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  • 5/13/2024

    Survey by SpotOn Reveals Restaurant Workers and Consumers Aren’t So Far Apart on Tip Culture

    spoton logo
    The emergence of preset tip amounts and requests for tips in spaces outside the hospitality industry has some Americans feeling burnt out from the concept of tipping altogether. While industries asking for tips have expanded, a new survey shows that “Tipflation,” as it has been coined, is not padding the pockets of restaurant workers. Restaurant workers say that, in reality, the tips they expect and receive aren’t experiencing the notable fluctuations being touted in the press. Today, SpotOn, the top-rated software and payments partner for restaurants and small businesses, revealed the results of a comprehensive study of tipped restaurant workers on tipping expectations, generational trends, and payment options. The report titled “Beyond Gratuity: Perspectives of Restaurant Staff on Tipping Practices” reveals that two-thirds of workers report their tips have stayed the same or decreased in the last twelve months, and more than half of tipped workers expect a modest 15% to 19% tip.
     
    This new data contradicts widespread reporting about increased tipping across the board. Instead, tipping trends remain relatively consistent. Internal data from SpotOn showed an average tip of 18.99% on orders placed through the SpotOn Restaurant point-of-sale system for March 2024. This is a slight decrease (0.1%) from 19% seen one year earlier in March 2023.
     
    In the survey, tipped workers also reported modest expectations for the minimum they expect to be tipped based on service. 52% of tipped workers surveyed said they expect between 15% to 19%, and only 1 in 5 tipped workers expect 20% or more. Worker expectations align with recent Pew Research Center findings that most Americans say they would tip 15% or less for an average meal at a sit-down restaurant, with only a quarter of people saying they’d tip 20% or more. 
     
    For years, restaurants have been working to optimize payments, reservations, staffing, and inventory management with digital solutions to improve their bottom lines, including handheld point-of-sale devices. With a handheld, restaurant staff can take orders and payments in real-time, whether at the table or for line-busting busy crowds, improving staff efficiency and speed of service, resulting in a better guest experience and better tips. Restaurants using SpotOn handhelds typically see both their average ticket price and average tip amount go up. Tipped restaurant workers have largely embraced the technology due to the fact that servers can cover more tables and significantly increase their take-home pay. While tip percentages have remained stable, technological efficiencies are improving everything from ordering to bill payment. Speed remains one of the most important aspects of customer service, so omitting the kitchen round-trip to put in an order or running a credit card at a far away terminal has been transformative to the industry.
     
    “We’ve seen at least a 5% to 7% increase in tips that servers and bartenders are making, thanks to SpotOn’s handheld,” said John Shepherd, Owner of Shep’s and Salt. “Having that screen right in front of customers speeds up the process both when they’re ordering and when they’re closing out, making it easy for our staff to focus on serving guests and providing quick and exceptional service.”
     
    When it comes to pre-set tip amounts, 43% of tipped workers say that predefined tip amounts on point-of-sale systems are actually helpful to both guests and servers. When asked what the predefined tip amounts should be, most respondents selected the standard 12%, 15%, and 20% options. A further 43% indicated that even a 10% option would be suitable. SpotOn’s default preset tip amounts are 15%, 18%, and 20%, aligning with expectations from both parties and can be edited by each restaurant operator. SpotOn recommends prompts be determined based on their restaurant’s service type and geographic location, among other factors. While requests for tips outside the restaurant industry have been cited as contributing to tip fatigue, most industry workers indicated they did not see adding tips to non-hospitality services as detrimental to their take-home pay.
     
    Restaurant workers and their guests may have similar expectations around standard tip amounts, but more than half of tipped workers surveyed believe customers do not understand how tips factor into their take-home pay. Most industry workers receive a tipped minimum wage combined with tips to reach the federal minimum wage. This is typical for the restaurant industry, which operates on unimaginably slim margins, often five to seven percent, and where every dollar and cent makes a difference. To combat inflation and rising costs without raising menu prices to unachievable levels, restaurant operators are turning to tech solutions to make the dining experience better for both guests and workers. Handhelds and order kiosks increase convenience and speed of transactions, resulting in higher tips for workers, while point-of-sale data helps operators staff shifts appropriately, lowering costs and enabling staff to take home more tips. 
     
    “The restaurant industry is in a tough position, facing rising costs, razor-thin margins, and changing consumer expectations,” said Kevin Bryla, Chief Marketing Officer of SpotOn. “We’ve seen that the right restaurant technology can deliver an enhanced experience for guests and drive operational efficiency and improved profitability for restaurateurs - both of which translate to improved pay and workplace satisfaction for restaurant workers. All of those factors need to work together to make a meaningful difference in a tough industry and tougher economic environment."
     
    SpotOn’s “Beyond Gratuity: Perspectives of Restaurant Staff on Tipping Practices” report dives into other aspects of how restaurant workers view tipping, including generational differences, opinions on what kinds of eateries (including fast food) should be tipped, what metrics tips should be based on, and much more. 
     
    Additional Survey Highlights:
     
    • Nearly half (47%) of survey respondents who receive tips said they feel positively about the current tipping culture in the restaurant industry, and only 8% felt that tipping culture is negative and harming the industry. 
    • Despite reports of tipflation and tip creep, industry workers who receive tips have not seen major changes in tipping in the past year. 36% report that their tips have stayed consistent, and 35% actually reported a decrease.
    • Tipped restaurant workers are not worried that more businesses outside the industry asking for tips will negatively impact their own tips — 64% say it has had no impact, while 8% say it’s even helping. 
    • When it comes to the minimum percentage they expect based on service, a majority (52%) of tipped workers expect between 15% and 19%.
    • When they choose to dine out at restaurants, however, industry workers are big spenders, with nearly half doling out 20% tips or higher. While they believe they are better tippers from working in the industry, they expect less from their customers. 
    • 68% of respondents work at restaurants that do not currently charge a service fee, showing that the additional charge is less widely used than it may seem.
    • If their restaurant does add an automatic gratuity, 46% of tipped workers do not expect customers to leave an additional tip. 
  • 5/14/2024

    Stayntouch Partners With Woby to Empower Hotels with Seamless In-Stay Dining

    stayntouch and woby logos

    Stayntouch, a provider of cloud hotel property management systems (PMS) and guest-centric technology, announced a new partnership with Woby, a self-order and pay web app that simultaneously connects with existing POS and PMS platforms. Stayntouch now integrates with Woby’s customizable web app, allowing for real-time POS and PMS synchronization.

    With Stayntouch PMS, hotels can streamline operations, automate tasks, and provide a seamless digital guest welcome experience with mobile check-in. Woby complements this by offering a self-order and pay platform that seamlessly connects with both the hotel PMS and POS, streamlining the in-stay dining experience from ordering to payments to room service and delivery. By connecting Stayntouch PMS with Woby, hotels will benefit from: 

    • A flexible and full-featured cloud PMS, that can deliver a frictionless mobile welcome and departure experience for guests, while integrating with best-of-breed mobile POS platforms.
    • Real-time synchronization between the PMS, POS, and accounting software, allowing guests to connect to a single QR code to order what they want, pay how they want, and have room charges validated automatically.
    • A fully customizable look and workflow to fit seamlessly with any hotel branding design or operational needs. 
    • A dedicated integration connector that sets up integrations in minutes instead of months, and streamlines third-party connections. 

    Ruud Hontelé, the managing partner of Woby, said: "Woby stands out as the pioneering self-order and pay app that seamlessly integrates Stayntouch with your POS system. Say goodbye to the hassles and pain points associated with digital menus, ordering, payments and logistics processes. Enhance the guest experience significantly while also reducing costs for your business."

    Priya Rajamani, the vice president of implementation and support for Stayntouch, said: “We are excited to partner with Woby, a platform that empowers hotels to provide guests with a completely mobile-first dining experience. By seamlessly integrating our cloud PMS with Woby's self-ordering and payment platform, hotels can deliver a more personalized and fully mobile guest check-in and dining experience, enhancing the on-property experience. This collaboration ensures real-time synchronization, enhanced operational efficiency and elevated guest satisfaction.”

  • 5/14/2024

    Restaurant365 Announces $175M Funding Round

    raising capital money bags

    Restaurant365 announced a $175 million funding round led by long-term partner ICONIQ Growth with participation from current investors, including KKR and L Catterton. The funding comes on the heels of 12 consecutive quarters exceeding sales targets, which drives confidence in future growth potential. 

    “Restaurant365’s growth is a testament to their ability to create powerful solutions that bolster operations, improve margins and empower the workforce at restaurant companies of all sizes,” said Will Griffith, Founding Partner of ICONIQ Growth. “We’re honored to participate in this incredible opportunity to help the restaurant industry succeed in a way that once seemed impossible.”

    Proceeds from the round will be invested in expanding enterprise features and growing the workforce and payroll product suite to continue supporting the world’s largest, most notable hospitality brands. Funds will also strengthen the company’s balance sheet to facilitate future acquisitions and support continued organic growth.

    “We’re grateful our investors continue to value the business and its upward trajectory as demonstrated by this most recent vote of confidence,” said Restaurant365 CEO and Co-founder Tony Smith. “We take that trust from them seriously as well as the trust placed in us by our customers and the industry at large. We will continue our relentless pursuit of developing products that add value in new ways to this great industry.”

    This latest round follows Restaurant365’s acquisition of ExpandShare, an AI-powered learning management system built to deliver and track impactful restaurant training content.

    In addition to adding employee training to its offerings, Restaurant365 expanded its all-in-one platform over the past year with tip automation, task management, restaurant intelligence dashboards, and Capture AI, which brings the power of machine learning to invoice management.

  • 5/14/2024

    Restaurant Show: Cantaloupe to Showcase Self-Service, Mobile-First Solutions

    Cantaloupe smartcafe in a lobby

    Cantaloupe Inc., a provider of end-to-end technology solutions for self-service commerce, is making its debut at the upcoming National Restaurant Association Show in Chicago. Cantaloupe will be showcasing its self-service and mobile-first applications for stadiums, entertainment venues and hotels.

    Cantaloupe is a global technology leader with more than 30 years of experience in powering self-service commerce. Cantaloupe’s mission is to revolutionize the way businesses engage with consumers by offering a comprehensive suite of solutions, including innovative kiosk and POS systems, as well as enterprise cloud software designed for a wide range of industries. With Cantaloupe’s end-to-end platform, businesses can drive engagement, increase sales revenue, and optimize operations, delivering exceptional experiences for both businesses and consumers.

    “Cantaloupe’s solutions are specifically designed to cater to the growing demand for self-service and mobile-first experiences,” said Elyssa Steiner, chief marketing officer of Cantaloupe, Inc. “Our emphasis on convenience, efficiency and enhanced customer experiences really set Cantaloupe apart from traditional solutions and elevates guest and fan experiences into seamless journeys for shopping, ordering and paying.”

    Attendees of the National Restaurant Association Show are invited to visit Cantaloupe's booth 6672 in the North Building of McCormick Place to experience Cantaloupe’s  technologies, including AI powered smart camera technology, which enables seamless and secure transactions. Cantaloupe's solutions eliminate the need for traditional checkout lines, providing customers with a hassle-free retail, food and beverage experience that includes convenience, speed, and flexibility in their transactions.

    Some of the products Cantaloupe will be showcasing include its CHEQ point-of-sale (POS) platform, a mobile-first payment solution. CHEQ’s full end-to-end payment platform features mobile ordering (right from seats), mobile pick-up points (“CHEQ Points”) and innovative express kiosks (“CHEQ Zones”) to increase ordering efficiencies and decrease line wait times. CHEQ also offers its unique social gifting marketplace functionality, allowing guests, friends and family to send food and beverages to those attending a game or concert in real time, from anywhere in the world.

    Cantaloupe’s booth at the National Restaurant Association Show will be highlighting:

    • CHEQ POS Kiosks: available in attended or self-checkout mode, making ordering seamless across multiple revenue centers and empowering fans to self-service for reduced wait times.
    • CHEQ Handheld: providing in-stadium vendors or those with on-the-go payment needs at festivals and events, the ability to accept payments anywhere, perfect for selling merchandise, food and beverages.
    • CHEQ Mobile App: enables fans or event-goers the ability to order food and beverages from anywhere in the venue, with flexible pick-up or in-seat delivery options.
    • Cantaloupe Smart Café: (Pictured) a fully locked cooler that enables true grab and go self-service with AI powered smart camera technology to charge the consumers card for the exact items they take out of the smart fridge.
    • Cantaloupe Micro Markets for Hotel Pantries: a one-stop shop for cabinetry, coolers and self-checkout kiosks with the Cantaloupe Go MiniX cashless acceptance kiosk, that simply leverages existing pantry space and converts it into a self-service mini-market in hotel lobbies, creating less burden on employees to manage checking in guests and ringing up pantry products and instead, creates a fully grab-and-go experience.

    To learn more about Cantaloupe, visit cantaloupe.com

  • 5/13/2024

    Pudu Robotics Unveils Enhanced PUDU SH1 Smart Upright Scrubber Dryer

    PUDU SH1 Smart Upright Scrubber Dryer

    Pudu Robotics, a global leader in service robotics, today announced the official debut of the upgraded PUDU SH1 Smart Upright Scrubber Dryer at Interclean 2024. The latest version of PUDU SH1 features extensive enhancements to deliver an altogether new product, boasting substantial design and cleaning capabilities improvements.

    The PUDU SH1 is a testament to innovation, capable of multidimensional cleaning that extends beyond floors to tabletops, vertical glass surfaces, and challenging areas like corners and spaces beneath low furniture. Innovative design features of the PUDU SH1 allow for easy and efficient separation of air, liquid and debris waste, ensuring a convenient disposal process that prevents drain blockages and damage to the vacuum motor. With a 27kg down pressure, a 350rpm brush and 20KPa suction power, the SH1 excels at removing stubborn stains such as oil spills, dust deposits, and air-dried dirt, ensuring pristine conditions in diverse environments.

    In response to the urgent need for sustainable and efficient cleaning solutions, PUDU SH1 sets a new standard for environmental responsibility. The SH1's advanced lithium battery technology and energy-efficient brushless motors significantly reduce the machine's ecological footprint, adhering to strict ROHS standards. By optimizing resource utilization, the SH1 saves up to 80% on water and cleaning agents compared to traditional mopping methods, and cuts cleaning time by a remarkable 70%. These features not only support eco-friendly practices but also translate into operational savings for businesses.

    "Pudu Robotics is dedicated to empowering businesses to refine their services and heighten operational efficiency with our products designed to collaborate with human teams," said Felix Zhang, founder and CEO of Pudu Robotics. "This innovative product not only enhances cleaning performance but also embodies our commitment to sustainable product design and smart technology integration in cleaning workflows."

    The SH1 boasts removable parts, which can be easily replaced and repaired to extend the use of the machine. Further product features include:

    • Multidimensional Cleaning Capabilities: PUDU SH1 is equipped with a suite of accessories for cleaning floors, tabletops, vertical glass, corners, and under low furniture.
    • Enhanced Cleaning Performance: The machine has high-efficiency cleaning with high pressure, rotational speed and suction power, as well as an innovative wastewater tank designed for effective air-liquid-debris waste separation.
    • Touch Screen Interface: A user-friendly touch screen allows for easy management, including the selection of cleaning modes, displays of battery and water levels, and the generation of intelligent reports.
    • Exceptional Stubborn Stain Removal: The machine is able to clean varied stains, including oil spills, dust deposits, and air-dried dirt, ensuring pristine conditions in various environments.
    • Intelligent Detection for Safety: With intelligent diagnostics of core components, the PUDU SH1 ensures safe operation and simplifies maintenance.
    • Air-Liquid-Debris Separation: PUDU SH1's wastewater tank features a layered design that facilitates the efficient separation of air, liquid and debris for easy disposal.
  • 5/13/2024

    Hi Auto Launches Voice AI Marketer Toolkit

    voice ai soundwaves

    Hi Auto, a provider of drive-thru voice AI technology, released the Voice AI Marketer Toolkit, a comprehensive set of tools for quick service restaurants (QSRs) looking to capitalize on customer conversations to increase engagement and loyalty. These marketing tools include menu optimization, A/B or multivariate testing, and customized natural voices to help brands unlock the superpower of direct conversation with their customers.

    Traditional marketing campaigns are limited to one-way communications across multiple platforms, such as digital advertising, social media, events, and visual promotions at brick-and-mortar locations. Due to the high staff turnover rate at QSRs, employees often work under intense pressure, making it difficult to promote the brand's values consistently. As a result, millions of drive-thru customers interact with random employees and experience inconsistent levels of service. This can be true for both regular and first-time customers.

    Recognizing that voice AI automation can shift the current paradigm; Hi Auto developed a new marketing channel that allows restaurants to design and optimize customer conversations while highlighting brand value, promotions, events, special menu offerings, and more. The toolkit drives marketing and sales goals while building brand affinity and creating an elevated, consistent customer experience.

    Key features of Hi Auto's “Voice AI Marketer Toolkit” include:

    Dynamic Upsell Customization: Hi Auto's platform customizes product suggestions considering multiple factors influencing customer experiences, such as time, location, weather, script, language, and voice.

    Multivariate Experimentation: The toolkit allows marketers to test a small control group of stores with similar performance by changing the conversation parameters, such as the number of upsells during a specific daypart. Based on the results, marketing teams can adjust the script to be deployed across all chains.

    Natural and Cloned Voices: Hi Auto's voice AI enables QSRs to incorporate natural and even customized voice options into their drive-thru experience, providing customers with a more personalized and differentiated ordering experience. This ultimately enhances customer engagement and helps build brand affinity.

    "Hi Auto's voice AI allows us to humanize the customer experience by customizing the drive-thru voice with our dialect and incorporating common phrases and slang that our customers can appreciate," said Leann Smith, Head of Marketing at Burger King New Zealand. "This collaboration enhanced labor efficiency and significantly improved order consistency and upselling conversions."

    "While the operational benefits of voice AI justify the system's adoption, there is so much more value to unlock for sales and marketing teams," said Roy Baharav, CEO of Hi Auto. "That's why we are investing in the “Voice AI Marketer Toolkit” to provide organizations with the tools they need to realize the full potential of their drive-thru sales channel. Being the only company to date deploying drive-thru voice AI at scale allows us to identify the opportunities and develop the right capabilities for our customers to maximize their ROI.”

    These capabilities are currently deployed in hundreds of drive-thru locations globally. For more information about Hi Auto and its drive-thru tailored voice AI platform, please visit Hi Auto.

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