POINT OF SALE: TRENDS,
MARKETS AND TECHNOLOGIES
VARs Eye Slice Of Pizzeria POS Business
(URL: http://www.crn.com/hardware/171100042)
By Jennifer Lawinski
3:00 PM EDT Fri. Sep. 23, 2005
Corner pizzerias are getting IT makeovers, and solution providers are hearing
the ring of cash registers.
Other than some big chains, the pizza industry has been a slow adopter of IT
technology for its POS systems. But now VARs are springing up to offer
customized high-tech POS solutions to pizzerias that include order input,
delivery management, personnel scheduling and inventory tracking.
“We’re bringing high-tech to a very low-tech industry, and it’s a lot
of fun to be around,” said Tom Bronson, president and CEO of Diamond Touch, a
Louisville, Texas-based VAR that focuses on the POS market.
With almost 64,000 pizzerias in the United States, the pizza industry raked
in $30 billion in sales in 2004, according to the National Association of
Pizzeria Operators. Those figures mean significant sales for VARs that can serve
up custom POS systems.
Diamond Touch integrates touch screens, printers and other hardware with
software produced in-house into a complete package for pizzerias. The
company’s midtier solution integrates custom software running on Dell
computers with Planar’s PT1500M 15-inch touch-screen LCDs.
When developing systems for pizzerias, durability is important, Bronson said.
“Restaurant employees are pretty abusive on the equipment,” he said. “In
addition to the normal things, you find airborne problems like flour. I’m
amazed at the number of different touch screens that move when you touch them.
That’s something that you can’t have in a restaurant environment.”
In particular, Bronson said Diamond Touch uses Planar’s displays because
they can stand up to the demands of the pizzerias.
“A lot of people who get into the touch-screen environment make monitors
but don’t think about how they’re going to be used,” he said. “What we
look for in any of our vendors is a good price, great reliability and great
design.”
Other solution providers said that custom solutions are the key to success in
the pizza POS space.
“Everyone in the industry is demanding a program that will fit them like a
glove,” said Jeff Doyle, president of Revention, Houston. The fledgling POS
company has set its sights on being the top-selling POS solution provider in the
pizza industry by next year.
Revention has put its pizza POS solutions in 285 shops since its inception in
January 2005 and expects business to net $5 million this year. During the Las
Vegas Pizza Expo in March alone, the company booked over $500,000 in sales of
its Revention POS system.
“No one has exactly what you want,” Doyle said, but he added that
Revention could reach into new markets and dominate the pizza industry by being
more easily tailored to the individual shop than competing packages.
Doyle said Revention has been working with Hungry Howie’s Pizza, a Madison
Heights, Mich.-based pizza chain. The chain currently has 516 pizzerias, 55 of
which use the solution.
Doyle said referrals and the high number of family-owned pizza shops have
helped his company’s pizza business grow quickly. “I’ve seen in a lot of
cases that the son’s taken over or someone new is getting involved in the
business, and they’re seeing the advantage of having a digital environment,”
he said. “A lot of our growth has not been because of marketing, but it’s
been referral-based. People actually send us checks for $18,000 [the average
cost of Revention’s POS solution] without even seeing the product.”
Revention’s solution integrates Elo TouchSystems touch screens and Dell
Optiplex workstations with custom Visual Basic .Net software and SQL Server
databases.
Vendors also are seeing the opportunities in the pizza industry and are
working closely with VARs to develop custom solutions.
Steven Abramovich, vice president of sales and global marketing for the
Americas at Elo, Menlo Park, Calif., said the company develops its displays
specifically to be part of larger solutions. For example, displays have
mechanisms to hide cords from customer view and rear placards for
advertisements.
“Pizza is a good application,” Abramovich said. “It’s a pretty
dynamic market for us.”
Rob Baumgartner, director of operations and marketing at Planar, Beaverton,
Ore., said the market is open for VARs that can offer new, custom solutions.
“There are all of these new applications and new things that people want to do
with their monitors, and it’s a lot of smaller local integrators and VARs that
are helping to build solutions with those products,” he said.