How Much Does a Restaurant POS System Cost?

Budgeting for a restaurant point-of-sale (POS) system is a crucial step for any restaurant owner looking to invest in modern technology. A POS system is the central hub of your restaurant’s operations – processing payments, sending orders to the kitchen, tracking sales, and more. But how much do these systems actually cost, and what should you expect to pay? The answer isn’t one-size-fits-all. In fact, restaurant POS system costs can range from $0 to over $400 per month for software alone (with additional one-time hardware expenses that start around $400 and can reach $5,000 or more for larger setups). The wide range is due to various factors, including the specific software plan, the hardware you need, payment processing fees, installation services, and ongoing support.

At Sauce, we understand that budgeting for a POS system can feel overwhelming. Our goal is to make it easier by offering an integrated online ordering and delivery platform that connects with your POS – helping you maximize value and minimize extra costs. In this guide, we’ll break down all the major pricing variables of restaurant POS systems – from software subscriptions and hardware prices to payment processing rates, setup fees, and support costs – so you can plan your budget wisely. We’ll also share tips on getting the most value for your money (and avoiding common pitfalls like hidden fees or costly commissions). Let’s dive in!

POS Software Subscription Costs

Software fees are a core part of POS pricing. Most modern restaurant POS providers charge a monthly subscription fee to use their software platform. This fee can vary widely depending on the vendor, the feature package you choose, and the size of your operation. On average, monthly POS software plans range anywhere from around $50 up to $250 or more per month for a single location. Some basic plans or cloud POS apps might even be free (more on “free POS” later), whereas advanced plans for large restaurants can cost a few hundred dollars monthly.

What do these subscription fees cover? Typically, a base POS software plan includes the essentials for running your restaurant: order entry, menu management, sales reporting, basic inventory tracking, and integrated payment processing. However, premium features often come as add-ons that can increase your costs. For example, advanced capabilities like loyalty programs, online ordering modules, gift card management, or detailed analytics might incur extra monthly fees (commonly anywhere from $10 to $100 extra per feature). If you operate multiple terminals or locations, keep in mind you may need to pay additional license fees per terminal or per location. It’s common to see charges of, say, $40–$70 per month for each extra register or device on top of the base plan.

When evaluating software costs, don’t just look at the sticker price – consider what’s included in that fee. Does it cover important benefits like 24/7 customer support and regular software updates? Many cloud POS subscriptions include ongoing updates and support in the monthly price, which can be a lifesaver when you need help. Most restaurant owners agree it’s worth paying a bit more for a POS that offers reliable support and continuous improvements, rather than choosing a rock-bottom price that leaves you on your own. Legacy (on-premise) POS systems sometimes charge lower software fees upfront but may not include updates or any support – meaning you could end up with outdated software or pay extra for help when something breaks. Always clarify what the software subscription entails: are you getting all the features you need, and will the system stay updated without surprise charges?

Cloud-Based vs. Legacy Software Pricing

It’s helpful to note the difference between cloud-based POS software and legacy on-premise software in terms of cost structure. Cloud POS systems (the majority of modern solutions) usually operate on that monthly subscription model (often termed Software-as-a-Service). You’ll pay a recurring fee, but in return you get a system that’s accessible via the internet, with off-site data storage and often an easier setup. Traditional legacy POS systems, on the other hand, might involve buying a software license outright or paying a large upfront fee, and then smaller ongoing maintenance fees. While you might avoid monthly bills with a legacy system, you’ll have higher initial costs and possibly separate costs for upgrades or support. For most independent restaurants, a cloud POS with a predictable monthly plan is easier to budget for and requires less IT management.

Tip: Whichever model you choose, ensure the POS software can scale with your business. If you plan to grow or add locations, ask how additional units are priced and whether contracts are month-to-month or require long commitments. Flexibility can save you money if your needs change.

POS Hardware and Equipment Costs

Aside from software, you’ll likely need hardware to run your restaurant POS. The hardware encompasses all the physical components: from touchscreen terminals and tablets to receipt printers and card readers. Hardware costs are usually one-time purchases (or leases), but they can represent a significant upfront investment. It’s important to budget for the equipment that fits your restaurant’s setup without skimping on quality (you don’t want your cash drawer jamming during a dinner rush!).

Example of POS hardware configurations: a countertop terminal with a customer-facing display (center), a tablet-based POS with stand (right), and a handheld card reader (left). Choosing the right hardware for your restaurant will depend on your size and service style.

Basic POS hardware bundle: For a typical restaurant, a basic hardware setup might include at least one terminal or tablet, a card reader, a receipt printer, and a cash drawer. Many vendors sell hardware in bundles; for instance, one popular POS company estimates around $1,000 for a starter hardware bundle that includes a terminal, stand, printer, cash drawer, and necessary cables. If you only need a simple setup (e.g. a food truck or small café), you could get by with a tablet and a mobile card reader for a few hundred dollars total. On the other hand, a larger restaurant with multiple stations will need to buy extra terminals and peripherals for each station, multiplying the cost.

Here’s a rough breakdown of typical POS hardware price ranges for restaurants:

Touchscreen terminal or register

~$600 to $1,200 each for a mid-range all-in-one register (higher-end models can reach $2,000+ for sophisticated setups). Tablet-based systems (like an iPad with a stand) tend to be on the lower end of this range, while proprietary restaurant POS terminals fall on the higher end.

Card readers

 $50 to $300 for basic add-on card readers (chip, swipe, tap). Mobile POS card readers (that connect to a phone/tablet) are often under $100, while more advanced readers or those with built-in screens/keypads can cost a few hundred dollars.

Receipt printers

Approximately $100 to $500, depending on the model (impact printers for kitchens vs. thermal receipt printers, etc.). Kitchens often use sturdier printers that can handle heat and higher volume.

Cash drawer

About $100 to $300. This cost varies by build quality; heavy-duty drawers for high cash volume will be on the higher side.

Kitchen display system (KDS) screens

If you opt for digital kitchen displays instead of paper tickets, expect roughly $200 to $1,000 per screen (some tablet-based KDS setups are a few hundred dollars, while larger mounted screens or specialized displays cost more).

Handheld order tablets

 Restaurants adding handheld devices for tableside ordering or line busting usually invest around $200 to $700 per device. This could be an iPad Mini or a purpose-built handheld provided by the POS vendor. Handhelds can be a great investment for faster service – for example, restaurants using mobile POS devices have reduced table turn times significantly (one case saw a 46-minute improvement), which can boost revenue and offset the cost of the devices over time.

Other peripherals

 Don’t forget things like barcode scanners (for scanning items or QR codes, $50–$300), kitchen printers ($200–$350 each), and network equipment (routers, network switches, etc., which might run a couple hundred dollars if not already in

place).

Pro Tip: Bundle and Shop Smart. When purchasing hardware, see if the POS provider offers hardware bundles or discounts for buying multiple pieces. Many vendors package a “hardware kit” at a better rate than buying items à la carte. Also, check if your existing devices can be repurposed – for instance, if you already have an iPad, you might only need to buy the POS app and a card reader, rather than an entirely new terminal. Just ensure any hardware you plan to use is compatible with your chosen POS software.

Payment Processing Fees

In addition to software and hardware, one of the most significant ongoing costs of a restaurant POS system comes from payment processing fees. Whenever you accept a credit or debit card payment through your POS, a portion of that sale goes to the payment processor (and card networks) as a fee. This isn’t a cost unique to POS systems – any time you run a card, you’ll incur processing fees – but it’s important to understand how those fees factor into your POS choice.

Most POS providers today offer an integrated payment processing service as part of their solution. For example, Toast, Square, TouchBistro, and others have built-in payment processing, meaning you’ll use their service (or a partnered processor) for all card transactions. Other POS systems allow third-party payment integrations or even manual entry of external processor data, but the trend is toward integration for simplicity.

So, how much are processing fees? It varies by provider and pricing model, but typically you’ll encounter rates in the ballpark of 2.5% to 3.5% of each transaction, plus perhaps a small fixed fee (around $0.10 to $0.30 per transaction). For instance, one popular flat-rate model is 2.6% + 10¢ per swipe (common for companies like Square in the U.S.), while others might charge 2.99% + 15¢, etc. In a flat-rate pricing scenario, you pay the same percentage for all cards – simple, but sometimes a bit higher than other models if you have a lot of debit cards (which interchange cheaper). Some providers use interchange-plus pricing, where your fee is the actual card network fee plus a fixed markup. For example, you might pay interchange (which varies by card type) plus 0.3%. This can save money for higher-volume restaurants or those with mostly credit card sales over $10, but it’s a bit more complex to calculate. There’s also tiered pricing (less common now in newer POS deals), where transactions are categorized into qualified, mid-qualified, non-qualified with different rates – this model is harder to predict and often not transparent, so be cautious if a vendor offers it.

Importantly, when budgeting POS costs, don’t overlook processing fees. Even though you don’t pay them upfront, they will gradually take a bite out of your revenue. For example, if your restaurant processes $50,000 in card sales in a month and your effective fee is ~3%, that’s $1,500 in processing costs for the month. Over a year, that’s $18,000 – a significant expense! This is why even a slight difference in processing rates (say 2.5% vs 2.99%) can add up, and why some large restaurants negotiate custom rates with providers.

When comparing POS systems, look at the payment processing terms closely:

• Is the rate flat or variable? What exactly will you pay per transaction?

• Are there any monthly minimum fees or statement fees on top of per-transaction fees? (Many modern systems have done away with these extra fees, but always double-check the fine print.)

• Do you have the freedom to choose your own processor, or are you required to use the POS company’s in-house service? Sometimes, using the integrated processor is mandatory (especially with free or low-cost software plans) – that’s how the provider makes their money. Other times, you can integrate an outside processor, but there might be an extra fee for that integration.

• Finally, are there any commissions or per-order fees related to how the POS handles orders (particularly online orders or deliveries)? This crosses into the territory of commission-based pricing models, which we’ll discuss next.

Watch Out for Commission-Based Models

Not all restaurant tech charges purely flat monthly fees – some platforms (especially those that offer online ordering or delivery marketplace services in addition to POS features) might use a commission model, taking a percentage of each order. For instance, a POS or online ordering provider could advertise a lower monthly rate but then also charge, say, 2% or 3% commission on every order you receive through the system. This is common with third-party ordering apps and some POS add-ons. Be very careful with these models: while a few percentage points might sound small, the costs balloon as your order volume grows. In fact, industry experts warn that with hundreds or thousands of orders, commission-based fees can end up costing you thousands of dollars per month, whereas a flat subscription would have been just a few hundred. Unless the commission-based service is delivering exceptional value that justifies the ongoing cut, you’re usually better off with a predictable subscription fee.

One of Sauce’s core principles is commission-free online ordering and delivery. We believe restaurants shouldn’t have to surrender a big slice of their revenue for each order. By integrating a platform like Sauce with your POS, you can accept online orders directly (via your website, social media, Google, etc.) without paying those per-order commissions that third-party delivery apps or some POS companies charge. This can save you a huge amount of money in the long run, effectively lowering the “real” cost of your POS operations by reducing fees on your sales.

Installation and Setup Costs

When considering “How much does a POS system cost?”, don’t forget about the initial setup expenses. Depending on the provider and your own tech-savvy, setting up a new POS can range from a DIY project (no cost aside from your time) to a full white-glove installation that costs quite a bit. Here are some potential setup-related costs to budget for:

On-site installation

Many POS vendors offer on-site installation services, where a technician comes to your restaurant to install the hardware, configure the network, and ensure everything is running. They’ll often also help with setting up menus and settings as part of this service. On-site installation typically ranges from around $500 up to $2,000 for a restaurant, depending on the number of terminals and the complexity of your setup. If you have multiple locations or a very large venue, costs could be higher. Small venues with one station might be at the low end or even free if a basic installation is included in a promo. Always ask if installation is included in the quote or if it’s separate.

Remote setup or DIY

Some providers have remote onboarding where they guide you via phone or video calls. This can sometimes be cheaper (say, $200–$800 for remote setup assistance) or even free if you’re comfortable setting up the equipment and software yourself. Cloud POS systems are generally easier to self-install than legacy systems. They might ship you the hardware with instructions, and you’ll have phone support to get everything connected.

Menu programming and configuration

One time-consuming part of POS setup is inputting your menu, modifiers, prices, tax settings, and so on. If you’d rather not do this yourself, some companies offer menu building services. This might be rolled into installation or charged separately. You could see fees like $100 to $500 for extensive menu configuration help, especially if your menu is large or complex. In many cases, though, menu setup is something you can handle in-house via the software’s dashboard – it just costs you time.

Training costs

A POS system is only valuable when your staff knows how to use it effectively. Training is often overlooked in cost planning. Some vendors provide free online tutorials or a knowledge base for self-training. Others might offer live training sessions. On-site training sessions (where a trainer comes to teach your staff) could cost a few hundred dollars (e.g. $100–$150 per hour, or a flat $300–$1,000 for a day of comprehensive training). The benefit is your team gets hands-on guidance. Whether you need this depends on your team’s preferences and the system’s complexity. Investing in proper training can save money later by preventing user errors and slow service at go-live.

When speaking with POS vendors, be sure to ask: “What’s the implementation process and does it cost extra?” Some companies run promotions that include free installation or training if you sign up by a certain date. Others might provide a dedicated account manager to walk you through setup at no charge. You won’t know unless you ask, and these initial services can sometimes be negotiated.

Ongoing Maintenance and Support Fees

Finally, consider the ongoing costs beyond the monthly software fee. Quality support and maintenance are vital to keep your POS running smoothly during the dinner rush on a Saturday night. The good news is that with many cloud POS providers, software maintenance (like updates and bug fixes) is handled on their end and included in your subscription. You don’t have to, say, pay separately for version upgrades – updates roll out automatically as part of the service. This is a big improvement over older systems where you might have had to purchase software upgrades or new licenses every few years.

That said, here are some ongoing cost factors to keep in mind:

Customer Support

• Does your POS vendor include 24/7 customer support in the plan? If not, they might have tiers of support. For example, basic phone/email support during business hours could be included, but 24/7 support or a faster response SLA might cost extra. Some companies charge an additional support fee or offer premium support packages. Always clarify this. Ideally, choose a provider known for responsive support included in the base price – when you have a line of customers and a frozen terminal, you’ll be glad to have immediate help at no extra charge.

Hardware Maintenance

Physical hardware can wear out or break, especially in a busy restaurant environment (think spilled drinks on the POS terminal or receipt printers jamming). Check if your hardware comes with a warranty or replacement plan. If a terminal breaks outside of warranty, you’ll need to repair or replace it – an unplanned cost. Some vendors offer hardware protection plans or swaps, sometimes for a small monthly fee or as part of a premium package. If you leased hardware, maintenance might be included in the lease.

Software Add-ons and Integrations

Over time, you might decide to add new features or third-party integrations to your POS. Many of those come with their own fees (as noted in the software section). For example, you might start without online ordering, then later add an integrated online ordering module for an extra $50/month. These incremental costs can creep up, so regularly review what you’re paying for and whether you’re using those features. The flip side is that a well-integrated system can save you money elsewhere (e.g., labor or errors), so it’s often worth it if it drives efficiency or sales.

Upgrades to Hardware

Though not an annual fee, remember that hardware has a lifespan. Tablets and terminals might need replacement every 4-6 years on average (sooner if heavily used or if technology standards change). Plan to reinvest in updated equipment periodically. Newer models might offer better performance, and vendors eventually phase out support for very old devices.

One advantage of Sauce’s approach is that we focus on software solutions (like online ordering, marketing, and delivery management) that work alongside your POS, meaning you can often leverage your existing hardware and just enhance it with Sauce’s platform. This reduces the need for constantly buying new gadgets – we integrate with what you have, keeping costs down while extending your capabilities. And because Sauce is a cloud-based service, all updates and maintenance on our side are handled behind the scenes. You get improvements continuously without any added fees or effort on your part.

Balancing Cost and Value: Getting the Most from Your POS

At the end of the day, choosing a POS system is about balancing cost vs. value. It might be tempting to go for the absolute cheapest option, but as many experienced restaurateurs will tell you, the cheapest system can cost you more in the long run if it lacks critical features or reliable support. The goal is to invest in a POS that makes your operations more efficient, your customers happier, and your life easier – all at a price point that makes sense for your budget.

Here are a few final tips to maximize value:

• Match the system to your needs: List out what you truly need (must-have features and hardware) versus nice-to-haves. For a small café, maybe a single tablet POS with basic reporting suffices. A busy bistro might need tableside ordering devices and a kitchen display. Pay for the capabilities that will solve your specific pain points. You can always scale up later as your business grows.

• Consider ROI, not just cost: A POS is an investment. The right system can actually save you money or boost your revenue. For example, a more efficient ordering process can reduce waste from errors and speed up table turns (meaning more sales). Better analytics might help you adjust your menu for profit. Integrated online ordering (especially commission-free through your own channels) can open a new revenue stream without draining profits via third-party fees. These benefits translate to dollars saved or earned, which help justify the cost of the system. Think about the ROI over a year or two, not just the upfront expense.

• Beware of hidden fees: We’ve touched on this, but it’s worth reiterating. Always ask about contracts, cancellation fees, and any fees outside the obvious. Some POS providers require multi-year contracts and charge hefty termination fees if you cancel early. Others might charge for things like transferring data or reactivating an account. Choose transparent providers with flexible terms whenever possible. Sauce, for instance, prides itself on transparency – no long-term lock-ins or surprise add-ons – we want our restaurant partners to stick with us because they love the service, not because they’re stuck in a contract.

• Leverage integrations: If your POS doesn’t do everything, you can often integrate third-party tools (like reservations, accounting, delivery services, etc.). Just factor in those integration costs. In many cases, a strong integration (like syncing online orders from Sauce directly into your POS ticket stream) can pay off by eliminating manual work and errors. It’s usually cheaper and more efficient to have your systems working together than operating in silos.

  
  

By understanding each component of POS pricing – software, hardware, processing, setup, and support – you can create a realistic budget that avoids unpleasant surprises. The exact cost of a restaurant POS system will depend on your choices, but with the information above, you’re now equipped like an industry-savvy owner to evaluate quotes and ask the right questions. Remember, the goal isn’t just to save money – it’s to spend smart on a system that will help your restaurant thrive.

Bottom Line: A restaurant POS system may cost a few hundred dollars a month in software fees and a few thousand upfront in hardware for a typical setup, but a well-chosen system pays for itself by streamlining operations and enabling more sales. By prioritizing what matters for your business and being aware of potential extra costs, you can find a solution that fits your budget. And if you’re looking to amplify your POS with online ordering and delivery, consider a platform like Sauce that integrates with your POS to expand your capabilities with no commissions eating into your profits. Your investment should empower your restaurant – and that’s exactly what a great POS (paired with the right tools) will do.

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Frequently Asked Questions (FAQs)

1. How much does a restaurant POS system cost per month?

Monthly costs can vary widely. Cloud-based POS software plans typically range from about $60 up to $250 per month for a single location’s subscription. The price depends on the features included – basic plans on the lower end vs. feature-rich plans on the higher end. If you need multiple terminals or extra add-on features (like advanced analytics or loyalty programs), those can increase the monthly fee. Some providers charge per terminal (e.g. $50-$70 per register per month) in addition to a base fee. There are also a few free POS software options (like Square’s basic plan) which have no monthly fee, but you’ll still pay payment processing fees on each transaction. When budgeting monthly, remember to also factor in things like support (if it’s a paid extra) or any integrated services (for example, an online ordering module might add $50/month). Always compare what you get for the monthly price – sometimes a system that costs $100/month but includes all the key features (and support) is better value than one at $60/month that requires paying extra for every add-on.

2. What is the average cost of POS hardware for a restaurant?

 For a single station, expect to invest roughly $700 to $1,200 for the essential POS hardware (this often includes a touchscreen or tablet, card reader, cash drawer, and receipt printer as a bundle). This is a ballpark figure – actual costs vary by brand and quality. For example, an all-in-one terminal might be $800 by itself, whereas using an iPad ($300) with a smaller card reader ($50) and a basic receipt printer ($200) could be somewhat less. If you need multiple stations, multiply that cost per station accordingly. Peripheral devices like additional kitchen printers ($200-$400 each) or tableside handhelds ($300-$600 each) will add to the total. The average small restaurant might spend around $1,000-$2,000 on hardware if starting from scratch (one main register and a couple of extra devices), while a larger restaurant could spend $5,000 or more outfitting several terminals and kitchen displays. Remember that you don’t necessarily need to buy all new equipment – if you have compatible tech (an existing tablet, etc.), you might reduce these costs.

3. Do POS systems charge transaction fees or processing fees?

Yes. Almost all POS systems will involve credit card processing fees for each transaction, though it might not be the POS company itself charging it (it could be their payment partner or a separate processor). Typically, you’ll encounter fees around 2.5% to 3.5% of the transaction amount, plus a small $0.10–$0.30 per transaction. For example, a $20 sale might incur a ~$0.60 fee (at 3%) for processing. These fees go to the payment processing service for handling the card payment. If your POS software is “free,” this processing fee is likely how the provider makes money. Some POS providers also have a flat fee structure (e.g. Square in some regions charges 2.6% + 10¢ per swipe). Be aware of how these fees are structured: are they flat-rate for all cards or do they vary by card type? Also, note if there are any additional transaction fees on top of the percentage (for instance, some systems that integrate online ordering might charge an extra fee per online order processed, in addition to the card fees). The good news is many modern POS solutions do not add any other hidden transaction fees beyond the standard processing rate. Always read your agreement or ask for the effective rate you’ll be paying.

4. Are there hidden fees with restaurant POS systems to watch out for?

 While reputable POS providers strive to be transparent, there are a few potential “hidden” or less-obvious fees to keep an eye on. One is installation or setup fees – not all systems are plug-and-play; some charge for onboarding (as discussed, on-site installation could be a few hundred dollars). Training fees might apply if you require in-person training sessions. Another area is customer support: some budget POS plans include only basic support, and if you want 24/7 phone support or a dedicated rep, that could cost extra. Additionally, check for contract-related fees. If the POS service has you sign a year or multi-year contract, there might be an early termination fee if you cancel early. We’ve also mentioned add-on module fees – features like gift cards, loyalty, advanced reporting, or integrations with third-party services might each carry their own monthly cost, which can feel “hidden” if you didn’t realize you’d need those. Payment processing is another area – the rates should be clear, but ensure there are no monthly minimums or gateway fees. Lastly, if your POS company handles things like menu updates for you after launch, there could be hourly charges for those services. The best defense is to carefully review the quote and contract for any fees beyond the core software subscription and processing rates. Don’t be afraid to ask the vendor to spell out all fees. A trustworthy provider will be happy to clarify; if they aren’t, consider it a red flag.

5. Can I get a free POS system for my restaurant, and is it really free?

 There are indeed free POS options out there – but it’s important to understand what “free” means. Companies like Square offer free POS software with no monthly fee, which is great for getting started. You can sign up, download the app, and you’re not billed monthly for using the basic software features. However, you will still pay payment processing fees on each transaction (that’s unavoidable with any credit card payments, free or not). Square’s model, for example, is free software but ~2.6% per transaction for cards. Also, the term “free POS system” might cover software only. You’ll likely need to purchase hardware (unless you already have compatible hardware). Some providers advertise “free hardware” but usually with a catch – often you must sign a long-term processing contract to get a free terminal, or the cost is baked into higher processing fees. There are also open-source POS software solutions that are technically free to download; however, those typically require self-management, and you’ll still have to set up processing and hardware on your own. In summary, yes, you can start with a free or very low-cost POS system, and it can work well especially for small or new restaurants on a tight budget. Just go in with eyes open: free software doesn’t mean zero costs (you’ll have the card fees, and possibly need to invest in some equipment). Many restaurants begin with a free or starter system and then upgrade to a more robust paid system as they grow and need more features. If you do opt for a free POS, choose one from a reliable company and confirm what support is available in case you run into issues.