Remember a time when you’d see “Cash Only” signs on restaurant windows? Well, they times they are a-changin’. And by changing, I mean you will no longer need to handle change (dadjoke, okbye). Now it’s “Cashless” or “Cash-free”.
But why are so many eateries making the switch to electronic payment? It’s not only fine-dining establishments that are doing this. You have fast-casual restaurants and small cafés doing it. Even roadside hawkers in Malaysia and coffeeshops in Singapore are going cash-free. In fact, 45% of restaurants plan to go fully cashless by 2025.
There is no law that prohibits private eateries from refusing MYR or SGD currency. Some may say this excludes people without bank accounts. Or those who cannot get credit cards or e-wallets.
Restaurants who argue for cashless serve up a whole plate of reasons. From logistics efficiency, to customer convenience, to employee safety.
Employee Safety
For starters, it cuts down on the time-consuming task of reconciling cash at the end of each shift.
Restaurant employees spend an average of 31 minutes per day handling cash and coin. That’s over 3 hours a week! Imagine what your crew could do with that extra time. They could even get home in time for supper for once.
But the benefits don’t stop there. Cashless systems also reduce the risk of theft by 30%. This is a major headache for restaurant owners. In fact, 75% of employees admit to stealing from their employers, with cash being the number one target. Yikes! Going cashless puts a stop to that, giving your staff one less temptation to worry about.
There’s also the risk of getting robbed. It doesn’t happen as often to restaurants, but it does happen. Why put temptation out in the open?
For those who like to read bullet points:
- Better Safety. Minimises the risk of theft or robbery, thereby ensuring the safety of employees.
- Faster Transactions. Electronic payments reduce wait times and allow staff to serve more customers.
- Reduced Errors. No more calculation mistakes while handling cash.
- Improved Tips Management. Restaurants experience a 30% increase in tips with cashless payments.
- Flexible Scheduling. Less cash management, more exceptional customer service, better job satisfaction.
Business Efficiency
You save a bundle on “cash handling” fees. Think about it - the time and effort it takes to collect, secure, transport, and deposit cash all adds up fast. Even when I used to DIY, I’d still have to drive to the bank (petrol costs), park the car (parking fees), and wait at the counter while the teller counts the cash (time = money!).
But the savings don’t stop there. Cashless systems also reduce the risk of employee theft, as we mentioned earlier. And let’s not forget about the security benefits. No more worrying about armed robberies or having to pay for an armoured car (or yourself) to haul cash to the bank.
So, key benefits:
- Swift processing. Reduces delays in cash handling and deposits.
- Minimal cash-related costs. Businesses save on cash management expenses, including security and banking fees.
- Customer convenience. Offering various electronic payment options encourages patronage. Customers appreciate the speed and ease of cashless transactions.
Customer Convenience
Going cashless makes for a smoother and more convenient dining experience. No more scrambling for exact change or hunting for an ATM when the bill arrives. With a simple tap or swipe of their card, they’re good to go.
Restaurants report a 15% faster transaction time with cashless payments.
Plus, studies show that customers tend to spend more when using cards instead of cash. Why? Well, psychology plays a big role. When you hand over cold, hard cash, it feels more “real” and painful to part with. But plastic? Feels like play money.
Credit cards and mobile wallets offer lots of rewards for using their product, too. Cashback, flyer miles, points, discounts, you name it.
And let’s not forget about the hygiene factor. In a post-pandemic world, more and more customers are wary of handling cash. Everyone knows cash can harbour all kinds of nasty germs. Going cashless eliminates that ick factor, making your restaurant feel cleaner and safer.
More advantages:
- Customer convenience. Swift and seamless transactions, allows for faster table service and reduces wait times.
- Easy tracking. Digital payments let customers track their expenses, fosters better financial management.
- Special promotions. Cashless systems often allow restaurants to offer exclusive deals or loyalty rewards. This enhances the hospitality experience.
True Hospitality
At the end of the day, going cashless isn’t only about the numbers. It’s about elevating your customers’ dining experience. The less time you spend on dealing with cash, the more you can focus on providing top-notch service. And making your guests feel like royalty.
80% of customers believe cashless payments improve their dining experience.
Plus, a cashless system can open up all sorts of exciting possibilities.
- Let friend groups split bills? ✅ You got it.
- Want to offer contactless menus and ordering? ✅ Easy peasy.
- How about accepting mobile wallets like Apple Pay or Google Pay? ✅ No problem.
- Thinking of integrating a rewards system into the payment process? ✅ One click away.
The sky’s the limit when it comes to creating a seamless, high-tech dining experience.
Conclusion
From saving time and money, to giving your customers a more convenient and hygienic experience… the benefits are hard to ignore.
Of course, making the switch isn’t without its challenges. With the right planning and preparation, you can make it happen. Your employees, your bottom line, and your customers will all thank you.
The secret of change is to focus all of your energy not on fighting the old, but on building the new.
- Socrates
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We use the term 'restaurant' throughout the article for consistency. However this guide can be generally applied to any type of food shop, including but not limited to: bakeries, bars, bistrots, boulangeries, butcheries, cafés, cantinas, caterers, coffeeshops, delis, diners, eateries, food trucks, grocers, patisseries, pubs, and more.
Maynuu
❇️ Go cashless. For the good of your employees, business, and customers.
