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Why do some restaurants and bars still accept only cash? —Scott C., St. Louis
Sixteen months into the COVID-19 pandemic, another question might be which restaurants and bars no longer accept cash at all, with cash transactions recently halted altogether in some establishments, coinciding with the rise of hand sanitizer.
Yet despite a decades-long trend—from cash to credit and debit cards to digital wallet services, such as Apple Pay, Android Pay, and Google Wallet—cash is still king at some local haunts. There are several reasons:
1. Transaction fees: Restaurants and bars look to cut costs in any way they can. The 1 to 3 percent fees that banks charge on non-cash transactions can add up to a significant number at the end of each month.
2. Fees from ATMs: On the flip side, many establishments provide onsite cash machines and net a small percentage of the fees charged—a double win.
3. Because they can: If a place can consistently fill seats with customers paying cash, then the owner might not see any reason to use plastic. If people stopped going to Fast Eddie’s because of the cash-only policy, there's a good chance that owner Eddie Sholar, Jr. would change it (though there are multiple ATMs on site).
From the consumer's standpoint, there are also advantages to using cash, as I noted in a previous column. It's quick when paying a tab at a busy bar or during a rushed lunchtime (at the same time that seemingly all other diners are in a hurry and trying to pay). You’re back at the office while your poor server is still deciphering a tableful of separate checks. You're hassle-free at the cash-only places and head of the line when the charge machine goes down. Oh, and ask any server if they'd prefer their tip electronically or in cash money. I've said before that cash is liquid, secure, immediate, there are no fees (or strings) attached, and, best of all, it's private.
Today, however, there are also downsides for restaurants and bars to accepting only cash:
1. Theft deterrence: A cash establishment puts itself at more risk than one that accepts other forms of payment in which there's no cash to lose, miscount, or get stolen.
2. Slower service times: Swiping/inserting a card has been proven to be faster than customers fidgeting for cash and employees making change.
3. Societal changes: Credit cards were once thought to be a road to ruin, tempting users to buy things that they couldn't afford (and charging usurious interest rates to boot). Not anymore. Today, not accepting alternate forms of payment can discourage many people from patronizing an establishment.
4. Check average decreases: Customers tend to spend more when using plastic.
5. Reconciliation time increases: It takes more time to count and restock cash than it does to print a closing report that notes non-cash transactions.
One previously cash-only establishment that changed its mind in recent years is Civil Life Brewing. As owner Jake Hafner explained in 2019, the past approach helped keep beer prices lower at the brewery's South City tasting room. Yet it became the No. 1 complaint on Yelp and other public forums. (“No one ever complained about the low prices, though,” he quipped.) So after previously accepting cash only, Civil Life joined the ranks of the almost cashless society—and, after the first week, he reported that two-thirds of sales involved plastic. “I guess it was time,” he says, “but I’m standing firm against putting in a house phone.”
Among the remaining cash-only bastions in St. Louis (with checks and Venmo also accepted in some cases):
Restaurants:
- Carl’s Drive In
- Courtesy Diner (all three locations)
- Dave's Diner (all three locations)
- Fast Eddie’s Bon-Air
- Friendly's Sports Bar and Grill–Tower Grove South location
- Old St. Louis Chop Suey
- Olivette Diner (cash or check)
- Pizza-A-Go-Go (cash or check)
- U-City Grill
- World's Fair Donuts (cash or Venmo)
Bars, taverns, and breweries:
- CBGB
- Palomino Lounge
- Pop's Blue Moon
- Stella Blues
- Tick Tock Tavern
- Trophy Room
Editor's note: This article has been updated from the original version.
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