New data suggests Eat Out to Help Out has resulted in staff receiving higher tips.
TiPJAR, a QR-coded tipping platform that enables the digital payment of tips directly to staff members, has experienced an increase in both tip transactions and their average value, the Morning Advertiser has reported.
Over three days of the scheme, from Monday 3rd August to Wednesday 5th August, the platform told the MA tipping increased in comparison to the same three day period prior to the scheme’s launch.
They go on to report that tip transactions were up by 145% across its systems while the average tip value increased from £4.42 to £6.45. Also, the platform recorded its largest tip for a weekday so far, with a tip of £150 processed.
According to the MA, in the second week of the initiative, there was an 160% increase in tip transactions with an average transaction up to £6.68, compared to the week before the discount began.
TiPJAR founder James Brown told the MA that the stats were reflective of customers ordering more food when dining out and wishing to return the goodwill of the discount to staff. He said to them, “Footfall increases have been evident across the market place from pubs to restaurants during the Eat Out to Help Out scheme. The driver for the increased tip values is that consumers are ordering slightly more, and due to the increased feeling of value feeling happier with the overall value of the deal and giving some of that value directly back to the staff who looked after them.
“We are delighted to see our users seeing a benefit from increased tips during this time. The Eat Out to Help Out scheme in most cases has been positive for the industry, including both bars and pubs, and now we can see it has been positive for the hard working staff too.”
Due to the rise in delivery and the limitations of cash caused by Covid-19, the TiPJAR platform has seen accelerated growth and has now received a significant investment from Simon Bocca, the former COO at Fourth, and four other Fourth senior leadership alumni.
In total, the group’s investment equates to 4% ownership in TiPJAR, with Bocca becoming the non-executive director. Bocca joins Tipjar founder James Brown, retail director at Scottish brewer and retailer BrewDog, chairman Alex Moore, co-founder of Rosa’s Thai Cafe; and their team.
Speaking to Propel, Brown said: “We designed Tipjar to help hospitality staff earn more, bring transparency to the world of tipping and help businesses deal with the increasingly challenging administration of managing and distributing tips. It has been an exciting journey so far and the opportunity to work with Simon on the next stage of our growth and have his wealth of experience was one we had to grab with both hands.” Bocca added: “When we first met James, Alex and the team, we knew they were on to something. Staff and consumers want transparency and fairness in the brands and venues they frequent. Tipjar and the team have developed a unique model that protects businesses from current and impending legislation but at the same time puts the staff firmly in control of their tips and gives the transaction level visibility.”
Having begun operating in restaurants since September last year, TiPJAR says it has seen a ‘huge rise in growth’ in recent months and now more than 3,000 professionals and 250 restaurants UK-wide are using TiPJAR’s software, which has processed over 17,000 transactions since March this year.
Restaurant groups currently using the cashless tipping system across their respective estates include Honest Burgers, Slim Chickens, Pizza Pilgrims and BrewDog.