What is one disadvantage of a cash-only payment system for restaurants?

A cash-only payment system can pose increased security risks for restaurants. Handling large amounts of cash can make establishments vulnerable to theft, both from external criminals and potentially from employees as well. Cash transactions do not leave an electronic trail, which can complicate the tracking of sales and may also lead to issues with accounting and tax reporting. Additionally, in the event of a robbery, cash-heavy businesses can suffer significant financial losses beyond the immediate theft, including long-term impacts on their insurance rates and operational stability.

In contrast, immediate revenue recognition and reduced transaction times often associated with cash payments may seem beneficial, but they do not outweigh the security vulnerabilities. The ease of tracking inventory is also more effectively maintained with electronic payment systems, which can link directly to sales data, providing clearer insights into inventory levels and sales trends. Therefore, while cash payments provide some advantages, the heightened security risks present a significant disadvantage for restaurants operating under a cash-only model.