That's like a 4-5 seconds of low paid work for each transaction, though. 10 seconds, if I'm being generous. Counting a lot of cash is a long process, but each separate banknote is counted in a fraction of a second.
So, about 4-8 cents, for 30$/hour if we talk about grocery store.
Restaurant might take more time to process cash, but pays lower salary.
I do not think it's a higher cost than current credit card fees