Steak 'n Shake Claims Bitcoin Payments Slash Processing Costs by 50%, Saving $6 Million Annually

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alex.shardLegendary
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#1Jul 24, 2018, 01:53 PM
So, Steak 'n Shake has been talking about how accepting Bitcoin has really changed the game for them. At the Bitcoin 2026 Conference in Vegas, their Chief MAHA Officer, Michael Boes, mentioned that Bitcoin’s lightning payment support has been a huge boost for their business. He pointed out that regular credit card transactions can cost merchants between 2.5% to 3.5%, but with Bitcoin, they’re cutting those fees in half. He even said that spending less on fees means they can put more cash into making better food for their customers. If all their credit card customers switched to Bitcoin, they could save around $6 million each year. Plus, their stash of Bitcoin reserves has shot up to $10 million.
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fox_wolfFull Member
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#2Jul 26, 2018, 09:14 PM
Seeing such kind of news makes me kind of happy that adoption of bitcoin is increasing rapidly across different edges of the globe. And the best thing here is that companies, investors, and institutions are now understanding the positive potential of the Bitcoin technology. Yesterday I was having a kind of relatable discussion with a community member that traditional banking systems cost more to their investors and consumers because they have to pay fees on an annual basis of thier service usage. And if the value of the transaction is much bigger, then they also have to pay taxes to the government, and in this way, the traditional banking system costs more as compared to using Bitcoin as a means of payment. Bitcoin as a means of payment making businnes module cost effect and helps them to improve the product quality because it helps them to save more, and this saving helps businesses to grow the business quality and to win their customers' trust. More especially if the company is providing its services worldwide and internationally.
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1t5_omegaHero Member
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#3Jul 27, 2018, 01:07 AM
There are just a couple of hurdles to overcome for this to happen. First, the majority of customers would need to buy Bitcoin, since I’d wager they’re currently in the minority. And second, those Bitcoin users would need to decide that it’s more worthwhile to spend their Bitcoin on burgers than to hold onto it in hopes of future appreciation. Add to this the fact that every transaction would have to be reported on your tax return, whereas if you pay with fiat currency, you don’t have that problem. From his perspective as a merchant, it’s clear that saving on fees is beneficial for him, but right now I don’t see how the masses could start paying for coffee and burgers with Bitcoin.
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nick2013Senior Member
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#4Jul 27, 2018, 04:10 AM
This may sound optimistic at first but if their intention is purely cutting costs then it's just a matter of time they find out they cut cut it even further by using stablecoins (they have to instantly convert bitcoin into usd or stablecoins anyway). Still incredibly awful news for the banking industry.
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colddiamondHero Member
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#5Jul 27, 2018, 06:43 AM
Yeah, but IMO their food is not that great and too much money. But taste is an opinion. Would rather go to RedRobin (none around me anymore). For takeout Smashburger  / 5 Guys. That's all just my tastebuds however. Still miss Roy Rogers Double R Bar Burger for the fast food thing so I may not be the best judge of fast food burgers. And THEY might save some % on me not using a CC but it COSTS me money in the fact that I don't get my 2%-3%-4% depending on the CC and promo cash / points back. I touched on this in a post a while ago that it's going to be tough to overcome the CC cash back discount thing. That if you are charging me a % to use a CC (or giving me a "cash discount") then are you giving me any sort of discount for using BTC? If not why not? -Dave
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ColdViperSenior Member
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#6Jul 27, 2018, 12:40 PM
It is very positive that Bitcoin is encouraging businesses to create profitable business processes and better food quality. Businesses such as fast food outlets in particular can use Bitcoin BTC as a profitable business method and improve the quality of their food. In that case, if it is promoted and expanded, the sales of fast food outlets that accepts Bitcoin will increase greatly!!  Because everyone wants Good and high-quality food. At the same time, the popularity of using Bitcoin will also increase, which will encourage not only for the fast-food business, but all kinds of businesses!
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pixel2014Hero Member
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#7Jul 27, 2018, 04:42 PM
This is not true because bitcoin lightning network is very cheap. If you pair directly with someone, it is zero fee but if you pay through another channel which will be common, it is still of a very low fee. What banks in the United States are most afraid of right now is the CLARITY Act for the fiat collateralized stable coins, although there are people that said the banks will not be affected, but the banks do not wish that bill to be proposed because Trump will definitely sign it.
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nick2013Senior Member
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#8Jul 27, 2018, 10:44 PM
it's not about gas fees but about conversion fees (BTC into USD). with a proper deal, merchants could convert say USDC to USD or back without any fees, thus cutting costs even further.
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