The Almighty Buck

What Happens When Restaurants Go Cashless (usatoday.com) 471

There's a new trend starting: restaurants that won't accept cash. USA Today reports: Restaurant owners say ordering is faster from customers who slap down plastic instead of dollars, cutting a few seconds out of the process. But most of the benefits appear to accrue to the restaurants: less time taken counting bills, reduced pilferage, no armored-car fees or fear of stickups. It's a risky strategy. For starters, upscale Millennials -- among the most coveted of diners because of their youth and affluence -- prefer to pay in cash, according to Bankrate.com data. Also, more than a third of Americans between the ages of 18 and 37 do not have a credit card. For customers, patronizing restaurants that don't take cash means one less payment option when they need a quick meal during an all-too-short lunch hour. Plus, it raises questions about whether it discriminates against cardless teens and the poor... A committee in Chicago is weighing Alderman Edward Burke's proposed requirement that merchants accept cash. Massachusetts has had a Discrimination Against Cash Buyers rule on the books since 1978... Lana Swartz, co-editor of the book Paid: Tales of Dongles, Checks, and Other Money Stuff, says "One of the cornerstones of American capitalism is everyone's money is equal."
Meanwhile, the Associated Press reports: Many business owners would rather be cashless. Cash actually costs money -- banks charge fees for cash deposits and to handle coins... And counting and checking cash and preparing it for deposit takes up time a manager could spend with staff or customers... Millions of consumers use little or no cash. In a survey released last month by the financial services company Capital One, only 21 percent of 2,000 people questioned said cash was their most common way to pay for things. But going cashless isn't a slam-dunk. Some customers who want to use cash point to a statement on paper money: "This note is legal tender for all debts public and private." However, the Federal Reserve says on its website that private companies can make their own policies about cash unless there is a state law saying otherwise.
One Houston restauranteur changed his mind about going cashless, saying "You can't compete if you think you're going to create a whole set of rules and expect people to follow them." One Chicago restauranteur admits that "it has generated the most negative pushback of anything we've ever done," estimating revenue fell 2% just from angry cash customers who never returned.

But he persisted because his eight restaurants had experienced six burglaries, break-ins or armed robberies over the last eight years -- and got "dozens and dozens" of counterfeit bills from customers -- while by going cashless, he no longer has to pay for bank fees and armored car pickups.

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