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It’s estimated that 89% of all consumer transactions are now conducted digitally - a significant shift in consumer preferences that will have a profound impact on hospitality organizations as they are faced with the prospect of reduced cash on hand, and the downstream implications of this.
As businesses acknowledge and address these impacts, one area that will require a change in process is how organizations pay employees their tips. By moving to a cashless, digital-centric employee tips process, there are a whole host of benefits that come with this, including a reduction in cash carrying costs, increased employee retention and more.
But arguably the most important value that comes from shifting to an electronic tip process is the added safety it gives to employees.
Here are some key aspects to consider:
Reduced Cash Handling:
Electronic tipping eliminates the need for employees to handle and carry cash. This reduces the risk of theft or robbery, as there is no physical cash on the premises or carried by employees. Employees are less likely to be targeted for their tips when they are not handling large amounts of cash.
Enhanced Personal Security:
Employees often leave work late at night, and carrying cash tips can make them vulnerable to personal safety risks. With electronic tips, there is no need for employees to carry substantial amounts of cash, reducing the risk of being targeted for theft or other safety concerns when leaving the workplace.
Contactless Transactions:
Over the past few years, the emphasis on contactless transactions has increased due to health and safety concerns, especially in light of the COVID-19 pandemic. Electronic tipping systems often allow for touch-free transactions, minimizing the risk of transmission compared to handling cash.
Transaction Transparency:
Electronic tipping systems provide a transparent record of transactions. This transparency can be beneficial in case of any disputes or discrepancies. Knowing that all transactions are recorded electronically can deter fraudulent activities and provide a sense of security for both employees and employers.
Remote Tipping Options:
Some electronic tipping systems allow customers to tip remotely through mobile apps or online platforms. This means that employees do not have to handle any physical payment transactions, reducing the risk of exposure to potential threats or altercations.
Employee Empowerment:
Electronic tipping can empower employees by giving them more control over their earnings. With real-time access to tips and earnings information, employees may feel more secure and in control of their financial situation, reducing stress and improving financial wellbeing.
Preventing Internal Theft:
Electronic tipping systems, with their transaction logs and accountability features, can also contribute to preventing internal theft. This helps maintain a safer work environment by discouraging dishonest practices among staff members.
In summary, an electronic tipping solution like Instant Tips not only offers convenience and efficiency but also contributes to the safety and well-being of hospitality employees by minimizing cash handling, providing transparency, and offering features that enhance personal security. As the industry continues to embrace technology, prioritizing employee safety through electronic tipping solutions becomes an essential consideration.
To learn more about taking your employee safety to the next level, visit instant.co/tips or get in touch at instant.co/demo.
On Episode 05 Part 1 of the Instant Payments Podcast, Instant Financial’s CEO Tal Clark sat down with Kep Sweeney, CEO of PDQ Restaurants, to talk about the state of the quick service restaurant (QSR) industry, what makes PDQ stand out, and the lessons he’s learned over a career that has spanned kitchens, Wall Street, and executive leadership.
How to Think About Experience in Restaurants
Sweeney’s path is anything but traditional—he started as a chef (even winning an award from Julia Child), became an analyst on Wall Street, and later transitioned into turnaround and executive leadership roles. That broad base of experience, he says, is what made him effective.
“A CEO once told me he was sick of people saying they had 20 years of experience when it was really the same year repeated 20 times. What sets people apart is a range of experiences, lessons from outside restaurants that apply directly inside.”
He encourages future leaders to seek out that variety: “Whether it’s from manufacturing, cosmetics, or tech, those perspectives give you tools to solve problems in restaurants that others might not see.”
What Sets PDQ Apart
While many QSR concepts compete on speed and price, Sweeney emphasized that PDQ’s model is built around quality and alignment. After all, PDQ stands for “people dedicated to quality.”
“PDQ is unique in the amount of work that goes into the food. We marinate tenders in buttermilk, double bread them, and keep short hold times with tight specs. That focus on one item at a time results in quality and a very good food product.”
Beyond the menu, PDQ has also borrowed from the Outback Steakhouse playbook by empowering its partners at the unit level. (Check out Episode 02 of the podcast where we talk to Outback’s co-founder.)
“We have 50 partners out there, and what we try to do is be supportive of those partners. They run the units, they have a partnership deal, and a compensation plan that encourages them to run it better than we could. All incentives are aligned, which creates a very healthy way to operate.”
This combination of food quality and a people-first operating model has helped PDQ sustain turnover rates far below the industry average while keeping top talent engaged.
The State of the QSR Industry
Sweeney sees the QSR industry as serving two fundamental needs: “QSR can solve either a poverty of income or a poverty of time,” he explained. “That’s why the 16–24 year old, they will use QSR a lot more frequently.”
At the same time, cost pressures have reshaped the landscape. “The key today is pricing and value. There was a big run-up on cost, so prices followed,” he said. “People are becoming more value conscious, and perhaps QSR will once again be viewed as not the low quality, but the low cost alternative.”
Looking Ahead
As the QSR industry adapts to inflation, evolving customer expectations, and workforce challenges, leaders like Sweeney are proving that the combination of disciplined quality and empowered employees can carve out a sustainable advantage. PDQ’s focus on one-tender-at-a-time quality and partner alignment may be a model others look to replicate.
Tal will talk with Kep more in Episode 05 Part 2.
🎧 Listen to the full episodes featuring Kep on the Instant Payments Podcast here: instant.co/podcast.
