{"id":3920,"date":"2021-02-02T17:15:26","date_gmt":"2021-02-02T21:15:26","guid":{"rendered":"https:\/\/lgcassocprod.wpengine.com\/?p=3920"},"modified":"2023-06-23T21:05:30","modified_gmt":"2023-06-23T21:05:30","slug":"digital-tipping","status":"publish","type":"post","link":"https:\/\/lgcassociates.com\/es\/digital-tipping\/","title":{"rendered":"Digital Tipping \u2013 7 Pros and Cons | Hospitality in the News"},"content":{"rendered":"

Every week we comb through the news to find employment trends affecting the hospitality\u00a0<\/span>industry\u00a0<\/span>so you<\/span>\u00a0don\u2019t have to. This week\u2019s topic:<\/span>\u00a0digital tipping.\u00a0<\/span>\u00a0<\/span><\/p>\n

Digital Tipping<\/strong><\/h5>\n

Over the past couple of years<\/span>, with many pushing to increase minimum wage, the topic of tipping foodservice and hospitality workers has\u00a0<\/span>been resurfacing.\u00a0<\/span>Employees like servers, bartenders, and some hotel staff typically rely on tips from customers to\u00a0<\/span>make up\u00a0<\/span>for the fact that they make less than minimum wage \u2013 a common practice at restaurants and<\/span>\u00a0<\/span>hotels.\u00a0<\/span>But in an increasingly cashless world, managers are finding that employees are losing out on tips<\/span>\u00a0that customers want to give<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Think of\u00a0<\/span>the\u00a0<\/span>times when you wanted to tip someone but didn\u2019t have any cash on you. Maybe it was a valet or a housekeeper, or\u00a0<\/span>a barista who went above and\u00a0<\/span>beyond.<\/span>\u00a0For you, it may be insignificant,\u00a0<\/span>but for the worker, it can add up.\u00a0<\/span>The\u00a0ability to give\/receive tips can make all the difference, p<\/span>articularly during the pandemic where thousands of workers were furloughed or laid off<\/span>.<\/span>\u00a0<\/span><\/p>\n

In order to ensure that workers\u00a0<\/span>are able to<\/span>\u00a0receive tips, more companies are beginning to\u00a0think about digital tipping, which is exactly how it sounds:\u00a0<\/span>distributing\u00a0<\/span>electronic tips\u00a0<\/span>as opposed to cash.\u00a0<\/span>With restaurants across the country going increasingly cashless and concerns su<\/span>rrounding exchanging money during the pandemic, it makes sense.\u00a0<\/span>Some<\/span>\u00a0<\/span>hoteliers have<\/span>\u00a0turned\u00a0to<\/span>\u00a0<\/span>youtip<\/span><\/a>, a platform that scans a QR code and allows you to tip electronical<\/span>ly without having to download an app to your phone. Managers affix a QR code to employee’s badges or name tags, and voila!\u00a0<\/span>You can now tip without even having to make a transaction.\u00a0<\/span>\u00a0<\/span><\/p>\n

Hospitality isn\u2019t the only industry\u00a0<\/span>looking for technology-driven tipping methods<\/span>. Businesses like hair and nail salons\u00a0<\/span>began shifting towards digital tipping as many go cashless.\u00a0<\/span>One company,\u00a0<\/span>Tippy<\/span><\/a>, offers digital tipping specifically to the salon industry and launched a\u00a0<\/span>new online tipping platform<\/span><\/a>\u00a0at the sta<\/span>rt of the pandemic. In just over a week, they brought in over $40,000\u00a0<\/span>in tips for furloughed workers to help support their favorite stylists.\u00a0<\/span>\u00a0<\/span><\/p>\n

If your business is considering a digital tipping platform,\u00a0<\/span>weighing the pros and cons will help you decide if it\u2019s the\u00a0right choice for your team. We\u2019ve outlined some of them below:\u00a0<\/span>\u00a0<\/span><\/p>\n

Pros<\/span><\/b>\u00a0<\/span><\/p>\n