Podcast Summary

RESTAURANT STRATEGY with Chip Klose

Episode: How to Find a POS That Works for You

Date: February 26, 2026
Guest: Sam Maddox, Founder of Bridge Wave

Main Theme

This episode focuses on helping independent restaurant owners make smarter, more profitable choices regarding Point of Sale (POS) systems and payment processing. Host Chip Klose and guest Sam Maddox unpack the evolving landscape of restaurant technology, common mistakes in POS decision-making, and actionable steps owners can take to ensure their POS setup truly fits their unique operational and financial needs.

Key Discussion Points & Insights

1. The Shifting POS Landscape ([04:42]-[11:46])

• Legacy vs. Modern Systems:
  The industry has shifted from bulky, legacy POS platforms (like Aloha and Micros) to agile, cloud-based systems to accommodate online ordering and handheld devices ([06:50]).
• Evolution of Processing:
  Many new platforms (Toast, Square) require in-house processing, bundling everything for simplicity but limiting choice. Legacy players have caught up, often offering processing-agnostic setups ([09:54]).

“There was a mass exodus off the legacy systems onto these new things. … Now, legacy systems have had to get better to compete with the new, trendy software.” – Chip Klose [08:45]

• Tech Cost Trends:
  Hardware costs have dropped, but software fees and processing margins have climbed. The increasing role of AI is poised to further shake things up ([11:11]).

2. How Restaurant Owners Go Wrong with POS Decisions ([11:46]-[13:21])

• Two Mindsets:
  Owners tend to fixate solely on cost, ignoring features and potential ROI, or purchase on features alone, unaware of costs or alternatives ([12:21]).
• Complacency or Overwhelm:
  Many accept whatever system they have, not realizing there’s a wide array of tailored options approachable with the right guidance.

3. The Controversial Processing Fee Debate ([13:57]-[21:35])

• Passing Fees to Guests:
  An increasing number of restaurants (about 70% per Sam) now pass card processing fees on to customers, either as surcharges or cash discounts ([15:28]).
• Compliance Pitfalls:
  Surcharges and discounts are tightly regulated; improper implementation can lead to hefty fines ([15:55], [17:13]). Regulations vary by municipality ([17:13]).
• Philosophical Divide:
  Some, like Chip, see processing as just another business input to be factored into prices (“like salt and pepper” [13:57]), while others embrace shifting the cost to customers, comparing the strategy to long-standing gas station practices.

“Processing is just part of the cost of doing business. It’s like salt and pepper. … Folding it into the cost is part of what you have to do.” – Chip Klose [14:09]

“Restaurants that I work with using a cash discount almost never hear any complaints from their customers.” – Sam Maddox [17:46]

• Financial Impact:
  Directly passing along fees can preserve $60,000–$75,000 for a $2M sales operation—substantial, if reinvested wisely ([18:13]).

4. Choosing a POS: More Choices, More Fit ([24:42]-[26:52])

• Tailored Solutions Exist:
  Beyond the big names, specialty POS systems are now available for coffee shops, breweries, nightclubs, and other niches, offering features designed for specific operating models ([24:42], [25:46]).
• Fitting the Right System:
  Avoid the “square peg in a round hole” syndrome by understanding your concept’s unique needs—workflow, menu, traffic volume, etc.

“There are systems out there really built for breweries … their needs are different than the coffee shop, which are different than fine dining.” – Chip Klose [25:46]

5. The Value of a POS Consultant or “Broker” ([21:35], [22:08]-[24:42], [27:09]-[32:21])

• Why Go Independent:
  Consultants like Sam act as impartial brokers, advocating for the owner, navigating multiple systems and processors to find the optimal fit ([22:08]).
• Transparency & Support:
  Unlike a system’s sales rep, a consultant will honestly assess if your current system and rates are competitive—and if not, handle negotiations and onboarding.
• Integrations & Future Growth:
  They ensure all tech pieces (scheduling, inventory, cost tracking, etc.) integrate reliably, prepping owners for growth and future tech development.
• First Step:
  A consultative call—a deep dive into current operations, needs, costs, and possible upgrades. Sometimes the answer is “you’re already doing great,” which itself provides peace of mind ([27:09], [28:07]).

6. Trust in the Age of Endless Software ([32:21])

• Trust is Scarce:
  As software choices multiply, finding trustworthy, restaurant-first advisors becomes essential. Every software company is out to push its own agenda; not every fit is the best fit ([32:21]).

“Trust is key. As software becomes more abundant, trust will become more scarce.” – Sam Maddox [32:21]

Notable Quotes & Memorable Moments

• How to Spot Bad Advice:
  “There’s a lot of gimmicky ads out there: ‘0% processing!’ … At the end of the day, someone always pays.” – Sam Maddox [15:54]
• Specialization’s New Reality:
  “People don’t realize how many options are on the table for them … there’s systems built just for coffee shops, bars, drive-thrus … it’s not just the big guys anymore.” – Sam Maddox [24:42]
• Chip’s Restaurant Owner Mindset:
  “My job is to help people make more money. So why would we ever give a discount? … But I do get the numbers.” – Chip Klose [17:13]
• On Customer Acceptance:
  “I’ve never had a restaurant complain [about cash discounts]. Actually, once a customer thanked them for offering a discount for cash.” – Sam Maddox [17:46]
• The Broker Analogy:
  “I act more like a broker, helping navigate setup and ongoing support … It’s important to find someone who really wants to put your restaurant first.” – Sam Maddox [22:08]

Important Timestamps

• 04:42 – Introduction to Sam Maddox and his background in POS consulting
• 09:54 – Shift from legacy systems to cloud-based solutions & rise of processing-agnostic platforms
• 12:21 – Two types of owners: cost-obsessed vs. feature-focused
• 13:57 – The debate over passing processing fees to guests (surcharges/cash discounts)
• 15:28 – Compliance concerns and regulatory considerations
• 17:46 – Customer response to cash discounts (“almost never complaints”)
• 18:13 – Financial impact of fee strategy for larger restaurants
• 24:42 – Emergence of niche, specialized POS solutions
• 25:46 – Importance of matching system to restaurant type
• 27:09 – When and how to consult a POS expert
• 32:21 – Finding (and valuing) trustworthy advisors in a crowded tech landscape

Final Takeaways

• The restaurant POS market is rapidly evolving, offering far more options—and complexity—than ever before.
• Owners must thoughtfully weigh both cost and capability, seeking systems that fit their business model, growth aspirations, and desire for integrated analytics.
• Passing credit card fees to guests can be viable for many, provided compliance; the key is making an informed, deliberate choice.
• Consider working with a consultant who acts in your best interest, especially as new tech solutions and pricing models proliferate.
• In this changing game, trust and expertise are your greatest assets.

To consult with Sam Maddox and explore your POS options, visit BridgeWave.io or connect via LinkedIn (see show notes).