I’ve partnered with Visa to tell you how the Visa Cashless Challenge can help you perfect your prime cost! Even better, Visa will award $10K each to up to 50 eligible restaurant, café or food truck small businesses who best answer, “How would going cashless benefit your business?” I want you to win! Enter today: http://vi.sa/2zafzfz The Challenge expires on 11/30/2017. You don’t have to go 100% cashless to participate or win.
While there are some expenses you just plain can’t prepare for (like if someone decides to drive their car right through your dining room), your prime cost is a prime opportunity to keep your finger on the financial pulse of your business.
So how can you keep your prime cost from getting out of control?
Sure, we know what we want to do – spend less and make more! But how can we actually do it? While there’s an abundance of strategies you can use to prevent your prime cost from skyrocketing, few options will allow you to cut costs and increase income through a single decision. And no – it doesn’t require a magic wand!
Turns out, going cashless could lower labor, surge sales, and increase operational efficiency!
Yes! That’s right! I mean that choosing to have less cash could put more money in your pocket! As the digital age advances, guests are giving up the green in favor of cards and mobile payment systems at incredible rates. While entire cities and industries are committing to “going cashless,” restaurant owners are seeing a major shift on their P&Ls that are making them do a happy dance.
In fact, according to a 2017 Toast study, 95% of restaurateurs say that technology improves business efficiency!
Here are 4 ways going cash free could decrease prime cost:
- You’ll stop coming up short! Register errors happen all the time and while small amounts of missing funds seem like business as usual, it adds up quick! (I don’t know about you but I’ve never been a fan of finding out I’m missing hundreds of dollars due to errors each year.) Drawer shortages, incorrect change, deposit errors can be alleviated when you take cash out of the picture.
- No more tantrums over tips! What owner hasn’t dealt with the almighty headache of he said-she said over who gets how much?! By managing a simple, trackable, cash-free system, your team has an easier time working in harmony. Even better, you can get more bang for your buck in payroll dollars since you won’t have to pay managers who spend their time breaking up petty squabbles! Can anyone say, “win, win, win?!”
- Your guests will be more inclined to spend more! Studies have shown that consumers who pay with credit or debit cards make larger transactions! For dining or takeout, a US consumer’s transaction typically is 25% larger on a card at a pizza shop, 33% larger at a deli or diner, and 40% larger at a family restaurant. There are a number of theories around why people are more willing to depart with their dough when there’s a digital payment involved but the bottom line is that if you only have $20 in your pocket, that’s going to limit what you spend. With a card, however, you’re much more inclined to stick around for dessert!
- You won’t lose on labor! Let’s say you’re paying your full time employee, Margaret the Manager, $15/hr and it takes her 30 minutes every day to count down your registers, balance the books, and make your deposit. That’s $37.50 a week. Not too horrible right? Multiply that by 52 weeks a year and you’re paying Margaret $1,950… and that’s only if the deposits never take longer than half an hour! Labor costs add up fast unless, of course, you’re going to streamline your business by eliminating cash-induced headaches altogether!
As more and more consumers stop carrying cash, it only makes sense to join the cashless movement! RestaurantSmart and the “Restaurant Lady,” Misty Young, are proud to partner with Visa to bring owners everywhere the opportunity to better their businesses.
Don’t leave money on the table! Apply to the Visa Cashless Challenge here: http://vi.sa/2zafzfz