Corporate tax rates range from 15% to 34%. The calculations below assume a 15% corporate tax rate and five year capitalization period, using the Accelerated Cost Recovery System (ARCS) method. All state and local taxes, and maintenance charges are assumed as direct operating expenses each year, and are not set up on the depreciation schedules here. Due to recent tax law changes you may be able to deduct the entire cost of your system in the first year.
ACRS rules changed in 1987; specifically, five year class items are now depreciated using the 200 percent declining balance method (D.B.), switching to the straight-line (S.L.) approximately halfway through in order to maximize the deduction.
Based on a sales volume of $250,000.00 per year, the following operational returns on investment would accrue:
The POS system will eliminate addition and pricing errors. Industry standard estimates, based upon guest check audits, indicate savings as 1% of restaurant sales volume.
According to NRA studies, a 2% decrease on bottom-line food and drink costs resulting from forced charging for all items ordered from the bar and kitchen via requistion order printers, improved shrinkage and waste control, and implementation of more accurate purchasing and preparation based on consumption information.
Labor cost savings resulting from detailed labor analysis of cover counts, revenue center analysis, hourly reporting and productivity by server. These factors coupled with automated check issuing and tracking, speedier server and cashier check-out, automatic report consolidation and sales activity histories create a substantial decrease in accounting and bookkeeping time. These labor and bookkeeping savings should save approximately 20 minutes per day (average) for each food and
beverage server and manager, at an average of per hour per tipped employee.
Increased sales revenues due to overall improvements in speed of service, expediting of food and beverage orders due to remote printers and incentive programs tracking individual sale item categories by server. For example, use of remote printers in kitchen allows a server to remain in the dining room to actively market beverage items, wine and desserts. Let's assume that each server can sell two additional items per day:
Guest Check expense can range from $.005 to $ .08 per check. The POS system provides the ability to retain the check in memory and print it, on demand, on a 3-inch wide, high quality receipt. "Soft Guest Checks" cost $.004 each on the average versus an average of $.02 for a hard copy check.
Currently, guest checks are issued and are supposed to be accounted for each day. However, during the course of a week, checks can become lost. Your POS system issues checks and tracks them by server and bartender, making everyone responsible for ALL transactions. No one can check out of the POS system without all checks being accounted for. If we can eliminate the loss of only one check per week, we will save....
This system can automatically deduct credit card fees from charge tips. For example, if a server receives a charge tip of $5.00, and we have the system set up to deduct 2% of the tip to be retained by the restaurant, the server receives $4.90 and $.10 is retained by the house. Using the following numbers the savings would accrue as follows;
The system will remind servers to ring up a beverage if there is not a beverage for every entree/guest on the Guest Check, we are accounting for beverages served, but not rung up.
BMI's fully-featured POS product line provides additional Return on Investment over competitive systems based solely on the strength and functionality of its
operational features. The savings provided by these features fall into numerous categories (paper costs, reduction of system errors, reduced labor audit expense,
increased speed of entry), and are sometimes more difficult to quantify, but are nonetheless valuable. Some of them are:
Share Item Cost-allows an operator to enter an item, share it between multiple seats and split the cost between them. This is especially useful when customers are sharing desserts, appetizers or a bottle of wine.
Automatic Prompting Preparations and Condiments: A system-generated lisit automatically displays preparation choices upon depression of a menu item key
requiring preparation instruction. Increases operator efficiency and minimizes errors and waste in the kitchen.
Table grid layouts show a manager or owner the status of the entire restaurant (checks printed, orders sent to kitchen, checks just begun) This can assist in seating of guests at the door, and also gauge wait times. Additionally the servers can press the table icon to start a table as opposed to entering a number, making entering checks faster and easier.
Productivity Tracking by Individual Server: Controls costs based on prepared items versus items sold.
Preset % and $ discounts: The system can track multiple discounts, whether percentage or dollar amounts. This allows you to effectively monitor different types of discounts or promotions controlled by management.
Time Period Tracking: allows time periods such as Breakfast, Lunch, Dinner, with full itemization of menu items, totals, discounts, labor information, etc. for each period. This increases reporting flexibility for your business and permits you to react faster because you are armed with better, more targeted information.
Total Operational Savings over five years: