QSR May 2022

S P ON S O R E D B Y L OOM I S

What DoBankBranchClosures Mean for Restaurants?

BANK BRANCH CLOSURES ARE SWEEPING THE COUNTRY FOR A VARIETY OF REASONS. HERE’S HOW QUICK-SERVICE RESTAURANTS ARE MAKING ADJUSTMENTS. / BY KARA PHELPS

B ank branch numbers have been ona steadydecline for the last few years,but thetrendhasonlypicked

up speed since theCOVID-19pandemic began. A report fromS&PGlobal found that more than 2,900 branches closed in 2021 alone. As consumers grew less comfortablewithin-personinteractions during thepandemic, theystartedusing online and mobile banking apps much more. And as mergers and acquisitions (M&A) have increased to the highest levels since 2006, banks have closed duplicate branches within a 10-mile ra dius. These combined forceshave led tonoticeablyhigher bankbranch closures inevery part of the country, fromcities to rural areas. So, howdotheseclosuresaffectquick-servicerestaurantoperators? Several common issues tend to arise. “The biggest impact to restaurants is that they now have to drive farther tomake their bankdeposit and to get their change order, so the employee is out of the restaurant longer,” says Lenny Evansek, senior vice president of national retail business development at Loomis. “An other sideeffect is that theyneedtoopenupnewbankingrelationships, whichmeans they nowneed tomanagemore of them. Also, banks are raising the feesoncommercial deposits if thosecommercial-connected clients go into banking centers—so restaurants are now payingmore todoover-the-counter banking. The cost of going toabankbranchhas never beenhigher.” As more andmore bank branches close, operators are tasked with findingworkarounds andnewsolutions to theseproblems. Thatmight meannever going into a branchat all. “Restaurants need to adopt a way to do more banking virtually,” Evansek says. “That is essential in today’s world. Loomis has a variety of solutions that can accommodate virtual deposits. We have the tra ditional armored car, where we just pick up and deliver deposits and

dropoffachangeorderoruseour smart safe technologysolutioncalled SafePoint. We also offer our own change ordermanagement platform called Loomis CashExchange, where clients can go online, place their change order, and thenwe deliver it. Many restaurants are starting to offer tip automation—our solutionKickfin can also send tips instantly to employees as soonas their shift ends.” For operatorswhowork inmultiple states or regions, consolidating all of their banking activity into one vendor has distinct advantages. By simplifying to a single point of contact and implementing virtual deposits, operatorscanstreamlineprocessesandsaveemployees’ time. “Operatorshaveacompleteclosed-loopsystemwithLoomis,”Evansek says. “Wedifferentiateourselvesbythehighqualityof theservicesweof fer, ourabilitytoimplement solutions, andourabilitytotraineffectively. Wearetheonesofferingthesafe;wemanagetheserviceandmaintenance plan; we are our own armored car service.We offer automated tipping and change ordermanagement. As banking becomesmore virtual, we can really become the one-stop-shop for operators for anything related tocashmanagementwithinthe fourwallsof arestaurant.” Z

To learnmore, visit loomis.us.

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MAY 2022 | QSR | www.qsrmagazine.com