PhorestTips, the revolutionary tipping solution from Phorest Salon Software, is helping salons boost team earnings by an average of 25%, delivering a much-needed financial lift during one of the toughest economic periods the industry has ever faced.
In the seven months since its launch, more than €5.7 million in tips (approx. £4.8 million) have been paid directly to staff across 591,717 transactions through PhorestTips. With 95% of associated fees covered by Phorest and instant payouts to team members, the system has been widely praised by salon professionals for its simplicity, speed, more importantly being 100% tax compliant.
“Salons are being squeezed from every direction: higher wages, increased national insurance and shrinking client spend,” says Luke Doolin, Country Managing Director, UK & Ireland at Phorest, “Our PhorestTips is one of the simplest, most effective ways for salons to boost morale, retain talent and drive financial stability. It’s compliant, fair, and delivers real, measurable benefits, immediately.”
Unlike clunky third-party tipping systems or outdated tip jars, PhorestTips allows customers to seamlessly add a tip to their payment via the PhorestPay Card Terminal, with the chosen team member receiving it directly into their personal bank account, instantly. It’s a welcome development in a world where 80% of tipping now occurs via card, and fewer clients are carrying cash.
Jacob Morris, Phorest Senior Product Designer adds, “It’s about creating frictionless, transparent tipping. We know that clients appreciate an easy way to say thank you, and staff feel valued with full visibility of their tip history and instant access to funds.”
Critically, PhorestTips is fully aligned with the UK’s new Allocation of Tips Act. The legislation mandates that 100% of tips go to employees, and employers cannot deduct fees or admin costs. PhorestTips was designed with this regulation in mind, ensuring transparency for both employer and employee and giving staff full visibility of their tip history for HMRC reporting.
Tipping is only part of the solution
“The recent budget has put significant pressure on our sector,” Luke continues. “We’re seeing salon owners seriously re-evaluate everything – from apprentice hiring to service delivery. Solutions like PhorestTips, our Ads Manager, and retail goal tracking tools are all about finding ways to lift revenue without compromising service or increasing workload.”
While PhorestTips is transforming team earnings, Phorest as part of its commitment to helping salons grow smarter, is also urging businesses to:
- Invest in growth areas like retail and client acquisition using data-driven tools. Phorest data shows salons that set retail goals outperform those that don’t by 120%, and salons using Phorest’s Ads Manager are seeing returns of up to 11x their ad spend.
- Consolidate operations by using integrated systems like PhorestPay and PhorestTips to reduce admin, lower fees, and improve team satisfaction.
- Adopt intelligent cost-saving measures, such as Vish for colour management or Easydry disposable towels, to increase profitability without cutting corners.
- Understand true service costs using reporting and benchmarking tools. Phorest’s new Benchmarking feature helps salon owners compare key metrics with similar businesses, locally and nationally, to guide better decision-making.
Jacob adds, “Technology doesn’t just simplify operations, it offers clarity. When you can see where your money is coming from and where it’s going, you can lead with confidence, even in turbulent times.”
As the hair and beauty industry adapts to these changing economic conditions, PhorestTips is already proving to be more than just a tipping tool. It’s a symbol of industry resilience – making staff feel valued, ensuring owners stay compliant, and giving clients a hassle-free way to show appreciation.
“PhorestTips is a no-brainer for any salon wanting to modernise, retain great staff, and boost team morale,” Luke concludes. “It’s one of the simplest steps a business can take right now to ease financial pressures, and from the stats we’ve shared, you can see it’s already working.”
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