Managing Millennial Restaurant Employees

Real talk: millennials have gotten a bad rap over the years. At best, they’ve been a puzzle everyone wants to solve; at worst, their name has become a catch-all for anyone under the age of 23 who comes across as entitled unmotivated, or lacking ambition.

But millennials aren’t kids anymore. In fact, a lot of them are out of school and have families of their own; some of them (ahem) are even staring down middle age. And they now make up the bulk of the hospitality workforce as employees and managers — and increasingly as owners, executives and consultants.

If you’re operating a restaurant or bar, chances are, you’ve probably got a team of millennials. Even if you’re a millennial yourself, you might be scratching your head as to how to manage them in a way that engages them, motivates them to work hard, and makes them want to stick around.

Good news: a little understanding can go a long way. Here are 5 things you should know about your millennial restaurant employees that will make work more productive and pleasant for everyone (yes, yourself included).

1. Set them free (within reason).

Maybe you’ve heard millennials have a problem with authority — and for some of them, that’s probably true. But it’s no more of an epidemic for millennials than it was for their predecessors.

What is different, however, is their very obvious desire for freedom. Millennials, on the whole, are wary of being tied down. Compared to Baby Boomers and Gen Xers, they’re enthralled with the idea of a life in constant motion. FOMO (fear of missing out) is a real thing, both on a random Friday night, but also when it comes to the bigger picture— because millennials want to see and do and experience everything.

As restaurant employees, it doesn’t mean they’re unreliable or impossible to pin down. But it does mean they’re more open to moving from one job to the next, unlike their parents and grandparents who tended to stick with an employer for the long haul.

So how do you keep them around and give them the freedom they crave?

  • Train and teach: There’s nothing less freeing than feeling like you’re being micromanaged. As a restaurant owner, you won’t have to do that if you create an effective and efficient onboarding program that clearly communicates responsibilities, policies and procedures from the get-go. And remember: training isn’t a one-and-done kind of deal. It should be ongoing, so that you’re always reinforcing good habits.
  • …and then, trust: A Harvard Business Review article defines workplace freedom as “trusting employees to think and act independently.” That doesn’t mean your restaurant becomes a free-for-all; it means if you’ve hired the right people, implemented the right framework, and communicated it to your team, then everyone should feel equipped and empowered to succeed in their roles — no hovering required.
  • Let them share: Hopefully, you’re hiring smart, curious people who have been shaped by many diverse experiences. Give them the freedom and space to share ideas, give feedback, or contribute in ways beyond the role they were hired to do, if they express an interest or desire. At the very least, they’ll appreciate your willingness to listen and your trust in their perspective.

2. Be flexible

Freedom and flexibility go hand in hand. Many hospitality workers have chosen this line of work because it offers some level of flexibility that other jobs don’t — it’s not a 9-to-5, stuck-in-a-cube kind of gig. And while this is a true career for some people on your team, for others, it’s a job they’re able to work around school, or family duties, or another job.

But restaurant employees — from hostesses to servers to line cooks to chefs — are some of the most overworked people in the modern workforce. And the keyword there is people: they’re not assets or line items. They’ve got lives beyond the four walls of your business.

Fairness and compassion go without saying. Being accommodating is simply the right thing to do when circumstances arise that are beyond their control. But if you get a little creative, there are other ways to provide a little flexibility to your millennial employees:

  • Millennials increasingly gravitate toward remote-friendly, work-from-home jobs. Obviously, unless they’re planning to seat people in their very own kitchen, it’s hard to work remotely when you’re a restaurant employee. But perhaps you can choose to make some of your team meetings virtual, or maybe you can give digital access to onboarding and training materials.
  • Another flexibility play is giving employees more control over schedule creation, while also ensuring that your team is actually large enough for the business you’re doing, so that it’s not impossible to get shifts covered as those needs arise.

3. Go digital.

Technology is a millennial’s one true love. There’s a “smart” everything these days, and no one is more enamored with (or appreciative of) the digital age than this crowd.

Millennials are well-versed in technology and they understand the efficiencies and capabilities that innovation can deliver at home and on the job. They’re also extremely well informed because they’re always connected to the rest of the world — so they know what else is out there.

That means, for employers, ignorance is not bliss. If you’re not leveraging the technologies that could make work and life easier for your people, then they’re probably well aware of that fact, and they have easy access to jobs with other employers who are doing it right.

For example: many restaurateurs have felt the pain of the labor crisis as their employees go after “gig economy” jobs with the Ubers and Lyfts of the world, whose platforms allow for real-time pay out. Taking advantage of industry innovation can help you win the battle for good labor.

Tools like Kickfin — which allow you to tip out employees in real time, directly to their bank accounts — or front-of-house solutions like workforce and table management software will certainly deliver ROI to you, but they’ll also show your team that you’re invested in their wellbeing and that you take care of your people.

Pro tip: Employee-facing software solutions should drive transparency and engagement across your whole team, not just your managers or operators. Selecting vendors that take the employee experience into account is incredibly important; it may be something as simple as having a well-designed app or an intuitive, easy-to-learn interface.

4. Give them purpose.

Work is work — there’s no way around it. But millennials are coming to the table (so to speak) with higher expectations. Yes, they’re willing to work, but they also want to be fulfilled and find meaning in what they’re doing.

It’s not about pride or being the most important person in the room; it’s about being a part of something bigger than themselves and contributing to a greater cause. Maybe your restaurant isn’t going to save the world or solve the hunger crisis, but every good business and brand should give its people and its customers a reason to believe.

So find out what that reason is, if you haven’t already. Know your mission, know your why — and share it with your team. Every single person you employ should be able to articulate this.

At the end of the day, there’s no code to crack or equation to solve. Like with any other employee or colleague, empathy will go a long way in establishing trust and transparency — two things that millennials value highly.

And here’s the good news: when you bring millennials into the fold, they tend to bring a lot of people with them. By winning their respect and loyalty, you’ll also win some of the best brand ambassadors you could ever hope to have.

Kickfin can change the way you manage your millennial restaurant employees.

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It’s an election year, in case you haven’t heard! 😉 This one has major implications for tipped employees — specifically, when it comes to taxes.

It’s no secret that our Democratic and Republican candidates are running on very different platforms. But when it comes to tip regulations, Vice President Kamala Harris and Former President Donald Trump actually both support reducing taxes on tips

A little context on taxes and tips

We’re just going to state the obvious: For the average American, tax reporting can be pretty, pretty confusing. For the millions of employees working in tipped occupations — well, that creates another layer of uncertainties.

(Do I have to report my tips? Do have to report my cash tips? Will anyone know if I don’t report my tips? What happens if I don’t accurately or fully report what I earned?)

Historically, there’s been a trend of hospitality employees underreporting cash tips to prevent higher tax burdens. And while this may reduce what employees owe Uncle Sam in the moment, there can be downsides: e.g., if they find themselves eligible for unemployment, if they’re trying to qualify for an auto loan or mortgage, etc.

However, that urge to underreport could be relieved in the near future, given the tax code changes both of our presidential candidates have proposed. The TL;DR: Both Trump and Harris have voiced their intention to relieve some of the burden on tipped workers in restaurants, bars, hotels, and other service positions. 

Here’s a quick summary of each candidate’s plan, as well as some potential impacts for restaurant employees. 

Trump’s plan for tipped employees 

Trump shared his plan to reduce tipped income tax burden at a rally in Las Vegas — fitting for a city that’s built on the gig economy. Nevada is home to the highest concentration of tipped employees who work in the many hotels, casinos, and restaurants that millions of tourists flock to annually. 

During the rally, the former president announced that he would make tipped income exempt from federal income tax, stating it would happen “right away” when he takes office. 

Since speaking at the rally, Trump has not yet clarified what this would mean for tipped employees. Many servers want to know if this is an exemption just on federal income tax or if the proposal includes payroll taxes (social security and Medicare). 

Harris’s tip tax proposal 

Harris also took the opportunity to speak on her tipped income policy while visiting Nevada. Much like Trump, she knew she’d have a captive audience when it comes to tipped earnings. 

Her proposal promises to exempt tipped income from the federal income tax, but she has made clear that tips will still be subject to payroll taxes. While not yet confirmed, campaign insiders say Harris is considering placing some guardrails on her plan — like a caveat that the tax exemption only applies to employees earning less than $75,000 per year. 

Is one plan better than the other? 

In short: probably not. (Most service and hospitality workers do not earn above the $75,000 threshold that’s been suggested by the Harris campaign.) So either way, servers, bartenders, and hospitality staff can expect to see a lower tax burden during the next administration. 

But what does that look like in practice? 

Most tipped employees aren’t receiving their tips on payroll — they’re walking out of every shift with their earnings for the night, deduction-free. Instead, the taxes are paid on payroll out of their hourly earnings, which is why many servers get $0 paychecks every two weeks. With a reduced tax burden, most servers will see the difference in higher paychecks.

On the other hand, economists are wary of the impact of eliminating taxes on tips, citing the reduced funding for social security and Medicare. And with so much negative sentiment around “tipflation” these days, experts also speculate that a reduced tax burden may result in even more hesitance at the tip screen. 

Increasing minimum wage 

We’re closely following campaign promises about an increase to the minimum wage — especially in regards to the tipped minimum wage and the tip credit

Minimum wage earners have been eyeing an increase, noting that the federal minimum wage of $7.25 per hour hasn’t increased since 2009, and servers, bartenders, and other tipped employees have been earning $2.13 per hour for over 30 years. An increased minimum wage paired with the reduced tax burden could make a major difference for service workers trying to keep up with the rising cost of living. 

In the Harris camp, removing tax on tips is just part of the plan to take some pressure off service workers. While Harris hasn’t shared a detailed plan for bumping up the minimum wage, she has indicated that she would support an increase

In previous election cycles, Trump stated that he would consider a minimum wage increase, but he has not shared his opinion on the matter during the 2024 presidential campaign. 

Of course, we’re a ways out from any real policy changes actually shape — but if you’re looking to make your tip management process less taxing in the interim (see what we did there?), Kickfin is here for you! Check out how you can use Kickfin to auto-calculate tip pools and send payouts directly to employees’ bank accounts in seconds.

No matter what industry you work in, there’s always a risk for shrinkage and theft. Ninety-five percent of all businesses experience theft in the workplace, and up to 75% of employees have admitted to stealing from their employer.

Most of the time, it’s not intentional or malicious. For restaurants, it could be something as innocent as giving your friends a free drink or asking the kitchen for food and neglecting to ring it in. 

But when you have a lot of employees handling cash day in and day out, it can be very tempting for someone to take advantage of systems and pocket extra money at your expense. To make matters worse: because cash is hard to track, it can be tricky for operators to put their finger on exactly what’s happening — at least, before it starts to impact your bottom line.

While cash shrinkage can jeopardize your business, operators do have the power to protect their restaurants. Ultimately, it comes down to having the right processes, systems and partners in place.

Here are 4 things you can start doing today to protect your restaurant from cash shrinkage.

1. Create a culture of trust with employees 

Most people want to come to work, do their best, and make an honest living. Creating an environment where your employees trust you with their earnings should encourage them to also be responsible with company assets, including cash. 

Of course, it starts with doing your due diligence when building out your team. That means interviewing new hires in person, asking the right questions, and always checking references.

But the fact of the matter is that even good people can make poor decisions, especially when they’re struggling. As an employer, there are things you can do to keep your staff from ever getting to a place where they feel the urge or need to steal. That includes:

  • Paying a fair and competitive wage
  • Paying wages on time, in full
  • Giving people instant access to their earnings 
  • Offering employee benefits and perks if possible
  • Adhering to federal, state and local labor/wage regulations, especially as they relate to tips

Bottom line: If you show that employees you take their financial well being seriously, it can foster an environment of mutual respect, making employees less likely to consider theft as a reasonable (or justifiable) option.  

2. Minimize cash touchpoints

It’s simple. Less cash on hand = less opportunity for cash shrinkage. 

In the unfortunate case that a high-ranking employee is stealing from your restaurant, cash tip outs make it much more difficult to catch and trace. Anyone with access to cash registers and safes has the opportunity to take a few extra bills — and you may not notice until well after the cash is pocketed and spent. 

Instead of locking up cash and making only a few employees responsible for the massive task of paying out tips, take advantage of new technology that eliminates cash from the tip out process. Fewer people will need to manage cash, which adds one extra layer of security against theft. 

Bonus: cashless tipping vendors like Kickfin give your employees more flexibility with their earnings. They can opt for tips to be sent directly to their bank or to have them put on their payroll check, empowering employees to make their own financial decisions. 

3. Create a digital paper trail

The trouble with cash is the inability to track it. Half the battle is realizing that the cash is missing; and once you know it’s gone — well, now what? 

Digital gratuity management software makes it easy for restaurant operators to create a digital paper trail for all tip payouts. You’ll be able to identify any improper payments, who they went to, and who authorized the payout — removing a major security soft spot.

Not only will you feel more secure, but your loyal employees will thank you for making tip outs much easier. 

4. Select a secure tip management partner 

Removing cash-on-hand is a great first step, and it should make any potential theft traceable back to the person responsible. But wouldn’t you rather prevent theft before it happens? 

If you’re ready to bring your gratuity management into the future, make sure to thoroughly vet your options — because not every digital tip out software has strong protections against theft. 

That’s why Kickfin has optional guardrails that can mitigate your risk of employee theft. 

  • Maximum tip amounts: Limit the amount that can be issued in any individual payout. 
  • Role policies: Create policies to limit who can receive payments by role type, and limit who can send payments to themselves. 
  • Multi-factor authentication: Set your own rules to require MFA at any point, whether at every login or once a month. 
  • Payment interval approval: Trigger a requirement for second approval for an employee’s first payment or their first payment in a determined number of days. 
  • Payment velocity approval: Trigger a requirement for second approval when an employee receives a determined number of payments within a certain interval. 

For our POS integration partners, Kickfin can also put guardrails around your tip calculation policies to prevent fraud. While we offer the ability to send payments through manual entry, spreadsheet upload, or using our tip calculation software, integration users can disallow manual and upload payments to prevent any ad hoc payouts. 

Integration users can also lock in their tip calculation rules, so that only certain users can make changes to the calculation policy. 

How Kickfin helps in the event of fraud 

Even without the temptation of cash in the safe, where there’s a will, there’s a way. 

If you find yourself in a regrettable situation with an employee, your tip management partner should be there to back you up. Thankfully, our platform tracks each payout which will help you identify irregularities and the source of the problem. 

The Kickfin team will always be there to support our partners who experience security breaches. 

Check your Kickfin security settings

Do you want to make sure you have the most up-to-date protections on your Kickfin account? We’ve got you covered. Reach out to your Kickfin customer support team to ask about a free security audit, where we’ll go over your current settings and offer guidance on how to minimize your risk. 

Not yet a Kickfin user? Find out more about our platform and security settings with a demo today.

In the restaurant industry, profit margins have always been tight — and these days, they’re only getting tighter

Running a restaurant is a labor intensive business. You need a strong back of house team to push out food, front of house workers to greet and care for guests, and managers to keep everyone in check. Naturally, labor is one of the most significant expenses for restaurant operators. In order to keep costs reasonable for customers, even a slight overage on labor can break your budget — but thankfully there are levers you can pull to reduce labor costs. 

If you want to secure your business’s financial future, you’re going to need to streamline scheduling practices and keep a close eye on labor costs… without frustrating employees who want more shifts. 

Don’t worry: you can turn to traditional wisdom, sales forecasting, and emerging restaurant technology to make sure that you stay on budget. 

Here are a few ways you can save on labor costs at your restaurant:

1. Rethink the schedule

Obviously, the most straight-forward way to cut labor costs is to reduce the number of people you schedule on a given night. 

We get it — you don’t want to see hour-long ticket times and poor guest experiences. But you might not need as many folks on the line or servers on the floor as you think — at least, not all the time.

Staffing and scheduling isn’t a perfect science, but there are some tactics operators should test if they’d like to “right size” every shift — including:

  • Analyze your daily schedule. Don’t make assumptions about your peak times and slow periods. Analyze sales trends and let the data be your guide.
  • Anticipate seasonal trends. If you’re in a college town, don’t wait until your servers are twiddling their thumbs in July to implement a new summer schedule.
  • Let your seasoned staff shine. Your veteran employees likely thrive on those super busy nights when they’re running on pure adrenaline (and earning way more in tips). Consider giving more experienced workers more responsibility — assuming they’re willing and able — and you might be able to get away with fewer people on a shift here and there.

>> Learn about scheduling software that helps you manage labor and engage with employees

2. Assess and address productivity 

Are you making the most of the team that you already have? There are a few ways you can identify your highest-producing employees and make the most of their success: 

  • Evaluate employee performance. Most employees want to be successful; observe your team and analyzes things like sales per labor hour, table turnover rate, and tip volume to get a sense of your strongest players and those who could use more training (and bonus: this can reduce turnover and boost team morale)
  • Provide incentives. Create a fun bonus system that rewards strong performance and high levels of productivity. You can use data from the previous data point to set goals. 
  • Cross-train employees. Training your staff to handle multiple roles – or hiring folks with vast service experience – offers flexibility for scheduling and can reduce your need for additional hires. 

3. Don’t pay employees to wait for their tips

No, we’re not saying to cut all of your servers early (no matter how much they ask).

But, you can send your servers on their way much quicker when they don’t have to wait around for managers to count out cash tips. Once they’ve finished their sidework, servers can clock out and see their digital tips sent directly to their bank account, instead of hanging around on the clock waiting for the shift manager to do their check outs. 

4. Prevent labor overages before they happen 

Most restaurants simply can’t afford to pay overtime for staff. But sometimes your full-time staff creep toward 40 hours of work without anyone noticing…and suddenly you’re paying 1.5x what you expected for a single worker. 

This, too, goes back to proper scheduling policies. Give yourself a bit of wiggle room for the employee who clocks in 10 minutes early or often takes a long time on sidework by never scheduling anyone for more than 38 hours each week. 

5. Pay close attention to clock-outs 

People make mistakes, and tired servers often leave their long double shift without clocking out for the night. Usually, they’ll realize their mistake and call the store to have someone clock them out (still adding extra time to their shift). 

But sometimes, the clock keeps running all night, and no one notices until it’s time to process payroll. Two weeks later, your admin team is spending way too much time correcting clock-outs so that you don’t end up paying for 8 extra hours of work. 

Try using technology that puts guardrails in place to prevent any clock-out mistakes before they happen. Kickfin doesn’t allow you to process and pay out tips until an employee is clocked out, so managers can make sure everyone is clocked out at the proper time. 

(We also have some other exciting new features that can make your life easier!) 

Not only can Kickfin help you reduce labor costs, but we’re ready to simplify your entire tip management process. Reach out to us to learn more about our instant tip calculations, integrations, and smarter tipping solutions.

Football is back! Whether you’re rooting for your alma mater or just hoping to see massive sales at your restaurant, it’s an exciting — but often stressful — time of year. 

If your restaurant has at least one TV, you’re going to have some customers asking you to switch it to ESPN. And if you’re running a sports bar … it’s officially crunch time. Expect your tables to be full (and harder to turn) and your staff to be running on pure adrenaline as the restaurant fills up with fans hoping for a bite to eat. 

You probably know the drill: hire more staff, add more servers to game day schedules, and manage your inventory with hungry fans in mind. But if you want to get the most out of football season, get game-ready for some of the busiest weekends of the year with our tips for a successful season. 

Consider a game day menu

When your restaurant is at full capacity with hungry football fans, you might want to consider a limited menu for the weekends in order to keep wait times down. Shorten the food menu down to shareable apps, best sellers, and items with the simplest prep so that your kitchen isn’t lined with tickets at halftime. 

At the bar, don’t limit your customers to certain cocktails — but consider the power of suggestion and list out some easy-to-batch cocktails that will keep your service bar out of the weeds. 

Make sure they can watch their game

Is there anything worse than a group of die-hard fans walking in to see their team play — only to realize you don’t have the right subscription service to stream it? Next thing you know, some guy has commandeered the remote to sign into his YouTubeTV account. 

Before that embarrassing situation arises, check your cable listings and subscription services to see if you’re missing any important channels. You’re probably going to need to upgrade in order to show games that aren’t carried in your market. Here are just a few channels you might need: 

  • ESPN+ 
  • Hulu + Live TV
  • Peacock  
  • NFL Sunday Ticket 
  • YouTubeTV or cable
  • Netflix (yep — Netflix will be streaming a few NFL games this year)

If viewing options are limited, or you don’t have enough screens to air multiple games at once, make sure you’ve got a strong wifi connection (free, of course) so that your guests can watch on their phones — or more importantly, talk smack to their fantasy league.

Offer game day deals 

Now that you’re logistically ready for the season, it’s time to draw in the customers. Make your restaurant the place for fans to gather by offering drink specials and deals on appetizers. 

Leverage social media to get the word out about your game day deals. Consider paying to boost a post or running a giveaway for people who share a post about your game day specials. 

Plan for Post-Game

You don’t want the restaurant to empty out as the clock runs down. Entice fans to stay and celebrate (or lick their wounds) once the game ends by extending deals. That could mean a discount for fans of the winning team or an extra-long happy hour. 

Pay out your employees — quickly. 

After a long game-day shift, your servers and managers are going to be more tired than usual. Let them head home early by using Kickfin to pay out tips instantly. We take care of all of the tip calculations and send tips directly to servers’ bank accounts in seconds, so your exhausted team members don’t have to wait to put their feet up and rest. 

Want to see our instant digital tip outs in action? Get a demo of Kickfin today.

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