What is Tip Management?
Tip management systems manage the calculation, collection, distribution, and reporting of tips earned by service employees. With automated systems and guidelines, restaurants can distribute tips accurately and legally.
Restaurants use tip management to manage -- Server tips
- Bartender tips
- Delivery driver tips
- Tip sharing agreements
- Mandatory gratuities
- Credit card tips
A modern restaurant POS system may be capable of auto tips, calculating tip-outs, and integrating tips directly into payroll.
Effective tip management will improve transparency, reduce payroll inaccuracies, minimize the number of required reports, and confirm the restaurant’s tipping policy rewards staff in ways the team expects.