Cryptocurrencies are digital currencies that use cryptography to secure transactions and prevent counterfeiting and fraud. How does it work? According to Alison Conner of Edible Tampa Bay, “Crypto comes with a built-in ledger system, a database called the blockchain, which stores a record of every currency transaction ever made. Records on the blockchain are accessible to everyone, which allows crypto users to track the movement of any money they spend.”1
Currently, the three most popular cryptocurrencies are Bitcoin, Ethereum, and Dogecoin. However, the most common crypto that is currently being accepted by restaurants is Bitcoin. In addition, around 49% of Millennials between the ages of 25 and 40 own cryptocurrency, which is more than any other generation.2
Furthermore, there are many ways in which restaurants can accept cryptos such as Bitcoin, Ethereum, and Dogecoin. Since Bitcoin is the most common cryptocurrency being used in restaurants, restaurant owners will need to sign up for a merchant bitcoin wallet account on websites such as BitcoinPay, BitPay, or CoinGate.3 Depending on your restaurant’s POS, payments through those applications are made through QR codes which can convert the bitcoin into U.S. dollars.4
Cryptocurrency benefits for restaurants
Cryptocurrencies are still a new concept for people to wrap their heads around. Most people in make most of their transactions online, but for a good percentage of the public today, it is harder for them to trust something they cannot see or do not understand. Therefore, if your restaurant were to accept crypto, it would be beneficial to have another payment option available as well.
Having said that, cryptocurrencies increase speed and reliability in transactions. Due to cryptocurrencies being decentralized, most people can make their transactions without worrying about the bank approving or denying their transactions.5 Restaurant owners can also prevent banks fees when accepting cryptocurrencies.6
Customers can have new payment options to pay for their meals. If they forget their wallets or credit cards, they can easily pay for their meal through crypto and avoid the hassle and embarrassment of forgetting their other payment methods at home.
Cryptocurrencies help tourists from other countries pay for their meals without the hassle of exchanging currency. Since cryptocurrencies are available worldwide, almost any store or restaurant should be able to accept crypto with no issue.7
Another way restaurant owners could use cryptocurrencies to their advantage is to pay their workers through crypto. If that’s the payment option that their employees prefer, then it will be beneficial in which the employees can get paid faster, including the restaurant itself.8
Restaurants that are currently accepting crypto
Crypto Street Restaurant
The restaurant opened up in December of last year by Ricardo Varona.9 The sole purpose of the restaurant was to set his establishment apart from other restaurants in that area. The whole décor of the restaurant creates an ambiance of blockchain technology.
The menu includes items ranging from American food and Hispanic staples such as “Crypto Cuban” sandwiches and “Dogedog” hot dogs.10 Varona also stated that his restaurant accepts all forms of cryptocurrencies.
Subway
“Since 2013, people have been paying for Subway meals via Bitcoins and other currencies.”11 Additionally, in 2013, there were only two Subway locations that catered to the needs of the crypto community.
To further cater to its crypto community, a Subway location in Moscow offered a 10% discount for purchases made with Bitcoin. Later, other Subway restaurants started following in its lead and did similar things to start getting their customers used to a new payment method. Other locations include Allentown, PA, and Buenos Aires in Argentina.12
Yum! Brands
Yum! Brands is a fast-food corporation that operates the biggest fast-food chains. Yum! Brands is based in Louisville, Kentucky, and has over 52,000 restaurants in over 150 countries that are operating the company’s brand such as KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.13 In November of 2020, Pizza Hut was the latest fast-food chain at the time to accept crypto payments in Venezuela.14
Should your restaurant accept cryptocurrencies?
Depending on how your restaurant’s current POS works, cryptocurrency could benefit your restaurant in the ways as explained earlier. If you want to attract a more curious crowd, or those who are very like-minded in the idea of using crypto, then your restaurant could become the next big thing people start talking about.
Bitcoin and Ethereum is an aggressive marketing tactic. It is still a new concept and only a few restaurants are accepting them as payments. If you decide to accept crypto in your restaurants, it will be differentiator you have with most competitors in your area.
Goliath Consulting Group is a restaurant consultancy group based in Atlanta, Georgia. For more information on our services visit http://www.goliathconsulting.com or email us at getresults@goliathconsulting.com