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Sweetgreen Scraps Its Cashless Policy as Criticism Grows Sweetgreen Scraps Its Cashless Policy as Criticism Grows
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The salad chain Sweetgreen said Thursday that it would start accepting legal tender, amid a growing backlash to “cashless” stores around the country. The move came on the heels of Amazon Go’s confirmation this month that it, too, would begin taking cash.The salad chain Sweetgreen said Thursday that it would start accepting legal tender, amid a growing backlash to “cashless” stores around the country. The move came on the heels of Amazon Go’s confirmation this month that it, too, would begin taking cash.
Critics say cashless stores discriminate against people without access to bank accounts or credit cards, or who simply prefer to pay with cash. Some have also raised concerns about privacy and data security. Philadelphia and the state of New Jersey passed laws banning cashless stores last month, and New York, San Francisco, Chicago and Washington are considering similar bills.Critics say cashless stores discriminate against people without access to bank accounts or credit cards, or who simply prefer to pay with cash. Some have also raised concerns about privacy and data security. Philadelphia and the state of New Jersey passed laws banning cashless stores last month, and New York, San Francisco, Chicago and Washington are considering similar bills.
Sweetgreen was at the forefront of the cashless trend when it announced in 2016 that it would accept only credit and debit cards. At the time, it said eliminating cash would make transactions faster, easier and safer for customers and employees.Sweetgreen was at the forefront of the cashless trend when it announced in 2016 that it would accept only credit and debit cards. At the time, it said eliminating cash would make transactions faster, easier and safer for customers and employees.
On Thursday, the company said the move “had the unintended consequence of excluding those who prefer to pay or can only pay with cash.”On Thursday, the company said the move “had the unintended consequence of excluding those who prefer to pay or can only pay with cash.”
“Ultimately, we have realized that while being cashless has advantages, today it is not the right solution to fulfill our mission,” Sweetgreen said in a statement.“Ultimately, we have realized that while being cashless has advantages, today it is not the right solution to fulfill our mission,” Sweetgreen said in a statement.
The company characterized the change as an evolution of its brand of healthful fast food, and said its mission was to “build healthier communities by connecting people to real food.” It plans to put the change in place at its 94 locations around the country by the end of year, the statement said.The company characterized the change as an evolution of its brand of healthful fast food, and said its mission was to “build healthier communities by connecting people to real food.” It plans to put the change in place at its 94 locations around the country by the end of year, the statement said.
This month, CNBC reported that Amazon, which argued against the recent bills requiring stores to take cash, had also reversed course and would accept cash at its physical stores.This month, CNBC reported that Amazon, which argued against the recent bills requiring stores to take cash, had also reversed course and would accept cash at its physical stores.
The channel reported that the company’s senior vice president of physical stores, Steve Kessel, told employees at an internal meeting that the company would take cash at Amazon Go convenience stores, which do not normally employ cashiers.The channel reported that the company’s senior vice president of physical stores, Steve Kessel, told employees at an internal meeting that the company would take cash at Amazon Go convenience stores, which do not normally employ cashiers.
A spokeswoman for Amazon confirmed the change on Thursday, but did not offer details.A spokeswoman for Amazon confirmed the change on Thursday, but did not offer details.
Amazon operates 11 of the stores across the country, and has said it will consider opening up to 3,000 of them by 2021. (At the same time, it has closed many of its pop-up shops as it calibrates its retail strategy.)Amazon operates 11 of the stores across the country, and has said it will consider opening up to 3,000 of them by 2021. (At the same time, it has closed many of its pop-up shops as it calibrates its retail strategy.)
The stores are a harbinger of the future retail experience: They are full of hundreds of tiny sensors and cameras that can automatically detect when an item is pulled off a shelf. Amazon charges customers for their purchases through an app.The stores are a harbinger of the future retail experience: They are full of hundreds of tiny sensors and cameras that can automatically detect when an item is pulled off a shelf. Amazon charges customers for their purchases through an app.
But even as technologists devise cutting-edge methods for digital payments, most Americans still use cash regularly, according to a Pew Research Center study released in December.But even as technologists devise cutting-edge methods for digital payments, most Americans still use cash regularly, according to a Pew Research Center study released in December.
Some research suggests that is better for their pocketbooks: Paying in cash tends to drive home just how much one is spending, according to a study published in The Journal of Consumer Research in 2016. Some research suggests that is better for their pocketbooks: Paying in cash tends to drive home just how much one is spending, according to a study by Avni M. Shah, an assistant professor of marketing at the University of Toronto Scarborough, and other researchers that was published in The Journal of Consumer Research in 2016.
“You’re literally parting with that money,” Professor Shah said.
But she added that cash also provides an upside for retailers: She found that people tend to assign more value to objects purchased with cash. They might perceive that a dish tastes better, or is worth more.
“You potentially have more repeated transactions over time,” she said.