Licensed or franchised coffee shops along with big name sandwich outlets and quick service restaurants are a major trend in U.S. supermarket retail.
They boost footfall and dwell-time and once fully integrated, will generate substantial gains in revenue. Research house IBISWorld calculates the U.S. coffee shop franchise market grew 5.9 percent in the five years to 2019, for example.
Unfortunately, supermarkets deny themselves the full value of these important developments through inefficient integration of point-of-sale (POS) systems.
Without a software integration layer, a POS that was designed for retail cannot seamlessly support the very different demands of quick service restaurants and coffee shops.
This prevents POS driven upsell capabilities and the operation of more sophisticated loyalty programs. Some retailers are experiencing missed upsell revenue of up to 50 percent from their inability to sell items such as extra syrups and shots, or “going large” on a meal deal.
Revenue-generating technology such as order-ahead phone apps and kiosks are also virtually impossible to implement due to the lack of integration to traditional retail POS.
A brief glance at social network Reddit reveals the extent of the challenge.
Employees working in licensed outlets complain their POS cannot redeem rewards or points available to customers in the same chain’s corporate-owned and managed stores.
Efficient integration is therefore vitally important.