Why Your Restaurant is Paying Through the Nose... Part 2

Last time we spoke (I've missed you ever so much since Why Your Restaurant is Paying Through the Nose... Part 1), we went at length about how the industry often charges you for your getting the nice equipment. But there is more than one way to fleece a restaurant...

Another way is with their cash. Most restaurants use more and more credit cards these days because credit cards aren't real money. They are magical gift cards that taste like happy. Still, many people spend plenty of cash at bars and restaurants and every time the owner takes the cash to the bank, they get taken to the cleaners.

Why?

Banks charge for cash deposits. Oh yes, they surely do!

Now most people actually never see this charge as we deposit anywhere from twenty bucks to a few hundred. After all most of what we deposit is a paycheck. However, places that see a lot of cash, pay to deposit it. This is because a bank has to pay a cashier to sit there and count it all by hand. Think of it as a handling fee when you pay Shipping and Handling. The shipping fee is to get it to you, but the handling part is to pay someone to box that sucker up. Isn't this fun?

So what's the fee? Most banks charge about $1 for every $1,000 in cash that you deposit. This may seem like a small amount, but when your restaurant deposits $2,000-$8,000 a day in cash everyday, it gets expensive. This is why I like small banks. In most cases they have every real affinity you need on a day to day basis, but often do not have the fees some of the larger banks do as they are trying to cultivate business. If you deposit $2,000 a day in cash your savings would be over $700 a year.

Check around and see.