Artificial intelligence is emerging as an essential competitive edge in point-of-sale (POS) solutions. While POS terminals were once perceived merely as payment and checkout machines, they have evolved into comprehensive solutions that integrate orders from various channels—including on-site ordering, kiosk and tablet payments, QR payments, and delivery platform orders—while analyzing related data.
"POS solutions that effectively collect and process order data are becoming increasingly important," Choi Jun-young, CEO of Foodtech, a POS solution company, said in a recent interview with The Seoul Economic Daily. "We aim to achieve a dominant lead in this market."
Foodtech is a company that enhances operational efficiency by securing various data between franchise headquarters and their stores. The company serves 60,000 store owners across 700 brands. Woowa Brothers, operator of food delivery platform Baemin, holds an 86.6 percent stake, while Naver holds 13.4 percent.
The two major Korean IT companies invested in Foodtech because while data is becoming increasingly important with advances in AI and other technologies, data utilization in the food and beverage market remains low due to high barriers to entry. "Many franchise headquarters operating thousands of stores lack personnel capable of analyzing data," Choi explained.
Data utilization is difficult in the industry because store owners often label the same menu items differently. Some stores also continue selling discontinued items alongside headquarters' main menu offerings. As a result, tens of thousands of menu items are registered in POS systems.
"Ensuring data consistency across various order types has become complex," Choi noted. "Each franchise has different requirements—such as excluding delivery platform discount fees and rider costs from sales figures—and we provide sales analysis solutions that reflect these needs."
Foodtech recently launched "Frandy," an AI-powered total solution for franchise operation and growth support. When a headquarters manager asks through Frandy, "How are sales trending for the new tteokbokki we launched last month in Gangnam?", the AI immediately visualizes the data. The platform also enables systematic franchise management based on data, connecting solutions across areas such as store communication and management while maximizing overall headquarters operational efficiency.
The entry of major Korean tech companies like Toss into the POS market is also driven by this data opportunity. "POS is the 'final gateway' where store data converges," Choi said. "Ultimately, success will depend on who can reliably connect more meaningful data and provide valuable insights."
Foodtech is considering launching a POS solution that would enable Korean franchises operating overseas to monitor their international sales in real-time. "We want to make Frandy a hub and create innovation in the POS market," Choi emphasized. "Our goal is to grow into a software company that succeeds in overseas markets as a Foodtech solution partner."