There is an increasing number of restaurants across the country that are taking cash out of their restaurant payment methods. Many restaurants are going cashless to better appeal to customers and to save on time. But can businesses really go cashless? And what does a fully cashless restaurant mean for calculating tip payouts?
How Restaurants are Going Cashless
There are several ways businesses are taking cash out of the payment equation. First, many are developing standalone apps that accept payment within the program, streamlining the entire process. Others are installing self-service kiosks where customers can place their order and complete their payment all in one spot. Some are adding tablets to their tables so customers can close their checks from their seat. These cashless approaches are a fit for casual or fast-casual restaurants that serve customers who are on the go.
Are Cashless Restaurants Illegal?
It’s not that cashless restaurants are necessarily illegal, but there are arguments that going fully cashless is classist and alienates many potential customers. More than a third of Americans aged 18 to 37 don’t have a credit card, which is a major chunk of potential customers for any restaurant.1 Some states do have laws preventing businesses from discriminating against cash paying customers.
Calculating Tip Payouts with Cashless Payments
At Valiant Solutions, we offer customized payroll services for hospitality businesses, including automated solutions for tip payouts and tipped employee management. When calculating payouts from cashless payment methods, ensure that all collections are calculated in a centralized point. From there, deductions, taxes, or tip payouts to the entire team can be better calculated. Contact our team today for more guidance on calculating tip payouts or other aspects of hospitality human capital management.