# Are we at a tipping point for the hospitality sector? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-19 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Boosting Hospitality: Tips for Employers and Consumers Meta Description: Discover how cashless tipping solutions can help increase staff tips by up to 30% in the hospitality industry. Support your local businesses and show URL: https://financedigest.com/are-we-at-a-tipping-point-for-the-hospitality-sectorhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-865559536-1736815196283-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/133-1736815196302-compressed.jpg)_ _By **Evgeniy Chuikov,** CEO and Co-Founder of EasyTip_ The hospitality industry has indeed reached a tipping point. While consumer spending has finally [returned to pre-pandemic](https://www.ons.gov.uk/businessindustryandtrade/retailindustry/articles/howourspendinghaschangedsincetheendofcoronaviruscovid19restrictions/2022-07-11) levels, it is not keeping pace with overall inflation. Add to that the impending recession and the 75% increase in [hospitality job vacancies](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/hospitalitybusinessesaremostlikelytobestrugglingtofillvacancies/2021-09-16). Due to the sector’s prolonged closure at the height of the pandemic, former employees are likely to have moved to different roles and industries in search of more stability. Employers in the hospitality industry are struggling to hire and pay their employees, while current [employees are dealing](https://www.financedigest.com/how-to-deal-with-challenging-employees.html "How to Deal With Challenging Employees?") with more work for the same pay. Employers in the [industry must](https://www.financedigest.com/why-the-industry-must-simplify-cybersecurity.html "WHY THE INDUSTRY MUST SIMPLIFY CYBERSECURITY") reconsider their work structure and benefits in order to regain their appeal. Consumers can also play an important role: in addition to [supporting local businesses](https://www.financedigest.com/new-business-launches-to-support-it-professionalsfacing-mission-critcial-sector-challenges.html "NEW BUSINESS LAUNCHES TO SUPPORT IT PROFESSIONALSFACING MISSION CRITCIAL SECTOR CHALLENGES"), a simple act of tipping could reinvigorate the sector, and I see it in two parts. **Tipping can boost recruitment and** [retention of employees](https://www.financedigest.com/protecting-the-finance-team-from-burnout-to-drive-employee-retention.html "Protecting the finance team from burnout to drive employee retention") With the employment crunch, [hospitality employers need to have a good look at how it is conducting its work practices and identify ways to enhance the staff’s](https://www.financedigest.com/the-icu-is-full-medical-staff-on-frontline-of-chinas-covid-fight-say-hospitals-are-overwhelmed.html "‘The ICU is full’: medical staff on frontline of China’s COVID fight say hospitals are ‘overwhelmed’") experience and wellbeing. As [tips comprise an important](https://www.financedigest.com/6-important-tips-for-passing-the-cfa-exam.html "6 Important Tips for Passing the CFA Exam") proportion of a hospitality worker’s income, it is more important than ever for employers to take responsibility in delivering tips fairly and quickly. Fortunately, the government is backing [a new law](https://www.gov.uk/government/news/cash-boost-for-millions-of-workers-as-government-backs-new-law-to-ensure-all-staff-keep-their-tips) that makes it illegal for employers to withhold tips and service charges from staff. This is a good start to safeguard workers and give them the [confidence to consider the industry](https://www.financedigest.com/how-the-epa-plans-to-boost-confidence-in-the-uk-payments-industry-post-brexit.html "How the EPA plans to boost confidence in the UK payments industry post Brexit") again. However, the next step is for employers to identify a way to account for and distribute these tips quickly – be it through a more structured process or utilising [technological innovations like cashless tipping solutions](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION"). Hospitality and [services industries can at times](https://www.financedigest.com/how-can-financial-services-companies-compete-more-effectively-in-times-of-uncertainty.html "How can Financial Services Companies compete more effectively in times of uncertainty?") be slow to innovate but cashless tipping has firmly entered the inflexion point. From point-of-sale providers like Samtouch Software, to beauty salons like Gielly Green, [businesses are empowering their employees to receive tips](https://www.financedigest.com/6-practical-tips-for-starting-an-online-business.html "6 Practical Tips for Starting an Online Business") directly from the customers. Some examples of cashless tipping include venues printing a QR code on receipts or merchandising so that customers can tip their server without needing to [download an app](https://www.financedigest.com/40000-downloads-of-e-money-app-devere-vault-by-end-of-2017.html "40,000+ downloads of e-money app deVere Vault by end of 2017"). In fact, we found that such cashless tipping solutions have produced an [increase in staff tips](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") of as much as 30%. The greater transparency and discrete tipping experience [benefits the customer](https://www.financedigest.com/online-marketplaces-embracing-embedded-finance-to-benefit-both-customers-and-vendors.html "Online marketplaces: embracing embedded finance to benefit both customers and vendors     "), employee, and employers all around. **The hard [work of hospitality staff](https://www.financedigest.com/leading-london-advertising-agency-launches-bitcoin-bonus-scheme-encouraging-staff-to-use-artificial-intelligence-in-creative-work.html "Leading London Advertising Agency Launches ‘Bitcoin Bonus’ Scheme, Encouraging Staff To Use Artificial Intelligence In Creative Work") is recognised** We [must not forget the simple yet powerful](https://www.financedigest.com/new-uk-pm-must-be-radical-to-stop-power-bill-catastrophe-think-tank.html "New UK PM must be radical to stop power bill catastrophe – think tank") gesture of tipping. It is a tangible [way to show appreciation, and it goes a long way in benefiting](https://www.financedigest.com/5-ways-cfo-and-cio-collaboration-can-benefit-the-business.html "5 Ways CFO and CIO collaboration can benefit the business") the staff. It acknowledges the hard [work they’ve put in and potentially helps to alleviate any financial](https://www.financedigest.com/half-of-employees-aged-40-and-over-in-the-accounting-banking-and-finance-industries-think-they-will-have-to-work-longer-to-live-the-life-they-want.html "Half Of Employees Aged 40 And Over In The Accounting, Banking And Finance Industries Think They Will Have To Work Longer To Live The Life They Want") stress. Anyone whose service you utilise – be it servers, hairdressers, or delivery drivers – deserves a tip. In two of the most challenging years of our time, these are the workers who kept going and who could very much do with a small [financial boost to keep](https://www.financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitive.html "Three Ways the Data Cloud Can Keep Financial Services Competitive") going. **A reinvigorated hospitality industry** According to the circular flow of income model, money will always [move from one sector to another and back](https://www.financedigest.com/analysis-at-world-cup-saudi-crown-prince-moves-back-on-to-global-stage.html "Analysis-At World Cup, Saudi crown prince moves back on to global stage") again in an endless loop. Whatever we inject will inevitably [return and help to boost the wider economy](https://www.financedigest.com/seminal-token-economy-conference-token-summit-iii-sells-out-upon-its-return-to-nyc.html "Seminal Token Economy Conference, Token Summit III Sells Out Upon Its Return to NYC"). This concept is especially relevant when it comes to tipping in the hospitality industry. Hospitality [employers who can boast such equity in the world of gratuities can boost their recruitment and retention rates because it demonstrates that they care about their employees](https://www.financedigest.com/why-more-companies-are-asking-new-employees-to-commence-employment-before-christmas.html "Why more companies are asking new employees to commence employment BEFORE Christmas."), whereas tippers can encourage and make a world of difference in a worker’s life. If we can make transparent tipping practices an industry standard, for both [consumers and employers – the hospitality sector’s](https://www.financedigest.com/consumer-durables-sector-still-feeling-the-effects-of-recession.html "Consumer durables sector still feeling the effects of recession") appeal will increase, new workers will want to join or re-join it, and its resilience will be strengthened. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---