Quote:
Originally Posted by Alex McColl
My understanding is that they charge only slightly more than what VISA charges to have a VISA terminal. Why else would Boston Pizza and other Profitable restaurants accept it? Were Quarter's profit margins on food really that low?
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Neg, it's higher than a VISA terminal etc. It's why Phoenix phased out the meal card system as well. Meal card works best to attract customers to the place. If you are doing very high volume of sales (Pizza Pizza or Pita Pit) it is a valuable system. When you are doing very low volume sales to people with mealcards (Mahal) it is a good promotional thing.
Quarters and Phoenix occupy the middle part. Revenue is generally made on alcohol sales. Food prices are kept reasonably low in order to compete with Paradise's establishments, and so when people are coming in with meal cards, those meals profit less.
Now, the thing is, the amount of money this means isn't a lot, and it's not anything close to a solution for Quarters' financial problems. In the macro sense of things, the amount paid out is probably a few thousand dollars max, and were those people to pay with VISA, it might be a few hundred dollars more profit.
Ben, it's really nothing to worry about. I made it seem a lot bigger than it actually is. Promotionally speaking, the meal card machine can be a great asset.
If you want to do something involving the issue, work towards changing policy so that the kitchen staff at Quarters are trained culinary workers as opposed to confused students who have class in an hour and an essay due the next day.
If those first years come into Quarters and get a good meal, they'll come back more times and pay with cash etc. and that's when the machine pays for itself. In the state the kitchen is in now, it is not a useful thing.