General managers have one of the toughest jobs in hospitality. They’re in the trenches with their team, day in and day out — but with the added responsibilities of hiring, training, purchasing, inventory management, maintaining guest satisfaction, ensuring adherence policies and standard operating procedures…the list goes on.
It takes the right skillset — and a lot of grit — to succeed as a GM. When you find a talented one, as an operator, it’s worth doing everything you can to keep them happy and make their life easier.
Enter: digital tipping. For restaurants that move away from cash tip-outs and automate tip distribution, cash management becomes one less (tedious) task on your GM’s plate. That means they have hours back in their day for work that matters. (Or maybe — just maybe — they’ll get to head home at a slightly more reasonable hour.)
Here are 7 reasons why your GM will thank you for making the switch to digital tip distribution.
1. Fewer bank runs
Your general manager probably bears the burden of ensuring there’s enough cash in the safe to pay out tips after each shift. For a lot of GMs, that means running to the bank to withdraw thousands of dollars in cash on a weekly (or more frequent) basis. Your GMs will be more than happy to scratch that task off their to-do list so they can stay in the store and on the floor.
2. Enhanced safety
Running to and from the bank isn’t just a time suck: it’s also a major liability. Having that much cash on your person makes your GM a perfect target for theft. And the same goes for their team once they’ve received their tip-outs and are heading home in the wee hours of the morning. (And realistically, the more cash you have on hand, the more opportunity there is for internal theft and skimming.) Sending tips straight to their bank account is truly the best of both worlds: employees still get instant access to their earnings, right where they want it — and everyone is a whole lot safer.
3. Less time counting (and recounting) cash
As long as you accept cash at your restaurant, your managers will have to deal with the daily task of counting down cash registers before and after every shift. But the vast majority of restaurant sales are credit card transactions. Given the inefficiencies (and risks) of cash management, there’s simply no reason to introduce cash into the equation in order to pay out those credit card tips.
Digital tip-outs eliminates the need for your GMs to manually count out stacks of cash and rolls of quarters until they’re going cross-eyed — which saves time and greatly reduces the risk of human error.
4. Freedom to shine on the floor
All of that time saved from bank runs and cash counting means your managers can spend more time on tasks that really matter. Sure, there will always be admin work to be done. But generally speaking, GMs aren’t in hospitality because they want to spend their days and nights heads down in the back office; it’s because they love to be on the floor managing their team, engaging with guests, and filling in gaps as needed. Finding ways to automate what you can — like tip distribution — gives them the freedom to do just that.
5. Minimal distractions (and drama)
Every time a server comes by the restaurant to pick up tips from the previous night, managers have to stop what they’re doing to open the safe, watch the server count the tips, and sign that they received them. Then they’ll try to return to the task at hand…only for another server to show up 15 minutes later.
Some restaurants also struggle with tip disputes — i.e., employees claiming that they didn’t get what they were owed. Unfortunately, with cash tip-outs, there’s low visibility into payment history and a lot of room for error. Combined, those two things can create major trust issues for your team.
Cashless tip-out solutions mean tip payments happen instantly — not the next day or week — and they provide you with a digital paper trail, which cuts down on the distractions and drama that your GM has to deal with on a daily basis.
6. Easy reconciliation and reporting
Your general manager wears a lot of hats — and for many restaurants, that includes some level of reporting or bookkeeping. Your cash tip-out system might include a lot of hand-written records, complicated spreadsheets…and heavy reliance on your bleary-eyed managers’ late-night math skills.
The right digital tipping solution will provide a much simpler and more accurate source of truth for tip payments, as well as robust reporting by shift, date, location, or individual employee.
7. A smart recruiting play
Your GM has been fighting on the front lines of the labor shortage, and they need new, creative ideas to bring in new servers. Digital tipping options could be the differentiator they need to bring in talented servers. As more restaurants embrace digital tipping, they’re finding that a lot of candidates — especially the Gen Zers — consider instant, direct-to-bank payouts a major work perk that’s rapidly becoming table stakes.
Give your GM the tools they need to succeed
A GM has to be good at juggling a lot of tasks in a fast-paced environment. That’s a non-negotiable. But when there’s an opportunity to make your operations run more efficiently and make your GM’s life easier? That’s a no-brainer. Eliminating the hassles of cash management makes a world of difference for the captain of your ship — so if you’re still doing tip-outs old-school, now’s the time to seek out the right digital tipping solution for your team.
Want to check out Kickfin’s digital tipping software? We’ll show you all of our general manager-friendly features in a 10-minute demo — schedule yours today!