There’s no doubt cryptocurrency, and its incorporation into everyday life is here to stay.
Businesses of all shapes and sizes now see it as generally legitimate enough to accept it as payment for goods and services. Indeed, 36% of companies surveyed in a recent study noted they currently accept cryptocurrency as payment and intend to continue to do so.
Accepting cryptocurrency payments may not be right for every business, but as crypto continues to evolve, it’s worth considering if it’s right for you.
Restaurants and Cryptocurrency
If you’re both a restaurant owner and new to cryptocurrency - you may not think it’s the right option for your business. Yet, we know now that accepting crypto isn’t as inaccessible as it once was - something further reinforced by anecdotal evidence.
In the small town of Big Lake, Minnesota, NBC reports a small Asian fusion restaurant called CamboFlare has accepted cryptocurrency as payment since its opening in late 2020.
Now, CamboFlare has its own cryptocurrency. Dubbed CamboCoin, this crypto coin will soon be accepted at CamboFlare alongside Dogecoin, Bitcoin, and Etherium.
Of course, while it’s not a requirement to create your own cryptocurrency to enjoy the benefits of integrating it into your accepted payment methods, it just goes to show business owners don’t need to reside in large cities with booming crypto culture to reap the benefits of the elusive coin.
Data Security and Robust Cyber Insurance Essential
Blockchain technology makes the act of trading cryptocurrency generally secure. However, cryptocurrency trading is not subject to the same regulations major banks and government institutions impose on fiat currency.
Additionally, while your transaction history is virtually tamper-proof, the hosting network for your blockchain is not immune to cyber-attacks.
With that in mind, the risk is still a significant consideration when deciding whether to accept cryptocurrency in your restaurant. Be sure your commercial insurance policy has specific wording for cybersecurity and your cryptocurrency holdings.
The Pros and Cons of Accepting Cryptocurrency
Integrating accessible software solutions that enable your business to accept cryptocurrency as is or converted into your currency of choice positions you as a trailblazer in your industry. In addition, it allows you to present a wider range of payment options.
As with any business decision, financial or otherwise, it’s important to gain clarity on the pros and cons. Let’s dive in:
Pros of accepting cryptocurrency:
- Because cryptocurrency transactions cut out the middle man, as it were, business owners enjoy reduced or eliminated transaction fees.
- Because of the decentralized, irreversible nature of blockchain technology that cryptocurrency trades upon, there are no third parties for customers to petition for fraudulent refunds or chargebacks.
- This fact goes for any business, whether storefront or e-commerce, but the worldwide accessibility of cryptocurrency means international patrons can easily pay with crypto instead of using credit cards, resulting in hefty currency conversion losses for the customer, depending on what currency they’re purchasing in.
- When they’re not using a credit card internationally for this transaction, there’s an extra layer of security.
Cons of accepting cryptocurrency:
- The instability of crypto valuation means that payments your business accepts on Monday may have a wholly different value on Friday. Many restaurants implement spending caps on cryptocurrency purchases to mitigate this, but this still doesn’t mean you won’t lose out.
- Inexperience with cryptocurrency management. It’s never been more important to educate yourself and your staff on best practices for accepting cryptocurrency. Finding no-nonsense, reputable sources for financial literacy is key for your personal and commercial financial health.
- The cryptocurrency learning curve barrier can make the implementation of required cryptocurrency technologies like digital wallets difficult for many small business owners, no matter how literate they are with fiat currency or in running a business.
Integrating Cryptocurrency Best Practices
It's important to consider best practices when implementing cryptocurrency into your roster of accepted payment methods.
Let’s discuss some key points to consider when integrating this technology into your restaurant.
Restaurant Ordering Systems
As COVID eases, more and more individuals are becoming more comfortable dining out at their favorite local restaurants.
Yet, the luxury of takeout is here to stay - plenty of people still prefer to order takeout and eat in the comfort of their own homes. With this in mind, it’s worth considering adding crypto as a payment option on your ordering system to open up even more payment options for your customers.
Many restaurants have begun designing custom food delivery service apps to stay ahead of third-party price inflation and processing fees and maintain a customized level of service that their customers expect.
Crypto Asset Management
Assuming you decide accepting cryptocurrency as payment is right for your business, you must have systems and tools ready to manage this new class of assets. The right crypto asset management tools make it easy to see how the crypto you’re holding is performing and the effect that crypto has on your overall bottom line.
Beyond that, when accessing your accounts, always implement two-factor authentication and take steps to store your cryptocurrency safely, such as using cold storage.
Cold storage, in a nutshell, is a method of storing cryptocurrency offline. This offline storage further prevents cybercriminals from accessing these assets.
Scaling Your AP Tech Stack
As you start to diversify the payment options you accept as a business, your accounts payable (AP) tech stack must be keeping pace. So consider scaling your AP tech stack with the right tools to monitor cash flow and the payables you have outstanding, no matter the currency type.
It’s important to know your business’s financial situation. Are you manually inputting data? Are invoices frequently incorrect or left unpaid? Knowing how your AP process works is the key to finding inefficient workflow and cash flow areas to make everything run more smoothly and ensure cash flow is more predictable.
Once you’re firm in how things are currently operating, it’s time to implement software and technologies to automate and streamline processes to maximize efficiency.
Be A Leader Within The Restaurant Industry
When it comes to integrating cryptocurrency into everyday life, we have come a long way since the 2009 introduction of Bitcoin. While the valuation can be unpredictable daily, it generally trends upward year-over-year.
With this in mind, it will be increasingly commonplace for patrons and restaurant owners alike to pay and accept cryptocurrency.
Capitalizing on these trends can position you as a leader in your industry and drive traffic to your restaurant - just be sure you have the proper risk management in place.