Cashless catering.
The dematerialization of cash, or the switch to mainly electronic transactions, has had a considerable impact on the remuneration of waiters and waitresses in the catering industry.
The purpose of this article is to examine the consequences in terms of income, work dynamics and customer relations for restaurant employees.
Here are a few points to bear in mind when dematerializing cash:
Impact on revenues: decrease or increase?
- Potential increase in tips:Electronic payment systems that suggest tip amounts based on the bill could potentially increase tips, as these systems often suggest default tip percentages. Indeed, by taking away the “free-will” of certain customers, who are often in a hurry and less careful, tips could be more substantial.
- Reduced use of cash:With the increase in card payments and mobile applications, customers carry less and less cash on their person, which can lead to fewer tips being left in cash, and therefore less going directly into employees’ pockets.
- Traceability and taxation:With “electronic” tips recorded, traceability becomes easier for employers and tax authorities alike. This in turn leads to methodical taxation, and thus to a reduction in employee income. With cash payment, there is no possibility of traceability.
Impact on customer relations :
- Reduced customer relations:A reduction in cash transactions may in some way diminish the personal interactions associated with the gesture of giving a cash tip. This could considerably impersonalize the relationship between customers and employees.
- Customer expectations are different:Customers accustomed to electronic payment may have higher expectations regarding speed and execution of service, influencing the way servers approach their work.
- Access to electronic payments:For people who do not have access to electronic payment methods, the dematerialization of cash can become very problematic in terms of access to services. The elderly are particularly affected. Indeed, their ability to leave an “electronic” tip is very limited, as they don’t understand it or know how it works. This can have a considerable impact on the tips left for employees.
Conclusion
In summary, and as we have seen in our analysis, cash dematerialization represents both opportunities and challenges for foodservice employees. While it can sometimes lead to an increase in income from tips and a more equitable distribution, it can also be a source of a significant drop in net income through taxes, pressure and limited interaction with customers. It seems clear that cash payment will become increasingly rarified. It is therefore imperative for restaurateurs, and for all service professions more generally, to find solutions to prevent employees from turning away from these professions in the long term. The solution may simply lie in abolishing tips and increasing fixed incomes, as in most other professions.
