Customers urged to pay cash

The owner of a small business in the city has asked customers to pay by cash where possible in the future.

David Dunne, owner of the iconic fish and chip shop Brendan’s on Spencer Road said the charges he was facing from card machine and app operators had become an “unaffordable” expense for “a small business with a small team of staff”.

David, who runs the chippy and adjoining café with his wife, Cathryn, daughter of the eponymous Brendan, said they had always tried to keep their prices as low as they possibly could for their customers.

Speaking to Derry Now, David said: “Our aim was always to look after our customers, have a viable business and look after our staff but the way the situation has transformed since covid is just crazy.

“You never saw anything change as fast,” said David. “Previously about 15% to 20% of our business would have been online ordering apps and card payments. However, since covid, it has gone mad. There are some weeks it is as high as 95% card payments, and that means we have to pay more fees to the operators.

“That is money which should be staying in our pocket, in the town, but it has become free money to the card and app operators. I would estimate, we are paying out £1,500 across everything, at the end of each month. That is a huge cost for us. If those customers were coming into the shop or paying in cash, those charges would not be there. I know there is a convenience side to it for customers but if this continues, it is going to make it really, really hard for small businesses to survive."

Small businesses like Brendan’s get hit with higher tariffs than big businesses such as McDonalds.

“They are not charged the same fees we are. I just think small businesses are really struggling at the minute. We need all the help we can get and cash will keep costs down for us,” said David.

Like all businesses at present, the cost of stock at Brendan’s has increased steeply.

“Our costs, in a lot of cases, have tripled. Everything has at least doubled. It is hard to be a small business at the minute. We are trying to do everything we possibly can, without putting ridiculous prices on the board.

“I don’t think Derry can support that sort of pricing at the moment. It might be different if you were trading in Belfast but definitely not in Derry.

“I know cards and apps are convenient but I am asking customers, if they can, if they have cash in their pockets, could they use the cash. At the same time, I am not going to start berating people.

“It is like everything has bottlenecked at the moment. It was definitely helpful when VAT was reduced during covid and rates were frozen. During that time we invested heavily in the business and opened the wee café next door. We wanted to look to the future, provide a service, create employment and build a good business. But now it just feels as if the squeeze is on,” said David, “It is a perfect storm.”

Thanking all of their customers, David said he appreciated people sticking by Brendan’s.

He added: “I just think the card and app fees are draining money out of small towns. I don’t think everybody realises how it works. The big card and app companies are getting money for nothing.”