Sponsored by 7shifts: Team Management for Restaurants
When was the last time you paid for a meal with cash?
These days, it’s rare: just 16% of restaurant purchases were paid with bills, according to a recent PYMNTS report.
Public health concerns during the pandemic have left their mark, and a growing number of consumers are going cashless. iPad tipping has replaced the traditional tip jar and sparked online discussion along the way.
With less cold hard cash flowing through the register, distributing staff gratuities in bills can be a pain for operators. Some restaurants are turning to digital solutions, like 7shifts Tip Payouts, to pay employee tips. Here’s why they’re making the switch.
Free Up Manager Time
With digital tip payments, managers can transfer tip shares instantly. There are no bank runs or wait times for costly armored cars, and they cut time spent counting and dividing bills.
Tip Payouts, a new tool from 7shifts, deposits employee tips directly to their debit accounts in seconds. Operators get more time back to coach employees and manage the floor.
“We created Tip Payouts because we felt there should be an easier, faster way to pay out hard-earned tips,” says Brent Beatty, VP of Product at 7shifts.
And with 7shifts’ team management platform, operators can manage tips in the same place they manage scheduling and communication.
Improve Accuracy
We all make mistakes. Especially when the hood fan is clogged, you’re short a line cook, and there are wasps terrorizing patio guests. It’s easy to slip up when counting bills and it’s hard to keep track of.
When your tip payments are transferred digitally, you don’t have to worry about sticky bills or sticky fingers. Staff also tend to have more confidence in software:
“It's all about the fact that a software program is auto-calculating it...[instead of] us in an Excel spreadsheet. Like, it makes all the difference in the world in people's trust,” says Katie Button, CEO and Co-Founder of Katie Button Restaurants.
Additionally, digital tip payments allow for better tracking and reporting. Since 7shifts offers Tip Payouts, Tip Pooling, and Payroll, you can automate calculations and pay employees—all in one platform. Keep things simple and avoid transferring records between multiple systems.
Protect Your Money
Simply put, keeping cash on the premises is a liability for managers and employees. Heading home with a wad of cash can make restaurant workers a target, especially in the wee hours after closing time.
Digital transactions securely transfer funds from one account to another. You choose who can send payments and you set limits on the amounts they can transfer. 7shifts is also FDIC-insured.
Boost Employee Satisfaction
This new generation of restaurant staff has grown up with smartphones, apps, and the Internet. They’re accustomed to unlimited information, instant gratification, and seamless technology experiences.
Using Tip Payouts guarantees employees instant access to their tips. They don’t have to come back another day to pick up their money if the restaurant runs out of cash. They don’t have to worry about finding time to deposit their cash at the bank.
Tips make up a large portion of income for front-of-house staff in the US. Many of them expect to receive their tips after each shift and plan their finances around that. Tip Payouts help them get paid on time, boosting employee morale and retention. Plus, the transaction history makes for easier budgeting and tracking.
“I don’t have to worry about misplacing cash, take time to go to the ATM, or wait for my manager to count the drawer and then wait for my money. It’s way easier and saves so much time,” says Savannah Stoyka, an employee at Whitehall Tavern in Atlanta.
Pay Your Team Faster, and Easier
Paying cash in tips has served its purpose, but it’s time to say goodbye. Digital tip payments simplify the process for managers and employees alike. With a few clicks, managers can pay out tips in seconds. Staff get instant, easy access to their full tip amounts.
7shifts is the only team management platform built for restaurants. Manage tips, scheduling, team communication, payroll, and more, in one system. Avoid the confusion of using multiple products and cut back on costs. Scale your business with the team management platform trusted by 1,000,000+ restaurant pros around the world.
Hollis Silva, Owner of Melting Pot Spokane, says, "I like to consolidate our vendors to save on costs and make things easier, and I know the direction that 7shifts is going. Tip Payouts is less than half the cost of our previous vendor...I’m excited for what’s next with 7shifts!"
Learn more about paying out employee tips instantly with 7shifts.
