Yahoo Finance Major Aussie business ditches cash: ‘We are going cashless’
Gloria Jean’s said the cashless transition is based on “customer payment preferences” and to “create a safer environment” for staff.
Iconic cafe chain Gloria Jean’s will be going cashless across a number of its stores from later this month. The cafe is the latest in a string of businesses to scrap cash payments for customers as usage plummets.
Several Gloria Jean’s stores across Australia will no longer accept cash payments, with signs posted in a shop front window reading: “We are going cashless. As of the 11th of September, we will be accepting EFT only. We appreciate your understanding and continued support.”
Retail Food Group, who owns the company, confirmed to Yahoo Finance it was trialling cashless payments at company-owned Gloria Jean’s stores.
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“The primary goal of this initiative is to transition our business towards customer payment preferences, and additionally, enhance the safety of our team members by reducing the need to handle cash and coin,” a spokesperson said.
“We believe that going cashless will not only create a safer environment for our staff but also streamline operations, allowing us to serve our customers more efficiently.”
Gloria Jean’s currently has around 200 coffeehouses across Australia. The spokesperson noted the trial would not extend to cafes owned by franchise partners, who would continue to accept cash.
“The vast majority of Gloria Jean’s outlets are owned and operated by our valued franchise partners who set their own policies regarding cash handling,” the spokesperson said.
Gloria Jean’s was established by Gloria Jean Kvetko in Chicago, Illinois and has a global network of cafes across 33 countries.
Australia’s first Gloria Jean’s opened in Sydney in 1996 and there are now stores in each state across the country.
Businesses go cashless
A number of Aussie businesses have made the move to cashless, including several McDonald’s and KFC outlets along with small businesses like Heritage Bakery in Milton, New South Wales. Many have cited security as the main reason for the switch.
“The safety and well-being of our people and customers is our top priority,” a McDonald’s spokesperson told Yahoo Finance.
“In response to recent incidents, McDonald’s restaurants in Melbourne’s east and south have implemented a number of proactive safety measures to ensure the ongoing protection of our people and customers. This includes asking customers to use cashless payment methods where possible.”
Richard Holden, Professor of Economics at UNSW Business School told Yahoo Finance using cash from a “system perspective is costly and a hassle”.
“If you run a café, cash handling is a giant pain. You’ve got to have insurance, you've got to bundle it up at the end of the day and take it to a night safe. It takes staff time and it costs money,” he said.
Businesses cop cashless backlash
Some businesses have copped backlash from customers after announcing they would be ditching cash. Mary Street Bakery in Western Australia backflipped on its pandemic-era decision to go cashless to protect staff.
Owner Paul Aron said it was “quite an expense and a bit of a pain” to accept cash but he did it to protect his staff and ensure no customers felt “alienated”.
Gloria Jean's has already sparked some pushback online from pro-cash advocates.
“Not getting my business and what happens when the internet goes down?” one wrote online.
“I’ll not get coffee there. Plenty places who still take cash. Sick of all the added surcharges added to each transaction,” added another.
According to the Australian Competition and Consumer Commission (ACCC) businesses are free to choose which payment types they accept and it is legal for them not to accept cash.
Cash made up just 13 per cent of total consumer payments in 2022, according to Reserve Bank of Australia (RBA) data, dropping from 69 per cent in 2007 and 27 per cent in 2019.
It comes after independent MPs Andrew Gee and Bob Katter introduced a bill to parliament earlier this year that would slap businesses with hefty fines of up to $25,000 if they don’t accept or carry cash.
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