on their priority list. Now it is because they want to detect fraud and theft."

Roberts says a lot of EPoS systems have wonderful stock-control programs, but supply too much information or are overly complicated. "The downside of these systems is, who wants to know how many peas or chips there are in stock? Most people want to know how many steak, fish or chicken portions are left."

He says EZ Touch offers "no-frills products" that emulate traditional cash registers, but with the benefit of stock control. "Licensees must be able to control their own destiny and be comfortable with the system they use." The company claims to be the cheapest EPoS provider because it directly imports its own hardware and software programs, with machines available for rent from £69 per month.

Although EZ Touch aims at the no-frills sector, operators can add a range of programs and extras such as kitchen printers, table trackers, credit-card impressions, loyalty cards, and discounts on food and drink based on the time of purchase. There are no on-going payments for the software and up-grades are free. The EPoS registers are activated by staff wearing wristband transmitters, which Roberts says speeds up transactions because employees don't have to swipe security cards.

Coupled with security

Roberts says that more and more of his company's EPoS machines are being coupled with CCTV security, allowing licensees - whether they are on the premises or viewing via the internet - to check the till area.

Meanwhile, Hospitality Tills managing director Paul Green says nine out of 10 of his customers have come from a sector where they used EPoS systems, and now they want control of the money and stock in their new business. "They want to see that everything going across the bar goes into the till," he says.

Licensees should consider exactly what functions they require before taking any decision. "The more features you add, the more it will cost you," says Green. "If you go for the super hi-tech approach it can take a few months to train people how to use it efficiently."

Likewise, he cautions against choosing a system if you don't follow the basics of stock control. "It is no good having a program for a steak meal where you are serving 2oz of peas, a quarter bag of chips and an egg, if someone doesn't enter the delivery notes onto the system. Like all computers, the information

you get out is only as good as the

information you put in."

Green says that around 80% of all EPoS systems have similar capabilities and functions, therefore people should check the level of support being offered. He thinks software firms can be guilty of being too eager in pushing their programs onto the market without checking whether they have an effect on existing software. "We buy in all our software and thoroughly vet it before release. We have a number of test sites where we will run the software to see that there are no knock-on effects before we release it into the public domain."

After vetting, software updates are downloaded to customers. Green estimates that for a typical wet-led pub with two EPoS tills and a kitchen printer for the food element, the likely cost is around £3,700. For £15 per month, Hospitality Tills offers a support package that gives access to a help desk during pub hours ("not just nine to five") and the ability for the Aylesbury-based company to dial into the terminals and solve any problems remotely.

Rapid Wholesale Supplies (RWS) UK sales manager Graham Wagstaffe says more and more sole traders are clamouring for RWS's EPoS systems. "The demand has been caused by the fact that they are now more affordable and within reach of the independent licensee. They cost under £2,000 or about £18.95 per week on a three-year lease purchase."

He continues: "The systems are also very user-friendly, both in operation and programming functions. Licensees are able to track tables or bar tabs, have access to full-screen layouts, and have a secure log-on facility that can be configured to provide different levels of authority to individual employees, making them more accountable. EPoS supports floating operators so staff can start an order on one terminal and complete it on another."

Wagstaffe says terminals like the Casio QT-6000 can split bills. It has a one-touch graphical screen that allows you to see all the items a table has ordered on the left-hand side and split the bill on the right-hand side. The bill can be split up to 10 different ways and you can even split the cost of a bottle of wine.

RWS tends to sell machines that are ROM-based, of which Wagstaffe remarks: "In our opinion, they are more reliable than PC-based systems, and can link to PCs for stock control and loyalty packages. They are also linkable to wireless waiter pads and, as some now have broadband capabilities, fault fixing or programming can be done remotely."

He adds: "It is important to stress the benefits of leasing. Leasing is 100% tax deductible and a more efficient way to purchase capital equipment. Rather than tying up capital in equipment costing £2,000 per terminal, people can still enjoy its benefits for less than the price of a couple of mixed grills per week."

RWS offers free demonstrations nationwide, even at weekends if required.

Looking for functionality

Zonal sales manager Mark Isaac says some of the increased demand for EPoS can be traced to former managed-house employees, who are now running tenancies and freeholds. "They want the same functionality, the same control of stock and cash, and the same sort of management controls that they were used to, so they can direct their businesses."

He adds: "We have got a lot of smaller customers who want a system that will grow with them. They can use the modules they want initially and then add others that, for example, record time or attendance, or ones that control other aspects of business."

Zonal