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EasyTips Guide: Choosing the Best Cashless Tipping Platform for Restaurants

Starting October 1, 2024, the Employment (Allocation of Tips) Act will bring significant changes to the UK restaurant industry, ensuring all tips go directly to staff. This legislation will benefit over two million workers in the UK and return an estimated £200 million annually to employees. In our cashless tipping guide for restaurants, we will discuss important considerations for choosing a cashless tipping platform, explore consumer trends, review various tipping models, and share our predictions for future trends in tipping platforms within restaurants/hospitality industry.

Key Factors in Choosing the Right Cashless Tipping Platform for Restaurants

Choosing the right tipping platform is crucial for the success of your restaurant business. It not only impacts staff satisfaction and earnings but also ensures compliance with new regulations and enhances overall customer experience. Here are some key considerations for selecting an effective tipping platform:

Transparency & Compliance	Have a tipping platform that can track tip distribution and provide transparency on how tips are given. Ensure the platform provides secure and hassle-free reporting, enabling efficient and accurate tracking of of tips.
Cost-effectiveness	Consider the costs and benefits of options like service charges, in-house management, and cashless tipping solutions such as EasyTip. Choose a method that maximises staff earnings while complying with the new tipping allocation laws, and ensure it is compatible with existing POS and payroll systems.
Administration	Reflect on your current setup and how much time and costs are associated with calculating tips and management around tip distribution. If you are looking for a solution to reduce administration a cashless tipping platform like EasyTip , reduces your time in administration giving you time to focus on what matters most your business, staff and customers.
Instant Payment	A lot of tipping platforms have a delay in how staff receive tips or have additional surcharges for using there platform. Using a tipping platform like EasyTip allows instant payment as an option for staff members receiving tips faster ensuring a happier workforce.
Easy to use	Do research into the tipping platform you want to use and ensure you have control on how tips are disrupted. Do they have individual and common tips as a option for disrupting tips fairly to staff members? How easy is the tipping platform to use for customers? The top tip is if you can't pay that individual staff member in 5 seconds the tipping app or tipping platform is too difficult to use for your customers. Opt for a cashless tipping platform that is straightforward for business owners, accountants, staff and customers to use
Brand Reputation	Do you want a system that enhances your brand? Choose a solution that integrates with review platforms and a tipping app that directs personalised tips to your individual staff members. By connecting with social media and review platforms like Trustpilot and Google Reviews, it's a win-win for both staff and business owners, as your staff receive great reviews and your company benefits from positive feedback.

Consumer Attitudes and Trends

There is considerable data that shows there are different attitudes and trends to tipping throughout the generations which could affect which tipping system you use for your restaurant.

Understanding these generational preferences is crucial for selecting a system that resonates with your customer base whilst maximising employee satisfaction and revenue.

> Did you know that Gen Z on average tip 20-25% for excellent service? This generation is noted for tipping more generously, often influenced by social media trends and peer recommendations. They prefer transparency and flexibility in tipping practices, with many opting for mobile apps and cashless tipping methods for convenience.
> Millennials are known for their digital-savviness, Millennials also prefer cashless tipping options and are influenced by service quality and social media endorsements. They are inclined to tip well for exceptional service but expect transparency in how tips are distributed.Typically millennials tip on average between 18 - 22% for excellent service.
> Gen X and Baby Boomers: These generations tend to follow traditional tipping practices but are gradually adapting to digital payment methods. They prefer clear and consistent tipping guidelines and are likely to tip based on service quality and restaurant policies (Tiphaus) (HubSpot Blog) (Capgemini) they are likely to tip on average between 15-20% for good service.

Tipping models to consider

When deciding on a tipping model for your business, it’s important to weigh the benefits and drawbacks of each approach. Different models can significantly impact staff motivation, customer satisfaction and business operations.

Service Charge: Implementing a service charge can be a straightforward way to ensure staff members are rewarded for their work. However, some customer prefer the more personal touch of adding tips themselves and being more in control. Service charges lack transparency leaving customers uncertain about how their money is being distributed.

Cashless Tipping Platforms: More technological tipping solutions, such as EasyTip, provides complete transparency. This approach ensures quick and fair distribution of tips, boosting staff morale and importantly trust. Cashless tipping platforms also help businesses stay 100% compliant with the upcoming Allocation of Tips Bill.

Our predictions for future Trends in tipping platforms for restaurants

magnifying-glass 1 As more consumers prefer digital payment methods, the trend toward cashless tipping is growing rapidly. Mobile payment apps, QR codes, and digital wallets are becoming standard for tipping, offering convenience and transparency. Here are our top four predictions for tipping platforms in restaurants.

Seamless Integration with Booking and Ordering Systems: Platforms will integrate seamlessly with online booking and ordering systems, allowing customers to leave tips as part of their reservation or takeaway order, streamlining the entire process.

Mobile and Wearable Technology Integration: The use of mobile and wearable technology for tipping will become more prevalent, enabling customers to leave tips using smartwatches or other wearable devices, adding convenience and accessibility.

Social Responsibility and Environmental Considerations: As people become more environmentally conscious, digital tipping will become more popular. Going digital means less cash and fewer paper receipts, making it a greener choice. Plus, tipping platforms might offer options for customers to donate a portion of their tips to charities or community projects, reflecting the growing trends in social and ethical consumerism.

For more details on optimising your restaurant’s tipping platform get in touch here - https://eu1.hubs.ly/H09Y7k_0