In today’s restaurant business, it’s essential to stay up-to-date with the latest tech. One of the biggest investments you can make is a POS system. There are two main kinds of POS systems – cloud-based and traditional databases. Cloud-based systems are hosted on a remote server, while traditional database systems are installed on the ground.

So, which one is right for you? In this blog, we’ll look at cloud-based and database POS systems to help you make the best decision. Running a successful restaurant business means having efficient management and streamlining operations. Your POS system is the heart of your business, so it’s important to pick the right one.

Cloud-Based POS

If you want to keep your POS system up and running, a cloud-based system is the way to go. It stores your data on servers that you can access from anywhere, no matter where you are. Plus, you can access it from your phone, computer, or tablet, so you don’t have to leave your house.

Traditional database POS systems:

The installation of a traditional database POS system is typically done on-site, allowing the restaurant to have full control over its data and hardware. This, however, also implies that all IT support and maintenance is the responsibility of the restaurant. 

As a result, traditional database POS systems tend to be more costly than cloud-based systems, and can be more complex to configure and use. Nevertheless, they do provide some benefits, such as improved performance and the ability to customize the system.

What Is the Difference Between Cloud-Based and Traditional Database POS Systems?

Real-Time Data and Analytics

Cloud-based point-of-sale (POS) systems offer real-time information and analytics that can be accessed from any location with access to the internet. This capability enables users to make informed decisions, track sales and inventory, and evaluate the performance of their restaurant remotely

Exceptional Cost Savings

The National Restaurant Association has conducted a study which has revealed that cloud-based Point of Sale (POS) systems offer considerable cost savings compared to traditional database systems. This is due to the fact that traditional systems require a large initial investment in servers and hardware which can be a significant burden, particularly for smaller restaurants or startups.

Cloud-based POS systems, on the other hand, require minimal hardware, typically consisting of a tablet or smartphone and a dependable internet connection. This study has revealed that the cost of setting up a cloud-based POS system can be reduced by up to 70%.

Seamless Updates and Maintenance

Manual updates and maintenance of traditional database POS systems can be costly and time-consuming. On the other hand, cloud-based systems are designed to automatically process updates, eliminating the need for manual software or hardware updates. This ensures that customers always have access to the most up-to-date features and security updates.

Fortified Data Security

Cloud-based point-of-sale (POS) systems are typically equipped with sophisticated security measures, such as encryption, frequent backups, and redundancies. This comprehensive security infrastructure reduces the likelihood of data loss caused by hardware malfunctions or security incidents, which is a major drawback of traditional database POS.

It has been observed that the majority of data breaches within the restaurant sector have taken place in the context of traditional database point-of-sale (POS) systems, with only a small fraction of breaches occurring in cloud-based systems. This was confirmed by a report from the payment card industry security standards council.

Effortless Scalability

Cloud-based POS systems offer a distinct advantage in that they are able to be scaled up or down as the restaurant expands. This allows for the addition or removal of features and terminals without any major disruption, allowing for a rapid response to changing requirements and the expansion of the business without the need to worry about hardware restrictions. According to a recent Square study, 63% of business owners found it simpler to expand their restaurant operations with a cloud POS system.

Why choose a cloud-based POS system?

If you’re looking for a way to make your business more flexible, cost-effective, secure, and scalable, a cloud-powered POS system could be the answer. Cloud-based POS systems offer real-time access, automatic upgrades, and better data insights, making your business run more efficiently and competitively in the digital age. If you’re thinking about buying a POS system, it’s important to think about what your business needs and wants, and if cloud-based solutions are the right fit for you.

Uque Benefits of Cloud-Based POS for Restaurantsni

In addition to the general benefits of cloud-based POS systems, there are a number of unique benefits that can be particularly beneficial for restaurants, including:

Real-time data and insights: Cloud-based point-of-sale systems offer customers access to up-to-date information and insights into the performance of their restaurant. This data can be utilized to inform decisions regarding a variety of factors, such as menu pricing and staffing levels.

Online ordering and delivery: Cloud-based point-of-sale systems can be connected to digital ordering and delivery systems, allowing customers to conveniently place orders and receive their meals from your establishment.

Table management: Cloud-based point-of-sale (POS) systems can facilitate the efficient management of your tables, including the seating of customers, order tracking, and payment processing.

Inventory management: With cloud-based POS systems, you can keep an eye on your stock levels and make sure you always have the right stuff on hand.


The restaurant industry is highly dynamic and demanding, necessitating rapid technological advancements. Cloud-based point-of-sale (POS) systems are an ideal solution for most restaurants, as they offer a range of advantages, such as cost-effectiveness, user-friendliness, scalability, portability, security, and access to up-to-date data and insights.

Furthermore, cloud-based POS systems provide a competitive advantage, offering unparalleled flexibility, cost-reduction, easy updates and maintenance, and data security, as well as scalability. Ultimately, when considering the pros and cons, the choice is cloud-based POS, paving the way for success in the digital age.

About TechRyde Inc.

At TechRyde Inc., our technology helps restaurants improve efficiency by streamlining their digital menus and third-party order management. Want to read more check out our other blogs.