With the use of cash dropping around 15% per year since 2017, it is no surprise that we're starting to see more and more cashless restaurants pop up around us. Between the pandemic and general digitalization, only 16% of Americans were found to "always" have cash on them in 2020.
The move toward credit cards, apps, and phone-based payment methods has become a self-fulfilling prophecy. If people stop using cash, then places will consider stopping accepting cash.
That sounds far-fetched, but there's a precedent for people and businesses moving on from previously acceptable methods of payment. Go to any store and attempt to barter for your goods or visit anything other than a supermarket and try paying with a check. The odds of acceptance for either are poor (and even if someplace takes a check, the people in line behind you won't be thrilled.
Cash may no longer be king and that's a concept that one growing fast-food chain has made plans to embrace.
Image source: Wingstop.
Keep It Moving, People
The Texas-based chicken wing chain Wingstop (WING) just launched what it calls its first "restaurant of the future" in Dallas — a lobby without dining seats, a small ordering area and larger back-of-house, and a cash-free environment. The decor is meant to advertise different Wingstop products while also keeping orders moving quickly.
The 1,300-square-foot restaurant was designed as a pilot location meant to test who comes into Wingstop stores and why as, according to the company, delivery and carryout already account for nearly 100% of its orders. While drop-in customers can use the displayed QR codes to order, Wingstop aims to have 100% of the orders at this location done digitally in the future.
"A glimpse into our Lovers Lane location is a glimpse into the future of Wingstop – focused on 100% digital transactions, seamless back of house operations, ongoing flavor innovation, and a business model centered around our fans, who love to dine off-premise with friends, while gaming, or just about anywhere you can think of," Marisa Carona, Wingstop's chief growth officer, said in a statement.
Is Wingstop Ahead of the Curve?
Wingstop is far from the only restaurant to test this type of model — Chipotle (CMG) opened its first cashless restaurant in Highlands, N.Y. in 2020 while the sandwich chain Jimmy John's also opened a drive-thru and pickup-only location in Bartow, Florida this week.
This type of format is much more popular for fast food restaurants already known for quick service and a simple eating environment — the sit-down restaurant is based on an entirely different business model and client base looking for an "evening out" and "experience" rather than only food.
While both business models show no sign of dropping demand, it is difficult to deny that all aspects of the restaurant industry are seeing rapid digitalization — a study in the United Kingdom found that nearly half of current teenagers believe they'll never use cash to pay for restaurant meals by the time they reach adulthood.
"Over the last 12-24 months, technology systems were upgraded to facilitate mobile access, on-demand reservations, orders for delivery and pickup, contactless payments, digital menus, and loyalty programs to serve a 'contactless' dining experience," digital analyst Brian Solis wrote for Restaurant Dive.
