As consumers have pulled back on restaurant spending and experts continue to warn of a recession later this year, restaurants must look for ways to tighten operations to help tide them over until markets settle.
One often overlooked process in the search for cost and labor savings is cash management. Restaurant operators frequently underestimate the time and labor commitment they’re making to cash handling. From counting and recounting to depositing, reconciling, and delivering cash to the bank, it adds up quickly.
It may be time for restaurant operators to re-evaluate how they manage cash handling, says Lenny Evansek, senior vice president of SafePoint business development at Loomis.
“On-site store observations comparing what is actually happening in the restaurant versus the standard operating procedure, which can reveal many inefficiencies which can be corrected by implementing an automated and standard way of handling and depositing cash,” Evansek says.
In fact, manual cash management can gobble up more resources than necessary because manual cash counting can lead to increased cash discrepancies, shortages, and errors. Additionally, when cash is openly handled and vulnerable, there is increased security risk. That’s because cash is inherently untraceable, leading to higher internal theft risk, and creating a target for external robbery or burglary, potentially putting customers and employees in harm’s way. Finally, since employees need to arrive early and stay late for manual cash handling tasks, labor costs increase. In addition, supervisors must take time away from other revenue-generating responsibilities to oversee cash handling and visit the bank if needed.
Instead, when a restaurant switches to automation technology and begins a new cash handling process, they reduce the risks, costs, and errors considerably.
“Operators that choose an automated way to handle and deposit cash can count on time and money savings from eliminating or reducing bank trips, deposit prep, drawer reconciliation, and benefits within corporate treasury, accounting, and loss prevention,” Evansek says.
That can add up to a significant portion of operating expenses over time. In fact, a case study conducted by Loomis found that restaurants can save more than 30 hours per month in labor and another $50–$100 in bank depository and change order fees by automating cash management.
So, even as inflation cools and consumer spending bounces back, labor costs and inefficiencies will likely remain ongoing challenges to profitability. A pro-active restaurant operator can build capacity for operational savings by eliminating manual cash handling and installing smart safe and cash recycling solutions instead.
To learn more and download Loomis’s Ultimate Guide to Restaurant Cash Handling, visit loomis.us/restaurant-guide.
To learn more, visit loomis.us/restaurant-guide.