As the pandemic accelerates the transition to a cashless society and restaurant tips go completely digital, it has led to a debate about how to reward hospitality staff.
The report showed that transactions made in hard currencies fell by more then a third in 2020. It also revealed that 13.7million people are living a completely cashless existence, almost double the number in 2019.
It is also a problem for those who rely on gratuities. According to Planday, more Britons than ever are eager to tip, with nearly half of respondents tipping in Sheffield, compared to 29% in Nottingham.
Customers might not get the money they expect. Pizza Express had cut the tip percentage for waitstaff, so it split the tips with typically higher-paid kitchen staff.
Tip Pot, TiPJAR and Easy Tip assert that cashless systems provide the solution.
Adam Pritchard from Tip Pot stated, “There’s been some stigma attached to tipping and I don’t think UK hospitality pre-1995 has always carried itself with glory with tipping systems.” “But more people want to tip, even though they are less likely carry cash.”
For the use of its app, businesses in hospitality and other areas like hairdressing or taxi service must pay a subscription. Stripe is the payments provider for its systems and takes no commission. Stripe is 27p when you tip PS5.
All employees can see the tips account and employers that skim off the top will be caught.
Tip pot’s model collects gratuities but this approach is not always well received. Visit easytip for more stuff related to this. Pizza Express was criticized by some of its staff for feeling that the chefs were well compensated and that it was the front-of–house staff that needed the extra.
TiPJAR, which James Brown, the managing direct of the Scottish craft-brewers’ bar division, created, can be used by BrewDog customers at BrewDog Bars.
BrewDog recently faced criticism from employees who claimed that the company had a “toxic workplace culture”. But TiPJAR appears not to have had a negative impact on staff.
BrewDog customers, as well as chains such Honest Burgers & Le Pain Quotidien, scan a QR-code to reward their servers. They can withdraw cash at any moment.
TiPJAR gets a 4% Commission on Tips – an average PS4.60. But, customers have the right to make up the difference. According to TiPJAR, more than 98% do. Tipping has soared ever since the hospitality industry reopened.
Ben Thomas, chief executive said, “We wanted the process to be as fast and easy as getting out your wallet.” This means tipping takes as little as 4 seconds.
TiPJAR creates a terminal at the bar that allows drinkers to tap with their contactless card. Staff can check their tipping account at the bar to see if they’re being paid fairly.
EasyTip (a competitor) uses QR codes. The codes are printed on receipts and customers can leave feedback. Evgeniy Chuikov said that QR codes allow staff to regain earning power.
The new systems will be an improvement on the current tronc, which is tip distribution method. It takes its name form alms boxes that are found in French churches. Troncs (in which a committee comprised of staff members decides how tips go) have been susceptible to misuse by employers, who exert control over how the money will be divided rather than properly gauging employees’ wishes.
Unite, however remains skeptical about the rise in tipping apps.
Bryan Simpson is the industrial organiser for the union’s hospitality sector. He stated that “while we support any progressive effort to make tipping easy, apps […]are not the answer.”
“We require the government to fulfill its 2016 promise of fair tips by introducing legislation to ensure gratuities remain at 100% for workers. The best tipping app could be the world’s best, but nothing would replace a tronc panel that is democratic, accountable, representative, and reinforced by legislation,” he stated.