“In the coming months”, tips paid by credit card in cafes and restaurants will be tax-exempt, announced Emmanuel Macron on Monday during a visit to the International Catering, Hotel and Food Fair in Lyon. A measure intended to restore attractiveness to a sector in need of resources and weakened by confinements.
Tips, even paid in cash, must in theory be declared to the tax authorities, but in practice this is very rarely the case due to social contributions for employers and taxes for employees. With the measure announced by the Head of State, the tip will therefore return entirely to the employee’s pocket – and this in a completely legal manner. But will this device be sufficient to fill the 110,000 jobs that are to be filled in the restaurant business?
A source of motivation for employees
If professionals are happy, it is because this measure could increase the purchasing power of employees and, de facto, the attractiveness of a sector in need of resources. “This will allow you to attract more young and old to tell them” You can earn more than the salary and the bonus that I pay you “,” said the Head of State on Monday morning. “This will encourage young people to come into our professions, boost service, and encourage customers to recognize the quality of service,” continued Roland Héguy, president of Umih (Union des métiers et des industries de l hotel), from AFP.
“Tipping is an integral part of the industry, it has always attracted people. It can represent a few euros to a few hundred euros in prestigious establishments ”, rejoiced to 20 minutes Romain Vidal, Secretary General of the National Group of Independents (GNI) Paris-Ile de France.
Besides the financial aspect, the tip also has a symbolic dimension, analyzes Brigitte Auriacombe, professor in marketing and researcher at the Lifestyle Research Center at EM Lyon, co-author of Tips: what the actors think. “For employees, the tip is a sign of recognition, gratitude, it is very rewarding. Whoever gives says “thank you for your work” ”, she explains to 20 minutes, believing that it can be “a source of motivation in a sector which is in crisis in terms of recruitment”.
But this measure should not exempt the employers from thinking about how to “revalue [ces] trades, by improving working conditions and salary scales, ”warned Roland Héguy.
Payments by bank card generalized with the crisis
For employees in the sector to see a difference on their payslip, the measure must still appeal to customers. In France, where tipping is not necessarily a tradition, it is difficult to know if consumers will adopt this gesture of generosity. “Tipping is not part of the French tradition, unlike in other countries where it is almost compulsory. But, in recent years, we have seen that with donations to associations, through rounded pennies in certain businesses, it has become commonplace, especially among young people, it is a good sign, ”says Elisabeth Tissier. -Desbordes, Professor Emeritus of Marketing and Consumer Behavior at ESCP.
And the almost systematic use of the bank card, clearly favored since the start of the health crisis, could give the device a boost. “Now that everyone is paying by credit card or via applications, very often there is no more money to add 3 to 5 euros for the service. When we have the possibility of leaving a tip by credit card on the bill, it will be much easier, ”said Didier Chenet, president of the GNI, to AFP.
Rounding, the perfect solution?
It remains to be seen what form this gesture of gratitude will take. “Each establishment will choose its own system and organize itself as it wishes, whether by offering rounding or by letting the customer set the amount of his tip, for example,” adds Romain Vidal. And payment systems for leaving a tip by paying by card already exist, such as myPOS or Sunday. With these apps, the customer chooses a percentage of the bill or sets a custom amount.
For Elisabeth Tissier-Desbordes, it is the system chosen by the establishments that will be able to motivate customers: “If the model chosen is to round off the bill, it can work. These are a few cents that cost nothing to the consumer, neither in terms of money nor in terms of time, ”estimates the teacher, who continues:“ You need a minimum of gestures for a minimum of time. And the figures give good hope that the French will adopt this reflex more. According to a CSA study for Lyf published last May, 35% of French people do not leave tips for lack of change, and 71% say they are in favor of dematerialized tips.