Cash has been on the decline for years and its downward trend is only accelerating. Dealing with cash is now time-intensive, risky, and inconvenient for consumers and businesses alike—and it may be costing you more than you think. If your restaurant is still tipping out employees in cash, read on to uncover what it could be draining from your business.
1. Dealing with cash is time-consuming
Dealing with cash is time-intensive—there’s no way around it. Since cash is so scarce right now, tipping out employees in cash means your managers are required to constantly check the till, make trips to the bank for withdrawals, and monitor your cash flow to ensure everything adds up. These are wasted hours that could be spent on more productive tasks that actually grow your business. If you don’t know how much time your team is spending dealing with cash flow headaches, ask them: their answers might surprise you.
2. Cash costs your business actual money
Using cash can also literally cost your restaurant because of the risk it poses. Keeping cash on-hand has become a huge liability, as having large amounts of it either at your restaurant or in the pockets of your employees leaves both of you more vulnerable to theft. There’s also no audit trail for cash tips, creating room for errors and subsequent employee-employer disputes that can end up being even more costly for your business. With all the other issues your restaurant needs to deal with on a daily basis, theft, disputes, and mistakes don’t make the cut.
3. Cash could draining you of talent
The cost of employee turnover is especially high for the hospitality and restaurant industries right now, averaging $5,864 per employee. Cash tips aren’t just holding you back—they’re holding your employees back, too. Hourly workers are increasingly demanding more from their employers, and instant, digital payments are one piece of the puzzle. They’re sick of paper checks, cash tips, and most of all waiting to be paid. With instant, digital tip payouts, your employees have the financial freedom to more easily afford day-to-day expenses, making them happier at work and at home—and less likely to look for a new job. Gain a competitive advantage by offering the benefit your employees want most: faster access to their own earnings.
Don’t lose time, money, and employees to outdated payment processes. Switch to cashless, digital payments—including instant digital tip payouts—with Branch.