Who would have thought that one day it would be a question as to whether or not you accept cash? Many businesses are choosing to only accept debit/credit cards or other electronic payments such as paying through their website or apple pay, restaurants included. This trend is not surprising given the leap in technological advances in recent years, and restaurants are always looking for more efficient ways to run their business. Software companies have stepped up to help restaurants when it comes to scheduling their employees and getting up-to-date reports on their inventory and food cost management, so it shouldn’t seem too far off to see a no cash sign posted at your favorite restaurant. However, there is controversy around this topic. There are many great reasons to go cashless, but there are also reasons to consider keeping it. Let’s look at a few pros and cons, and let your restaurant decide.
Advantages of Going Cashless
- Less opportunity for theft
If you don’t accept cash, then you are likely not going to have cash in your register. Employees working late night shifts can be more at peace since it will not be a likely target for burglary. This also cuts down on employee theft and stealing from the register.
- Saves Time
You can save time when getting customers through the line since you are not having to count back change or wait for them to find that quarter that fell to the bottom of their purse. There is also a lot of time saved when a new shift takes over or the last shift is closing up for the night and you have to count the cash. That itself takes plenty of time, but if the numbers are not adding up, then you have to try and trace down where the error occurred. Speaking of errors….
- Less Errors
Human error is inevitable when handling money. The cashier might give back too much change, and a lot of the time customers do not come back to return whatever was given to them. If this happens once a day or even once a week, it can really add up over time, adding unnecessary loss to your business.
Disadvantages of Going Cashless
- Lose Customers
While many people today have a debit or credit card, there is still a small percentage of people who don’t. Some people who do, prefer to use cash and you will likely lose some business from those people as well. Having options for payments increases the number of people you can serve, so you have to weigh the percentage you could lose and see if it is still worth it for your business.
- Processing Fees
For every transaction made, there are processing fees your business has to pay that can be anywhere from 1.5% to just under 4%. You can mark up your menu prices to help cover these costs, but that could deter some customers from coming back, especially since prices these days are already high.
Going cashless definitely has its advantages, but you might be feeling like you aren’t ready to make that leap. Another possibility that can reduce cash usage, but not deny the people who need it, is to make an alternative payment option easier so the majority of people are paying through card. This can be done through mobile apps and offering reward points for orders placed through the app, ordering and paying through their website, ordering and paying at an in-store kiosk and having tabletop tablets. This might not solve all your problems, but could cut down on errors and save time. Again, your restaurant location, target customers and restaurant goals will determine whether or not you feel it is in your best interest to go cashless.
