“Cashless payment by Girocard has increased further.” “Away from cash.” Then, almost simultaneously, a turnaround: “Cash remains the most popular means of payment.” The headlines that have appeared in the press in recent months and years on this topic almost make the reader dizzy. Nevertheless, one thing is clear: cash will remain part of our society for a long time to come. A new restaurant trend is now making sure of that.
Cash payment with discount
Cash or no cash, that’s not really the main question. The latest GLORY PAYMENT REPORT 2023 shows that when it comes to shopping, one thing is even more important than the payment method itself: the freedom to choose how to pay. In the future, the choice between coins and notes in restaurants could become more common. For some time now, a new trend has been emerging: Paying with cash saves money.
By offering discounts – usually up to five per cent – on food and drink, restaurant operators are trying to encourage guests to pay in cash. The idea behind it: More cash means fewer card payments.
The basic idea: to avoid fees
This desire is linked to saving on the fees associated with card payments. These include fixed costs, such as equipment rental or service and clearing fees, as well as variable costs. These are transaction costs, which are largely independent of the amount, and sales-related fees. Some restaurant owners now want to put a stop to this and pass on the savings from cash payments to the customer.
From a purely legal point of view, they are in the green zone. They are free to offer discounts – even for a specific method of payment. The only important thing is that it is a real discount on the original price. The guest must be able to see the full amount on the menu. In Germany, however, it is not permitted to charge the customer an additional fee for a payment method, such as card payment.
Thinking ahead: digital cash management
In their euphoria to avoid card payment fees, many operators forget that cash itself poses a number of challenges. This is because the journey of cash, from obtaining change to transferring it from the till to the daily safe and the associated daily accounting, through to bookkeeping and taking it to the bank, ties up resources.
This is not an argument against following this trend in your own business. But it is a cautionary tale. Cash processes need to be well thought out to avoid becoming costly. Digital solutions bring efficiency, transparency and security. At ALVARA | Digital Solutions, we start at different points. It starts with optimised checkout processes, made possible by our ITR cash register in combination with the kitchen monitor, and continues with the simple control of all cash processes with our Interactive Cash Control (ICC) platform.
Cash in restaurants – a win-win situation
Discounts for cash payments bring several benefits to restaurants. As well as saving on card payment fees, the discount has a positive impact on customer satisfaction. There are also many ways to make cash processes in restaurants simpler, faster and more efficient. In the end, both sides benefit from the current trend.