You run a restaurant and need one place to take orders, accept payments, track inventory, and know your customers. Relying on third-party apps can cost you up to 30 percent in fees and keep vital sales data out of your hands. A strong POS brings every sale and guest detail together so you stay in control and keep more of your earnings.

In 2025, you can choose from on-site servers, tablet-based systems, mobile setups, cloud solutions, or self-service kiosks. Each option has its own strengths. Understanding types of POS systems helps you select the right one for your space, budget, and needs.

In this blog, we will explain what a POS system is and why it matters for your restaurant. Next, we will review the primary types of POS systems currently available. Finally, we will give simple steps to help you choose the best solution for your business.

Key Takeaways

• Owning your POS keeps all sales and customer data under your control, eliminating extra fees.
• Deployment choice (local server vs. cloud) directly affects your system’s cost, speed, and offline use.
• Only select the features you need; overbuying tools can increase your monthly expenses.
• Check that any new system works with your current printers, scanners, and network to avoid surprise costs.
• Don’t forget region-specific needs like bilingual menus, local tax rules, and certified compliance.

What a POS System Is and Why It Matters

A point-of-sale (POS) system is the complete package, both hardware and software, you use to take payments, track sales, and manage orders. It typically includes a register or tablet, a payment terminal, a receipt printer, and the software that records each sale, updates your menu or inventory, and stores customer details. In other words, your POS is the digital hub where every transaction occurs and every sale is logged in real-time.

Why Direct Control Is Essential for Your Restaurant

Operating your own POS system, rather than relying solely on third-party platforms, enables you to consolidate all your customer data, sales metrics, and operational insights in a single, centralized location. This control empowers you to:

• Personalize Promotions: Tailor marketing efforts and special offers based on real customer behavior.
• Manage Loyalty Programs: Design and refine loyalty initiatives with a deeper understanding of your customers' preferences.
• Optimize Your Menu: Make data-driven decisions to adjust your menu in response to actual customer trends and feedback.

With direct control, you also avoid unexpected challenges. By setting your own prices and managing the checkout process, you ensure that customers engage directly with your brand from start to finish, without relying on external platforms that offer only anonymized data.

Also Read: Restaurant Loyalty Program Trends and Statistics for 2025

Common Challenges with Third-Party Platforms

1. High Commission Fees: Most delivery apps in Canada charge between 15% and 30% of the order value. On a CAD 50 order, a 20% fee means you only see CAD 40 before covering labour, ingredients, and overhead.

2. Payment Delays: Third-party services often pay out on their own schedule, sometimes up to a week later, so you may not see your revenue as quickly as you would with in-house transactions.

3. Limited Data Access: External platforms typically retain most customer data for their own use. You might know how many orders you received, but not what time of day guests order most, which items they pair together, or how often they return.

4. Brand and Quality Control: When someone else’s driver delivers your food, you lose control over packaging, on-time performance, and the overall guest experience, yet those factors still reflect on your restaurant.

With a dedicated POS system under your complete control, you avoid these hurdles. You set your own fees, get instant access to every sale, protect your customer relationships, and deliver a consistent brand experience from kitchen to door.

Now that you understand what a POS system is and why owning one matters, you’re ready to explore the different types of POS systems that can power your restaurant’s growth.

5 Different Types of POS Systems

When you’re picking a POS system for your restaurant, you’ll see several main styles. Each one works a bit differently, and knowing the details will help you choose the right fit for your Canadian market in 2025. Here are the five key types of POS systems you’ll encounter:

1. Legacy (On-Premise) POS System

A classic system where all POS software and data live on servers at your site. Dedicated terminals connect over your local network.

Key features:

• On-site server hosting with dedicated hardware
• Local network connectivity for terminals
• Full offline transaction processing
• Customizable workflows and integrations
• Direct control over updates and security

Pros

• Offline reliability: Processes orders even if your internet goes down.
• Familiarity: Long-time staff are familiar with the interface, reducing training time.
• Complete control: You manage updates and security on your own schedule.

Cons

• Upfront cost: High investment in servers, terminals, and network gear.
• Maintenance: You are responsible for all repairs, software updates, and backups.
• Limited integrations: Adding new apps or payment methods can be slow and pricey.

Example & Tip: If you run a busy lakeside inn in rural Ontario where Wi-Fi connectivity is spotty, an on-site server can keep you processing orders, regardless of the situation. Plan for occasional IT check-ups to avoid unexpected repair bills.

2. Tablet-Based POS System

A system that uses commercial tablets (iPads or Android) connected to printers and cash drawers. Software runs in the cloud, syncing to tablets for offline use.

Key features:

• Touchscreen-driven interface
• Cloud-based data storage with offline cache
• Fast menu updates across all devices
• Compatibility with standard tablet models
• Integrated peripherals like printers and cash drawers

Pros

• Lower hardware cost: Tablets cost less than complete registers.
• Quick setup: Plug in, download an app, and you’re ready to go.
• Menu agility: Push price changes or new dishes instantly across all tablets.

Cons

• Partial offline mode: Basic order-taking functions are available offline, while advanced features are paused when an internet connection is not available.
• Battery life: Tablets require regular charging or use of docking stations.

Example & Tip: A small sushi bar in Vancouver can purchase a couple of iPads, mount them on stands, and have staff start taking orders within a few hours. Then, they can update specials on the fly from any computer.

3. Mobile POS System

A handheld setup where staff use smartphones or small tablets with card readers to take orders and payments on the move.

Key features:

• Integrated card reader attachments
• Wireless connectivity (Wi‑Fi/Cellular)
• App-based order and payment interface
• Quick-access tips and split-payment options
• Real-time (or near real-time) inventory sync

Pros

• Total mobility: Take orders and accept payments at the table or at pop-up events.
• Quick line-busting: Cut long queues by ringing up on the spot.
• Simple inventory sync: Many platforms automatically update stock counts.

Cons

• Basic reporting: Handhelds may lack the deep analytics of full systems.
• Device security: Portable hardware must be tracked and secured to prevent loss or theft.

Example & Tip: If you cater weekend markets in Calgary, carrying a mobile POS in your apron pocket means you never miss a sale. Choose a model with integrated inventory tools so you know when to restock your trailer without running back to storage.

4. Cloud-Based POS System

A modern solution where your data and software live on off-site servers managed by a provider. You access everything via browser or app.

Key features:

• Centralized, remote data storage
• Web browser and mobile app access
• Automatic software updates and backups
• Real-time analytics and reporting
• Multi-location management tools

Pros

• Easy scaling: Add new locations or pop-ups without buying extra servers.
• Lower monthly fees: No large server purchase—just pay a subscription.
• Remote access: Monitor sales, staff hours, and inventory from anywhere.

Cons

• Internet dependency: Reliable broadband is a must, though many offer offline fallbacks.
• Data privacy: You rely on the vendor’s security practices and compliance with Canadian regulations.

Example & Tip: A multi-location bakery in Montreal can manage all its shops from a single dashboard. Update a pastry recipe in Toronto, and it instantly appears on registers in Laval and Quebec City. Schedule automated daily backups to Canadian-hosted servers for extra peace of mind.

5. Self-Service Kiosk POS System

Freestanding touchscreen stations that let guests browse the menu, customize orders, and pay without staff assistance.

Key features:

• Standalone touchscreen interface
• Integrated payment processing
• Customizable menu layouts
• Branded user experience
• Real-time order routing to the kitchen

Pros

• Faster service: Guests place and pay for orders without waiting in line.
• Labour savings: Staff can focus on cooking and customer care.
• Upsells: On-screen prompts can suggest add-ons, increasing the average check.

Cons

• Hardware cost: Kiosks are more expensive than tablets and need secure mounts.
• User experience: Clear instructions and intuitive design are critical to avoid confusion.

Example & Tip: A fast-casual taco joint in Toronto installs two kiosks at the entrance. Guests select toppings and pay in under a minute, freeing servers to prep orders and interact with diners. Run usability tests during a soft opening to identify any issues with menu labels.

With a clearer picture of the available systems, the next step is figuring out which one matches your restaurant’s needs and budget.

Also Read: Understanding Contactless Ordering in Restaurants

How to Choose the Right POS for Your Budget and Needs

Picking the right POS system means matching it to your workflow, sales volume, and budget. Below are four simple steps to follow in finding a system that suits your restaurant’s budget and needs:

1. Estimate your order volume and busiest hours

Begin by examining the number of orders you process on a typical day and the times when you are busiest. If you handle hundreds of orders per hour, you need a system built for speed and reliability. Traditional setups excel here; they operate offline and continue functioning even if the internet slows down. Some cloud-based POS platforms can handle up to 300 transactions per hour without lag, so you won’t keep guests waiting during your lunch or dinner rush.

2. Decide which features matter

Make a shortlist of must-have tools. For many restaurants, these include:

• Inventory tracking to see stock levels in real time and avoid running out of popular ingredients.
• Online ordering integration allows web and in-house orders to flow into a single dashboard, eliminating the need for extra apps.
• Built-in loyalty programs to reward repeat diners and keep them coming back without relying on third-party platforms.

Only pay for what you’ll actually use and trim out features that won’t move the needle for your business.

3. Check hardware compatibility

Your new POS should integrate with the equipment you already own, like card readers, printers, and scanners, so you don’t encounter unexpected replacement costs. Tablet and mobile POS options often work with standard iPads or Android devices, while all-in-one terminals may need proprietary hardware. Confirm with each vendor that their system can integrate with your current setup before making a purchase.

4. Confirm training time and ongoing support

A user-friendly interface means your team can get up and running in hours, not weeks. Look for providers that offer quick onboarding guides and responsive help teams. Ideally, you’ll have access to live chat or phone support 24/7, so if anything goes wrong in the middle of service, you’re never left scrambling.

By taking these steps, you’ll find a POS solution that suits your restaurant’s peak volume, features, hardware, and support needs, while controlling costs and owning your customer data.

As you narrow down your options, it's helpful to understand the actual costs of each system. Here’s a look at typical pricing for Canadian restaurants.

Also Read: Popular Free Restaurant POS Systems Solutions

Restaurant POS Pricing Breakdown

When selecting a POS for your restaurant in Canada, it’s helpful to know exactly what you’ll pay at each step. Here’s a straightforward cost breakdown for 2025 that highlights the main fees you can expect when managing your ordering and payment processes:

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Now that you are aware of the main costs, you can plan your budget and select the most suitable package for your restaurant’s needs.

Beyond general pricing, there are a few local details that matter, mainly if you’re operating in Quebec (Canada) or serving bilingual customers. Let’s go over those now.

Regional Considerations for Restaurant POS in Canada

Here’s a quick look at the main regional factors to keep in mind:

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By ensuring your POS addresses these regional needs, you’ll stay compliant, keep your customers satisfied, and focus on running your restaurant instead of chasing paperwork.

Simplify Your Types of POS Systems with iOrders

Managing multiple ordering platforms, unexpected fees, and fragmented sales data can be a real challenge. You're not alone; many restaurant owners face the same struggle in trying to keep track of every order, menu change, and customer interaction in one place.

iOrders steps in where third-party apps fall short. It helps ease the burden exactly where you need it most. Here’s how:

• Commission-Free Online Ordering: Keep 100% of your online sales. iOrders’ platform routes orders directly to you, with no hidden fees eating into your profits.
• Website and QR Ordering: Give guests a seamless, branded ordering experience on your own site or via table-side QR codes. You control the look, feel, and data.
• Delivery-As-A-Service: Outsource the logistics without extra markups. Enjoy driver dispatch and order tracking under your brand, not a marketplace’s.
• Loyalty and Rewards: Turn casual visitors into regulars with points, punch cards, and custom reward tiers, seamlessly integrated into your ordering flow.
• Smart Campaigns: Send targeted offers based on real purchase history. Boost slow days and move inventory with promos tailored to your guests.

By combining all these tools in one clean dashboard, iOrders brings you the best of modern types of POS systems, commission-free growth, total data control, and guest-focused features that fit your restaurant’s pace.

Also Read: Boost Your Restaurant’s Sales with Online Ordering & POS Solutions

Conclusion

Choosing the right POS system is about finding a solution that aligns with your restaurant’s unique needs, not a one-size-fits-all product. Whether you need the offline reliability of a legacy system or the remote flexibility of a cloud-based platform, the best choice for your business depends on your specific budget, operations, and growth goals.

iOrders provides a solution that combines the best of modern POS features with the ability to maintain full control. You can manage menu updates, track inventory in real-time, and run loyalty programs—all without third-party fees. This helps you stay in control and keep more of your revenue.

Ready to find the perfect POS solution for your restaurant? Book a free demo with iOrders today.

FAQs

1. How many types of POS systems are there for restaurants?

Industry experts typically recognize five core POS categories for restaurants, though some classifications expand this to six or more when accounting for hybrid and open-source variations.

2. What are the different types of POS systems?

They vary by where your data lives (on-site vs. off-site) and the hardware you use (fixed terminals, tablets, handhelds, or kiosks), with each mix offering different balances of cost, mobility, and reliability.

3. What are POS systems for restaurants?

A restaurant POS is an all-in-one digital platform that connects order entry, payment handling, stock management, and reporting into a single dashboard to keep operations running smoothly.

4. What is the best POS system for restaurants?

The top choice depends on your needs; look for a system that fits your service style and budget while giving you essentials like inventory tracking, staff management, and customer insights.

5. How secure are restaurant POS systems?

Leading POS solutions protect data with end-to-end encryption, follow PCI-DSS rules, use secure payment links, and get regular software updates to block threats.