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Slide 1: SUMMER 2006 A SUPPLEMENT TO HOSPITALITY TECHNOLOGY Rating TOP POS Systems BASED ON USER S AT I S F A C T I O N SCORES
Slide 2: 2006 • RATING TOP POS SYSTEMS Contents ® 4 Top 20 Systems Now in its third year, the POS Scoreboard offers the industry’s only ranking of the top foodservice point-of-sale software companies based on company size, number of installations and user satisfaction. FOUNDER Douglas C. Edgell 1951-1998 4 Top POS Software Companies Summer 2006 PUBLISHER 6 User Satisfaction Scores How do POS software systems compare in the opinion of foodservice operators? The user satisfaction scores offer charts and analyses of how systems fared in the criteria deemed most important by the operators themselves. Lenore O’Meara ext. 245 s lomeara@edgellmail.com EDITOR-IN-CHIEF Reid A. Paul ext. 315 s 6 6 8 8 Top POS Software Systems User Satisfaction Overall Performance Strategic Value rpaul@edgellmail.com ACCOUNT EXECUTIVE Leah Segarra ext. 270 s lsegarra@edgellmail.com 10 Total Cost of Ownership 10 Return on Investment 12 Ease of Upgrade 12 Support and Service 14 Start-up Restaurants (1-4 units) 14 Small Chains (5-50 units) 14 Large Chains (51-200 units) 14 Enterprise Chains (200+ units) CREATIVE DIRECTOR Colette Magliaro ext. 203 s cmagliaro@edgellmail.com ART DIRECTOR Pamela C. Ravetier ext. 255 s pravetier@edgellmail.com W W W. H T M A G A Z I N E . C O M 14 A Final Word Who participated in the 2006 POS Scoreboard and what questions were asked? Look here for a final word on the study’s methodology why some responses were excluded from the study. CHAIRMAN/CEO Gabriele A. Edgell PRESIDENT Gerald C. Ryerson www.htmagazine.com Special Supplement s POS Scoreboard s 3
Slide 3: 2006 • RATING TOP POS SYSTEMS Top 20 Systems Foodservice point-of-sale systems continue to elicit a great deal of loyalty and showcase technological innovation. With more than 400 responses to this year’s study, POS users ranging from owner/operators of single-unit restaurants to CIOs at major restaurant, casino and hotel companies responded to the study. Now in its third year, the POS Scoreboard highlights key changes that continue to reshape the foodservice technology industry. TOTAL POINTS 87.42 87.34 86.47 85.75 85.30 83.50 77.91 76.67 72.59 72.50 72.44 72.17 72.14 70.18 69.89 69.14 68.88 68.39 51.32 34.30 Clearly, the POS industry is becoming increasingly diverse. Once the sole purview of casual-dining chains, VENDOR TOTAL SATISFACTION POS solutions can now be found in virtually every setting. In recent years, 1. 50 37.42 the emergence of POS solutions de2. Radiant Systems 49 38.34 signed for single-unit restaurants 3. POSitouch 48 38.47 have helped transform the industry by 4. Maitre’D 46 39.75 making the POS touch screen the hallmark of restaurants worldwide. 5. Squirrel Systems 45 40.30 The juxtaposition of off-the-shelf 6. Digital Dining 45 38.50 solutions, next to pizza point of sale, 7. xpient 39 38.91 next to high-end casino solutions 8. pcAmerica 41 35.67 makes for an odd reading of the POS Scoreboard. Hospitality Technology 9. Restaurant Manager 36 36.59 does not portend to suggest which 10. ParTech 43 29.50 solution has the best golf module or 11. SilverWare 41 31.44 the easiest interface or the best takeout solution. Nor would we suggest 12. Panasonic 35 37.17 which solutions makes the most 13. Speedline Solutions 33 39.14 sense for your individual foodservice 31 39.18 14. Torex Retail operation. Nevertheless, there are 35 34.89 15. InfoGenesis more essential elements that foodservice POS solutions have in common 16. FuturePOS 33 36.14 than separate them. While many of 37.88 31 17. Volante Systems these companies may not compete 18. Aldelo Systems 39 29.39 directly with each other, they all offer 19. H.S.I. 16 35.32 foodservice point-of-sale solutions. This top 20 chart and especially the 20. FireFly Technologies N/A 34.30 rankings that follow, represents the opinions and feedback we receive from the survey respondents. This feedback—the “User Satisfaction” score worth 45 points in the overall ranking—is the essential element that helps determine where the POS companies fall. For the Top 20, we also factor in POS functionality (35 points), number of terminals installed (10 points) and company revenue (5 points). Of course, how each restaurant company values these various elements may differ and are part of what makes the POS choice so complex and unique. POS COMPANY USER Micros Systems 4 s POS Scoreboard s Special Supplement www.htmagazine.com
Slide 4: 2006 • RATING TOP POS SYSTEMS Top POS Software Systems SCORE 40.2 37.3 37.2 35.8 33.9 COMPANY 1. Digital 2. POSitouch 3. Torex Retail 4. Squirrel Systems One 5. Maitre’D VERSION Dining 7.3 5.2 3.5 Release 3 2005 In addition to the point-of-sale software company, respondents to the POS Scoreboard were asked to identify the software version they currently used. To qualify, a top POS system needed to have at least five responses. For the second year in a row, Digital Dining version 7.3 ranked first. Squirrel Systems One version 3 made its second straight appearance as did Maitre’D, although with its 2005 release, rather than the 2003 release that was fourth last year. POSitouch version 5.2 made a return appearance, having first appeared in the 2004 Scoreboard, but missing in 2005. And Torex Retail (formerly Savista) version 3.5 made its debut in the chart this year. User Satisfaction SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 38.50 38.47 38.34 Digital Dining 2. POSitouch 3. Radiant Systems 1. Squirrel 2. Maitre’D 3. Torex Retail 1. Speedline 3. FuturePOS Systems 40.30 39.75 39.18 Solutions 39.14 37.88 36.14 2. Volante Systems User satisfaction represents the total score for all nine questions (see Methodology, page 14, for the list of all the questions) presented to POS system users. Each question was worth five points for a possible total of 45 points. Once again competition was extremely tight across all the scores, with less than two tenths of a point separating the top three scores in the more than 100,000 installs category. The two other categories were similarly competitive, although not quite as tight. Top companies tended to have a high average score across all nine questions. The average user satisfaction score for the entire study was a solid 35.9, which translates to a score of 80% across the board. There were some significant changes from the leaders reported in the 2005 Scoreboard. In fact, of the top three solutions in 2005, only Digital Dining, Radiant Systems, Torex Retail (Savista) and Speedline repeated from last year. www.htmagazine.com 6 s POS Scoreboard s Special Supplement
Slide 5: 2006 • RATING TOP POS SYSTEMS Overall Performance SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 4.26 4.25 4.18 POSitouch 2. Micros Systems 3. Radiant Systems 1. Torex Retail 4.39 4.38 4.31 2. Squirrel Systems 3. InfoGenesis 1. Volante Systems 4.35 4.30 4.29 2. Speedline Solutions 3. FireFly Technologies Each year, respondents are asked to indicate the criteria that is most important when selecting a POS system, and in previous years overall performance was selected by a wide margin. While in 2006, service and support won out, overall performance remains an important measure of the general attitude towards POS systems. Interestingly, the average score for all the responses was quite high—4.11, .08 higher than for any other question—reflecting a general happiness with POS systems in the industry. In the more than 100,000 category, the three top companies from 2005 all repeated, although with higher scores. Similarly, Torex (Savista) and InfoGenesis repeated as did Volante Systems and Speedline Solutions. Strategic Value SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 4.09 4.07 3.85 POSitouch 2. ParTech 3. Micros Systems 1. xpient 2. Squirrel Systems 3. pcAmerica 1. Speedline 2. FuturePOS 3. FireFly Technologies 4.40 4.33 4.18 Solutions 4.33 4.20 4.13 While foodservice operators may be happy with their POS systems overall, there is a sense among restaurateurs that the systems may be lacking as a strategic asset. Respondents gave the lowest marks overall in this category, with an average score of only 3.92, which may suggest that there is room for improvement. The responses to this question may reflect a growing attitude that POS is becoming more of a commodity and that differentiation will come from other criteria like sales and support and costs. Perhaps it should not be a surprise that the most critical respondents were the largest operators evaluating the larger POS software companies. As a result, scores for all the companies, including the top performers seemed to be a bit depressed in this category. Among the repeats from last year’s top performers were Micros Systems, ParTech, xpient, pcAmerica, and Speedline Solutions. www.htmagazine.com 8 s POS Scoreboard s Special Supplement
Slide 6: 2006 • RATING TOP POS SYSTEMS Total Cost of Ownership SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 4.09 4.07 4.00 POSitouch 2. Radiant Systems 3. ParTech 1. xpient 2. Squirrel Systems 3. pcAmerica 1. Dinerware 2. Speedline Solutions 3. Aldelo Systems 4.41 4.34 4.33 4.38 4.35 4.28 Across the board, scores for total cost of ownership (TCO) were extremely competitive in the survey. All three categories were separated by no more than one tenth of a point. With an average score of 4.01, it is easy to see that this is one of the most competitive criterion for selecting pointof-sale software. Once again, there was a great deal of overlap with the top companies from the 2005 Scoreboard. POSitouch, ParTech, xpient, pcAmerica, Dinerware and Aldelo (NextPOS) all offered repeat performances. Dinerware, however, was the only company to hold its number one position. Given the close attention of many restaurant companies to TCO as a key measure for software systems, this consistency is hardly surprising. Return On Investment SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 4.09 4.06 4.03 POSitouch 2. Digital Dining 3. Micros Systems 1. Squirrel 2. xpient 3. Torex Retail 1. SilverWare 2. Volante Systems 3. Speedline Solutions Systems 4.43 4.41 4.19 4.26 4.25 4.23 Return on Investment (ROI) is another classic measure of value for technology solutions. While it is less in favor now than it was five years ago, most restaurant companies still focus on ROI when making any major technology purchase. A significant number of respondents identified ROI as the most important criterion when selecting a POS system. Given that ROI and TCO are often conflated or viewed together, it is interesting that there is not greater overlap between the top performers. In fact, few of the top companies in the 2006 Scoreboard fared as well last year. Only Micros Systems, xpient and Speedline Solutions did so. The average score for ROI across the entire survey was 4.01 this year, up slightly from 3.98 last year, perhaps reflecting a growing sense of satisfaction across the industry. 10 s POS Scoreboard s Special Supplement www.htmagazine.com
Slide 7: 2006 • RATING TOP POS SYSTEMS Ease of Upgrade SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY SCORE 4.13 4.13 3.93 POSitouch 1. Radiant Systems 1. 3. Digital Dining 1. Squirrel 2. pcAmerica 3. Restaurant Manager 1. FireFly 2. Dinerware 3. FuturePOS Systems 4.32 4.27 4.14 Technologies 4.56 4.37 4.31 According to the 2006 Restaurant Industry Technology Study, 43% of foodservice companies plan on replacing their POS system within the next two years, and another 19% within four years, signalling a period of significant change for the near future. Clearly, the ability to easily upgrade the current system will have significant impact on the shape of the industry for years to come. Interestingly, overall scores for ease of upgrade were relatively low, with an average score of 3.95. This question also had the broadest range between a top score of 4.56 for FireFly Technologies and a low of 3.93 for Digital Dining. FuturePOS, Restaurant Manager, Digital Dining and Radiant Systems all scored well in the 2005 Scoreboard on this question as well. Support and Service SIZE More than 100,000 Installs 20,000 to 100,000 Installs Fewer than 20,000 Installs COMPANY 1. SCORE 4.36 4.31 4.30 Digital Dining 2. POSitouch 3. Radiant Systems 1. Restaurant 3. Maitre’D 1. FireFly 2. FuturePOS 3. Speedline Solutions Manager 4.70 4.49 4.27 2. Squirrel Systems Technologies 4.57 4.39 4.36 More than ever, restaurant operators seem concerned with the quality of service and support. Seventeen percent of the POS Scoreboard respondents listed service as the single most important criteria when selecting a POS system, or as one respondent wrote, “service, service and then more service.” Interestingly, the second most important criteria was reliability or stability at 12%, both were well ahead of last year’s leading response overall performance, which received just 5% of the vote. As important as service is, it is a good sign that foodservice operators seem to be happy with the quality of service they are receiving from their vendors. Restaurant Manager’s 4.70 is the highest score for any company on any question in the entire survey. The average score of 4.02, moreover, is the second highest overall (tied with ease of installation). www.htmagazine.com 12 s POS Scoreboard s Special Supplement
Slide 8: 2006 • RATING TOP POS SYSTEMS A Final Word As we discovered in the 2005 Scoreboard restaurant companies of various sizes seem to have different attitudes towards their POS software solutions. In general, smaller restaurant/foodservice companies (as determined by number of units) tend to be more lenient when rating their POS systems than larger operations. This pattern is even more pronounced than in 2005, with smaller restaurants providing among the highest evaluations in the survey. ME THODOLOGY Between May and June 2006, 403 restaurant, hotel, casino and other foodservice operators operators completed an online survey developed by Hospitality Technology magazine. Respondents were asked a series of questions about their point-of-sale COMPANY SCORE RESTAURANT software solutions and to proRESPONSES vide an email address for verification. The survey contained 1. 41.6 12 four questions about the restau2. FireFly Technologies 40.3 14 rant/ foodservice company 3. pcAmerica 40.0 12 (how many units does the company operate, how many units are you directly responsible for 1. 41.1 49 and what POS vendor and ver2. POSitouch 36.6 118 sion do you use). In addition, 3. Maitre’D 35.6 167 operators were asked to rate their POS software version on a scale from 1 (abysmal) to 10 1. 35.1 670 (perfect) in the following criteria: 2. xpient 32.3 1063 overall performance, total cost 3. Radiant Systems 31.6 753 of ownership, return on investment, strategic value, ease of upgrading, ease of installation, 1. 35.3 1651 ease of integration, ease of ad35.1 5665 2. xpient ministration/maintenance and quality of support and service. 34.6 2883 3. Torex Retail Each of these questions had a weighted value of five and taken together constitute the user satisfaction rating (See page 6). As the Scoreboard has grown in prominence, so too has the incentive to cheat or exaggerate scores. In an effort to make sure the Scoreboard is fair, accurate and beyond reproach, we took a number of steps to ensure a level playing field. Respondents that were identified as POS resellers or vendors were eliminated. In addition, any scores deemed exceptionally high or low that could not be attributed directly to a recognized restaurant company (via email address) were also removed from the survey—scores averaging higher than 43.0 (95%) or lower than 15.0 (33%). It is our belief that there are no perfect POS systems out there, yet there were a disproportionate number of perfect and near perfect scores. Nearly every POS company had scores disqualified as a result, though undoubtedly, the effect was stronger on some company scores more than others. In future years HT will continue introduce more safeguards to ensure accuracy and fairness. SIZE Start-up Restaurants 1-4 units Small Chains 5-50 units Large Chains 51-200 units Enterprise Chains 200+ units FuturePOS Volante Systems Squirrel Systems Micros Systems 14 s POS Scoreboard s Special Supplement www.htmagazine.com

   
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