Going Cashless with Tips – Why Should You Care?

July 27, 2021|By Ksenia Steidel

It’s a typical evening at the restaurants in your chain – the dinner rush has subsided, and staff are slowly starting to settle down after a busy evening. And now that volume has slowed, your managers are looking at which servers they can send home for the night to keep labor costs down.

Normally, this whole process would involve a whole host of disruptions as staff work with their manager to collect their nightly tips to take home once they’re done.

But expectations – and technologies that drive them – are changing. With the majority of transactions now made with credit or debit cards, having access to cash to tip out your serving staff at the end of the night is increasingly becoming more of a challenge.

There’s a groundswell in organizations moving to electronic tipping, as the benefits far outweigh the costs.

Here we explore some of the key reasons to make the switch.

Reduced Carrying Costs

With reduced cash on hand at your restaurants from customer transactions, your locations are probably now forced to deal with ordering bills and coins from their local bank to be delivered by armored car.

The carrying costs associated with having additional physical cash on hand can be significant. Not to mention, the inherent risk in having large amounts of petty cash kept in your office just isn’t worth it.

Manager Time is Valuable

The process of manually counting the tip pool and physically distributing it to employees at the end of the night is tedious and time consuming for managers. Couldn’t there be a better use of manager time?

By shifting to an electronic tip process, managers can quickly and easily distribute an entire night’s worth of tips to staff in just minutes, shaving off some valuable time that they could then use to focus on more high value tasks that drive revenue for the business.

Employee Safety

Costs to your business notwithstanding, the most important item is the overall safety and security of your own employees. The idea of sending a member of staff home late at night after a shift, with hundreds of dollars in cash in their pocket, seems like a recipe for disaster.

Organizations that move to a cashless tip process can avoid this issue altogether allowing staff to get their tips electronically, with a notification delivered right to their phone to let them know their tips are ready to use, immediately after their shift. No more cash in pocket, no more risk to employee safety.

It’s Instant, and it’s fee-free

At Instant, we believe daily access to wages should be free. Instant Tips is a revolutionary earned wage tips solution that is fee-free to both employees and employers, delivering all the benefits outlined above, without any of the costs. And getting started is a cinch – no integration requirements means you can get started delivering your employee tips daily, in no time.

To learn more about how Instant Tips can work for your business, get in touch with us today to request your 10-minute consultation.