Tipflation and the POS System

Many things have changed since the start of the pandemic. But one thing that seems to have confounded most buyers is the sudden appearance of tipping in unexpected places.

Many small businesses upgraded their Point of Sale (POS) systems to meet the demands of contactless payments and online ordering. As a result, businesses now have the ability to gently nudge the customer to leave a gratuity before completing the transaction. The result? Tips inflation, or “tifplation.”

Who to tip, and how much to tip, is something many buyers consider when deciding whether to visit a restaurant or get takeout. Some may even opt out of purchasing altogether. Nearly 70% of Americans report they are dining out less, and many more are tipping less AND less often.

What does this mean for business owners? Should businesses cash in on this tip inflation trend? Read on to see how POS systems and tip management software can affect tipping in your industry.

Tips Inflation

As many people have been tightening their financial belts in recent years, the question of tip inflation has been on many consumers’ minds. And with the improvement of technology, more and more businesses are prompting their customers for tips.

This phenomenon is not new, as the now familiar tablet-based POS systems have been around for over a decade. But now everyone from the local farmer’s market booth to the liquor store down the street seems to be asking for a tip.

Who Should You Tip?

There’s not a clear consensus on what is appropriate to tip in many situations. In many countries, like China and Japan, it is actually considered rude to tip.

But in the United States, tipping is both expected and ambiguous. In many cases, it is technically optional. But most buyers express that they feel socially pressured to leave some kind of tip.

So who should you tip? Generally, it’s always appropriate to tip service workers, like waiters and bartenders. Beyond that, this helpful guide may help, although exactly how much you tip — if anything — is up to personal preference.

Tip Management Softwares

If you’re a business that traditionally receives tips, like a restaurant, a good POS system will make the purchase process simple for your customers, including tip systems that make tipping processes easy and unobtrusive.

Customers can enter their own amount or quickly select precalculated tip percentages. This helps your servers move through lines quickly and provide more efficient service.

And having a good POS system that can manage tips also makes it easier to track earnings and calculate tip credits for your employees. This saves you time and money while protecting you legally as a business owner.

Upgrade Your POS Today

Tips inflation isn’t necessarily bad for your business. If you are a restaurant, bar, or any type of business that customarily receives tips, a tip system as part of your POS can increase tips for your staff and help your business thrive.

Modisoft POS can help your business with tip service, inventory management, and much more. Contact us today to see how upgrading your POS can strengthen your business.