Introducing Tip Pooling from Crunchtime
Crunchtime’s new tip pooling solution makes it easy for restaurants to calculate and distribute tips
For many years, it has been the norm to tip servers at full-service restaurants, but it is becoming increasingly common for establishments like quick-service restaurants (QSRs) to offer customers the option to tip at the counter. The Toast POS system recently reported that approximately 48% of transactions at QSRs included a tip in the form of a card or digital payment on their platform.
But what happens after a guest adds a tip at the counter for their morning coffee?
Oftentimes, these tips are split between employees through a practice called tip pooling. This practice pulls all of the tips into one lump sum, and then tips are distributed among a select group of employees who have impacted the customer experience. But splitting up the tips fairly can be a complicated task, especially when restaurant managers must calculate the tip pool manually.
Manually calculating and distributing the tip pool is a time consuming task for many restaurant managers. Crunchtime’s Labor & Scheduling platform automatically calculates the tip pool and the amount owed to each employee. The tips are then distributed directly to employees through their paychecks, ensuring every team member is tipped out correctly and quickly.
Crunchtime Labor & Scheduling customers can access the tip pooling solution by upgrading to version 11.
Why we created a solution for tip pooling
Restaurant managers juggle a seemingly endless task list. Managing the tip pool is another item on the to-do list, but overseeing tips a big responsibility that shouldn't be taken lightly. Tips in the service industry directly impact employees' livelihood, and frequent mistakes can have an impact on employees' satisfaction levels.
Crunchtime’s new tip pooling solution helps save restaurant managers a significant amount of time and reduces manual errors by automatically calculating and distributing the tips owed to each employee.
With an automated tip pooling solution, managers can effectively oversee the tip pooling process, whether it’s for three employees, or 50. Your teams can rest assured that the tip pool is handled, and spend more time focusing on the guest experience and other critical operational tasks.
About Tip Pooling in Crunchtime
Crunchtime's Labor & Scheduling platform calculates the tip pool based on your restaurant’s predetermined configurations. Corporate-level users can set up the parameters for the tip pool calculation in line with their restaurant’s tipping policy. From there, store managers can easily oversee the tip out process. This hands-off approach gives more time back to managers and ensures employees are always paid fairly.
Key Features & Functions of Tip Pooling in Crunchtime:
- Customizable Split — Choose to pool tips daily or by the daypart (breakfast, lunch dinner). You can also decide which positions are included in the tip pool. This flexibility allows management to customize the tip pool to your restaurant’s specific tipping structure.
- Automatic calculation based on hours worked – Calculating the tip pool becomes a completely hands-off process for managers, saving them significant time and effort.
- Fast Payments – By syncing with payroll, the tip is automatically distributed on paychecks, making employees happier and more engaged at work.
- “Set it and forget it” configuration – Once the tip pool set up is configured, managers can turn their focus back to daily operations, knowing that every employee will be tipped out according to the company’s policy.
- Tips are automatically recorded – Rest assured that your restaurants will always maintain thorough payroll records, with the tip history automatically recorded.
Is tip pooling right for my restaurant?
Tip pooling is gaining popularity because it can help ensure that employees are paid fairly across the store. It also provides a boost in wages that is an attractive incentive for restaurant workers. Traditionally, workers in the back-of-house like kitchen staff have not benefited from tipping.
Implementing a practice like tip pooling can give restaurant operators more flexibility with wages and help make sure each team member is compensated for their hard work. If your tip pool policy includes back-of-house workers, this may help you attract and retain staff for positions that can be difficult to fill. Many restaurants also find that the practice of splitting tips encourages their teams to collaborate more closely and work together to deliver an exceptional customer experience.
If you think tip pooling is right for your restaurant, using a tool designed to automate tip pooling is recommended to help streamline the process from start-to-finish. Restaurants can benefit in multiple ways:
- Save time: Saves managers a significant amount of time, as they no longer need to manually count, split, and distribute the tip pool.
- Accuracy: Ensure the tip pool is always calculated correctly and distributed in a timely manner.
- Employee satisfaction: Providing additional wages from the tip pool can help restaurants attract and retain talent, especially in today’s tough hiring market.
Ready to learn more?
Tip pooling is one of many Crunchtime features that makes labor management more efficient for restaurants. To learn more about tip pooling, or other features in Crunchtime Labor & Scheduling, request a demo today.