Should Your Restaurant Get Rid of Tipping?
You may have heard about some restaurants that have chosen to do away with tipping in favor of offering their employees a higher hourly wage. There’s support for both sides of this argument, including concerns about inconsistent earnings and support for tipping's motivational influence on servers. Let’s explore this topic and discuss the effects tipping can have on your restaurant business.
Why Tipping Should be Banned

If you're considering getting rid of tipping at your restaurant, here are a few arguments to support that choice.
Vague Tipping Etiquette
It’s not always clear when tipping is or isn’t expected. There is often confusion around take-out orders, fast casual restaurants, and buffets, just to name a few. And it can be especially confusing for customers when the expectations vary on almost a case by case basis.
It can be hard to tell where the money from the tip jar is going because different establishments will handle it in different ways. For example, coffee shop employees may split up the tip jar as they finish up their shift, but some establishments will collect all the tips for the whole year in order to pay for a holiday party for the staff.
Most foodservice staff work hard for a low hourly wage and they rely on tips, so it’s important for customers to understand how their money is being used and in what circumstances they’re expected to leave a tip.
Inconsistent Earnings
Many people don’t realize that servers at restaurants are only guaranteed an hourly wage of about $2.13. The rest of their income comes from tips. Sometimes, a server’s tips will suffer due to circumstances beyond their control. A rowdy customer, a shortage of a menu item… there’s any number of things that can go wrong. Customers aren’t always sympathetic towards these mishaps, and that’s unfair to the front-of-house staff.
Tensions Between Front- and Back-of-House
During a busy shift, front-of-house employees have the potential to earn more money than those in the back-of-house. This is because servers’ wages are largely determined by the amount of tables they wait, while back-of-house employees typically have a fixed hourly wage. This leaves your back-of-house staff at a disadvantage because even though they are under just as much pressure with the increased volume of customers, they don’t see any reward for working extra hard.
Employees Feel Underappreciated
Even though serving staff and bartenders can make a living on tips, the low hourly wage may make them feel underappreciated. Offering staff a consistent pay rate can reduce your employee turnover. Your employees will enjoy the security of knowing what to expect from their wages each month, even during slow times of the year, which can reduce stress in their personal lives. It also shows your staff that you appreciate them.
Why Tipping Should Not Be Banned

If you want to continue the tipping practice in your establishment, here are a few points that support that choice.
Personal Interactions
Tipping can help interactions between customers and servers or bartenders feel more personal. Leaving a generous tip is a nice way for customers to show their appreciation for the service provided to them. To discourage tipping may cause confusion for guests and it removes the emotional connection that servers and diners have become accustomed to as part of the restaurant-going experience.
Incentive for Good-Quality Service and Upselling
It can also be argued that the tipping system acts as an incentive for servers to provide guests with the best possible experience. It’s a similar idea to sales commissions since tipping is a percentage of the total cost of the meal—servers stand to earn better tips if they upsell.
Higher Menu Prices
The money that goes towards an hourly wage has to come from somewhere. In most cases, this will mean raising the price of items on your menu. The cost for customers typically winds up being the same as it would be if a customer were leaving a tip, but customers who are accustomed to leaving tips might be scared of the high menu prices.
While you may be accustomed to tipping in restaurants, it may not be the best system for servers because it prevents them from earning a fixed, reliable wage. On the flip side, tipping is a great way for customers to show appreciation for the service provided and acts as an incentive for servers to go above and beyond. Clearly, there’s no real right or wrong answer to the question of whether or not tipping should be banned. You just have to consider both sides and choose what’s right for your unique business and the needs of your staff.
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Everything You Need to Know About Mobile POS Systems
As the years have gone by, paying with cash has become less common, and customers are instead choosing to make purchases with credit cards, mobile payment services, and even cryptocurrency. If you're a business owner or foodservice operator, you'll need to adapt and change your business to keep up with changing restaurant trends, and using a mobile POS system is the perfect first step. This article will break down what a mobile POS system is, why it's useful for your business, what features might be included, and some great options to get started. What Is Mobile POS? Mobile POS, or point of sale, is a mobile device, such as a smartphone or tablet, that completes a financial transaction with a customer through an app or piece of software. When using a mobile POS system, your device completes the same action as a cash register. The term mobile POS refers to both the hardware involved, such as the card reader you use to swipe your customers' cards, and the software that completes the payment digitally. When you sign up for an mPOS service, typically the company will send you a card reader that you can plug into your tablet or smartphone and use to complete transactions. Some companies may send you other add-ons, such as stands for your device or printers for receipts. What Types of Establishments Use Mobile POS? One of the biggest benefits to mobile POS systems is that they're portable, which makes them ideal for mobile businesses like food trucks. But, most modern mPOS systems feature more than just portability, which makes them appealing to other kinds of establishments, and they are especially popular in bars. Additionally, mobile POS systems and mobile payments are great options for delivery drivers as they reduce contact with customers when making change and collecting cash for orders. What Are Mobile Payments? Mobile payments are transactions that are totally digital, and customers don't need to have a physical debit or credit card with them to make a sale. As a result, mobile payments, or mPayments, don't require any hardware to accomplish. Here are some of the most popular mobile payment platforms: Apple Pay Google Pay PayPal Venmo Cash App These systems are especially popular with younger generations that don't want to carry cash and prefer an all-digital method of payment. Mobile payments are also great for food trucks, concession stands, and merchants at festivals and outdoor events where customers may want to make purchases, but don't want to risk bringing their wallet to a crowded event. Why Use Mobile POS? Mobile POS systems have become a preferred method of payment by many small businesses due to their flexibility. Plus, food trucks and concession stands like them because they're portable, they can travel with their business, and they don't take up much counter space, which is essential in a confined space. According to Katherine from Poster, "Reliable mobile POS systems are designed to make your life so much easier!" In addition to helping restaurants complete digital transactions, mPOS systems have a number of other useful features that make them integral to your bar, restaurant, or foodservice operation. Essential Features for a Mobile POS System There are many mPOS services, and each of them have their own features and add-ons that make them different. As a result, there are mobile POS features that are designed for bars and others that are appealing to restaurants. But, there are a few features that are useful for every foodservice establishment and that you should look for when shopping around. Here are 9 essential features bar and restaurant mobile POS systems: Security is the most important feature for an mPOS service since it involves your and your customers' money. The best mobile POS system should have top-of-the-line security to prevent chargebacks or identity theft. An intuitive, easy-to-use interface is essential. Your mobile POS should be simple, so you don't need to waste time tapping through endless menus when there are customers waiting. Your mobile POS should include integrated financial and accounting software. Using an mPOS system can help streamline your restaurant's accounting and make the process run smoother. Cross platform functionality is a must. This will allow you to access your POS system from any type of device by simply logging in. "Mobile POS systems should offer an inventory solution. Over 60% of restaurant operators say food costs are a significant challenge for their business," says Seth from Upserve. By tracking your inventory, you can easily see where adjustments need to be made to help drive down your food costs. Best of all, bars can use this feature to track liquor sales and optimize their orders. Additionally, according to Seth from Upserve, "Mobile POS systems should allow you to track which menu items perform the best." This can help you make menu adjustments, reduce waste, and increase your sales. The ability to work offline is crucial. Sometimes your Internet connection might fail, but it shouldn't derail your whole business. Your mPOS should have the ability to send invoices to your customers via email rather than printed receipts, if requested. This is a great mobile POS feature for bars, because it streamlines the process and keeps things moving. Many mPOS systems nowadays have features that collect customer information. This allows you to hone your business's direction based on your customers' likes and dislikes. Additionally, you can create a more personalized experience if your customers return. Best Mobile POS Systems There are tons of mPOS systems out there, but how do you know which one is best and has the most features? We compiled a short list of some of the top mobile POS options for bars and restaurants and listed some of their best features to help you with the decision. Toast: Toast POS systems makes it easy to set up a no-contact experience for your guests. Features like tableside ordering and payment mean you can completely eliminate paper menus, receipts, and pens from the equation. Not only does this streamline your service and free up time for your employees, it increases your guest satisfaction. Lightspeed: Lightspeed's restaurant POS system provides all the tools needed to adapt to the changing habits of your customers. It offers an array of mobile payment options, integrates orders from top apps like UberEats and DoorDash, and consolidates all your orders onto one single screen. There are no third party fees, and payment reports sync easily to your back office. Buzztime: This POS system is versatile, and it's ideal for many different mobile businesses and foodservice establishments. Buzztime "includes two options for payment: an EMV "chip" card reader and an NFC device to process contactless mobile payments like Apple Pay and Samsung Pay," says Crystal from Buzztime. This service also integrates with other POS services like Digital Dining, NCR, and Micros. Poster: Featuring a user-friendly, intuitive interface, Poster is an excellent choice, especially for food trucks and mobile businesses. Poster has many useful features, such as data security, easy menu modification, inventory management, and more. Square: One of the best-known mobile POS systems, Square has many essential features for foodservice establishments. For example, they allow you to track your inventory, create reports based on sales data, and more all from a cross platform and intuitive system. Harbortouch: Harbortouch is an all-in-one POS solutions for restaurants and bars of all sizes with no upfront costs. Harbortouch also offers built-in online ordering software that integrates into the POS system with Skytab devices to facilitate curbside and delivery payments. The best mobile POS system for your bar or restaurant combines many useful features and designs into one intuitive piece of software, and it should help streamline your business. When deciding which type of mPOS to choose, be sure to consider which features are integral to your business and all of the available options.

Restaurant Payment Processing
In today's fast-paced digital age, customers expect a seamless and secure payment experience when they dine out. Whether you run a small cafe or are the owner of a large fine dining restaurant, having the right payment processing system in place is essential for providing excellent customer service and maximizing your revenue. With the right payment processing system, you can offer your customers a range of payment options, including credit and debit cards, mobile wallets, and even contactless payments. Discover everything you need to know about restaurant payment processing and how you can make the payment process as convenient as possible for both your customers and staff. What Is Payment Processing? Payment processing refers to the entire journey that a payment takes from the moment a customer swipes their credit card to the moment the funds are deposited into your restaurant's bank account. It involves a series of steps and technologies that work together seamlessly to facilitate secure and convenient transactions. In payment processing, a third-party company known as a payment processor verifies the customer's card details, checks for sufficient funds, and ensures that the transaction meets all security requirements. Once the payment is authorized, the third-party sends the funds to your restaurant's merchant account, before it is eventually deposited into your restaurant’s regular business account. What Is a Payment Processor? The payment processor, also known as the merchant services provider, is the company that handles the actual processing of the payment. These companies play a crucial role in facilitating the secure and efficient transfer of funds between the customer, the restaurant, and the financial institutions involved. At its core, a payment processor is a company that handles electronic transactions on behalf of businesses. When a customer makes a payment using a credit card, debit card, or any other electronic form of payment, the payment processor ensures that the funds are transferred from the customer's account to the restaurant's account. What Does a Payment Processor Do? One of the primary functions of a payment processor is to authorize and authenticate transactions. When a customer makes a payment, the payment processor validates the payment details, checks if the customer has sufficient funds, and verifies the authenticity of the payment card. This process helps to mitigate the risk of fraud and ensures that only legitimate transactions are processed. In addition to transaction authorization and settlement, payment processors provide a range of additional services such as fraud prevention tools, reporting and analytics, recurring billing options, and integration with other business systems such as point-of-sale (POS) systems and accounting software. Restaurant Credit Card Processing When it comes to restaurant payment processing, credit card transactions play a vital role. With more and more customers opting to pay with their cards, it's essential for restaurants to have a seamless and efficient credit card processing system in place. Some of the benefits of credit card processing for your restaurant include: Convenience for Customers - Credit card processing offers convenience to your customers by allowing them to pay with their cards instead of carrying cash. By accepting credit cards, you can cater to a wider range of customers and provide a hassle-free payment experience. Increased Sales - Studies have shown that customers tend to spend more when using their credit cards compared to cash payments. By accepting credit cards, you can potentially increase your average bill size and generate higher sales for your restaurant. Security and Fraud Protection - Credit card processing provides built-in security measures that help protect both your customers and your business. With encrypted transactions and fraud detection systems in place, you can minimize the risk of fraudulent activities and unauthorized transactions. Streamlined Operations - Implementing a credit card processing system can streamline your restaurant's operations. Instead of manually handling cash, your staff can focus on providing excellent customer service and attending to other important tasks. Improved Cash Flow - Unlike cash payments, credit card transactions are processed electronically, resulting in faster and more efficient payment settlements. This means that your restaurant can receive funds from credit card transactions directly into your business bank account, reducing the need for manual cash handling and improving your cash flow. Access to Reporting and Analytics - Most credit card processing systems offer robust reporting and analytic features. These tools can provide valuable insights into your restaurant's sales trends, customer behavior, and other key metrics. Restaurant Credit Card Fees When it comes to running a restaurant, one of the most important considerations is how to handle payment processing. In today's business climate, accepting credit card payments is not only expected by customers, but it also offers convenience and security for both parties involved. It's essential for restaurant owners to understand the fees associated with credit card transactions to ensure they are making informed decisions. Familiarize yourself with some of the most common restaurant credit card fees below: Interchange Fees - Interchange fees are charged by credit card companies and banks for processing credit card transactions. These fees are typically a percentage of the total transaction amount, plus a flat fee. Processing Fees - In addition to interchange fees, restaurant owners may also be charged processing fees. These fees cover the cost of the technology and services required to process credit card transactions. Chargeback Fees - When a customer disputes a credit card transaction and requests a refund, the restaurant may be hit with a chargeback fee. It's important for restaurant owners to have clear policies and procedures in place to minimize the risk of chargebacks. What Is a Convenience Fee at a Restaurant? A convenience fee is a charge added to a customer's bill to cover the cost of providing additional service or convenience. In the context of restaurant payment processing, a convenience fee is typically applied when customers choose to pay with a credit card or other electronic payment methods. In order to offset costs like processing fees and interchange fees, some businesses choose to pass along a convenience fee to their customers. What Is Contactless Payment? Contactless payment refers to a method of making transactions without the need for physical contact between the payment card or device and the payment terminal. Instead of swiping a card or inserting it into a machine, customers can simply tap their card, smartphone, or wearable device on the payment terminal to complete the transaction. When utilizing contactless payment, your restaurant can reap the following rewards: Speed and Efficiency - With a simple tap, customers can quickly complete their transactions, reducing the time spent at the payment counter. This not only enhances the overall dining experience but also allows restaurants to process payments faster, resulting in shorter wait times for other customers. Enhanced Security - Unlike traditional payment methods where the card may leave the customer's hand, contactless payment ensures that the card never leaves the customer's possession. This reduces the risk of card skimming and fraud. Versatility - Contactless payment methods are versatile and can accommodate various forms of payment. Whether it's a contactless-enabled credit or debit card, a smartphone with mobile payment capabilities, or even wearable devices like smartwatches, customers have a range of options to choose from. Increasing Consumer Adoption - Touch-free payment methods are trending among consumers, as many customers now prefer these payment methods to minimize physical contact and reduce the risk of transmitting germs. By offering alternative payment options, restaurants can attract these safety-conscious customers and provide them with a convenient and secure payment experience. Restaurant payment processing is an ever-evolving field, with new technologies and trends constantly emerging. As a restaurant owner or manager, staying up-to-date with the latest payment processing solutions can give you a competitive edge in the industry. By providing a seamless, secure, and convenient payment experience for your customers, you can build trust, enhance customer loyalty, drive revenue growth, and ultimately increase profit margins for your restaurant.

Mobile Marketing for Restaurants
In today's digital age, mobile marketing plays a crucial role in driving sales for businesses across various industries, including the restaurant sector. With the majority of consumers relying on their smartphones for quick and convenient access to information, leveraging mobile technology has become essential for restaurants looking to boost their visibility, engage with customers, and ultimately increase sales. We'll introduce what mobile marketing is, the different forms it comes in, and mobile marketing trends below. Click any of the links below to skip to the mobile marketing information that most interests you: What Is Mobile Marketing? Types of Mobile Marketing Mobile Marketing Tips Future of Mobile Marketing What Is Mobile Marketing? Mobile marketing is a strategy that targets customers using smartphones, tablets, and other mobile devices. Unlike traditional marketing methods that rely heavily on demographic data, mobile marketing considers the actions and preferences of individual users. It acknowledges people are increasingly reliant on their mobile devices for various activities, such as browsing the internet, checking emails, or scrolling through social media feeds. By leveraging these channels, businesses can deliver targeted messages directly to their customers' fingertips. Mobile Marketing vs Traditional Marketing It's important to note that mobile marketing is different from social media marketing. While social media marketing focuses on promoting products or services through social media platforms, mobile marketing encompasses a broader range of channels and formats. It allows businesses to engage with customers through various touchpoints, ensuring a more holistic and comprehensive marketing approach. Types of Mobile Marketing With the rise of smartphones and the increasing reliance on mobile devices, it has become crucial for businesses to utilize mobile platforms to reach potential customers. Various types of mobile marketing strategies can help businesses tap into this vast market. 1. Website-Based Marketing A restaurant website optimized for mobile devices is the foundation on which successful mobile marketing campaigns are built. It's not enough to have a website; you need to ensure that it works smoothly and isn't missing any core features when accessed from a mobile device. Your mobile website is often the first interaction potential customers have with your brand, and studies show that a bad mobile experience can cause potential guests to click away. To design a good mobile website, keep the following factors in mind: Responsiveness: Your website should automatically adapt to different screen sizes and resolutions, ensuring that it looks and functions properly on any mobile device. Loading speed: Mobile users have limited patience when waiting for a website to load. Optimize your website's performance to minimize loading times and provide a smooth browsing experience. Navigation: Make it easy for users to find what they're looking for by organizing your content in a logical and user-friendly manner. Use clear and clickable buttons, and avoid overwhelming users with too much information on a single page. Call-to-action: Take steps to guide users toward the actions you want them to take, whether it's making a reservation, placing an order, or signing up for your newsletter. Use prominent and easily clickable buttons to encourage conversions. 2. App-Based Marketing Having a dedicated mobile app can give your restaurant a significant advantage over your competition. Apps serve as a powerful tool to engage with your customers, boost loyalty, and drive sales. They also allow you to improve customer experience and streamline the way that users order food. Continue reading to learn about how your restaurant can utilize a mobile app: App-only promotions: Reward your loyal app users by offering special promotions that are exclusively available through your app. Whether it's a discount on their next meal or a free appetizer, these app-only perks will incentivize customers to download and use your app regularly. Exclusive perks: Highlight the value a customer gets by downloading and using your app, such as personalized offers, birthday rewards, or early access to new menu items. You can also allow customers to accumulate rewards points with every purchase. Push notifications: Push notifications are a direct and effective way to communicate with your app users. Send timely reminders about their accumulated rewards, upcoming expiration dates, or limited-time offers. You can also leverage geolocation technology to send push notifications when customers are near your restaurant, enticing them to drop in and enjoy a meal. 3. QR Codes QR codes, short for Quick Response codes, are two-dimensional barcodes that can be scanned with a phone's camera. Their simplicity makes them an ideal choice for mobile marketing campaigns. QR codes offer valuable insights and data for your marketing efforts. By tracking the number of scans and analyzing customer behavior, you can judge the effectiveness of your campaigns, refine your mobile marketing strategies, and tailor your offerings to match customer preferences. We’ve listed examples of common ways QR codes are utilized for restaurants below: Directing customers to your menu Offering menu specials Generating organic traffic for your website Advertising catering services 4. Location-Based Marketing Location-based marketing utilizes the physical location of a consumer to target them with specific marketing messages. By leveraging the GPS capabilities of mobile devices, businesses can deliver tailored promotions, offers, and advertisements to individuals based on their location. The strategy is possible through geofencing, and its hyperlocal targeting allows businesses to connect with consumers near their physical stores, increasing the likelihood of conversion. Consumers can enjoy personalized experiences and access exclusive deals relevant to their immediate needs. What Is Geofencing? Geofencing is a location-based marketing technique that utilizes GPS, RFID, WiFi, and cellular data to define a virtual geographical boundary. This boundary, known as a geofence, triggers a targeted marketing action when a device enters or exits the specified area. Geofences can be as small as a building or as large as an entire state, making them a versatile tool for businesses of all sizes. By setting up geofences, you can send relevant and timely messages to potential customers based on their physical location. 5. SMS Marketing SMS marketing sends text messages directly to mobile devices, making it an invaluable tool for businesses looking to boost their sales and engagement. One of the key advantages of SMS marketing is its effectiveness when combined with time-sensitive deals. By sending out exclusive promotions or limited-time offers via text message, you can create a sense of urgency that prompts customers to take immediate action. Compared to traditional email marketing, SMS marketing has proven to be significantly more effective. While emails often go unnoticed in crowded inboxes or get filtered as spam, text messages have a much higher open rate. It's important to note that customers must opt-in to receive SMS marketing messages, meaning they must give explicit permission for businesses to send them promotions and updates. Common ways that restaurants utilize SMS marketing include the following: Reminding customers about upcoming events Alerting customers about reservations Advertising limited-time specials Sending exclusive coupons Update customers on delivery status Mobile Marketing Tips When it comes to utilizing mobile marketing, there are several factors to consider for a successful strategy. We’ve compiled a list of tips below so that you can get your message out the right way. Register for online listings: One of the best ways to increase your visibility is by registering your business with online listings sites like Google, Yelp, and Tripadvisor. This ensures your information is readily available to potential customers searching on mobile devices. They also provide you with a platform to display essential information about your business, such as your hours of operation, location, website, and menu. Utilize third-party delivery apps: In today's fast-paced world, offering takeout and delivery options is a must. By tapping into the power of third-party delivery apps, you can meet this growing demand and attract a whole new customer base. Consider factors such as commission fees, delivery radius, and customer reviews when selecting a partner, and be sure to optimize your menu for delivery to ensure a profitable partnership. Use clear and concise messaging: Interactions on mobile devices are often brief, with users quickly scrolling through content or glancing at notifications. To make an impact, your message should be direct and to the point. Tell your audience exactly what you want them to do, whether it's to click a link, make a purchase, or sign up for a newsletter. Create attention-grabbing visuals: Consider incorporating videos or carousels of pictures into your mobile marketing strategy, as interactive elements are more engaging than still photos. High-quality visuals can significantly impact brand perception, and professional photography or videography can increase the production value of your content. Remember to prioritize making your website easy to navigate on mobile devices. No matter how stunning your visuals are, if your website is difficult to navigate or takes too long to load, customers will click away. Keep context in mind: As a business, you want to consider the impact of your messaging. While it's important to connect with your audience, bombarding them with irrelevant or intrusive messages can quickly turn them off. Sending a promotional offer at 2 a.m. may not be the best idea, as it can be seen as intrusive and annoying. Instead, consider sending your messages during appropriate hours when your customers are more likely to be receptive. Future of Mobile Marketing As technology continues to evolve, new trends and technologies will impact how mobile marketing is implemented. Staying informed on these technologies can give your business a competitive edge in the ever-changing digital landscape. We’ll analyze some emerging mobile marketing trends below. Personalization: Personalization allows businesses to deliver the right message to the right person at the right time, increasing the chances of engagement and conversion. It is made possible through marketing data and insights, including browsing and purchase history, demographics, and location. Advancements in technology will further enhance marketers' ability to deliver personalized experiences. Video marketing: A video is a powerful tool because it is an incredibly engaging form of content. By leveraging platforms like YouTube and TikTok, you can create videos that specifically cater to this on-the-go audience, ensuring that your message reaches them at the right time. Artificial intelligence: With its ability to analyze data from mobile devices, AI enables businesses to create more effective and targeted marketing campaigns, ultimately leading to higher conversion rates and a better return on investment. Businesses can utilize AI algorithms to gain valuable insights into customer behavior, preferences, and purchasing patterns. Voice-enabled technology: Voice-enabled technology is revolutionizing the way we interact with our devices. Instead of typing, users can now simply speak to their smartphones, tablets, or smart speakers to get things done. Businesses can implement voice technology into their apps to provide a more seamless and user-friendly experience. There are many mobile marketing strategies your restaurant can implement to help increase your customer base and brand recognition. By making sure your business is well-represented on major platforms, embracing emerging technologies, and optimizing your internet presence, you can attract new customers and build your brand.