The digital revolution in restaurant tipping is accelerating the shift to a cashless society. It has also sparked a debate about the best way to reward hospitality staff for their service.
One report shows that the number of hard currency transactions fell more than a quarter in 2020. This week’s report revealed that 13.7million people now live entirely cashless, nearly double the number who did it in 2019.
Workers who depend heavily on gratuities may find it difficult to adjust. One in 10 Britons says they are more likely than ever to tip now hospitality has reopened. According to Planday’s workplace management platform, the survey found that Sheffield residents were more likely to tip with approximately half the customers, while only 29% of Nottingham residents tip.
Customers may not be satisfied with the way that the money is spent. Pizza Express had reduced the tips that wait staff received, and instead shared the money with the kitchen staff, who are typically more well-paid.
Tip Pot and TiPJAR are just a few of the companies that claim cashless systems offer the solution.
Adam Pritchard, Tip Pot founder, stated that tipping was stigmatized in the past. However, he doesn’t believe UK hospitality has ever been in glory with tipping structures. “But it seems that more people are willing to tip but are less likely to have cash.”
It charges a monthly subscription fee for businesses to use its app. The company does not receive any commission. However, Stripe, the payment provider that supports its system, does. Stripe earns 27p if you tip PS5.
All employees have the right to view the tips account. This ensures that employers who make a profit off of the system are caught.
Tip Pot’s model of collecting gratuities has been criticized. Pizza Express’s wait staff felt that the chefs received enough pay and that the front-of the house staff needed extra.
TiPJAR can be used by BrewDog bar patrons. It is a slightly different system that James Brown, managing director of the Scottish craft brewery’s bars division, developed.
BrewDog has been criticised recently by ex-employees for allegedly creating a toxic work environment. Staff seem to like TiPJAR.
BrewDog customers can scan QR codes to reward their server at chain restaurants such as Honest Burgers, Le Pain Quotidien. They can then withdraw the cash anytime.
TiPJAR receives a 4% commission for tips, which average at PS4.60. However, customers have the option to make up any shortfall. According to the company, tipping has increased significantly since the opening of hospitality.
Ben Thomas, the chief executive, said that he wanted it to be as quick as possible. He claims that tipping in this manner can take up to four seconds.
TiPJAR offers a physical terminal for drinkers to tap using a contactless credit card. This is ideal for staff who prefer a collective approach. Staff can view the tipping account of the bar and make sure they aren’t being taken advantage of. Visit easytip.net for more tips.
EasyTip, a competitor, uses QR codes printed on customer receipts. It also charges a 2.9% transaction fees and allows customers feedback to the venue staff. Evgeniy Chuikov is its founder. “It allows staff members to regain their earning potential.”
The new systems are an improvement on the tronc. This tip distribution method, which derives its name form the alms boxes found within French churches, is a tip distribution system. Troncs are a system in which a committee composed of staff members determines how tips should be divided. Employers have had the ability to misuse them, as they control the way the money is distributed rather than properly gauging staff’s wishes.
Unite, a trade union, remains skeptical about tipping apps.
Bryan Simpson, industrial organizer for the union’s hospitality division, said that, while we support any effort to make tipping easier apps aren’t the answer.
“We need the government in order to honor the 2016 promise to tipping to be fairer by passing legislation to ensure that gratuities are 100% with workers. It is possible to have the most powerful tipping app on the planet, but nothing can replace a tronc commission that is truly democratic, accountable, representative and representative of the entire workforce. He added.