Square Targets QSRs

Square Register seeks to attract small, fast food restaurants to its mobile payment system.

April 30, 2013

MCLEAN, VA – Square announced plans to update its Square Register mobile payments point-of-sale system, an effort to gain an increased share of business among smaller, fast-food restaurants, USA Today reports.

With so much money at stake — small QSRs comprise roughly half of the nation’s 210,000 fast-food restaurants with sales exceeding $188 billion per year — Jack Dorsey, Square’s founder (who also created Twitter) said he plans to do for fast-food purchases what Twitter did for communications: simplify it.

The Square Register updates will allow for enhanced customization, including attaching customer names to orders. 

"Twitter has made communication really easy, simple and free, and Square will do the same for commerce," said Dorsey. Ultimately, he says, his new point-of-sale system, "has the potential to carry all of commerce."

Dorsey is targeting small, fast-food operators who don’t have the capital to invest in more costly technologies. He intends to convince them that Square will save them money — Square charges 2.75% per credit card swipe vs. the industry average of 4.36%. Additionally, Square does not require an expensive POS system. 

"There's a tremendous number of fast-food operators dying to know how to make technology more affordable," said Dennis Lombardi, executive vice president at WD Partners, a restaurant consulting firm.

Currently, roughly 3 million businesses (including 7,000 Starbucks stores) in the U.S. and Canada use Square, and Dorsey has plans to expand way beyond that.

"This will grow just as fast, if not faster, than Twitter," he projects.

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