What is a Cloud Based POS System?

A cloud based POS is a software that runs on the internet and stores all the sales, inventory, and customer data in the cloud instead of on a local computer or server. 

You can access your restaurant’s data anytime, from anywhere, using devices like tablets, laptops, or smartphones. However, two major benefits of cloud POS systems are real-time data syncing and lower hardware costs. 

They’re best suited for small to mid-sized restaurants, cafés, food trucks, and multi-location setups that want flexibility and remote access. Let’s explore how it all works in depth below.

How Does a Cloud POS System Work?

A cloud POS system works by connecting your POS software to remote servers via the internet. Instead of installing the software on a local machine, everything runs through a web-based dashboard or a mobile/tablet app. Your sales, inventory, customer data, and reports are stored in the cloud, the secure online servers managed by your POS provider.

Here’s how it works in simple steps:

• You take an order using a device like a tablet, phone, or desktop.
• The data is instantly sent to the cloud server over the internet.
• The kitchen or bar receives the order in real-time.
• Your reports, inventory, and analytics are automatically updated and can be viewed from any location.

Cloud based POS software also supports multi-device syncing, that means your front-of-house staff, kitchen team, and managers can all stay connected — without relying on one physical machine.

Most modern systems also offer offline mode, so even if the internet drops temporarily, you can keep serving customers and sync everything once you're back online.

Hybrid vs Cloud-Based vs Offline POS

Want a full breakdown?

Read the complete guide: Hybrid vs Server vs Cloud Based POS System - Which One is Right for Your Restaurant?

Benefits of Cloud Based POS Software for Restaurants

A cloud-based POS isn’t just a new tech trend, it’s a smarter way to manage your restaurant in today’s fast-moving world. Below are the key benefits explained in detail, especially for restaurant owners who want more control, more flexibility, and less headache.

1. Access Your Restaurant from Anywhere

One of the biggest advantages of cloud based POS is remote access. Whether you're at home, on vacation, or managing multiple locations, you can monitor your restaurant’s operations in real-time using any internet-connected device — like your smartphone or laptop.

You can check:

• Live sales as they happen
• Which menu items are selling the most
• Who’s clocked in and working
• If a table is taking too long to turn over

This kind of real-time visibility is a game changer for owners who can’t be on-site 24/7.

2. Live, Real-Time Data and Reports

Cloud POS systems sync every transaction instantly. No more waiting for end-of-day reports or printing out spreadsheets. You get accurate, up-to-date reports at your fingertips — helping you make smarter, faster business decisions.

Here’s what you can track in real time:

• Total sales by the hour or shift
• Average ticket size
• Table turnover rate
• Employee performance and sales per server
• Inventory levels — so you never run out of stock during peak hours

You can also schedule automated reports to be emailed daily, weekly, or monthly — saving you time and effort.

3. Lower Hardware and Maintenance Costs

Traditional POS systems require:

• Heavy, expensive machines
• On-site servers
• Complex wiring
• IT specialists to install, update, and maintain the system

Cloud based POS systems eliminate all that. You can use affordable, everyday devices like:

• iPads or Android tablets
• Touchscreen monitors
• Bluetooth printers and cash drawers

Software updates happen automatically in the background, so you don’t pay for support calls or deal with downtime.

This is ideal for new restaurant owners who want to save on setup and maintenance costs.

4. Quick Setup and User-Friendly Interface

Most cloud-based POS platforms are built for ease. You can set up the system in hours (not days), and the learning curve is minimal. The interface is usually designed like modern apps — clean, visual, and touch-optimized.

This means:

• Your staff can learn it in minutes
• Less training = lower labor costs
• Faster order taking = shorter wait times
• Fewer mistakes during service

This especially helps during peak hours when speed and accuracy are crucial.

5. Effortless Multi-Location Management

If you run more than one location, cloud-based POS gives you centralized control. From one dashboard, you can:

• Compare sales across branches
• See which location is underperforming
• Roll out new menu items or price changes to all stores at once
• Standardize discounts, taxes, and promotions
• Track staff performance per location

You don’t have to physically visit each site to manage operations — it’s all in one place.

6. Seamless Integration with Other Tools

Cloud POS systems are built to connect easily with other restaurant tools. This saves time, reduces manual work, and improves accuracy.

Here’s what you can integrate with:

• Online ordering platforms like DoorDash, Uber Eats, Grubhub
• Payment gateways like Stripe, or PayPal
• Loyalty programs and CRM tools
• Accounting software like QuickBooks or Xero
• Inventory apps and kitchen display systems (KDS)

This creates a full digital ecosystem that runs in sync, reducing human errors and helping you scale efficiently.

7. Secure Cloud Storage and Automatic Backups

Your restaurant data including sales, employee records, and customer details is stored on secure cloud servers. Unlike traditional systems, there's no risk of losing everything if your computer crashes or the power goes out.

Most cloud POS providers offer:

• Automatic backups
• Data encryption to prevent hacks
• Role-based access so staff only see what they’re supposed to
• Audit logs to track who made what changes

You stay protected — and compliant — without lifting a finger.

8. Scalable for Any Restaurant Size

Whether you're a single-location café or growing into a regional chain, cloud POS systems are built to scale with your business. You can start with basic features and upgrade as you grow.

Scale without stress:

• Add more devices when you get busier
• Set up new branches without redoing everything
• Create different user roles for staff, managers, and owners
• Expand into online ordering, gift cards, or loyalty programs anytime

You only pay for what you need — and add more when you’re ready.

Challenges of Cloud-Based POS (and How to Overcome Them)

While cloud POS systems offer powerful advantages, they’re not perfect. Like any technology, they come with a few challenges — but the good news is, most of them can be managed easily with the right setup and mindset.

Let’s break down the main concerns and how to deal with each one effectively:

1. Internet Dependency

Cloud based POS software relies on the internet connection to operate. If your Wi-Fi goes down, you might worry that your whole operation will come to a halt.

The Solution:

• Choose a POS with Offline Mode: A modern cloud POS system offers offline functionality. This means orders are saved locally and sync to the cloud automatically once you're back online.
• Backup Internet: Consider having a secondary internet connection (like a 5G router) for emergencies. This is especially important in high-traffic restaurants.
• Stable Wi-Fi Setup: Invest in a solid commercial-grade router and regularly monitor your connectivity speed.

Pro tip: Before choosing a provider, ask them how their system handles internet outages.

2. Data Security and Privacy

Restaurant owners often ask, “What if someone hacks into my POS and steals my sales or customer data?”

The Solution:

Cloud POS providers take security very seriously. Most offer:

• End-to-end encryption (your data is scrambled during transfer)
• Secure login protocols (like 2-factor authentication)
• Permission settings to control what staff can see or edit
• Regular security audits and compliance with global standards (like PCI DSS)

Still, as an owner, you should:

• Use strong passwords and change them regularly
• Limit access by employee role
• Regularly review activity logs

3. Monthly Subscription Costs

Unlike traditional POS systems that are one-time purchases, cloud POS solutions usually charge monthly fees.

The Solution:

Yes, there’s a subscription — but it includes:

• 24/7 customer support
• Regular software updates
• Cloud backups
• Feature upgrades
• Remote access and mobile apps

Think of it like Netflix for your restaurant operations — you're not just buying software, you’re buying peace of mind, updates, and support. And it’s still often cheaper than maintaining bulky legacy hardware.

Also, most providers offer plans based on your size. You can start small and upgrade as your business grows.

4. Learning Curve for Older Staff

Some restaurant owners worry that their staff — especially older employees — may struggle with new systems.

The Solution:

Cloud POS systems are designed to be intuitive. The interface is usually visual, touch-friendly, and similar to common smartphone apps. Also:

• Most providers offer free training resources, videos, and onboarding sessions.
• You can start staff with basic tasks like taking orders or printing bills before introducing advanced features.
• A 1–2 hour hands-on session is often enough for complete adoption.

Choose a provider that offers live training or has a great support team ready to assist.

5. Too Many Features Can Be Overwhelming

Some restaurant owners feel overwhelmed by the sheer number of features offered — from CRM to loyalty, inventory to marketing, and beyond.

The Solution:

• Start simple. Focus on the core features you need: order taking, billing, reports, and payment.
• Grow gradually. Once you're comfortable, explore add-ons like inventory tracking or customer loyalty.
• Ask for help. Most providers offer account managers or support reps who can guide you step-by-step.

Remember: You don’t need to use every feature from day one. A good POS should feel like an assistant — not a headache.

Key Features to Look for in a Cloud-Based POS System

Not all cloud-based POS systems are created equal. As a restaurant owner, your POS isn't just a billing tool — it's your command center. So when you're choosing the right system, don’t just look at the logo or price. Look at the features that truly support your daily operations and future growth.

Here are the must-have features that a cloud POS system should offer for restaurants:

1. Order Management (Dine-in, Takeout, and Delivery)

A great POS should let you handle every kind of order smoothly — whether it's a dine-in table, a takeaway call, or a delivery app request.

Look for:

• Table mapping and table-wise billing
• Split bills and seat-wise ordering
• Integration with delivery platforms (like DoorDash, Uber Eats)
• Takeout and curbside pickup options
• Modifier support (e.g. extra cheese, no onions, etc.)

Why it matters: Better order flow means faster service, fewer mistakes, and happier customers.

2. Inventory Tracking

Your POS should tell you what’s in stock and what’s running low — in real time.

Must-have capabilities:

• Auto-deduct ingredients when orders are placed
• Real-time stock alerts
• Purchase management (log vendor details, track stock-in and stock-out)
• Waste tracking (to reduce food cost)

Why it matters: You avoid over-ordering, prevent stockouts, and stay profitable.

3. Employee Management

Your team makes or breaks your restaurant. A good cloud POS helps you monitor and manage staff efficiently.

Look for:

• Staff logins with role-based access
• Clock-in/clock-out with shift tracking
• Sales per employee
• Tip tracking
• Permissions for discounts, refunds, and voids

Why it matters: Keeps you in control, prevents fraud, and rewards top performers.

4. Customer Relationship Management (CRM)

Your POS should help you remember and reward loyal customers.

Look for:

• Customer profiles (name, order history, favorite items)
• Mobile number-based tracking
• Loyalty programs and rewards
• Birthday and anniversary campaigns
• Feedback collection

Why it matters: Repeat customers spend more — and they come back when they feel remembered.

5. Real-Time Reporting & Analytics

Your POS should give you smart insights, not just numbers.

Best-in-class POS systems offer:

• Sales by item, category, staff, and hour
• Profit margins per dish
• Daily summary reports (auto-emailed to you)
• Tax reports for compliance
• Low-performing vs top-performing items

Why it matters: You make data-backed decisions that improve margins and efficiency.

6. Multi-Device Support (Tablet, Mobile, Desktop)

A cloud POS should work across multiple devices — so you’re never stuck.

Look for:

• iPad and Android compatibility
• Web-based login from desktop or laptop
• Manager app to monitor operations remotely
• Kitchen Display System (KDS) support

Why it matters: Flexibility leads to faster adoption, smoother operations, and lower hardware costs.

7. Online Ordering Integration

Whether you use your own website or third-party delivery apps, your POS should sync orders directly — no double entry.

Top features:

• Accept orders from your website
• Integrate with Uber Eats, Doordash, etc.
• Real-time order sync to kitchen
• Combine dine-in and delivery data in one dashboard

Why it matters: Reduces manual errors, increases kitchen efficiency, and saves staff time.

8. Automatic Updates & 24/7 Support

With cloud POS, you should never have to worry about downtime or outdated software.

Expect:

• Auto updates rolled out regularly
• 24/7 customer support via phone, chat, or email
• Onboarding assistance
• Easy migration support (if switching from another system)

Why it matters: You focus on running the restaurant, not fixing the tech.

9. Security and Data Protection

Your POS should protect your data like it protects your cash register.

Look for:

• Data encryption
• Daily backups
• Role-based user access
• Activity logs and audit trails
• Secure cloud hosting

Why it matters: Keeps sensitive customer, payment, and sales data safe from threats.

10. Scalability and Add-Ons

A good POS system grows with your restaurant.

Scalable systems allow:

• Adding multiple outlets
• Creating new user accounts
• Activating add-ons (like loyalty, marketing, online ordering, etc.)
• Accessing APIs for custom integrations

Why it matters: You don’t outgrow your system as your business grows.

Top 5 Best Cloud-Based POS Systems for Restaurants

Choosing the right cloud POS can be overwhelming with so many options available. Here are five of the best cloud-based POS systems trusted by restaurant owners across the US, starting with our own Butter POS:

1. Butter POS

Butter POS is designed specifically for restaurants of all sizes, from food trucks to fine dining. It offers a user-friendly cloud based POS with features like easy order management, employee tracking, and real-time reporting. 

This POS focuses on eliminating billing fraud, improving speed, and providing 24/7 support - all at an affordable monthly price. Its flexibility makes it a top choice for restaurants looking for reliability and scalability.

2. Toast POS

One of the most popular cloud-based POS systems in the restaurant industry, Toast is known for its robust all-in-one platform. It supports tableside ordering, integrated payment processing, inventory management, and detailed analytics. 

Toast also offers excellent online ordering integration and customer loyalty programs. It suits mid to large-sized restaurants looking for a comprehensive solution.

3. Square for Restaurants

Square’s cloud POS system is highly popular among small to medium restaurants and cafes. It stands out for its simplicity, easy setup, and affordable pricing. 

It offers features like menu management, employee scheduling, and seamless payment options, along with integrations for online ordering and delivery. The platform is great for startups and quick-service restaurants.

4. Upserve POS (by Lightspeed)

Upserve is a powerful cloud-based POS designed specifically for full-service restaurants. It combines POS functionality with advanced analytics, inventory tracking, and customer relationship management. 

Its focus on actionable insights helps owners optimize menu performance and staff efficiency. Upserve is best suited for medium to large restaurants seeking detailed business intelligence.

5. Revel Systems POS

Revel Systems offers a flexible, iPad-based cloud POS solution known for its robust features and customizability. It supports complex operations like multi-location management, ingredient-level inventory tracking, and CRM. 

With offline mode and strong reporting, Revel is a good fit for growing restaurants and multi-unit operators.

Conclusion

A cloud-based POS system is a powerful tool that can streamline your restaurant’s operations, improve customer experience, and provide valuable business insights—all while giving you the flexibility to manage your restaurant from anywhere. Whether you run a small café or a multi-location eatery, choosing the right cloud POS can make a significant difference in efficiency and profitability.

Butter POS and other top options like Toast, Square, Upserve, and Revel offer a variety of features tailored to different restaurant needs and budgets. Take the time to evaluate which system aligns best with your goals and restaurant size.

Investing in a cloud-based POS system today means setting your restaurant up for smoother operations and growth in the future.