Business

Customers are ‘generally predisposed’ to tipping, study suggests

Survey assesses attitudes around tipping in the country and its impact on staff and business culture

The survey suggests most people are comfortable tipping. Photograph: Frank Miller

Fiona Keeley
Mon Jul 1 2024 - 16:31

Irish customers are ‘generally predisposed’ to tip for services, according to a survey by the Restaurants Association of Ireland (RAI) published on Monday.

The report, carried out by the RAI with URocked and Paynt who provide cashless tipping solutions to businesses, sought to establish attitudes around tipping in the country and its impact on staff and business culture.

Every respondent agreed that tips contributed to staff morale in the business and 92 per cent said staff saw tips as a way to supplement their income. Of the businesses surveyed, 83 per cent said they did not see tips as an additional source of income for the business.

Close to two thirds of respondents said they did not have a cashless payment system in place, however, one-third of the number said they thought the business would benefit from implementing one in the future.

READ MORE

The survey showed confusion around new legislation introduced by Government last year which provides that staff should receive 100 per cent of tips given to them by customers. Just over half said they were in favour of the legislation, 27 per cent were undecided on the legislation and 18 per cent were not in favour of it.

The barriers around the tipping legislation introduced by Government was highlighted in the survey with half of respondents saying they had questions about the financial element of the legislation and how to pay staff when it came to splitting the tips.

Another 30 per cent said they did not understand the legislative language and how it would impact their business, while a further 20 per cent believed they did not have the process in place in the workplace so staff would be able to benefit from the new legislation.

Speaking about he survey Paynt’s founder Sam Kohil said, “URocked transforms tipping with a comprehensive solution that ensures staff receive 100 per cent of their tips, free from administrative and tax burdens”.

Adrian Cummins, chief executive of the Restaurants Association of Ireland said: “This new survey confirms what we have long known: tipping boosts staff morale and income, playing a critical part in the functioning of the hospitality industry as a result.

“Despite some initial confusion around the new tipping legislation, a majority of restaurateurs now support the legislation and are working hard to ensure it is enacted in establishments across the country.”

LATEST STORIES