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Surprising update after Australian pub banned cash – after locals threatened to boycott Froth Craft Brewery

A new brewpub in Western Australia has enjoyed a successful opening despite calls for a boycott of the venue because it does not accept cash payments.

Froth Craft Brewery, in Perth's north, accepted customers for the first time on Thursday, offering craft drinks and stunning coastal views from the front deck.

On the day of the launch, the pub faced backlash after an advertisement on social media revealed that staff would only accept card transactions.

But the threats did little to slow down the North Beach pub as it was packed with customers all weekend.

Customer Sarah O'Leary said she has been to the venue twice in the last four days – and had to queue to get in both times.

“(It had a) great atmosphere,” she said.

Revelers are pictured enjoying drinks and food at Froth Craft Brewery this weekend

Revelers are pictured enjoying drinks and food at Froth Craft Brewery this weekend

'They have a small bar license, so they are limited by the number allowed.

'The location, beer and pizza are great, so I expect there will be queues all summer long.'

Froth Craft Brewery is the owners' third chain of stores, while their two other pubs in Exmouth and Bunbury are already very popular.

However, some were angered after the venue's cashless business model was revealed on the Hey Perth Facebook group.

“I won't support you if you can't accept cash,” one person commented.

“Places that don't accept legal tender should be boycotted,” another agreed.

A third said: 'Cash is key, you won't see me there and I live a few minutes away.'

“No cash… been to two locations like this and when the bank system keeps filling up so you can't buy anything they start whining about business being slow,” said yet another.

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But others argued that there are good reasons for businesses to choose not to have cash on premises, such as the security of both staff and customers and because less than 15% of people pay with cash.

Despite the intense online debate, Ms O'Leary said she had never observed any drama over payments during her visits.

The new location appeared largely unaffected by the threats as dozens of locals flocked to the pub on its opening weekend

The new location appeared largely unaffected by the threats as dozens of locals flocked to the pub on its opening weekend

The new location appeared largely unaffected by the threats as dozens of locals flocked to the pub on its opening weekend

A couple posed for a photo while enjoying drinks on the outdoor patio

A couple posed for a photo while enjoying drinks on the outdoor patio

A couple posed for a photo while enjoying drinks on the outdoor patio

“I talked to a handful of other guys. No one talked about the money issue,” she said.

“And I've never heard anyone talking at the bar, because most people automatically use their phone or card to pay.”

In the wake of their opening weekend triumph, the company has since thanked everyone who visited the pub.

“A huge thank you to all the Frother and Frothette who came to our North Beach location over the last few days!” the company writes on Facebook.

'We have been absolutely overwhelmed by the support and encouragement from everyone who has walked through our doors!

'It was always a dream to have a metro taphouse showcasing our incredible beers, and without your support we wouldn't be here doing just that!

“We really look forward to continuing to pour our beers for you here in North Beach!”

Australia is shifting to a largely cashless society as digital payments soar and banks streamline their operations by dumping cash, but some argue the move leaves businesses and customers vulnerable to hacks or computer glitches.

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Digital payments also incur fees when they are made, eroding the savings of both businesses and customers, unlike cash which retains its fixed value.

Michele Bullock, governor of the Reserve Bank of Australia, told a conference last week that the share of consumer payments using cash has fallen from 70 percent in 2007 to 13 percent last year.

While the federal government and central bank are committed to keeping cash as a secure payment option in Australia, Ms Bullock said its declining popularity poses a challenge.

The number of ATMs and bank branches where people can withdraw cash has already fallen, although Ms Bullock said the distances people had to travel to get cash “has changed little in recent years”.

“But this may not be the case in the future if the number of access points continues to decline,” she said at the AusPayNet Summit on Tuesday.

The RBA was keen to “maintain broad coverage of ATMs at reasonable prices, particularly in regional and remote areas” and was open to industry responses on ways the central bank's regulation could help, she said.

The economics of the distribution system, which includes companies that physically transfer banknotes, coins and credit cards from one place to another, is also under pressure.

The strained economics of this business model were one of the reasons why the consumer watchdog approved the merger of the two largest cash-in-transit companies, although Bullock said the sustainability of the model was still questionable.

Australia could consider alternative models such as a wholesale distribution scheme, she said.

Ny Breaking Australia has contacted Froth Craft Brewery for comment.

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