Cash Management Tips for Hospitality Success
For years now, we’ve been slowly creeping towards a cashless society, and never is that more apparent than in the world of hospitality. From fully cashless restaurants to retail stores that have closed their physical tills for good, it’s now not unusual for hospitality companies to say no when you pull out those dollar bills.
As a business owner, staring down the barrel of this kind of change can be undeniably daunting. But there’s a good reason why cashless hospitality is such a hot topic right now. Whether you’re currently launching a business in hospitality or you already run a successful hotel, restaurant, or club, holding onto cash for too long could actually start to damage your prospects. Keep on reading to find out why.
# 1 Higher Overheads
While card transactions aren’t always cheaper, cash handling certainly brings higher overheads. After all, even just the time it takes to cash up physical money at the end of the night will cost you. Not to mention that you’ll then need to arrange cash collections and probably pay a deposit fee to deposit physical money in the bank.
Of course, you will need to pay for a card machine with the right technology to go cashless, but those costs are generally lower than you might expect. And, once you’ve covered that outlay, you can quickly start saving.
# 2 – Security Risks
Hospitality companies leave themselves wide open to various security risks when they stick with cash. This is especially true in locations like bars and gentlemen’s clubs, where fraud is rife. Robberies are also a significant risk in businesses that stay open until late. In fact, expecting your staff to handle hard cash could leave them facing threats, violence, and more.
Cashless alternatives, such as contactless payments at gentlemen’s clubs provided by Humboldt, can ensure a far more secure payment environment overall. Not only will staff and establishments be totally cash-free and no longer at risk of theft this way, but immediate, fast payments also remove the risk of fraud and the need for clients to get close to dancers or entertainers to leave a tip.
# 3 – Slower Turnovers
Speed is the name of success in modern hospitality, and you’re not going to get it with cash payments that require customers to queue before handing over their money. As well as increasing the risk that they’ll change their mind or get fed up, convoluted cash handling has been shown to reduce impulse spending significantly.
By comparison, we spend significantly more and are more willing to part with our cash when contactless payments are involved. That’s because spending of this nature is immediate, easier, and far more impulsive. In hospitality, this could lead to clients who consume significantly more, are more likely to agree to room extras, and might even give more generous tips.
Cashless hospitality is here to stay. Are you ready to kiss these setbacks goodbye and finally embrace this new technology in your business?
