Cash is king at local restaurants and bars struggling with a tight economy and small profit margins.
To avoid paying credit-card fees and — shhh — maybe fudge income numbers for the tax collector — some merchants are treating credit cards as if they aren’t worth the recycled plastic they’re made of. In those places, cold cash is the only way to buy a hot meal.
Those in the know say the trend is growing.
“I think there are obvious advantages, both legal and illegal, with the cash-only approach,” said Nick Fauchald, editor in chief of the popular foodie Web site Tasting Table.
Veteran restaurant consultant Michael Whiteman said: “It definitely feels like it’s more of an accepted practice now. You notice it more and more. When times get tough, restaurateurs look to cut costs.”
One Brooklyn cash-only restaurant owner estimated that 5 percent of his gross sales had been going to the card companies.
“The fees the card companies charge hurt the smaller venue,” the owner said. “But it’s a gamble. You are going to annoy some customers.”
One aggravated customer is Christine Hanna, 26, of Brooklyn Heights.
She went to Grimaldi’s pizzeria in Brooklyn with pals on Saturday and discovered the legendary pizzeria — briefly shuttered in 2008 for owing back taxes — was cash only. An ATM outside charged a $4.50 fee, which she refused to pay.
“This is ridiculous,” Hanna fumed. “The cash-only thing is just really annoying sometimes.”
Some cash-only venues plant ATMs in a corner. Staffers point flustered customers in its direction, and the restaurant or bar profits from the transaction fees.
While straight cash offers financial benefits, there are potential pitfalls.
The Internal Revenue Service homes in on cash-only businesses.
“I think it’s pretty well-established that the IRS is particularly interested in cash-only businesses, including restaurants,” said Manhattan tax attorney Allan Pearlman.
A Williamsburg restaurant owner said, “It’s a trade-off between what you save and who you lose in terms of customers.”
That means people like Hanna.
“I’ve actually gotten up and left places that are cash-only,” she said, still smarting from her confrontation with the price-gouging cash machine.