OMAHA, Neb. (KMTV) — The cost of labor, food and almost everything has gone up, pinching the wallets of many including restaurant owners.
"Tremendously, ever since the shutdown for COVID two years ago in 2020, just trying to find product, which has really driven prices up, has been hard," said Chadwick Fischer, part owner and area manager of Hiro 88.
This is why Fischer decided, in March, to offer a cash discount.
"We thought that was a really good solution to help offset some of that stuff rather than raising our menu prices, to a point where it's kind of not realistic for customers," Fischer said.
What this means: Let's say a customer has a bill that, after tax, is $80. If they pay with cash, they will pay $80. If they pay with a credit card, they will pay an extra 3.5%, which brings the bill up to $82.80. An extra $2.85 might seem like small change, but over time those savings can add up.
"Have you seen more people using cash in your restaurants? A little bit. A lot of people say they will remember to bring cash next time, people still pay with a card. It's just what is easiest for them," Fischer said.
Dave Ridder, the chief credit officer with American National Bank, agrees. He says people should do what is best for their budgets.
"It doesn't really fit everybody's lifestyle or their needs, the majority of retailers that I am familiar with aren't offering this type of a discount if you will," Ridder said.
With tighter budgets, he's not surprised to see some businesses offering it now, but he doesn't necessarily recommend using cash over card.
"Both of them have their place in commerce today, it just depends on the situation," Ridder said.
With a new interest rate hike, Ridder advises people to follow traditional finance practices.
"It's not a bad time to be a little more conservative with your spend and just being more cognizant again of where your dollars are going from every paycheck," Ridder said.
American National Bank shared a few additional tips for managing spending. Keep cash for reserves and monitor your credit card charges, especially as interest rates rise.
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