Few things are more iconic when it comes to food than pizza. Celebrations, dinner dates and “a quick bite to eat” can all be fulfilled around piping warm pizza pies.
And it’s easy to see why. Perfectly melted cheese on a thin crust of dough. Ignites your salivary glands just thinking about it, right?
The U.S. Pizza market earned $47B in revenue in 2017 with 2.5% annual growth between 2013 and 2018.
As the owner of a pizza parlor you’re probably already aware of what a fiercely competitive market it is. To rise above the competition, it’s vital to adapt to customer demands as well as offer unique options on the menu and at the register.
Like all service industries, winning and keeping customers takes more than just having something to sell. Connecting with diners, offering them a unique experience and ensuring they leave satisfied are all necessary.
But many small businesses also struggle with making sales and still turning a profit. Especially when credit card processing fees eat into their bottom line.
Are Surcharges Right for Your Business?
One of the ways to offset the impact of interchange fees from credit card companies is to impose a small fee on customer bills who pay with credit cards. This doesn’t mean more money in the pockets of merchants but it helps to ensure you turn a profit and can remain in business.
Before going this route, you’ll need to check the laws in your state. Nine states currently prohibit merchants from charging additional fees for credit card transactions.
You might also worry that customers will go to a competitor down the street if you tack a small fee onto their bills.
The truth is, people will pay a premium for things they want. If your product is unique and you’re experience is unmatched, you’ll still pull customers in. After all, there are more factors at play in consumer choice than just finding the cheapest price. Including convenience and trust.
To see if Surcharge is right for you, try to determine if people are coming to you because of an experience.
Cash Discount for Pizza Shops
Even if you can’t use surcharges, or if your pizza shop falls somewhere in the middle of customers looking for experience and low price, there is still a way to stay in business and keep customers. Consumer Pay, also known as Cash Discount is a terrific option that encourages customers to use cash to pay for their bills. This avoids credit card fees altogether because rather than charging additional fees, a discount is given on the bills paid in cash.
Here’s some questions a pizza place should consider when deciding which option is best for their operations.
The more times you can answer “yes” to the below, the more likely your business can benefit from surcharge and cash discount options.
- Do other local pizza places offer a lower price than you?
- Do you offer a good quality product?
- Do you have a lot of repeat customers that are loyal to you?
- Is the atmosphere of your restaurant nice?
- Is the customer experience generally a good one?
- Do you know customers by name?
- Do you offer something different than anyone else in the area?
If you’re ready to start making profits and want help getting payment options set-up at your pizza parlor, contact Turnkey. We have experience working with merchants to successfully implement these programs with their customers. We will consult with you and help you learn best practices on how to implement this for your pizza restaurant. Contact us below to find out if this is right for you.