Running a restaurant chain is no small feat. From managing food costs to ensuring smooth service across multiple locations, there are countless operational challenges. One challenge that often goes unnoticed—but significantly impacts the bottom line—is credit card processing fees. For one restaurant chain with 13 locations, these fees were eating into their profits, limiting their ability to reinvest in the business and grow.

The Challenge: High Fees Limiting Growth

The restaurant chain was processing a high volume of transactions daily, with customers primarily using credit and debit cards. While accepting card payments was a necessity, the cost of doing so was substantial. The chain was paying between 2-3% per transaction in processing fees, which, over the course of a year, added up to over $635,000 in fees.

This considerable expense was preventing the restaurant from making key investments, such as upgrading equipment, expanding locations, and enhancing the customer experience. The owners needed a way to reduce these fees without disrupting their operations or inconveniencing their customers.

The Solution: Dual Pricing with Renaissance Payments

After reviewing their situation, the restaurant chain partnered with Renaissance Payments to implement a dual pricing solution. This model allowed them to eliminate almost all of their credit card processing fees by passing the costs onto customers who paid with cards. Customers paying in cash received a discount, while those paying with credit or debit cards absorbed the fees.

The implementation was seamless, with Renaissance Payments providing the necessary equipment upgrades and training to ensure that staff across all 13 locations could handle the new pricing structure smoothly. The entire process was completed without any downtime, allowing the chain to continue serving customers as usual.

The Results: $635,000 in Annual Savings

Within the first year of switching to dual pricing, the restaurant chain saved over $635,000 in processing fees. This significant cost reduction allowed the business to reinvest in several areas, including:

• Upgrading kitchen equipment at multiple locations
• Expanding their marketing efforts to attract new customers
• Improving employee benefits, leading to higher staff retention and satisfaction
• Opening a new location, which had been on hold due to financial constraints

Beyond the financial savings, the restaurant also found that customers appreciated the transparency of the new pricing model. Many opted to pay with cash to take advantage of the discount, while those who continued using cards accepted the fee without issue.

The Takeaway: Dual Pricing Works for High-Volume Businesses

This case study demonstrates the transformative power of dual pricing, particularly for businesses with high transaction volumes. By implementing this model, the restaurant chain was able to eliminate a major cost and reinvest in its growth. For any business dealing with high processing fees, dual pricing is a solution worth exploring.

At Renaissance Payments, we specialize in helping businesses of all sizes reduce their processing costs and maximize profits. Whether you run a restaurant chain, retail store, or e-commerce platform, our dual pricing solution can help you achieve significant savings. Contact us today to learn how we can tailor a solution to fit your business’s needs and put more money back in your pocket.