The recent COVID-19 pandemic raises questions about consumer willingness to give tips during such times of hardship. Analyses of a Texas pizza delivery driver's tip records and of nationwide Square payment data for quick- and full-service restaurants explored this issue by comparing tips during the pandemic with those before it. These data suggest that the pandemic increased the average tip-per-order given to a pizza delivery driver as well as the average tip percentage given for many transactions at quick- and full-service restaurants. They also suggest that the pandemic decreased the average tip percentage for face-to-face transactions at full-service restaurants but only by a modest 1 to 2 percentage points. The findings suggest that the tipping model remains a viable means of employee compensation even during periods of public health and economic crises if the nature of the services provided does not change substantially.
Small businesses have been significantly impacted by the effects of COVID-19. Not only have many needed to close their physical doors, but now there are extra health standards and social distancing requirements. Research from other studies, a one-question survey, and research from readily available resources have all been taken into account in the following research to focus on the motivating needs of businesses post-COVID-19. It is important for the small business owner to be aware of the effects this will have on the physical environment and also on the needs of their employees and customers. It is important to remember that various level needs can be worked on at the same time. Most importantly, it is critical to remember that one's business is not just about numbers and to-do lists, but rather the relationships, the people that make up one's business, and the impact on others and the community.
In early 2020, the COVID-19 virus caused a global pandemic, threatening the lives and livelihoods of millions across the globe. As of this writing, 40 million Americans had filed first-time unemployment claims U.S. Department of Labor (2020, March 26). Employment and Training Administration. https://www.dol.gov/newsroom/releases/eta. The United States, with its historical reliance upon employers to cover many basic benefits, must overcome unique challenges in its recovery from this global crisis. In this article, we briefly describe the initial federal response; we then present the history of US benefits along with recent yet prepandemic benefit trends, and we conclude by presenting a potential path forward that may allow for both employers and workers to recover in a postpandemic society.
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