According to the Pew Research Center, three in ten Americans can go for a week without making any sort of cash purchases. While cash payment is still a viable option, it has become increasingly unpopular in recent years amidst the COVID-19 pandemic due to the need for social distancing and the preferred option of cashless modes.
With many customers turning to other cashless modes of payment, a cash-only restaurant is bound to lose out in the long run due to inflexible transactions. While it is tempting to operate based on a cash-only business to avoid credit card fees and other miscellaneous fees, it is not the ideal scenario for your customers. Besides, running a cash-only restaurant comes with its risks and downsides.
Read on to find out how a cash-only restaurant incurs risky moves which may be deemed undesirable for your business.
Risky Theft Cases
Having heaps of cash in your cashier is definitely a risky move to make, especially when your restaurant is bustling during peak hour mealtimes and employees are frantically running around so much so that it’d be hard to keep track of the frenzy. Too much cash on hand means higher chances of robbery and theft cases when no one’s looking, which isn’t quite ideal. Operating on solely cash modes of payment can get stressful as well due to the burden placed on employees.
Math Goes Wrong
When it’s closing time, a long and tiring day at work doesn’t help with your brain’s function as your employees would be physically and mentally exhausted. Balancing the cash register and counting money in a fatigued state will leave your employee recounting all over again when the numbers do not tally or add up. Errors are inevitable, and to err is human, but why make life hard for yourself and your employees when you operate solely on a cash system?
Consider credit card processing solutions that are fuss-free, easy, and way more convenient than cash transactions.
Lower Customer Satisfaction Level
As most people prefer using alternative modes of transaction and payment options aside from cash, it is important to cater to your customers’ needs in order to run a smooth and successful business. When the checkout process involves only cash, some customers may show dissatisfaction when they run out of cash, or even have to go to great lengths to sieve out notes and coins for payment. This isn’t ideal as you would want to ensure that the dining experience, including service, is top-notch – one that would leave a pleasant experience for your customers, perhaps even converting to returning customers.
Hinder the Accounting Process
Cash payments and transactions are generally harder to keep track of as compared to cashless transactions. Many systems often keep track of credit card transactions and import the data directly into an accounting system for record purposes. When a cash-only restaurant operates and works on the monthly sales and records, counting coins and cash on a daily basis will be tedious, sometimes even hindering the accounting process when things go south.