No,not always. A lot of lower paid service workers want cash because the banks charge so many damn fees. There's fees if you don't keep a minimum balance. There's fees if you don't write x number of checks. There's ATM fees if you aren't close to one for your bank, etc. etc.
These folks can often barely make ends meet anyway- they cannot afford to have a bank taking fees for this and fees for that. For them, cash is the best choice by far.