Why Tipping in Restaurants Should Be Cashless?

Why Tipping in Restaurants Should Be Cashless?

Tipping in restaurants has been commonplace for many years, but the popularity of tipping using cashless payments has increased since the pandemic.

In the past, some diners may have been reserved about tipping using a cashless system, but this is no longer the case. Although there can be resistance from some customers when embracing digital payment methods like Google Pay and Apple Pay, many diners will take it in their stride.

Although many can assume that a cashless system can be costly and inconvenient, this isn’t the case. When introduced in the right way, a cashless payment system can yield several benefits when introduced into the restaurant, including but not limited to the following.  

Increased Tip Potential

The number of diners paying using cashless methods has increased recently, so introducing a cashless system increases employees’ potential to receive tips.

There are even dedicated platforms so each employee can manage their tips. The possibilities are endless when introducing cashless tipping; a business needs to find a fit that aligns with its business model.

Generate Tips for Dining In and Taking Away 

Restrictions in the past have shown that the fantastic food offered by restaurants shouldn’t be taken for granted. The reliance on takeaway during the pandemic meant that tips increased, but this wasn’t a limited trend. 

Research has shown that restaurants have seen an increase in delivery and carryout options by 60%. Studies have also shown that 38% of those who use takeaways will pay an average 10% tip. 

Cashless tipping ensures that the business maximizes its opportunities to increase turnover, and create more tipping opportunities for hardworking employees, regardless of their role. 

Employee Safety

Cashless payments were deemed a great alternative to cash during the pandemic, but using a cashless system means that the exposure to germs and viruses is lessened.

Of course, a cashless system alone isn’t enough to reduce illness in the workplace. Still, when used in conjunction with other safeguards, a cashless system ensures that employees can collect their tips without handling cash from various sources.

Increased Productivity

As digital tipping means there is no cash involved, the likelihood of tips is vastly increased. A workforce that is rewarded for its hard work will operate more productively.

Cashless tipping often means that data is available regarding the employees’ work patterns and reassures all employees that they are being paid relatively regarding payments.

Increase Employee Retention

Employees who cannot benefit financially in one role are more likely to move on to new pastures. The staff turnover could mean the restaurant is losing out on talent that could help move their eatery forward.

However, modernizing how tips are given to those working in the restaurant means employees feel more valued and likely remain loyal to the business. This is why it is essential to make tipping in restaurants cashless. Considering the staff shortage, it is vital to retain as much staff as possible.

A Reduction in Administration

The administration is an integral part of any business, and hospitality is no exception. However, this isn’t to say that there aren’t some ways of reducing the administrative burden, and cashless tipping can be a step in the right direction. When customers start tipping in restaurants, it can be a long, drawn-out affair which can often include lots of administration work to allocate and split evenly.

Many systems that allow for cashless tipping will also offer users access to data and analytics. As well as allowing fares to be distributed fairly, the use of software also helps a business acquire insight into the industry, including busy periods and options that have proved to be popular among diners.

The benefits of cashless tipping are merely a snapshot of the opportunities available, especially given how fast technology evolves. Those who thought cashless tipping was only viable during the pandemic should reconsider, especially those wanting to expand their business. 

Kayana’s Self-service technology allows customers to leave tips upon checkout, which automates the whole process of tipping staff. We can simplify it over the coming months by depositing staff tips direct to the staff member’s bank account.

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