A group of friends eagerly take out cash as they attempt to pay for their drinks at the Honeyboba located in Monterey Park. However, they are later devastated when the cashier informs them that they may not purchase their drinks. Since Oct. 10, that Honeyboba has become an entirely cashless and tipless establishment, meaning all transactions must be done through credit or debit cards, and cash and tips will no longer be accepted.
Although it may be an inconvenience to some customers, Honeyboba decided to change their policy due to the increase of minimum wage, which went up by $1 in Jan. and $0.50 in July. By going cashless, this will benefit them in a way that will cut down on the cost and complexity of financial aspects without needing to raise the prices of their products. Honeyboba claims that they have been “actively looking for ways to cut costs while still providing the same excellent product at the same excellent prices.”
“Cash constitutes only 20 percent of our transactions but accounts for 80 percent of our direct and indirect transactional costs. The environmental cost of constantly mining, minting, printing, distributing, and destroying coins and chemically infused paper currency is astounding as well,” Honeyboba Incorporation explained on a poster.
However, former customers, especially students, are disappointed by this cashless policy change because most do not own a credit or debit card.
“I was really sad when I heard about this policy because my favorite Honeyboba location was the Monterey Park one but now, I can’t go there anymore since I don’t have a credit card,” senior Melissa Miranda said. “What also sucks is that it was the nicest one, with chandeliers and marble tables.”
Nevertheless, Honeyboba believes that delivering value to their customers is a huge aspect of their philosophy and that going cashless will be a step into the right direction. They envision that businesses in America will go cashless within the next five to 10 years, hoping Honeyboba will be at the cutting edge of this revolution. The Honeyboba locations in Rosemead and Arcadia have not yet implemented this new policy.