Is the death of cash restaurants already here? Let’s take a look:
Aromas of cocoa and toasted nuts fill the air. The calming, energetic melodies of indie-alt put some pep in your step as you approach the counter. You look around. A coffee shop should be busier on a morning rush, you hesitate. But the baby boomer at Cole’s said this place had one good cup of java.
Aromas of cocoa and toasted nuts fill the air. The calming, energetic melodies of indie-alt put some pep in your step as you approach the counter. You look around. A coffee shop should be busier on a morning rush, you hesitate. But the baby boomer at Cole’s said this place had one good cup of java.
You happily place your order with the barista.
“That’ll be $3.95!” he joyful exclaims. Happy to make the sale.
Your hand intuitively reaches for your phone.
“Oh ma’am… we’re cash only.”
Cash… only? His words take you back a few generations.
Dumbfounded, you fumble through your bag. Searching what knowingly isn’t there. And like plenty of other cash businesses, the sale was never made.
The once happy woman who could have been enjoying your cappuccino jetted off to Starbucks for a quick, effortless fix. Leaving you behind as the world progresses down it’s relentless path of secured, electronic payments.
Here’s to the death of cash and how it affects your restaurant.
Consumers Don’t Carry Cash Like the Good Ol’ Days
“Cold Hard Cash” is an ancient relic in our time. Money moves effortlessly with the tap of a finger. A quick chip scan of your favourite rewards card.
The new wave of consumers are not only discouraged by cash-only businesses, studies revealed Millennials actually “hate” it. Even when the sale is under five bucks.
It’s inefficient. Mentally obsolete. And consumers cringe when they hear the words “Sorry, we’re cash only”. Industry trends show that only 14 per cent of consumers use cash for their everyday purchases.
As a restaurant owner, you want simple payment so people spend more money in your joint. Being cash-only severely limits your sales potential and costs you more than the 2% transaction fee you might be trying to avoid.
“Cash-Only” Carries Negative Stigma
Besides being inefficient, inconvenient, frustrating (see where we’re getting at here?), cash carries a negative stigma. Consumers feel cash-only business avoid taxes, launder money or are simply too cheap to make their lives easier.
Also, who wants an ugly ATM machine sitting in the corner of their joint anyway? Unless you don’t have one… and are cash-only. Even typing that sentence was hard as an everyday coffee shop consumer.
How customers perceive your restaurant is apart of the customer experience. Create a welcoming environment by taking down the cash-only sign next to the register.
Research Shows Consumers Spend More With Plastic
Big corporate has cashed in on our spending behaviour. It’s common knowledge that consumers intuitively spend more when using a credit card. According to a 2008 study by the Journal of Experimental Psychology: Applied, feral swipers are less likely to feel the ‘pain of paying’ when using a credit card.
This opens up a world of potential for you to sell more to hungry diners. Upsell those top shelf liquors, sugary desserts and allow your servers better tips. Spending gets even easier when consumers buy directly from their phone with payment methods like Apple Pay and Tayble.
Open Your Doors To New Payment Methods
We won’t hit you with another study. Promise. But what we will hit you with is this.
By opening up to new payment methods, you will see profits grow. Cash is moving towards extinction and restaurant’s need to keep up with the times in order to thrive.
Accept cash. Accept cards. Take mobile payments. Just don’t limit yourself by staying behind the times.
Consumers spend more on cards. They see your business as more reliable. And easily settling the bill is all apart of an excellence customer experience.
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