Guest columnist Jerry Leeman implores us not to let cash drag us down as he discusses banking changes over the last 30 years.

Times have changed, and customers are demanding that we change how we interact with them. In the 1970s, banks decided there had to be a better way to service customers. So they developed ATM networks to let us deposit money and withdraw small amounts of cash. This was the first true implementation of a kiosk. Customers initially were reluctant to use them, but with time they progressed from simply withdrawing cash to making deposits and moving funds among accounts.

Airlines have made great strides in the past three years in encouraging passengers to do self check-in. Grocery stores all over the country are adding kiosks to deli departments, which let customers place orders while deli assistants focus on cutting and packaging. Department and mass merchants are installing kiosks for price checking and gift registry applications.

Why, in restaurants, do we seem to have so much trouble finding a way for customers to order a “Number 5” with lemonade? From my experience, it is tied to why it took so long for fast food and many casual dining environments to implement credit cards: cost.

Get over it. Did you notice a pattern to the banking, airline, grocery, and shopping successes? They did not completely replace the cashier. The kiosk provided a convenience to 70 percent of the customers 80 percent of the time.

The real cost, from what I can see from fast food, is the ability for us to break away from the old way of doing business: cash. In the last three years, most locations have accepted the need to take credit cards. They eat into profits with transaction fees, but you cannot do business without them. Let’s take advantage of the convenience of the credit card. Install a self-order kiosk for credit or gift cards. Soon, you will supply convenience to 70 percent of the customers 80 percent of the time, shorten the customer wait time, and take advantage of the fees by not requiring a cashier/agent to also interact with the customer to enter an order.

By eliminating the need for cash transactions, a small device can be placed on the wall or any customer accessible space. Churchill Downs did it for their customers by providing an IBM Anyplace Kiosk customers by providing an IBM Anyplace Kiosk in the box seats and clubhouse. Not only did they provide a convenient location to place bets, they also made valuable information available to their clients. Not all customers used them because they didn’t take cash, but they were a great benefit to many. Churchill Downs raced into the 21st century. Why can’t the fast food industry?

If we cannot get over this cash hurdle, what will we do to handle the future demands customers are sure to levy upon us?

Jerry Leeman is World Wide Food Service Segment Manager, IBM Retail Store Solutions.
Frederick J. DeMicco, Ph.D, is professor and ARAMARK chair of Hotel & Restaurant Management, the University of Delaware.