Let’s Talk About: The Pros & Cons of Cashless Systems: Part One

Is transitioning to a cashless system a good decision for a coffee shop? We weigh the pros and cons and hear what our online readers think.

BY EMILY JOY MENESES
BARISTA MAGAZINE ONLINE

Featured photo by Patrick Tomasso

Nowadays, cashless payment systems are increasingly popular across various sectors of the food and beverage industry. That is especially true in the specialty-coffee world. Transitioning to a cashless payment system has a number of pros and cons. Whether or not it’s a good decision for a coffee shop is still widely debated across the industry. 

While some coffee professionals value the efficiency of cashless systems, others argue that it encourages an over-reliance on technology and may be alienating to certain customers. In this week’s installment of our “Let’s Talk About” series, we’re weighing different sides of the debate and hearing from Barista Magazine online readers about their thoughts on the matter.

Pros and Cons of Transitioning to a Cashless Payment System

Pro #1: Enhanced Efficiency

One of the primary benefits of transitioning to a cashless payment system is improved efficiency. Digital transactions are often faster than handling cash, reducing the time spent on transactions and improving the overall speed of service. This efficiency can lead to shorter wait times for customers, which is particularly advantageous during busy periods.

Con #1: Potential Technical Issues

On the flip side of Pro #1 is the potential of over-relying on technology, and risking running into technical difficulties. Most of us have experienced Wi-Fi shutdowns or software glitches while behind bar—and, if your system is solely cashless, it’ll be near-impossible to function when these disruptions occur. While these issues are rare, even just a few hours of technical difficulties can have a significant impact on business operations when they occur.

Pro #2: Reducing Risk of Theft

Those for cashless systems point out that moving away from cash can help minimize the risk of theft, thereby protecting baristas.

“Several establishments I’ve worked for are cashless—the motivation primarily being to protect employees and guests,” shares Barista Magazine Online reader Ren Betten. “Many businesses in our area have been robbed for their cash drawers, and this has led to severe injury, and in some cases death. Being cashless eliminates that possibility completely.”

“We’ve unfortunately been broken into several times and had our cash, safes, etc. stolen—which has forced us to be cashless for now,” shares the team at Long Beach, Calif.’s Recreational Coffee. “It sucks because (we) hate not taking cash, but due to our circumstances, we’ve had to do so.”

Con #2: Alienating Customers

Going cashless can help create a more efficient and safer environment. But some argue that it can be alienating to certain customers. This article by Forbes, for example, explains how low-income folks are more likely to use cash than those who earn more annually—so operating as a cashless system can potentially be seen as classist.

“I’m not on board with going fully cashless. I think it could push economically disadvantaged people even further to the sidelines since they already face so many barriers when it comes to accessing resources and services,” Barista Magazine Online reader Natasha Everald Solowoniuk shares, reiterating this point.

Keri Elliot of Hillsboro, Ore.-based Roasted by Mom Coffee echoes Natasha’s sentiments, and challenges those who argue that low-income individuals shouldn’t be spending money on “treats” like coffee from a specialty shop.

“To those (who) say economically disadvantaged shouldn’t spend money at a specialty shop, I disagree,“ Keri explains. “Those who are economically disadvantaged come to a specialty shop, save their money for a once-in-a-while latte, or to get a bag of beans to brew at home as their weekend coffee or (for) special occasions. We take cash—big bills we verify of course—(and) at the end of the day, it saves (us) on processing fees, and we gain a new customer.”

Difficult Choices

“To me, it’s a real mixed bag. I get the business side of it—preventing robbery and (avoiding) credit card fees … (but) it’s a tricky call because eliminating cash, while logical, sends the quiet message that enjoying coffee and community spaces is only for some people,” echoes Barista Magazine Online reader Holly Bastin. “I’m currently at a café that was cashless when I started but decided to bring cash back because it was mostly affecting people in the community that were originally part of the neighborhood—one that, like many, is in the process of gentrification. I can’t help but think about (Anthony Ragler) in his 2019 U.S. Barista Championship presentation speaking to cafés themselves (about) being the warning shots of gentrification. … I can’t unsee what he pointed to and encourage others to consider (this) more deeply when thinking about going cashless.”

Stay tuned for part two of this article, where we’ll weigh more pros and cons of going cashless and hear from more Barista Magazine online readers.

ABOUT THE AUTHOR

Emily Joy Meneses (she/they) is a writer and musician based in Los Angeles. Her hobbies include foraging, cortados, vintage synths, and connecting with her Filipino roots through music, art, food, and beverage.

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