2023 Square for Restaurants Review: Best Free Restaurant POS

Square for Restaurants’ built-in customer directory automatically creates a profile when you process a credit or debit card transaction. Restaurants can use the directory to build complete profiles with names, contact information, and saved payment methods.

Customers are prompted to enroll in your loyalty program when they complete a transaction. (Source: Square)

You can add customers to your directory when they make a purchase, or bulk upload existing customer lists via CSV files. Your customer profiles will track basic data like the customer’s number of visits, most frequent purchases, and existing rewards points. It also lets you add custom notes about their dining preferences and food allergies.

All three Square for Restaurants tiers include basic reporting, which covers in-app Sales Reporting and Item Sales. All subscriptions track employee hours to help you create accurate payroll reports. However, if you want more detailed reports for sales by hour, sales by employee, discount codes, and labor costs, you’ll need to upgrade to a Plus or Premium membership. The same goes if you want reports for close-of-day, section sales, and menu performance.

Reporting is where the Free tier differs most from the paid subscriptions. For example, Free users cannot print individual shift sales reports per employee. So, if you have four servers, each ringing orders in and accepting payments, you won’t be able to separate their activity from one another under the Free subscription. This won’t limit a counter-service operation or a ghost kitchen with few cash transactions, but full-service spots should upgrade to at least a Plus subscription to avoid this pinch.

You can view live reports and run shift reports from your Square for Restaurants POS terminal. (Source: Square)

You can view real-time sales reporting in the POS app or generate end-of-shift and end-of-day reports from your Square dashboard. Any additional modules you add—e.g., marketing and team management—come with their own reporting solutions.

So, you’ll be able to access sales, labor, and marketing reports all from your Square management dashboard. Square’s reporting is pretty comprehensive, but reports tend to have a single focus like sales, taxes, etc. If your daily manager log requires sales, comps, voids, discounts, and sales information, you’ll need to pull multiple reports.

Square for Restaurants has also recently improved its shift reports function. Managers can now declare cash tips without clocking out, which encourages accountability among managers and staff, not to mention providing accurate accounting at any time of day—not just when someone’s shift ends.

While Square for Restaurants already has a fairly comprehensive set of features (especially if you upgrade from the Free plan), you can add to your toolkit with numerous available integrations for workforce management, loyalty, delivery services, accounting, and more. Note that some of these integrations are available for free, while others have fixed monthly costs or custom pricing.

You can enhance your Square for Restaurants POS functionality with over 30 available integrations. (Source: Square)

This is particularly helpful for ingredient-level inventory management, as this is one area where Square for Restaurants falls slightly short. Fortunately, you can integrate with strong, popular tools like MarketMan and Yellow Dog to get higher-level inventory management.

Square for Restaurants has all the tools you need to create simple floor plans and multiple, time-restricted menus. Previously, you needed a Plus level subscription to access some features like item counts and auto-86ing; however, Square for Restaurants now includes these two features in its Free plan. You will still need to upgrade to the Plus plan if you want full-scale restaurant features such as seat and course management. But if you don’t need those tools—like for a counter-service operation, perhaps—then the Free version is all you need.

Square’s floor plans don’t go into extreme detail; some other systems let you essentially create plans that mimic your restaurant’s flooring, wall colors, and plants. But in our experience, most restaurants don’t need (or use) this level of detail.

Square color codes your tables in the POS so you can quickly see their status. (Image from Square)

The POS allows you to create as many custom floor layouts as you need with a simple drag-and-drop interface. You can name tables by their location—like “patio 1”—or use simple table numbers. Plus and Premium subscribers get table timers with their software subscription. This simple color coding shows you how long customers have been seated with simple green, yellow, and red alerts.

You can create menus for different days of the week, times of day, and special events. Restaurants can also set up special discounts, such as happy hours to automatically apply during certain times. If you have many items to add or update, you can bulk-import information from a spreadsheet file.

With Square, you can start checks from a table on the floor plan or by opening a customer tab. The only function the system is missing is pre-authorizations for bar tabs. If this function is something your restaurant needs, you’ll prefer one of the Square alternatives we listed above.

Once a check is open, you can transfer it to a new table or assign it to a new server, and you can also indicate dining categories on checks—like dine-in, pick-up, or delivery—to keep your staff on the same page. You can also choose to add or remove gratuity, and apply this to all or only some checks based on seating. When it is time to pay, you can split checks by item and accept multiple payments on a single check.

You can even add internal names and notes to checks that only print in your kitchen so that you can alert your team of allergies or special occasions without presenting a check to a customer that reads “PEANUT ALLERGY – BIRTHDAY” across the top.

Be careful when reopening closed checks in Square for Restaurants; the system will automatically process this as a refund. (Source: Square)

The platform currently does not have an option to split checks by seat or split individual items across multiple checks. Another major drawback is that Square defaults to automatically refunded payments and deletes authorizations anytime you reopen a closed check.

To bypass this, you’ll need to adjust a setting in your administrative dashboard to “Reopen and Keep Payment Method.” This will enable you to keep the payment method on a reopened check and make adjustments until you finalize your credit card batch at the end of the day.

The system provides QR code ordering functions without any additional monthly fees. The QR code ordering and payment tools accept mobile wallet payments like Apple Pay, in addition to credit and debit cards. Payments processed through the QR code ordering feature are charged at the higher online transaction rates, not card-present rates.

Square for Restaurants accepts credit and debit card payments in offline mode. If you lose internet connectivity, you can swipe cards, and the system will retain the payment information for 72 hours. When you regain internet access, these spooled payments will automatically run.

Square Marketing is an email marketing tool that lets you compose custom messages directly from your Square dashboard and send them to your customers. You can set up automated messages, such as birthday emails, or send coupon and discount codes within the emails. The Square Marketing add-on starts at $15 per month per location.

In fact, Square’s robust marketing tools landed it a top spot in our guide to the best marketing software for restaurants.

Square includes email templates so that your marketing emails look sharp and professional. (Source: Square)

Text message marketing features are also available as an add-on. The texting tools are built directly into the POS, so you don’t need to download another app or use an integration. Square charges a monthly subscription fee of $10 to add text marketing. You’ll then pay an additional fee based on the number of texts you send. As with all other Square tools, there are no long-term contracts, so you can cancel anytime.

You can track your marketing campaigns in your Square dashboard and see how much money you spent versus how many sales each campaign brought in, so you never have to guess if a campaign was worth its expense.

Square tracks your text and email marketing campaigns, so you can measure the success of each campaign. (Source: Square)

These marketing tools are some of the most detailed you will find in any restaurant POS. Only Toast comes close with its email marketing tools.

Square Loyalty is a digital rewards program. Customers enroll at checkout and are tracked by their cell phone numbers, so there are no rewards numbers to remember, cards to hand out, or apps to download. Restaurants can reward customers based on visits, spend, or purchasing specific items.

Loyalty data automatically syncs with your other sales reports. Like the text messaging tools, Square Loyalty’s total price is based on use. Pricing starts at $45 per month per location for up to 500 loyalty visits. Like most Square tools, you can test drive the Loyalty program free for 30 days.

Square for Restaurants offers four options for digital ordering and delivery management:

1. Direct online ordering via your Square Online website
2. Third-party platform integration
3. Delivery via on-demand third-party drivers
4. Delivery via an in-house driver team

The first two options can be combined to create a customized online ordering and delivery solution that best fits your restaurant.

Square for Restaurants supports free direct integrations with third-party ordering and delivery platform Postmates. Other third-party platforms (Uber Eats, Grubhub, and DoorDash) connect to the POS via aggregating apps Chowly, Deliverect, Ritual, and others.

While Square does not charge its own fee for these integrations, the apps typically have their own subscription and commission fees. Orders placed via these integrated platforms will go directly to your POS and KDS or kitchen printers; you won’t need a tablet or smartphone to manage individual platform orders.

Square for Restaurants’ delivery management is not entirely centralized yet. You can accept orders from third-party platforms directly in your POS and KDS, but 86-ed items don’t automatically disappear from your online menus. You must update online menus individually on each platform if you run out of an item. You can, however, manage deliveries for multiple locations from a single Square dashboard.

Your free Square Online store integrates directly with your POS. (Source: Square)

You can also set up a free online ordering website via Square Online, which allows you to create time-limited menus and accept online payments. These orders can be accepted for pick-up only, or you can offer delivery. It also lets you craft automated text or email messages to notify customers that their order has been accepted, along with their expected delivery or pick-up times.

Square for Restaurants has recently added new online ordering templates that allow you to optimize menu layouts. The Modifier Images function also lets you add photos into menu modifiers, making things more appealing for customers and encouraging them to purchase more items. Along the same vein, merchants can now enjoy Photo Studio support for food photography, further driving up sales via online menus.

Finally, you can use Facebook Food Ordering to let your customers order online via your restaurant’s Facebook and Instagram business pages. More avenues for your customers to easily order online equals more robust overall sales performance.

You have two main options for in-house delivery: using on-demand drivers or dispatching your own staff—however, you must choose one or the other.

If you opt for on-demand drivers, Square will automatically generate a driver request from a local courier as soon as you accept the order. Square charges a flat rate of $1.50 per delivery for on-demand couriers, though the courier service may have additional delivery fees. For example, DoorDash charges a fixed fee of $8.50 per delivery, for up to a 5-kilometer delivery distance. You have the option to cover these fees, pass the cost on to your customers, or absorb the fee for delivery for orders over a certain amount. Fortunately, Square for Restaurants lets you add and adjust manual or variable service charges, reducing the burden of any delivery or service fees your business otherwise might need to account for.

For each order routed to your own in-house team of drivers, Square charges a flat per-order fee of 50 cents. You can pass this fee onto your customers, or charge an additional custom delivery fee based on distance. Also, you can set a delivery zone in the POS so your team doesn’t have to travel too far away. Finally, you can message customers directly from your Square POS or Square Dashboard if you have questions about their orders.

If you prefer not to use external courier services, you can set up your own delivery service using in-house drivers. (Source: Square)

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You can choose to prevent large online orders, allow tipping, or accept customer arrival messages in your Square Online dashboard. (Source: Square)

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This setup is a little complex, but it allows for a lot of flexibility. Since Square does not require any long-term commitments, you can shift your delivery strategy at any time. Keep in mind, though, that the fees listed are Square’s fees. Third-party platforms have their own fee schedules and contract lengths, so if you use third-party tools, your costs may be higher.

Square for Restaurants has three subscription tiers:

• Free: $0 per month
• Plus: $60 per month
• Premium: Custom pricing

The Free plan alone includes many features such as menu, table, and order management; basic reporting; cash management; and more.

Upgrading to the Plus plan gets you seat and course management; the ability to reopen closed checks; more detailed reporting; a Kitchen Display System; and other features.

The bespoke Premium plan offers similar features as Plus, and also has discounts on optional Square add-ons. Note that the Premium plan is only available for businesses that process more than $250,000 per year.

This POS system includes more than 30 integrations for staff scheduling, loyalty and marketing, detailed inventory management, delivery and order services, accounting and more. Some of these integrations are free, while others require a monthly fee or offer free trials.

Though the system is generally well-regarded, users do have a few complaints.

Detailed or granular inventory management is not built into the POS, which is a considerable drawback for a system designed for restaurants. Credit card pre-authorization for bar tabs is also not available at the moment, limiting the system’s use for bars. Though at the time of this writing, Square is beta-testing this feature and we expect it to be available sometime in 2023.

Lastly, while Square does offer transparent and reasonable processing fees, users have no choice but to accept these, as Square does not offer any external payment processing options. Though users that process more than $250,000 annually can request a custom processing rate.