.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Restaurant and hospitality leaders looking to scale operations across multiple locations face a critical decision when selecting a point-of-sale (POS) system. Understanding the pricing models and cost structures of these platforms can be the difference between an investment that drives growth and one that creates ongoing financial strain.
For multi-unit brands, the stakes are particularly high—implementing the wrong system across numerous locations multiplies both the costs and the headaches. Let's break down how modern POS platforms are typically priced and what factors multi-unit operators should consider during the procurement process.
Common POS Pricing Models in the Restaurant & Hospitality Industry
Software-as-a-Service (SaaS) Subscription Model
The most prevalent pricing structure in today's market is the SaaS subscription model, where brands pay a recurring fee (typically monthly) for access to the POS software.
For multi-unit operations, these subscriptions typically follow one of these structures:
- Per-Location Pricing: A flat monthly rate charged for each location, regardless of the number of terminals or users.
- Per-Terminal Pricing: A fee charged for each POS terminal or device in use across all locations.
- Tiered Pricing: Rates that decrease as the number of locations increases, rewarding larger operations with volume discounts.
According to a recent report from Software Advice, the average monthly SaaS subscription for restaurant POS systems ranges from $60 to $300 per location, though enterprise-level solutions for multi-unit operations can reach $500+ per month per location.
Hardware Costs
Hardware remains a significant upfront investment, even as cloud-based systems have reduced reliance on proprietary equipment. Multi-unit brands typically encounter these hardware-related costs:
- POS Terminals: Touchscreen displays and computers ($1,000-$3,000 each)
- Payment Processing Hardware: Card readers, NFC terminals ($300-$600 each)
- Kitchen Display Systems: Screens for order management ($300-$1,000 each)
- Mobile Devices: Tablets for tableside ordering ($300-$800 each)
- Printers: Receipt and kitchen printers ($200-$400 each)
Enterprise-grade hardware built for high-volume operations typically falls at the higher end of these ranges but offers greater durability and reliability—a crucial consideration for busy multi-unit operations.
Payment Processing Fees
Payment processing represents an ongoing cost that significantly impacts the total cost of ownership. Multi-unit operators should pay close attention to these fee structures:
- Integrated Processing: Many POS providers offer (or require) their own payment processing services, typically charging 2.5-3.5% per transaction.
- Third-Party Processing: Some systems allow integration with external payment processors, which might offer more competitive rates for high-volume businesses.
- Interchange-Plus Pricing: More transparent pricing model that charges a fixed markup over the interchange rates set by card networks, often more economical for multi-unit operations.
According to the National Restaurant Association, payment processing fees typically amount to 2-4% of a restaurant's total revenue, making this one of the largest ongoing costs associated with POS systems.
Enterprise Features and Add-Ons for Multi-Unit Operations
Multi-unit brands typically require advanced features that come with additional costs:
Multi-Location Management Tools
- Centralized Dashboard: Pricing ranges from $50-$200 per month on top of base subscription
- Corporate-Level Reporting: Often included in enterprise plans or available for an additional $100-$300 monthly
Enterprise Integrations
- Inventory Management: $50-$200 per month per location
- Labor Management/Scheduling: $30-$150 per month per location
- Enterprise Accounting Integration: $100-$300 per month for multi-unit connection
- Online Ordering/Delivery Integration: Either percentage-based (typically 1-3% of online orders) or flat fee ($50-$200 monthly)
Scale-Specific Features
- Menu Management Across Locations: Typically included in multi-unit packages
- Role-Based Access Controls: Important for multi-unit security, often included in enterprise tiers
- API Access: May range from $100-$500 monthly for custom integration capabilities
Hidden Costs to Consider
For multi-unit operators, several less obvious costs can significantly impact the total investment:
Implementation and Training
- Installation Services: $500-$2,000 per location
- Data Migration: $1,000-$5,000 for full enterprise migration
- Staff Training: $300-$1,500 per location, depending on team size and system complexity
Support and Maintenance
- Premium Support Packages: 24/7 dedicated support can cost an additional $100-$500 monthly
- Service Level Agreements (SLAs): Enterprise-grade SLAs with guaranteed response times may add 10-20% to monthly subscription costs
Contract Terms and Considerations
Multi-unit operators should carefully evaluate:
- Contract Length: Most enterprise POS contracts range from 2-5 years
- Early Termination Fees: Can reach thousands of dollars per location
- Upgrade Costs: How software and hardware upgrades are handled over the life of the contract
- Scale Pricing: How costs change as you add or remove locations
How to Evaluate Total Cost of Ownership for Multi-Unit Brands
When comparing POS options, calculate the total cost of ownership (TCO) over a 3-5 year period using this formula:
TCO = Initial Investment + (Monthly Costs × Contract Term) + Processing Fees + Hidden Costs
For a 10-location operation over 3 years, the TCO typically ranges from $150,000 to $500,000 depending on the sophistication of the system and required features.
Negotiation Strategies for Multi-Unit Operators
Multi-unit brands have significant leverage when negotiating with POS providers:
- Volume Discounts: Request tiered pricing based on your current and projected number of locations
- Phased Implementation: Negotiate a graduated rollout schedule to spread costs
- Bundled Services: Seek package deals that include hardware, software, and support
- Performance Clauses: Include performance guarantees with financial remedies if the system fails to meet specified metrics
- Future-Proofing: Negotiate terms for adding locations at the same or better rates
Real-World Example: Major Chain Migration
A mid-sized restaurant chain with 25 locations recently migrated to a new cloud-based POS system. Their cost breakdown illustrates typical enterprise pricing:
- Monthly Subscription: $350 per location ($8,750 monthly total)
- Hardware Investment: $12,000 per location ($300,000 one-time cost)
- Implementation: $1,800 per location ($45,000 total)
- Enterprise Integrations: $1,200 monthly for all locations
- Payment Processing: 2.7% + $0.10 per transaction
- Annual TCO: Approximately $525,000 first year, $330,000 subsequent years
The chain reported that despite the substantial investment, they achieved ROI within 18 months through improved operational efficiency and increased average check size.
Conclusion: Making the Right Choice for Your Multi-Unit Operation
POS procurement for multi-unit restaurant and hospitality brands requires balancing immediate costs against long-term operational benefits. The right system should scale efficiently with your growth while providing the enterprise-level controls and insights needed to manage a distributed operation.
When evaluating options, prioritize:
- Scalability of both the technology and the pricing model
- Total cost of ownership rather than just monthly subscription fees
- Enterprise-grade features that support centralized management
- Integration capabilities with your existing tech stack
- Support infrastructure that understands multi-unit operations
By thoroughly understanding the pricing structures and negotiating terms that align with your growth trajectory, multi-unit operators can secure POS solutions that drive operational excellence across their entire brand footprint.