According to U.S. Department of Commerce data, since March 2015, Americans have spent more on dining out than buying groceries.
Restaurant industry snapshot:
- In Q1 2016, Americans spent $158 million on restaurants and dining out versus $152 million spent on groceries in the same period. (Source: U.S. Department of Commerce)
- In 2015, the United States had more than 1 million restaurant locations that collectively generated $782.7 billion in sales. (Source: National Restaurant Association)
- In 2015, the restaurant industry added nearly 10,000 new locations nationwide; California led all states opening over 2,000 new locations. (Source: NRA)
- In 2016, the U.S. The restaurant industry is expected to generate $783 billion in sales revenue. (Source: NRA)
Since the October 2015 Liability Shift – the hospitality industry has seen an uptick in chargebacks most of these chargebacks are from FRAUD due to non-acceptance of the EMV Chip Cards!
We have seen numerous reports from various processors and consulting groups showing that in some areas of the country, there has been a 35% to 40% increase in chargebacks in Restaurants, Bars, Nightclubs etc.. Where the average ticket is higher there are more chargebacks. Some businesses are experiencing anywhere from $1000 to $10,000 a month in chargebacks that they cannot win! And higher ticket businesses are getting hit the hardest.
The hospitality industry has been slow to switch over to EMV for the following reasons.
They do not want to use side terminals
No direct integration available from the POS Company
Only a wired solution in available
From the customer’s standpoint – they want pay at the table – they want increased security – they do not want the wait staff to walk off with their card anymore!
Help is here for the hospitality industry – from Nationwide Payment Systems – we have a new product called Chipcard Go!
EMV Pay at the Table Solution
Integrates in to POS – Aloha, PosiTouch, Micros, Infogenisis and Dinerware!
Our device works through our gateway and offers EMV, NFC and Point to Point Encryption!
Lower your PCI Scope at the same time!
Source – The Green Sheet July 11, 2016. www.greensheet.com