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NCR Makes Restaurant Ops Easier

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NCR Corp. (NCR) recently unveiled a mobile point-of-sale (:POS) software solution targeting the restaurant industry. The new kid on the block, NCR Aloha Mobile solution, is actually an addition to its existing suite of Aloha Table-Service POS solutions.

The Aloha Table Service POS solution helps restaurant staff to take orders and execute them faster. The solution also helps to process bill payment fast, thus cutting down waiting time for patrons. With Aloha Table Service, customer retention, acquisition of new customers, streamlined operations/food services, and staff training becomes simpler for restaurant owners.

Aloha Mobile software reduces dependence on POS terminals for running the Table Service software. Aloha Mobile software can be downloaded on any hardware mobile platform such as Apple Inc.’s (AAPL) iPad, iPhone, iPod, as well as any of the NCR’s Orderman devices. Aloha Mobile will make restaurant staff more mobile, simplify credit card payments and save floor space.

NCR Corp. inherited the Alohas product suite through the acquisition of Radiant Systems Inc., a provider of hardware and software systems for the restaurant and hotel industry, for $1.2 billion in cash, in July 2011. Radiant acquired Aloha Technologies, a provider of point-of-sale systems for the hospitality industry, in 2004. Radiant also acquired Orderman GmbH, which develops wireless handheld ordering and payment devices for the hospitality industry, in Jul 2008.

According to a study conducted by the Hospitality Technology Magazine, most of the restaurant companies prefer to use mobile POS devices to streamline restaurant operations. With Aloha Mobile software and Orderman device in its portfolio, we view NCR to be one of the beneficiaries of the growing demand.

During the fourth quarter of 2012, NCR registered 42.9% year over year revenue growth in the Hospitality segment, buoyed by product volumes and services revenues, mainly in the Americas. We believe that the new product launches and popularity of existing solutions will help NCR to maintain the growth trend.

However, similar offerings from IBM Corp. (IBM) could create some pressure on NCR’s market share.

Currently, NCR has a Zacks Rank #2 (Buy). Investors could also consider other technology stocks such as Concurrent Computer Corp. (CCUR) and Faro Technologies Inc. (FARO) both with a Zacks Rank #1 (Strong Buy).

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