It appears that cashless restaurants are indeed the future. Most credit it to no contact measures being taken by restaurants in response to the coronavirus pandemic. However, the shift to becoming cashless was a trend that began prior. In fact, the World Payments Report 2018 predicted it, estimating a compound annual growth rate of 14% in non-cash transactions from 2017 – 2022.
Now this may seem inconceivable to those living in smaller towns or rural areas. However, the idea of cashless restaurants may quickly become the new reality, especially in the wake of the current pandemic.
Sweetgreen was one of the pioneers of this trend. The New York Times reported that Sweetgreen would be at the forefront of the cashless trend following an announcement made by Sweetgreen in 2016 that it would accept only credit and debit cards or mobile payments.
Nonetheless, this trend has been quite controversial. Several legislators around the country have taken action against cashless businesses, even moving to ban the practice. Those against say that it is classist and discriminatory against low-income customers who don’t qualify for credit cards or bank accounts. It also prevents others who might otherwise prefer cash for privacy reasons, preferring to pay with paper currency without leaving an electronic trail.
Meanwhile, restaurateurs push back, opposing the ban, stating that cashless restaurants improve employee safety and increases operational efficiency. Restaurateurs also state that cashless restaurants reduce incentive to steal from and rob restaurants.
Nonetheless, several states have already imposed bans. Some states where cashless restaurant bans are already in effect include Massachusetts, New Jersey and Connecticut. Some cities who have imposed the ban include New York City, Philadelphia and San Francisco.
Whether COVID-19 will successfully tip the scales toward cashless restaurants is yet to be determined. In the meantime, restaurants are mostly using suggestive language, that encourages those who prefer to minimize contact to do so by making a cashless payment.
What are your thoughts? Do you think that cashless restaurants are the future?
