A new service giving pubs the chance to offer a cheque-cashing service to customers officially launches today.
Cheque Inns is the brainchild of former licensee Nigel France and experienced cheque casher Jim Cullen, director of Cash-Zone. The pair believe licensees could make anywhere between £13,000 and £50,000 a year, depending on location.
"Before the law changed in 1992, pubs were the place people regularly used to cash cheques," said France. "In the 14 years they have been denied this service, cheque cashing has become a multi-billion pound industry. Pubs used to offer the service for free but it is now a healthy income stream and there is no reason pubs cannot claim a share of the market."
Aside from the £7,500 equipment start-up fee - £5,000 for the first 100 customers - Cheque Inns charges 1% commission on each transaction, plus an annual £500 fee. Hosts can charge up to 8% commission on cashing cheques, although 6% is a more realistic figure.
A successful trial has already taken place at the Three Elms in Windsor, Berkshire. Host Aidan Straw is currently cashing £4,500-worth of cheques a week, translating to a £1,000 profit each month. "My realistic target for cheque-cashing is £20,000 per week, which would earn me roughly £52,000 a year," said Straw. "Even if my target was £5,000 a week, I would still earn £13,000 a year."
Several leading pubcos, including Greene King, are known to be interested in offering the scheme to their tenants and lessees.
For more information visit www.chequeinns.com
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