The applications that make compensating great assistance simpler and more pleasant
Restaurant tips are now completely digital, as the pandemic accelerates our shift towards a cashless society. This prompts a debate over how to best reward hospitality staff.
Reports show that hard currency transactions declined by more than one third in 2020. There are 13.7 million people who live completely cashless, which is twice the number who did this in 2019.
For workers who rely on gratuities, the change presents a problem. According to Planday, over one in 10 Britons are now more inclined to tip after hospitality reopened. The survey, which was commissioned by workplace management platform Planday found that Sheffield had about half the tipping rate, as compared to just 29% for Nottingham.
The money may not always go to where customers expect. Pizza Express cut tips for waiting staff and shared the money last month with better-paid kitchen staff.
Tip Pot, TiPJAR & easytip believe cashless systems are the solution.
Adam Pritchard of Tip Pot said, “There has been a stigma attached tipping in past. I don’t think UK Hospitality pre-pandemic had ever carried itself in glory using tipping structures.” “But people are becoming less likely than ever to carry cash, but still want to leave tips.”
The app charges a subscription fee from businesses that offer services such as hairdressing and taxi services. Stripe, the payments service provider that supports its systems does, takes no commission. The company doesn’t take any, but Stripe does. Stripe pays 27p for tips to PS5.
All employees can view the tips account. Employers who cheat the system would be caught.
Tip Pot collects gratuities through its model, but it is not universally accepted. Pizza Express had some wait staff feel that the chefs are already well paid and that they needed to pay more for the front-of house staff.
TiPJAR, which James Brown founded as the managing director for the Scottish craft brewers’ bars division of BrewDog, is available to visitors to BrewDog bars.
BrewDog is facing criticism after being accused by former employees of having a “toxic” work culture. But TiPJAR seems like it has been well received by staff.
BrewDog and other chains like Honest Burgers and Le Pain Quotidien customers scan a QR Code to reward their server. He can withdraw the cash any time.
TiPJAR earns a 4% fee on tips, with an average of PS4.60. But customers can make up the difference. The company claimed that more than 98% of them do, and tipping has skyrocketed since the reopening.
Ben Thomas, chief executive of the company, stated, “We wanted it as fast as getting your wallet out.” He claimed that tipping can take as little four seconds.
TiPJAR has a physical terminal that can be tapped by drinkers with a contactless payment card. Staff prefer a more collaborative approach. Staff can check the tipping account to make sure they aren’t being under-paid.
EasyTip’s competitor uses QR codes. They are printed on customer receipts. Customers can also leave feedback for staff at the venue. Evgeniy Chuikov was its founder.
The new systems are meant to improve the tronc system, which is a tip distribution method. Its name derives from the alms box found in French churches. Troncs, where a committee of staff members decides how tips are distributed, were open to misuse. They allow employers to control how money is divided instead of properly gauging staff wishes.
Unite, however, is skeptical about the growth of tipping apps.
Bryan Simpson (industrial organiser, union’s hospitality unit) stated, “While we support any progress to make tipping simpler, apps […] don’t provide the answer.”
“We need to see the government honor its 2016 promise that tips would be fairened by introducing legislation that guarantees gratuities will remain 100% with workers. “You can have the greatest tipping app in all the world, but nothing will replace a tronc council that is genuinely democratic and accountable to the entire workforce, strengthened by legislation,” he said.