Service Charges & Gratuities

Many businesses operate a policy of applying a service charge to the bills which they issue to their customers. This is standard practice in many restaurant environments and, for the most part, is accepted by customers provided they are happy with the service they have received.

However, on occasion, customers may not feel obliged to pay a service charge fee for any number of reasons; poor customer service being the one most commonly cited.

Our software enables retailers to configure how service charges are applied in a way that makes the most sense for them. This may mean, applying the service charge automatically, allowing for a service charge to be applied manually instead, or a mixture of both. We store the configured service charge percentage value and whether the charge is optional or mandatory for tax calculation purposes.

Most hospitality retailers are already aware that, at present (in the UK & Ireland), it is only necessary to pay tax on a service charge which is ‘mandatory’. The usual mechanism for having a service charge applied automatically without it becoming taxable, is to include a note on the customer bill which states that the service charge is discretionary; thus providing the customer with the opportunity to ‘opt out’ of the service fee if they are not willing to pay it.

The software we've developed allows for this and a custom footer ‘disclaimer’ message can be configured to display whatever text the retailer deems most appropriate in order to comply with the regulations which are in force at the time.

There have been several news stories over the past year which have reported instances of businesses being fined for refusing to remove service charges from their bills. It is critical, therefore, for Hospitality software to have a simple way to remove a service charge from a bill, while at the same time keeping track of this action and the reason for doing so.

Our offering has this covered too and allows the service charge to be adjusted according to the level of service.

The software will log the alteration, along with a required ‘reason note’ so that management has complete visibility on the occasions when the service charge amount has been removed or amended.

Gratuities

It’s a bit of a mouthful, but ‘gratuities’ (tips) are also a major feature of bar and restaurant culture, which is why so many payment providers offer a way of taking payment for and recording gratuities on credit card PDQs and other devices.

Our hospitality software provides you with another way of managing tips which have been received from your customers and allows you to break down how the tips were issued by cash, credit card, or any other payment method you have configured within the system.

A gratuity can be added to a bill, either as a percentage amount on top of the order total or as a specific monetary amount. The gratuity is then paid for as part of the overall bill using whichever payment method your customer chooses. The system will keep track of how the gratuities received have been distributed across the various payment methods which have been used.

Gratuities can act as a great motivator for staff to provide the best levels of customer service possible and to help to reward them for their hard work and valuable contribution to the business.

You may have heard an announcement earlier this year that there is a push for new legislation which will see that all hospitality staff in the UK receive 100% of the tips they receive from customers.

Regardless of the outcome of this debate, we believe that a reliable way of capturing the data regarding gratuities which have been received and then distributing these fairly is essential.

If you would like to discuss how our software can help you manage this aspect of your business please feel free to give us a call on the number below and we will gladly walk you through all of the available options.

(T) +44 (0) 345 257 0829

“We help retailers to serve”