How to Create a Restaurant Point‐of‐Sale System with Excel

Creating a basic Point-of-Sale (POS) system using Microsoft Excel can be an economical solution for small restaurant businesses. While Excel cannot completely replicate the full capabilities of a dedicated POS system, it can efficiently handle basic tasks such as order entry, billing, and inventory management. Here, I’ll guide you through setting up a simple yet effective POS system using Excel.

Step 1: Plan Your Excel POS System

Define Your Requirements:

• Order Entry: Capture customer orders.
• Inventory Management: Track ingredients and supplies.
• Billing: Calculate bills, including tax and tips.
• Reporting: Generate sales and inventory reports.

Determine the Layout: Decide how you want your Excel sheets to be organized. A typical layout might include separate sheets for the Dashboard, Menu Items, Orders, Inventory, and Reports.

Step 2: Setting Up the Excel Workbook

1. Create a New Workbook.
2. Name Your Sheets accordingly:
   • Dashboard
   • Menu
   • Orders
   • Inventory
   • Reports

Step 3: Designing the Menu Sheet

This sheet will list all the food items, prices, and their corresponding ingredients.

• Column A: Item ID (unique identifier for each menu item)
• Column B: Item Name
• Column C: Price
• Column D: List of Ingredients (This can be referenced to the Inventory sheet)

Example:

A       B           C       D
1   Item ID  Item Name   Price   Ingredients
2   001      Burger      $5      Bun, Patty, Lettuce
3   002      Pizza       $7      Dough, Cheese, Pepperoni

Step 4: Create the Orders Sheet

This sheet will track customer orders.

• Column A: Order ID
• Column B: Item ID (reference from Menu sheet)
• Column C: Quantity
• Column D: Total Price (calculated from Menu sheet prices)

Example:

A       B           C           D
1   Order ID  Item ID     Quantity    Total Price
2   0001      001         2           =C2*VLOOKUP(B2,Menu!$B$2:$D$100,3,FALSE)
3   0002      002         1           =C3*VLOOKUP(B3,Menu!$B$2:$D$100,3,FALSE)

Step 5: Inventory Management

Track inventory levels based on orders.

• Column A: Ingredient
• Column B: Starting Quantity
• Column C: Current Quantity (automatically updated based on orders)

Example:

A       B               C
1   Ingredient    Start Qty       Current Qty
2   Bun           100             =B2-SUMIF(Orders!$D$2:$D$100,"*Bun*",Orders!$C$2:$C$100)
3   Cheese        50              =B3-SUMIF(Orders!$D$2:$D$100,"*Cheese*",Orders!$C$2:$C$100)

Step 6: Billing and Receipts

Generate bills for orders:

• Include details: Item name, quantity, price, and total.
• Calculate totals, add taxes, and apply discounts if applicable.

Step 7: Reporting

Create reports to view sales performance, popular items, and inventory needs.

• Daily, Weekly, Monthly Sales
• Inventory Usage
• Revenue by Item

Utilize pivot tables and charts for visual representation of data.

Step 8: Dashboard

Create a dashboard for a quick overview:

• Order Quick Links
• Inventory Levels
• Sales Summaries

Use Excel’s data visualization tools like charts and conditional formatting.

Step 9: Enhance with Macros and Formulas

Introduce Excel macros or VBA scripts to automate repetitive tasks, like updating inventory levels or generating daily sales reports.

Step 10: Security and Backup

Protect your data:

• Password-protect your Excel workbook.
• Regularly back up your files to avoid data loss.

Conclusion

While an Excel-based POS system might not offer all the functionality of specialized software, it can serve well for small operations or as a stopgap solution until a more robust system is feasible. It’s also a great way to minimize initial costs and utilize familiar software. For more extensive needs, consider investing in a dedicated POS system designed for restaurants.