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.

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Modisoft takes pride in providing a comprehensive suite of tools designed to facilitate seamless operations for your restaurant. With our powerful software, you can take advantage of a range of features tailored to enhance your efficiency and customer experience.

One of the standout features of Modisoft is the ability to view live sales data. This real-time visibility empowers you to monitor sales performance as it happens, allowing you to make informed decisions and swiftly address any issues that may arise.

Moreover, our software enables you to create customizable menus for ordering. You have the flexibility to design menus that align with your restaurant’s unique offerings, making it easier for customers to browse and select their desired items. This customization feature ensures a user-friendly ordering experience that caters to your specific requirements.

Additionally, Modisoft supports digital menu boards for pricing. By leveraging this functionality, you can easily update and display pricing information on digital screens within your restaurant. This dynamic approach eliminates the need for manual price changes and enhances the overall aesthetics of your establishment.

We’re pleased to announce that the cost to run the POS system aligns with the subscription for your back-office software. This streamlined approach simplifies your financial management, allowing you to enjoy a unified pricing structure that covers both the hardware and software components.

Maximize the potential of Cartzie Campaigns, our exceptional tool, by harnessing its features to create customer loyalty and drive repeat visits to your store. With Cartzie Campaigns, you can implement robust loyalty programs that incentivize customers to return, fostering a strong and lasting relationship with your brand.

Furthermore, take advantage of the automated customer outreach capabilities of Cartzie Campaigns through text messaging. This powerful feature allows you to engage with your customer base proactively, sending personalized messages, promotions, and updates directly to their mobile devices. By automating this process, you save time and effort while maintaining consistent and effective communication with your valued customers.

Additionally, our software empowers you to offer online ordering, opening up new avenues for sales and customer convenience.

By leveraging Cartzie Campaigns’ loyalty programs, automated customer outreach via text messaging, and online ordering capabilities, you can enhance customer engagement, increase sales, and deliver exceptional customer experiences. Embrace the full potential of these tools to grow your business and establish a strong presence in the digital realm.

About Altria

Altria Group, Inc. is one of the world’s largest producers and marketers of tobacco and related products. They have been the undisputed market leaders in the U.S. tobacco industry for decades.

Altria Group is known for owning the most enduring names in American business including but not limited to Philip Morris USA, John Middleton, and U.S. Smokeless Tobacco Company.

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About Cartzie

Cartzie is a loyalty application designed by Modisoft, with you in mind. It is a one-stop loyalty and online ordering solution that is fully equipped with all the tools needed to make your business grow.

With Cartzie, you can do curbside pickups, delivery, and drive-thru ordering. Cartzie has revolutionized the way businesses interact with customers.

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Benefits

  • Add delivery options for your customers
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  • Take your business online in a few clicks
  • Receive payments online for your orders

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+$59 per month with Retail Plans

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About Comdata

COMDATA has been serving businesses for over 45 years and is recognized as a leading provider of commercial payment solutions. They specialize in serving the trucking industry and are known as an issuer of fleet fuel cards, trucking permits, corporate spend cards, and paperless payroll cards.

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Benefits

  • Automatically transfer sales data from the Comdata POS into Modisoft back-office software
  • Get an all-in-one solution to monitor and track your sales separately
  • Easy accessibility to manage all your fuel sales

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About DoorDash

DoorDash, Inc. is a food ordering and delivery platform based in San Francisco. It is the largest food delivery company in the United States with more than 50% of the market share in the convenience delivery category. It provides an on-demand food delivery service to restaurants and stores. Their services help businesses innovate, grow, and reach more customers.

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  • Receive order directly into your POS System
  • Manage your online DoorDash menu
  • Enable DoorDash orders for your customers

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+$69 per month for Third-Party Order Management

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About Fintech

Fintech has been dedicated to serving the beverage alcohol industry for the last 30+ years. Established in 1991, Fintech operates from its headquarters based in Tampa, Florida. Supported by TA Associates and General Atlantic, Fintech automates alcohol invoice payment, streamlines payment collections, and facilitates comprehensive data capture for 1 million B2B business relationships.

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  • Import vendor invoices directly into your back office
  • Optimize purchase order management
  • Improve your alcohol vendor management

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+$5 per month

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About Gilbarco Veeder-Root

Gilbarco Inc. is a supplier of fueling equipment including fuel dispensers, payment systems, point-of-sales systems, and support services. The company operates from Greensboro, North Carolina.

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  • Effortlessly connect your POS data from the Gilbarco system to Modisoft Insights

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About Instacart

Instacart is a delivery company that operates a grocery delivery and pick-up service in Canada, and the United States. It is one of the largest grocery marketplaces in North America. Instacart makes the delivery process easy for store owners.

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  • Monitor and manage your Instacart inventory levels from Modisoft Insights
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+$15 per month

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About Retalix

Retalix Ltd was established in 1982 and is now owned by NCR Corporations. It develops licensed and supported software applications for retailers, wholesalers, and distributors of fast-moving consumer goods.

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  • Easily Import sales data for reports and analytics from the Retalix POS system
  • Monitor sales in real-time

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About Paycue

Paycue is Modisoft’s preferred payment processing provider. It helps businesses to streamline their setup process to be faster and more efficient. Paycue assists businesses with faster payments and smoother customer interaction.

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Benefits

  • Enjoy minimal fees on transactions
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No monthly fee. Only pay when you sell.

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About Plaid

Plaid Inc. is a financial service company that builds a data transfer network that powers digital finance and fintech products. Plaid assists businesses in connecting their financial accounts to fintech services. The company's product enables applications to seamlessly connect with the user's bank account.

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  • Build a quick and secure connection to your bank account
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About RJ Reynolds

R.J. Reynolds is a leading tobacco manufacturing company in the United States. Founded by R.J. Reynolds in 1875, the company is a subsidiary of Reynolds American. RJR holds the largest brand portfolio including but not limited to Kent, Pall Mall, Camel, and Newport. The company is based in Winston-Salem, North Carolina.

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  • Offer tobacco loyalty from the industry's leading brands
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