Why Cash-only Cafes are at a Disadvantage and What You Can do About It

As a cafe owner, you may be thinking that going cash-only is the best way to save on fees. After all, credit and debit card transactions come with their own set of fees. But what you may not realize is that by not accepting card payments, you could be putting your cafe at a serious disadvantage.

Let’s take a look at some of the reasons why cash-only cafes are at a disadvantage, and what you can do about it:

You’re losing out on potential customers.

These days, more and more people are using cards for their everyday purchases. In fact, a study by Visa found that 66 percent of consumers say they would avoid a business if it didn’t accept card payments.

This means that by not accepting cards, you could be losing out on a significant number of potential customers.

You’re missing out on valuable data.

When you only accept cash, you’re missing out on valuable customer data that can help you better understand your target market and make informed marketing and business decisions.

For example, if you knew that a large number of your customers were using credit cards, you could offer a discount for customers who pay with cash. Or, if you noticed that your sales spiked on days when you offered a loyalty card punch card promotion, you could consider running a similar promotion in the future.

You’re putting your employees at risk.

When your cafe is cash-only, your employees are constantly handling large amounts of cash. This puts them at a higher risk for robbery and assault.

There have been several high-profile cases in recent years of cafe employees being attacked and robbed while working. In one case, a barista in Seattle was fatally shot during an attempted robbery.

You’re making it difficult for customers to leave tips.

If you’re not accepting card payments, you’re making it more difficult for customers to leave tips. In fact, a study by Square found that customers who pay with cash are more likely to leave a smaller tip than those who pay with a card.

This could have a negative impact on your employees, who rely on tips to supplement their income.

You’re creating an unnecessary hassle for yourself.

As a cafe owner, you should be focused on running your business, not managing cash. But when you’re cash-only, that’s exactly what you have to do.

You have to constantly count and reconcile your cash drawer, which can be time-consuming and error-prone. You also have to make sure you have enough cash on hand to make change for customers, which can be a challenge if you’re busy.

What You Can Do About It

If you’re a cash-only cafe owner, there’s no need to panic. There are a number of steps you can take to mitigate the disadvantages of not accepting card payments.

Get a kitchen pos system system.

Invest in a kitchen pos system that accepts credit and debit cards. This will make it easier for customers to pay, and will also allow the cafe owner to track sales more accurately.

Offer discounts for customers who pay with cash.

One way to offset the fees associated with card payments is to offer discounts for customers who pay with cash. For example, you could offer a 5 percent discount for customers who pay with cash.

This will help to encourage customers to pay with cash, while still allowing you to accept card payments for customers who prefer to use them.

Use a mobile payment solution.

Another way to accept card payments without incurring high fees is to use a mobile payment solution like Square or PayPal Here. These solutions allow you to accept card payments without having to purchase an expensive point-of-sale system.

Offer loyalty rewards for customers who pay with cash.

If you want to encourage customers to pay with cash, but still want to accept card payments, you could offer loyalty rewards for customers who pay with cash. For example, you could offer a punch card that gives the customer a free drink after 10 purchases.

This will help to encourage customers to pay with cash, while still allowing you to accept card payments for customers who prefer to use them.

Educate your employees about the risks of accepting cash.

One of the best ways to mitigate the risks associated with cash-only businesses is to educate your employees about the dangers of accepting cash. Make sure they understand the importance of being aware of their surroundings and being vigilant when handling cash.

You should also have a policy in place for handling large amounts of cash, such as making sure there is always at least two people present when counting the cash drawer.

Implement security measures to protect your employees.

In addition to educating your employees about the risks of accepting cash, you should also implement security measures to protect them. This could include installing security cameras, having a safe for storing cash, and having a security guard on duty during peak hours.

Takeaway

Whatever option is chosen, it is important for cafe owners to be aware of the potential problems that can arise from a cash-only business model. By taking steps to address these issues, they can ensure that their cafe remains competitive and profitable.