Why Servers Returning to Work Will Count on Cash More Than Ever
Unemployment benefits ended for an estimated eight million people on Sept 6, 2021. Although some would argue that it is harsh for displaced workers, it’s a positive note for the service industry. With over 1.5 million service jobs waiting to be filled, this cut in government funding may be the push needed for those claiming unemployment to get back to work.
On the other side of the coin, according to Restaurant Dive, workers are refusing to return due to low pay, no healthcare or retirement plans, forcing restaurants to pay more attention to the needs of their workers. In return, we are witnessing an evolution of the service industry. They are offering never before seen competitive wages, 401K matching benefits and better healthcare options. According to NPR.org, some larger chains are even offering childcare.
Bringing Cash to The Plate
Beyond the obstacle of business trying to keep you safe, find staff and keep up with the everyday changes of the WHO and CDC COVID regulations, customers need to step up and make sure they are doing their part to treat wait staff right, too.
Therefore, if you’re into that restaurant and pub life, remember we are all enduring the pandemic the best way we can. Returning to a “normal” routine takes teamwork and those in the service industry understand this all too well.
So, what does cash have to do with it? Some would say it’s so servers can keep more “under the table” money; however, that is farthest from the truth. Cash tips have many benefits that help the server, the business and everyone making sure that you get the best service possible when dining out.
3 Reasons Servers Prefer Cash Tips
Prevents Payment Delays- Whether you pay on a card or not, tipping in cash ensures that the server gets the money that day. Often times when a tip is put on a card, it can take a week or perhaps two for the server to receive that money. And in these times, waiting on money can mean late bills.
Credit Card Surcharges - The Fair Labor Standards Act gives the restaurant the right to take credit and debit card surcharges out of the tip. So, while you may leave 20% on the tab because you received great service, your server is paying the fees the business pays to the card processing companies for the convenience of taking payments on a card.
Tipping Out the Staff - This is a tricky one. Teamwork is the backbone to any service industry’s success, so there are multiple layers of people doing details. Each one ensuring you are getting your meal and drink, just the way you like it. The server pays for that, too - the busboy, the hostess, the bartender, etc., are all paid out by those tips you leave. This can reduce the wait staff’s tip by more than 50% depending on the rules of the establishment. Tipping in cash ensures they are able to tip out what they feel is fair versus having it taken out automatically, if not everyone is pulling their weight.
How Restaurant Owners Can Do Their Part to Keep Wait Staff Happy
It’s a fact that younger generations, which make up the bulk of the service industry, prefer cash. Some diners will even go out of their way to withdraw cash from a nearby ATM to have it on hand for tipping – even if they plan to pay for their tab with another payment method.
Installing an ATM in your business has many benefits such as providing a new revenue stream, but for the service industry right now ─ the convenience of providing customers with easy access to cash is the number one benefit.
The wait staff will appreciate being able to point diners to the ATM for cash tips and patrons will not have to leave the business to withdraw cash.
Do your part to keep servers happy. Find out if you qualify for a FREE ATM!