The problem
Regulars ask for gift vouchers at Christmas and birthdays, and a café without them sends that money elsewhere or sells hand-written vouchers that are easy to copy and hard to track. If a café could sell 20 gift cards a month at $27£20€24A$38C$38 that's $532£400€476A$768C$752 a month of sales it isn't taking.
What the AI does
Square Gift Cards work with Square point of sale. Square's UK page says it costs $0£0€0A$0C$0 to set up digital cards, there's no monthly fee, customers buy eGift cards online and redeem them at your Square till, they can check their balance, and Square Gift Cards don't expire. Card processing when a card is bought online is 1.4% + 25p for UK cards; redeeming costs nothing. Put the eGift link on your website, Google profile and Instagram, and mention it on the menu board in December.
A worked example
A café in Harrogate already uses Square at the till. It adds eGift cards from $13£10€12A$19C$19 to $67£50€60A$96C$94 and puts the link in its Instagram bio and on a board by the counter.
Before
0 gift cards sold online; a few hand-written vouchers that are hard to track
After
About 20 eGift cards a month at $27£20€24A$38C$38: $532£400€476A$768C$752 of sales, redeemed at the till
What it's worth
About $346£260€309A$499C$489 a month in profit, if 20 gift cards a month at $27£20€24A$38C$38 bring in $532£400€476A$768C$752 of sales that wouldn't otherwise happen, at an assumed 65% margin. The 20 cards is an assumption. Card fees on online sales are 1.4% x $532£400€476A$768C$752 = $7.45£5.60€6.66A$10.75C$10.53 plus 25p x 20 = $7£5€6A$10C$9 about $15£11€13A$21C$21 a month; there's no monthly fee.
How to set it up
- Set up eGift cards in your Square account with a few set amounts.
- Buy one yourself online and redeem it at the till to test the whole flow.
- Put the eGift link on your website, Google Business Profile and Instagram bio.
- Show staff how to check a balance and redeem a card at the till.
- Ask your accountant how to record gift card sales and VAT before the first busy month.
What goes wrong
- Gift card money is owed to customers until they spend it. Don't treat it as profit on the day it's sold.
- VAT on vouchers depends on what they can be spent on; with hot and cold food at different rates, ask your accountant.
- Square Gift Cards don't expire, so they stay on your books until used.
- They need Square point of sale to redeem; if you change tills, plan how to honor cards already sold.