So, you’re ready to break up with cash. Good news: the hardest part is over.
But before you pop the champagne and celebrate your freedom from the pain of cash tip-outs, you have a few decisions to make. Payroll tips or digital tips? Instant tips or pay cards? There are a number of approaches to cashless tipping — but which one is right for your restaurant?
We’ve been there (actually, we live here…), and we’ve done the research for you. As you’re wading through your options, here are a few things to consider when choosing a digital tipping solution.
1. What is the employee experience like?
No servers = no sales. In year three of the labor shortage, we all know how hard it can be to find good employees, so you can’t afford to lose your best servers to the restaurant across the street. If your new tipping system doesn’t benefit employees, go ahead and dust off your “Now Hiring” sign.
Most of your employees want (and deserve) to be paid on a daily basis — so before you make the switch, consider how it can affect their financial situations.
And if you’re looking at a paycard solution, bear in mind — these types of digital tipping programs can cause a host of problems for your staff. For example, paycard fees can quickly add up, effectively docking your servers’ pay.
Ideally, you should choose a solution that gives your people instant access to their earnings (the same immediate gratification they had with cash) with minimal disruption.
2. What will implementation look like?
New tech can be daunting — but digital tipping software should be simple to implement, especially if you’re running as a standalone system. Make sure you ask the vendor you’re evaluating about things like:
- How long will this take to implement?
- What kind of training or onboarding support can we expect?
- Are there any fees associated with the set up?
Bottom line: digital tipping should make your life easier, and that includes implementation. Make sure your solution has a clear, well-run process that gets you up and running fast.
3. How does user management work?
You have veteran employees who’ve been with you for years, others who are just around for a season, and even some who work at multiple locations. When digging into digital tipping options, look for a solution that automates user management, making it simple to add new users and new locations as your business evolves.
4. What happens when I need customer support?
When you’re introducing any new system or process, questions are inevitable.
If your digital tipping solution doesn’t also include a robust, always-on customer success team, you may find yourself lost in the midst of employee questions, operational chaos, and maybe even some regret. Rather than feeling frustrated, ensure success by seeking out tipping platforms that are there to support your transition and keep you afloat.
5. Will I be in compliance with tip pooling laws?
Tip pooling regulations are always changing (and vary from state to state), so your digital tipping solution should also be a tool to help you stay in compliance with the law. As you evaluate tipping solutions, ask if they put up guardrails to prevent any tip pooling mistakes that could result in serious fines and lawsuits.
Evaluating digital tipping solutions for your team? We’ve got you covered. Schedule time with our sales team today and we’ll answer any questions you throw at us.