It may sound crazy, but more restaurants and retailers are deciding to steer away from cash and are only accepting credit cards and other alternative payment methods. Of course, this decision isn’t right for everyone but for certain brands, it can save you time and increase sales. Here’s everything you need to know about going cashless.

Why go Cashless?

Each business has their own reason for wanting to go cashless. For some businesses it is an obvious choice because cash sales are so minimal that no one even notices the switch, for others it is just an experiment to see if they can stream line their process. At the end of the day what matters most is that what you’re doing works for you, your brand and most importantly your customers! Here are some of the reasons why restaurants decided to go cashless.

Security

Cash can make your business a target for theft, while credit/debit/ and other online payments are susceptible to being stolen as well through hacking, at least no one is coming up to your register and violently threatening your employees. Removing cash from your store makes you less of a target and can give you some peace of mind.

Cleanliness

You wouldn’t (or at least most of us wouldn’t) shake hands with a thousand people then go eat a burger, that’s gross. However, handing cash off to a cashier then eating your meal is pretty much the same thing. No one knows where their money has been, but we all know that it’s probably been exposed to some nasty things.

Data

Cash is faceless, you don’t have a way of keeping tabs on your demographics with a bunch of bills in a drawer. However, credit cards and online payment comes with a face, age, name, etc. By using your point of sales systems, you can attach loyalty points, provide special deals, or track demographic data so you know how to better market to your clientele. All of these can help bring people into your restaurant and increase your bottom line.

An Example of a Successful Switch

Sweet Greens was one of the first restaurants that transitioned to this system. The decision to go cashless came from a persistent complaint from clientele that lines were too long, in the locations where Sweet Greens cut out cash, employees were able to make 5-15% more transactions per hour. The company’s goals were to boost transactions, and this switch helped them achieve their goal. Of course, this doesn’t come without its push back, but most customers were fine with the change.

The Downside

Nothing comes without its own risks and making a change this controversial could have some serious drawbacks if it is not done with care. The biggest risk of this change is losing customers. Some people like using only cash or don’t own a credit card and can be very upset by the change. This can cause them to stop coming to your business altogether, which not only hurts sales, but it also hurts your brand. So, if you notice a consistent and significant drop in sales, you might want to think about switching back.

The most important thing to remember while making a big switch like going cashless is that it doesn’t have to be permanent. It’s important to experiment with new ideas but if it doesn’t catch on, it isn’t worth pushing. If what you try works well that’s great! However, if it is hurting your bottom line, there is nothing wrong with going back to the way things were.

Steps to Implementing a Cashless System

• Make sure it is legal in your state, certain states have laws about cashless businesses and you don’t want to get caught in that.
• Do the research on your transactions, if only ten percent of your transactions are cash, you’re probably good to go ahead and get rid of it. If a huge portion of your sales are cash, switching may not be a good idea.
• Notify your customers, make sure they have enough time to see the change. As a rule, they should have a chance to be reminded three or four times before you actually make the switch. Put an announcement on checks, social media, coupons, tell them in person at the register, have signs in the restaurant.
• Talk with your processing system and let them know you are changing.
• Talk with your staff, give them a script for how to handle clientele that is upset, maybe it is a free meal the first time they come in and didn’t realize there was a change.

Going cashless is a new trend that has been gaining traction in recent years and is likely going to increase and popularity in the future. Do some research and see if going cashless is right for you!