Retail POS vs Hospitality POS Systems in NZ (2025)
Not all POS (Point of Sale) systems are created equal. A system perfect for a clothing boutique will fail miserably in a busy restaurant. This guide explains the critical differences between retail and hospitality POS systems, compares top options for each category, and helps you choose the right system for your New Zealand business.
Common Costly Mistake
Many NZ businesses buy the wrong POS type. A cafe using retail-focused POS struggles with table management and split bills. A retail store using hospitality POS pays for unnecessary features. This costs thousands in wasted software fees and lost efficiency.
Key Differences: Retail vs Hospitality POS
While both retail and hospitality POS systems process sales, they're designed for fundamentally different business models:
| Aspect | Retail POS | Hospitality POS |
|---|---|---|
| Primary Focus | Inventory management & stock control | Order management & table service |
| Typical Transaction | Customer selects items → pay → leave | Customer orders → food prepared → eat → pay |
| Table/Order Management | Not needed | Essential (tables, tabs, courses) |
| Kitchen Display | Not needed | Critical (send orders to kitchen/bar) |
| Inventory Complexity | High (SKUs, sizes, colors, variants) | Medium (ingredients, recipes) |
| Bill Splitting | Rare | Common (split by item, evenly, percentage) |
| Customer Management | Loyalty programs, customer database | Reservations, waitlists, tab history |
| Staff Management | Sales tracking, commission | Tips, shift rosters, section assignments |
| Reporting Focus | Stock levels, sell-through, margins | Covers per hour, table turnover, waste |
| Speed Priority | Moderate (customer checkout) | High (busy service periods) |
Quick Decision Guide
- Choose Retail POS if you: Sell physical products, track inventory by SKU/variant, customers select items and pay immediately, need barcode scanning, run promotions/discounts.
- Choose Hospitality POS if you: Serve food/drinks, manage tables/tabs, send orders to kitchen, need course management, split bills frequently, track tips.
- Need both? Some businesses (cafe with retail products) benefit from hybrid POS or dedicated retail + hospitality systems. See hybrid options below.
Retail POS Systems: Features & Best Options for NZ
Retail POS systems are built around inventory management, product variants, and fast checkout. Here are the top options for NZ retailers in 2025:
1. Lightspeed Retail
Best for Fashion, Boutiques, Specialty Retail
$189-$419
per location/month
Premium retail POS with sophisticated inventory management. Excellent for fashion (sizes, colors), multi-location retail, and omnichannel selling. Strong e-commerce integration (sell online and in-store with unified inventory).
Strengths
- • Advanced inventory (variants, bundles, matrix views)
- • Multi-location stock transfers and management
- • Excellent e-commerce integration (Shopify, WooCommerce)
- • Customer loyalty programs and CRM
- • Purchase orders and supplier management
- • Detailed analytics and reporting
- • Barcode generation and label printing
- • Integrates with Xero, MYOB
Limitations
- • Higher cost than competitors ($189+ per month)
- • Complex setup for small retailers
- • Overkill for single-location, simple inventory
- • Hardware can be expensive (iPad-based)
Best for: Fashion boutiques, shoe stores, sporting goods, multi-location retail (2-20 stores), businesses selling both online and in-store.
2. Vend (by Lightspeed)
Best for Small to Medium Retail
$119-$279
per location/month
NZ-founded (Wellington) retail POS now owned by Lightspeed. Simpler and more affordable than Lightspeed Retail, perfect for NZ small retailers. Very popular locally with excellent support.
Strengths
- • NZ-built, excellent local support and understanding
- • Intuitive, easy to learn interface
- • Good inventory management (variants, bundles)
- • Strong Xero integration (two-way sync)
- • Multi-location capabilities
- • Customer loyalty and email marketing
- • iPad, Android, or PC-based
- • More affordable than Lightspeed Retail
Limitations
- • Less advanced than Lightspeed Retail
- • E-commerce integration not as seamless
- • Reporting less comprehensive than enterprise options
- • Being phased into Lightspeed ecosystem (gradual transition)
Best for: General retail, gift shops, homewares, NZ small to medium retailers (1-5 locations) who want local support and reasonable pricing.
3. Square for Retail
Best Budget Option for Small Retail
$0-$89
per location/month
Affordable, simple retail POS with free tier. Good for very small retailers, pop-up shops, markets. Lower fees than competitors but less sophisticated features.
Strengths
- • Free plan available (limited features)
- • Very affordable paid plans ($60-89/month)
- • Simple, fast setup
- • Good for beginners
- • Integrated payment processing (2.0% + 30c)
- • Mobile-first (great for markets/pop-ups)
- • Basic inventory management
Limitations
- • Basic inventory features (not good for complex stock)
- • Limited multi-location capabilities
- • Less powerful reporting
- • Must use Square payments (2.0% fee)
- • Limited third-party integrations
- • Not ideal for high-volume or complex retail
Best for: Pop-up shops, market stalls, very small retailers (single location, simple inventory), businesses just starting with POS.
Essential Retail POS Features:
- • Inventory Management: Track stock levels, variants (size/color), reorder alerts, stock takes
- • Barcode Scanning: Fast checkout with barcode scanner integration
- • Purchase Orders: Order stock from suppliers directly in POS
- • Multi-Location: Transfer stock between stores, view consolidated inventory
- • Customer Database: Track purchases, contact info, preferences
- • Promotions/Discounts: Create sales, discounts, bundle deals
Hospitality POS Systems: Features & Best Options for NZ
Hospitality POS systems are built for restaurants, cafes, and bars. Table management, kitchen displays, and order workflows are core features:
1. Lightspeed Restaurant (Kounta)
Best for Full-Service Restaurants & Bars
$189-$399
per location/month
Premium hospitality POS (formerly Kounta, acquired by Lightspeed). Excellent for table service restaurants, bars, and busy cafes. Strong feature set for complex hospitality operations.
Strengths
- • Advanced table management (floor plans, sections)
- • Kitchen Display System (KDS) integration
- • Course management (entrees, mains, desserts)
- • Bill splitting (by item, evenly, custom)
- • Staff management (tips, sections, performance)
- • Reservations and waitlist management
- • Recipe costing and waste tracking
- • Multi-location support
- • Xero integration
Limitations
- • Higher cost ($189+ per month)
- • Complex setup for small cafes
- • Overkill for counter-service only
- • Requires reliable internet connection
Best for: Full-service restaurants, bars, multi-location hospitality groups, busy cafes with table service.
2. Square for Restaurants
Best Budget Option for Cafes
$60-$89
per location/month
Affordable hospitality POS suitable for cafes, small restaurants, and counter-service businesses. Simpler than Lightspeed but covers core hospitality needs.
Strengths
- • Affordable ($60-89/month)
- • Easy setup and learning curve
- • Table management basics
- • Kitchen Display System available
- • Order types (dine-in, takeaway, delivery)
- • Integrated payments (2.0% + 30c)
- • Good for counter-service and casual dining
Limitations
- • Less sophisticated than Lightspeed
- • Limited course management
- • Basic staff management (no tip pooling)
- • Must use Square payments
- • Limited integration options
- • Not ideal for fine dining or complex operations
Best for: Cafes, counter-service restaurants, food trucks, small casual dining restaurants, businesses wanting affordable hospitality POS.
3. Toast POS
Growing Option for NZ Market
$165-$399
per location/month
US-based hospitality POS expanding in NZ. Cloud-based, Android hardware, good features for full-service restaurants. Newer to NZ but gaining traction.
Strengths
- • Comprehensive restaurant features
- • Online ordering integration
- • Delivery management
- • Good reporting and analytics
- • Hardware and software bundle options
- • 24/7 support
Limitations
- • Newer to NZ (smaller local user base)
- • Support team primarily US-based
- • Some features US-centric
- • Hardware can be expensive
Best for: Full-service restaurants wanting all-in-one solution, businesses with delivery/online ordering needs.
Essential Hospitality POS Features:
- • Table Management: Visual floor plans, table status, server sections
- • Kitchen Display System (KDS): Send orders to kitchen/bar screens
- • Order Modifiers: Customize dishes (no onions, extra cheese, etc.)
- • Course Management: Fire courses at right time (starters, mains, desserts)
- • Bill Splitting: Split by item, evenly, by percentage, separate bills
- • Tabs/Open Checks: Keep tabs open, add items throughout service
Detailed Feature Comparison Table
| Feature | Lightspeed Retail | Vend | Lightspeed Restaurant | Square |
|---|---|---|---|---|
| Best For | Fashion/Multi-location Retail | General NZ Retail | Full-Service Restaurants | Cafes/Budget Option |
| Price/Month | $189-$419 | $119-$279 | $189-$399 | $60-$89 |
| Inventory Management | Excellent | Very Good | Good (ingredients) | Basic |
| Table Management | No | No | Excellent | Basic |
| Kitchen Display | No | No | Yes | Yes |
| E-commerce Integration | Excellent | Good | Limited | Good |
| Multi-Location | Excellent | Very Good | Very Good | Basic |
| Xero Integration | Yes | Excellent | Yes | Limited |
| Ease of Use | Moderate | Easy | Moderate | Very Easy |
| NZ Support | Good | Excellent | Good | Limited |
Hybrid Businesses: Cafe + Retail Shop
Many NZ businesses combine hospitality and retail (cafe selling coffee + retail products, brewery with merchandise). You have three options:
Option 1: Hospitality POS with Basic Retail
Use hospitality POS (Lightspeed Restaurant, Square for Restaurants) and sell retail items as menu items. Works if retail is minor part of business (5-20% of revenue).
Pros: Single system, simpler. Cons: Poor retail inventory management, limited product variant tracking.
Option 2: Retail POS with Basic Hospitality
Use retail POS (Vend, Square for Retail) and add simple menu items for food/drinks. Works if food/beverage is minor (under 30% revenue) and mostly counter-service (no tables).
Pros: Good inventory for retail. Cons: No table management, limited kitchen integration.
Option 3: Separate Systems (Best for 50/50 Split)
Run dedicated hospitality POS for cafe and retail POS for shop. More complex but each system optimized for its purpose.
Pros: Best features for each. Cons: Higher cost, staff training on two systems, reconciliation complexity.
Recommended Hybrid Solutions
- Cafe-focused (80% food, 20% retail): Lightspeed Restaurant or Square for Restaurants
- Retail-focused (70% retail, 30% cafe): Vend or Lightspeed Retail
- True 50/50 hybrid: Consider Square ecosystem (Square for Restaurants + Square for Retail with unified dashboard)
Pricing Comparison 2025 (Total Cost)
POS pricing includes software subscription, payment processing fees, and hardware. Here's realistic total cost:
Small Cafe (Counter Service, 1 Terminal)
Square for Restaurants:
- • Software: $60/month
- • Payment processing: 2.0% + 30c per transaction (est. $200/month on $10k revenue)
- • Hardware (iPad, stand, receipt printer): $800 one-time
- First Year Total: $800 + ($60 + $200) × 12 = $3,920
Full-Service Restaurant (3 Terminals + Kitchen Display)
Lightspeed Restaurant:
- • Software: $189/month (base) + $89 × 2 extra terminals = $367/month
- • Payment processing: 1.75% (negotiate rate, est. $700/month on $40k revenue)
- • Hardware (3 iPads, KDS screen, printers): $4,500 one-time
- First Year Total: $4,500 + ($367 + $700) × 12 = $17,304
Retail Store (2 Terminals, 1 Location)
Vend:
- • Software: $119/month + $40 extra register = $159/month
- • Payment processing: 1.9% external processor (est. $380/month on $20k revenue)
- • Hardware (2 iPads, barcode scanners, receipt printers, cash drawer): $2,200 one-time
- First Year Total: $2,200 + ($159 + $380) × 12 = $8,668
Hidden Costs to Budget: Staff training (10-20 hours), implementation/setup support ($500-$2,000), ongoing support fees, additional integrations, hardware maintenance/replacement every 3-5 years.
Accounting & Payments Integration
Your POS should integrate with your accounting software and payment processor:
Xero Integration Quality
- Excellent: Vend (NZ-built, two-way sync)
- Very Good: Lightspeed Retail & Restaurant
- Good: Toast POS
- Limited: Square (one-way, basic)
Most NZ businesses use Xero, so strong integration matters.
Payment Processing Options
- Integrated (Mandatory): Square POS requires Square payments (2.0% + 30c)
- Flexible Choice: Lightspeed, Vend allow external processors (Windcave, Stripe, PayPal) for better rates (1.6-1.9%)
- NZ Processors: Windcave (NZ-owned), Stripe, PayPal, ANZ Worldline
How to Choose the Right POS System
Decision Framework (Answer These Questions)
- 1. Business Type: Retail, cafe, restaurant, bar, or hybrid? This determines retail vs hospitality POS.
- 2. Service Model: Counter service, table service, or both? Table service requires hospitality POS.
- 3. Inventory Complexity: Simple (30 SKUs) or complex (1,000+ SKUs with variants)? Complex needs robust retail POS.
- 4. Budget: Under $100/month, $100-200/month, or $200+/month? Determines tier (Square vs Lightspeed).
- 5. Multi-Location: Now or within 2 years? Need POS with strong multi-location features.
- 6. Integration Needs: E-commerce, accounting, loyalty? Check integration ecosystem.
DO: Test Before Committing
Most POS providers offer 14-30 day free trials. Test with real products, simulate busy service periods, train staff. Make sure it works for your workflow.
DO: Factor in Total Cost
Don't just compare monthly fees. Include payment processing (1.6-2.0% adds up!), hardware ($800-$5,000), training, and implementation costs.
DO: Check Local Support
When your POS crashes during lunch rush, you need help NOW. NZ-based support (Vend) or strong ANZ presence (Lightspeed) matters more than fancy features.
DON'T: Buy Based on Hardware Alone
Sleek iPad setup looks nice, but software capabilities matter more. Focus on features, reliability, support, and total cost—not just aesthetics.
DON'T: Lock into Long Contracts
Avoid multi-year contracts. Choose month-to-month or annual. You may need to switch if POS doesn't work for your business.
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