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If a restaurant runs on a 9% net margin and pays around 3% in card fees, then roughly one-third of its net profit is going toward payment processing.
by havaloc 7mo ago
If a restaurant runs on a 9% net margin and pays around 3% in card fees, then roughly one-third of its net profit is going toward payment processing.
- matsemann 7mo agoIt's weird how this works. Saw something similar when working for a bus company. After reaching a minimum amount of sales for a bus route, everything after that is basically pure profit. However, how do we get those last sales? Well, by bidding higher on people searching for transfer between those two cities. Let's say the ticket was $20. We could end up for instance accepting to bid $10 for an ad that would lead to a sale. So for every $10 of pure profit we then got, Google also got $10. In a sense it was a good deal for both parties, but it's also kinda insane that in the end, Google made as much profit on our busses as we did.
- carlosjobim 7mo agoIf they're running on 9% net margin, then card fees are pretty down on the list of problems. They're vulnerable to any kind of fluctuation.
- Marsymars 7mo agoYes, restaurants in general are vulnerable to any kind of fluctuation.
- carlosjobim 7mo agoThey are. But it's misdirected to blame card fees, when they're so tiny. If anything, they are benefitted by accepting cards, since they get customers who purchase on credit. Or just in general because many people have less resistance towards making a card purchase compared to a cash purchase.