Introduction: The Cloakroom – the Last Place for Coins

The cloakroom is one of the last places where cash is handled almost exclusively – and usually in small amounts, around 3 EUR per item. What seems uncomplicated at first glance brings numerous challenges in practice. Counting coins, providing change, addressing security issues – all of this costs time, nerves, and especially money.

But what hidden costs really arise from cash?

Summary of Hidden Costs:

• High Indirect Costs: Cash transactions cost up to 4% of revenue, especially for small amounts.

• Security Risks: Open cash registers pose dangers such as theft, losses, or counting errors.

• Long Lines: Cash slows down processes and reduces guest satisfaction.

• Bureaucratic Hurdles: Receipt requirements and TSE increase the effort and costs for organizers.

• Revenue Losses: Particularly in clubs, guests waste valuable time at the cloakroom – time that could generate more revenue at the bar.

1. Up to 4% of Revenue: Why Cash is Expensive

Even when the money is visibly sitting in the cash register, indirect costs add up. Studies show that cash transactions, especially with coins, can cost up to 4% of revenue.

Example:

With 1,000 cloakroom items at 3 EUR each, the total revenue amounts to 3,000 EUR. Of this, up to 120 EUR is incurred just for handling cash. But where do these costs come from?

• Time Expenditure: Providing change, counting coins, and balancing the register – all of this consumes valuable time.

• Transport: Cash must be stored, transported, and deposited. Each of these steps carries potential losses.

• Administrative Costs: Documenting revenues and adhering to legal requirements significantly increases effort.

2. Security Risks: Open Cash Registers at the Cloakroom

Many cloakrooms operate with open registers, which brings several problems:

• Theft: Without secure storage, cash is an easy target for internal and external thieves.

• Errors and Losses: In stressful moments, such as at the end of an event, revenues can quickly be lost or counted incorrectly.

3. Long Lines: How Cash Disrupts the Process

Cash payments not only create internal challenges but also directly impact the guest experience – and ultimately revenue.

• Delays: Counting coins and giving change takes time. Especially during peak times, when everyone wants to drop off or pick up their jackets, long wait times occur.

• Revenue Losses in Clubs: It becomes particularly critical in clubs where guests would rather be at the bar. With lines at the cloakroom, clubs lose potential income, as about 72% of their revenue is generated through beverage consumption. Every minute guests spend in line is lost revenue potential.

4. Legal Hurdles: TSE and Receipt Requirement at the Cloakroom

The Cash Register Security Regulation (TSE) and receipt requirements make handling cash more complicated than ever. Organizers must:

• Issue Receipts: Each transaction requires a printed or digital receipt.

• Utilize Technical Security Devices (TSE): The cash register system must meet stringent legal requirements.

These requirements lead to increased administrative effort and additional costs.

Curious for more details?

➡️ TSE and Legal Security at the Cloakroom – What You Need to Consider

Conclusion: Cash is Expensive – Even at the Cloakroom

The cloakroom is often the first and last point of contact at an event. However, cash processes make this seemingly simple task unnecessarily complicated. From high indirect costs to security risks to legal requirements – cash at the cloakroom is expensive and inefficient.

And when guests consume less due to long wait times, it impacts not just the cloakroom but the entire revenue of an event.

How Can It Be Done Better?

Are you wondering how to make your cloakroom more efficient, less stressful, and future-proof?

➡️ Download our free PDF "How to Make Your Cloakroom Cashless" and find out:

• What benefits a cashless cloakroom has for your guests, employees, and your revenue.

• How transitioning to digital processes can be easy and secure.

• What practical examples already show that the future is cashless.

➡️ Click here to download the PDF!