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.
Recommended Blogs
5 Ways Technology Has Changed the Payments Industry
Retail e-commerce sales rose by 9.4% over the last year, according to the US Department of Commerce. The industry drew over $218 billion in the fourth quarter of 2021 alone! That…
Blog »
5 Retail Technology Solutions Every Modern Store Needs
If you've ever had to tell a customer, "Sorry, we're out of stock," only to find the item sitting somewhere in the store later, you're not alone.Many retailers lose time, sales, and customers because the systems they rely on don't work well together. Inventory is tracked in one place, payments in another,
Blog »
How C-Stores Can Maximize Revenue During the FIFA World Cup 2026
At some point, every multi-store retailer runs into the same situation: one location runs out of a product that sells daily, while another location holds extra stock that hasn’t moved in weeks. Nothing is technically wrong because inventory exists and demand exists, but they are not aligned.
Blog »
Multi Location Inventory Management Explained for Retail Stores
At some point, every multi-store retailer runs into the same situation: one location runs out of a product that sells daily, while another location holds extra stock that hasn’t moved in weeks. Nothing is technically wrong because inventory exists and demand exists, but they are not aligned.
Blog »
Smart Ways to Manage Multiple Restaurant Locations
How to Manage Multiple Restaurant Locations with Ease, Growth is supposed to give you more freedom. But for many restaurant owners, opening a second or third location does the opposite.
Blog »
C-Store Customer Trends To Watch In 2026
If you run a convenience store, this is your year to shine. The past 12 months proved that c‑stores are more than just a place for impulse snacks and quick fuel. When a store feels like a small neighborhood café backed by smart, simple technology, shoppers reward it with bigger baskets and more repeat visits.
Blog »Ready to Get Started?
Speak with a POS expert and learn how Modisoft can help your business.