Find Your POS Niche

Michael Tran didn’t set out to be an expert on sushi restaurants, but that is exactly what he has become.  Tran is the CEO of Houston-based Transtar POS, a systems integrator that specializes in restaurant POS systems. In fact, 1/3 of the integrator’s revenue in 2006 will come from installations in sushi restaurants. Tran and his team know the sushi business so well that they often serve as consultants to new sushi business owners. Tran gained this niche expertise by installing customized POS systems in sushi restaurants.

“We spend a lot of time working with our customers to understand their businesses,” says Tran. “Because our POS systems are an integral part of our customers’ daily activities, we have become experts in this niche market.” That expertise has allowed Transtar to win POS installations in nearly 15 sushi restaurants in the greater Houston area. Since it entered the POS market, Transtar has installed more than 100 complete POS systems in restaurants, half of which feature ethnic foods.

Unsupported Hardware And Software Lead To VAR Opportunities
Transtar recently completed a POS implementation for Miyako Japanese Restaurant Group, which owns four ethnic restaurants in Houston. Miyako needed a new POS software package and a new POS service provider. All four locations used DOS-based software and outdated hardware — neither of which was supported anymore. The company experienced a variety of problems, including system lockups, performance problems, and excessive downtime. System crashes even led to cash drawer shortages. In addition to the POS operation problems, the general manager of Miyako was looking for ways to improve sales by adding menu items and promotions. The DOS POS software did not support those changes.

Miyako wanted to solve those issues while using as much of its existing equipment as possible, and it was limited to a budget of $40,000. Miyako heard of Transtar through other vendors that knew about Transtar’s specialty in sushi restaurant POS systems. “We met with Miyako three times to talk about the specifics of the software,” explains Tran. “During the first meeting, the company gave us a list of problems it was having. We knew we could solve nearly all those problems. However, Miyako had a bad experience with another POS vendor, so we knew we would have to overcome some skepticism. We met a fourth time to talk about Miyako’s processes and to present our solution. We met one last time to talk about pricing and the installation process.”

Throughout Miyako’s due diligence process, Transtar faced some stiff competition from VARs such as Texas POS, offering software solutions such as ASI’s Restaurant Manager and Radiant Systems’ Aloha software. Miyako selected Aldelo For Restaurants Pro and awarded the business to Transtar POS.

Tran says it took approximately three weeks to complete the POS installation at all four Miyako locations. Transtar installed Aldelo For Restaurants Pro software, Partner Tech RP-300 thermal printers and CDR-5E415 cash drawers, Star TSP143 printers, Epson TM-U220 series printers, Elo Series 1000 touch screens, Dell PCs, and white box PCs. The new system handles all customer transactions, prints order tickets in the kitchen, prints customer receipts, provides sales reports, and more. “Miyako chose Aldelo because it needed a nonproprietary system that could be expanded with its business,” says Tran. “Aldelo provided a clear path to conversion from the DOS software. Aldelo is priced at roughly $3,500 per station versus $4,000 to $5,000 per station for competitive offerings. Price was a primary concern for Miyako.”

Embrace Restaurant-Specific Challenges
One of the biggest challenges Transtar faced with this installation was the myriad of food options that were not documented on Miyako’s menu — a typical problem in sushi restaurants according to Tran. “Unlike grilling a steak, sushi presents a variety of preparation options that must be integrated into the POS system,” says Tran. There were other challenges, such as how to process Miyako Bucks (gift certificates). Those exceptions had to be programmed into the new POS system as well. Transtar also had to integrate as much of the existing equipment as possible into the new system. That included older CRT touch screens. As the older CRT screens fail, Miyako is replacing them with flat panel touch screens, providing Transtar with ongoing sales revenue.

Build POS Training Into Your Solutions
As VARs know, the success of new technology is often  dictated by those who must use the technology. Miyako was no exception. “Many Miyako employees were used to doing things the old way,” adds Tran. “There was slight resistance from the senior members of the staff. Teaching them how to be efficient using the new software was a challenge. It took approximately 15 hours at each location to train employees, but they are doing very well with the new system now.”

The new Transtar POS system has all but eliminated downtime problems and allows Miyako employees to add new menu items, use coupons, track sales, and run detailed reports. Now that employees are familiar with the Aldelo software, Tran says that support calls from Miyako are few. In the future, Miyako will look to Transtar to replace all legacy equipment and upgrade to the latest version of Aldelo For Restaurants Pro. Miyako is also considering using PDAs with the POS system.

This year, Transtar POS plans to add another location in Austin, TX, where Tran has discovered an underserved ethnic restaurant market niche. Tran has established 10 ethnic restaurant POS customers in the Austin area and commutes between Houston and Austin for each new installation. Tran says the new location should be open by the fall of 2006. l

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www.transtargroup.com