Beat the Labor Shortage: How to Increase Tips and Keep Your Best Servers

In the midst of a (neverending?) labor shortage, restaurant operators are doing everything they can to encourage their best servers to stick around. 

A sure-fire way to keep your current employees happy? Help them earn more money. Of course, when margins are tight, that can be tricky —  which is where tips come in. Tipping allows employees to earn significantly more than what your revenue constraints might allow.

In fact, for many restaurant teams, particularly in the full-service segment, tips make up the majority of a server’s income. And if you practice any sort of tip pooling, then tips can increase take-home pay for other front-of-house and back-of-house employees, too.

While tip amounts are generally determined by the total bill and the quality of service a customer receives, there are things you can do to help your employees earn more tips. Here are a few ideas to try out at your restaurant.

1. Give them bigger sections

Your veteran servers can handle a lot more than you give them credit for. They probably want everything you throw at them, because more tables can generally mean more tip-making opportunities for them.

We get it: you don’t want customer service to slip. But you can trust your best servers to be honest about how much they can handle. If their answers vary, you can create different-sized sections where you reward top performers with more tables, while newbies get their feet wet with smaller sections.

2. Server training sessions

In the restaurant industry, you’re bound to get a lot of green serving staff. Give them the knowledge and tools they need to exceed customer expectations and operate with efficiency, so they can start earning more tips, faster.

If you don’t already have some kind of formalized training program in place, now’s the time to start. (For tips on onboarding new employees, check out our webinar here.) 

Of course, there are some basics they’ll need to learn — policies, standard operating procedures procedures, how to use your tech stack, etc. If they’re new to the industry, don’t make any assumptions: introduce them to every part of the restaurant. It’s important that they understand operations from front to back and how their success is tied to the success of the whole team.

Soft skills are equally important. Being able to engage with guests in a warm, professional manner can take the dining experience to the next level — and it compensates for slip-ups here and there while employees are still learning the ropes.

3. Teach the art of the upsell

In addition to the training they receive during onboarding, it’s never a bad idea to offer ongoing sessions for newer staff and seasoned pros alike. One focus area to consider: coaching your team on the art of the upsell. 

No, you don’t want your servers to turn into full-blown salespeople; but when it’s done in a way that’s focused on improving the guest experience, it has the added benefits of boosting tip amounts and increasing your restaurant sales, too. 

For example, hold a drink pairing class where your team learns what drinks to suggest for each order. Help them practice presenting daily specials in a way that’s appealing and easy-to-follow. Remind them not to miss an opportunity to suggest a starter and be smart about how they position the option for a dessert. (E.g.: They’re full from dinner? Offer that pie to-go!)

Not every server will have time for extra classes (school, family, and life can get pretty hectic), so make these classes optional. Your servers who can make it will thank you for providing them with flexibility and tools to increase tips, and your customers will notice and appreciate how knowledgeable your staff is. 

4. Run your kitchen efficiently

We all know that servers bear the brunt of frustrated, hangry customers. If guests are waiting and waiting for their food, they often blame the server (even if they’re not at fault) and deduct from their tips. Also, the longer a party sits waiting for their food to come out, the longer the server will have to wait to get their next table. 

Want your servers to earn more money? Address any back-of-house issues that might be impacting the customer experience. Hungry guests will be much happier when their food arrives quickly, and it’ll help your servers turn and turn more tables throughout the night. 

And keep in mind: For restaurants that include back-of-house employees in their tip pool, kitchen employees benefit from better tips, too — so help them understand how a rising tide lifts all boats.

5. Manage expectations at the host stand

Just like the kitchen, the host stand is completely out of the servers’ control — but it can seriously affect their tips. While you can’t really help going on a wait during a busy Saturday night dinner rush, you can train your hosts to tactfully manage guests’ expectations, so they aren’t fuming by the time their server comes to greet them. 

For one, hosts need to accurately predict wait times. There’s nothing worse than telling a customer that it’ll only be a 20-minute wait and then watching them sit squirming in your waiting area for 45 minutes. Consider taking advantage of restaurant tech that can help hosts manage the floor and the waitlist. 

It can also be confusing to guests if they’re on the waitlist, but they see empty tables. What they may not know is that you don’t have enough servers to cover all of the tables in the restaurant — so if that’s the case, consider asking your hosts to be proactive about explaining the situation.

Of course, when a party leaves and the table is ready to be cleaned, encourage your hosts to jump in and support busy bussers so that the next guests can be seated quickly.

6. Put your managers back on the floor 

When things go wrong, managers often swoop in to save the server’s tip. Managers are there to smooth over customer complaints and ensure a high-quality dining experience for every guest in your restaurant. But if they’re in the back office working for the entire shift, servers don’t get the support they need. 

Free up your managers’ shifts so they can spend more time touching tables, refilling drinks, and supporting the FOH staff. When managers can spend more time interacting with guests and helping servers who are in the weeds, guests enjoy their dining experiences more and are happier to leave a generous tip. 

(One idea to give your managers hours back in their day: Try out Kickfin’s instant cashless tipping software so your managers can spend less time counting out cash tips and crunching numbers, and more time connecting with customers and supporting your servers. Check out a demo today.)

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For the third year running, Kickfin has been named to the Inc. 5000 — Inc. magazine’s definitive ranking of the fastest-growing private companies in America — earning our place once again among the fastest-growing companies in restaurant and hospitality technology.

Three years on the Inc. 5000 isn’t a lucky streak. It’s a scoreboard — and it says the same thing every year: the industry is moving off cash, and it’s moving to Kickfin.

Restaurants and hospitality groups are walking away from cash tip-outs, spreadsheets, and pay cards — and they’re not looking back.

Growth that’s built on getting operators out of the cash business

Three straight years on this list is the result of one simple idea taking hold across the industry — but the metric we’re proudest of isn’t ours. It’s our customers’.

Operators are trading 3 a.m. bank runs, $10,000 in the safe, and 45 minutes of manual tip math per shift for something that takes seconds. Southern Proper Hospitality went from three to four bank runs a week to one a month. RA Ventures — 55+ locations across three brands — handed managers back the four hours a night they used to lose to counting cash and paperwork, and eliminated bank runs entirely. At one of its concepts, 98% of employees opted into instant payouts the moment they had the choice. That’s not a software win. That’s giving managers their nights back — and employees their money faster.

We hit this ranking through a stretch that tested every operator in the country: labor shortages, rising costs, and razor-thin margins. Kickfin grew because in that environment, cutting hours of admin and eliminating cash risk stopped being a nice-to-have and became survival.

Why operators keep choosing Kickfin

Three things separate us in a category we’ve defined:

Tips go straight to the bank account employees already have. No proprietary card. No transfer fees to touch their own money. No credit checks, no age restrictions, no financial product nobody asked for. Marco’s Pizza chose Kickfin specifically to avoid handing staff a pay card. Rock N’ Roll Sushi eliminated the $1.50-per-shift fee employees were paying just to access their own tips somewhere else.

Tip math is calculated straight from the POS. Toast, Square, Micros, Lightspeed, R365, Union, SkyTab — Kickfin reads the shift data and calculates pools and shares automatically. No exports, no whiteboards, no “trust me, I did the math.”

Every payout is on an auditable digital ledger. Complete history by location, shift, and employee. When it’s time to answer a compliance question, the answer is already there.

The bigger story: this was never just about tips

Here’s what the ranking really signals. What started as the best way to pay out tips has become the disbursement infrastructure the hospitality industry runs money through — POS-native, API-first, and built for 50-state payroll compliance from day one.

Payroll and HCM platforms have noticed. Companies like iSolved, Auris, Adora, Netchex, and AllianceHCM are embedding Kickfin’s API to deliver instant tip and wage disbursement to their own restaurant customers. We’re not a feature bolted onto someone else’s stack — increasingly, we are the stack.

And we’re not slowing down. Something big is coming in early 2027 — the next chapter in how Kickfin moves money for the hospitality industry. We’re not ready to show all of it yet, but if the last three years are any indication, it’s worth watching this space.

The Inc. 5000 measures how fast a company has grown. What it can’t capture is why: we’re building the rails for how the entire hospitality industry pays its people. The tip management category is ours to lead today — and it’s only the beginning of what Kickfin is building.

Thank you — you built this list

Every place on the Inc. 5000 is really thousands of shift-end tip-outs that went off without a hitch, thousands of bank runs that never happened, and thousands of employees who got paid instantly and fairly. That’s on our customers. We owe this ranking to the operators who trusted us with the least glamorous, highest-stakes 20 minutes of their night — and to the teams who show up for them beyond business hours, because restaurants don’t clock out at 5.

We’re honored to be on the 2026 Inc. 5000. We’re more excited about what we’re building next.

See why the fastest-growing restaurants are ditching cash tip-outs for good. Book a demo →

2025 was a defining year for Kickfin and the customers who rely on our software to automate their tip management processes

Driven by direct customer feedback and the evolving realities of restaurant operations, our Product Development team delivered a wave of meaningful enhancements across tip calculation, integrations, user controls, and accounting.

Before we look ahead to 2026, here’s a look back at the product advancements that made Kickfin more robust, more flexible, and more ready to meet the demands of restaurant teams than any other tipping solution.

Advanced Tip Calculator Enhancements

n 2025, we significantly expanded the functionality of Kickfin’s Tip Calculator. Here are a few standout features that we released:

Separate Tips and Auto-Gratuities

Kickfin now tracks tips and auto-gratuities separately, allowing operators to report them independently to payroll and manage them differently for tax purposes.

This distinction is especially important in light of the 2025 No Tax on Tips legislation. While tipped employees no longer pay federal income tax on the first $25,000 in tips earned annually, auto-gratuities, service fees, and other compulsory charges remain taxable.

Kickfin ensures those earnings are categorized correctly from the start — reducing downstream payroll and compliance risk.

House Accounts for Service Charges

Not all service charges are distributed 100% to employees — and Kickfin allows you to handle that with “House Accounts.”

Operators can retain a portion of service charges while distributing the remainder to the team. This is particularly valuable for:

  • Special events and private dining
  • Paying out job roles that don’t typically participate in tip pools (e.g., event managers)
  • Maintaining clarity and transparency around service charge allocation

More Flexible Tip Share Logic

No two restaurants share tips the same way — and Kickfin’s calculator now supports even more real-world scenarios.

Operators can configure tip shares:

  • By shift or by check close, ensuring support staff are compensated appropriately even if they didn’t touch a specific check
  • By hours worked or split evenly, a level of flexibility that remains unique to Kickfin
  • With advanced rules for “remaining tips,” allowing operators to define how servers and bartenders split earnings after support positions are paid out.

These enhancements allow Kickfin to support everything from simple pools to highly complex policies.

Check-Level Edits for Greater Accuracy

POS data doesn’t always capture every nuance, so managers may need the ability to make changes.

Kickfin now supports individual check-level edits for:

  • Cash tips
  • Auto-gratuities
  • Check details and splits

This ensures large parties, special events, and edge cases are handled accurately.

Tip Calculator Change Log for Auditability

Any check-level change made by a manager is recorded in a detailed change log. This creates a clear audit trail, helping operators resolve questions quickly and reinforcing transparency and trust with staff.

Enhanced Functionality for Smarter Cash Handling

Thousands of restaurants use Kickfin because they don’t have enough cash on hand to pay out credit card tips, and they want to reduce the amount of cash handling in their restaurant altogether.

However, we know cash will probably always be a (small) part of the equation. Kickfin makes it easy for you to handle that with some added functionality:

  • Tips left in cash: If a diner leaves a pile of cash at your table, it might not get recorded in your POS. However, Kickfin allows you to record it and distribute it through our platform.
  • Cash payouts: Many operators may want to distribute all of the cash left in their register at the end of a business day to avoid bank runs for deposits. Again, that’s easy to do with Kickfin’s “Blended Payouts” feature.

Enhanced Support for Toast Delivery Service Tips

Kickfin now handles Toast Delivery Service tips more intelligently by excluding driver tips from the general tip pool and assigning those tips directly to the delivery driver. This ensures tips are distributed exactly as intended.

Kickfin delivers on all of those fronts by:

  • Freeing managers up from bank runs and the back office, so they can focus on everything that can’t be automated.
  • Ensuring employees walk out the door with their earnings already in their existing bank account, no waiting, no detours.
  • Helping operators stay compliant, track everything, and uncover new efficiencies.

Expanded POS and Payroll Integrations

New POS Integrations

In 2025, we expanded our POS ecosystem with new integrations including Union POS and rPOWER. POS integrations eliminate manual uploads, reduce errors, and enable real-time tip calculation and reconciliation. Learn more about integrating your POS with Kickfin.

New Payroll Integrations

We also launched new payroll integrations with ADP Run, Paylocity, and Restaurant365 Payroll.

Once activated, Kickfin generates export files that sync seamlessly with your payroll system — significantly reducing manual work for payroll teams.

Looking Ahead

platform that keeps pace with the ever-changing complexity of modern hospitality operations.

If you’re not yet using Kickfin, now is the time to see what advanced tip management really looks like 👉 Schedule a demo today!

If you’re already a Kickfin customer, our team is happy to walk you through what’s new. 👉 Schedule a quick consult to learn more.

And of course: Stay tuned for what’s to come in 2026!

Kickfin is proud to announce that we have once again been named to the 2025 Deloitte Technology Fast 500™, a ranking of the fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America, now in its 31st year.

Kickfin is the only company on the list purpose-built for restaurants and bars to automate tip management — marking another major milestone for our team, our partners and the thousands of restaurant operators who trust us to modernize their tip-pooling and payout workflows.

Why it matters

When it comes to tipping out employees, cash is no longer king — and needs are changing fast. Hospitality workers demand (and deserve!) faster, cashless payouts; burned-out managers need more hours in their day; and now more than ever, operators care about visibility, compliance, and employee satisfaction.

Kickfin delivers on all of those fronts by:

  • Freeing managers up from bank runs and the back office, so they can focus on everything that can’t be automated.
  • Ensuring employees walk out the door with their earnings already in their existing bank account, no waiting, no detours.
  • Helping operators stay compliant, track everything, and uncover new efficiencies.

What sets Kickfin apart

There’s a reason Kickfin is the best-in-class tip management solution.

  • Broader POS integrations: We’ve expanded our direct integrations with leading POS brands, including Toast, Square, SkyTab, Genius POS, Union, and more — so managers can pool and pay out tips in a matter of clicks.
  • Enhanced tip-pool logic and flexibility: Our platform automates even the complex tip pool policies, with more tip pooling and automated reconciliation features than any other solution, while keeping the end-user experience simple and intuitive.
  • Instant, cashless payouts: With fewer cash drawer runs and real time bank deposits, teams experience faster shift-close, fewer errors and improved satisfaction.
  • Built-in compliance and reporting: As tip-pooling regulations continue to evolve, Kickfin empowers customers with robust features like digital paper trails and payroll integrations to ensure accuracy and compliance from end to end.
  • Customer success focus: Our fully U.S.-based Customer Success team is partners with customers to make onboarding fast and easy, no matter how tricky your tip policy may be, so you get ROI right away.

A big thank you

We’re honored to be recognized by Deloitte, and even more excited about what comes next. For restaurant operators, managers and employees alike, the future of tip management is here, and we’re thrilled to be your partner.

Ready to see what automated tip pooling and instant payouts look like in action? Book a demo today!

Brand new feature, coming in hot!

As part of our latest product release, Kickfin now offers Blended Payouts for even easier, fully automated tip management and reconciliation.

Why Blended Payouts Matter

Now more than ever, restaurant guests use credit cards or digital payment methods instead of cash. For many operators, that means there isn’t enough cash on hand at the end of a shift to pay out tips. But employees still want to receive their payouts immediately after clock-out. 

As our customers know, Kickfin solves for those cash shortages by automating and digitizing the payout process — giving you the power to send instant, cashless payouts directly to your employees’ bank of choice, 24/7/365. 

The result: minimal cash handling and risk, better accuracy and tracking — and of course, fewer bank runs.

However, digitizing payouts often results in some leftover cash in the drawer. Over time, we’ve heard from customers who prefer to use up that cash to pay out tips, then distribute the remaining tip amounts via Kickfin. 

With Blended Payouts, you can do just that — and still account for every penny paid out, quickly and accurately, within the Kickfin platform. 

How Blended Payouts Work

As always, all Kickfin customers can still choose to split individual payment amounts between instant payouts and payroll. Once you enable the new Cash Payouts feature, you will now be able to account for any cash tip payments that were also distributed.

Note: This feature lives within Kickfin’s Tip Calculator, which means you must have an active POS integration to use it.

  • Once it’s enabled, you’ll see the new “Cash Payouts” button on the Payment Review screen.
  • After clicking the button, users will be able to enter the individual cash amounts that were distributed to employees.
  • Back on the Review screen, you’ll see instant payout, payroll, and cash payment amounts for each employee. All three payment methods will have their own line items and be accounted for under your Payment Details.

Watch here for a full walkthrough of the new feature.

Ready to enable Blended Payouts? 

If you’re a current customer, in touch with our Customer Success team at support@kickfin.com to activate this new feature.

(Not a customer yet? Click here to see Kickfin in action and learn how you can automate tip pooling and payouts!)

See Kickfin in action!