Hospitality business owners say they are eager to begin rewarding frontline workers with new cashless, contactless, ‘appless’ gratuity solution.
“Hmmm”, was the considered opinion of a member of the waitstaff at Manhattan’s Union Square Cafe last week when asked about working for a set wage, not tips. “It’s good to know how much is coming in”, the staff member later reconsidered. “Not so good if you need to make cash fast.”
While it’s true that tipping allows restaurants to offer lower nominal prices, tip income tends to benefit servers more than it does the restaurant owner—and it allows servers to earn considerably more than workers in other restaurant jobs
There is no standard practice in the UK as to how tips and service charges are handled, and with new wage and tax legislation, the situation is set to become more complex and confusing.