As a restaurant owner or manager, you know that your lifeblood is cash. Although customers pay with credit and debit, the vast majority of clients will still buy their shots, beers, appetizers, and desserts with hard currency. You also know that working with cash can often be difficult and complex, with a high risk of errors, discrepancies, and lost revenue. In order to boost your restaurant’s revenue, you should implement cash management strategies into your business.
Here are three cash management strategies that can increase your profitability by reducing the instances of cash mishandling.
Create Cash Handling Policies and Procedures for Your Employees
Your employees are the ones dealing with your restaurant’s cash, so it’s only natural that this would be the first place to make changes if you see your profits declining. Cash mishandling can result in considerable revenue losses. Detailing specific policies and procedures, and training your employees to follow these procedures will ensure that your money is handled properly, accurately, and efficiently.
For example, do not allow your waiters to share registers so that they are always accountable for their own floats. This way, you will be able to know exactly where a money-handling problem arose, and who is at cause. What’s more, you can benefit from creating a policy where items are punched into the point-of-sales system and payment is taken before any items are given to customers. This is especially important on the bar side. When it’s busy, it’s easy for bartenders to forget to collect payment when they are handling many customers’ orders at once.
Guarantee that all new and old employees are aware of your new directives—make them read and sign the policies, and ensure that they know what consequences will occur if the procedures are not followed to your specifications.
Add Time-Saving Counting Devices
Bill and coin counters can save you countless hours at the end of the night, which will, in turn, save you money with reduced labour costs. Additionally, these devices include error-free guarantees, so you know that the counts are always right, eliminating costly discrepancies. By avoiding errors and cash discrepancies, you will be able to keep more of your profits in your pocket.
Automate Your Cash Registers
We have all been inside those old-fashioned restaurants where the servers still use calculators to provide customers with the total of their bills and figure out how much change to give them back. Not only is this a time-consuming process, but it can easily lead to human errors that cost you money. When your restaurant is busy, your servers might not be completely focused on the task at hand. In order to boost profits, one of the easiest cash management strategies you can implement is updating or automating your cash registers. When you let the register do all the counting, you know that the totals will always be correct, so you are not stuck with costly losses. Automated registers count, dispense and recycle both coin and notes and can be customer facing so your employees need never touch the cash. What’s more, these automated cash registers come equipped with counterfeit bill detectors that detect and reject any suspicious bills that are handed to your waiters, so you know you will never be defrauded.
As a restaurateur, you expect your customers to pay with cash more often than not. In order to ensure this cash is properly handled, you need to have proper cash handling procedures in place, implement automated counting devices, and automate your cash registers. These cash management strategies will be sure to boost your restaurant’s revenue, and as a bonus, they will also increase your employee productivity.