The Ultimate Guide to Restaurant Recruiting

Recruiting is a crucial part of any successful restaurant business. From hosts and servers to cooks and bussers, every employee plays a vital role in providing exceptional service and creating a positive customer experience. Finding talented staff can be challenging, especially in today’s competitive job market.

There are several strategies that restaurants can use to make the most of their recruiting efforts and attract top-notch candidates. In this guide, we will explore some tips and best practices for effective restaurant recruiting.

How To Recruit for a Restaurant

Recruiting for a restaurant involves identifying potential candidates who demonstrate the skills, experience, and temperament necessary to meet the unique demands of the hospitality industry. Typically, the process begins with a well-written job listing. The listing should be detailed and precise, clearly outlining the responsibilities, skills, and expectations for the role. It should also highlight the benefits and opportunities your restaurant provides, such as career growth, training programs, or competitive pay scale. 

The recruitment process should leverage various channels to reach potential candidates. Traditional methods, such as newspaper ads and job fairs, can be effective. Still, online platforms like job listing sites, social media, and the restaurant’s website often yield greater reach. Networking is also a powerful tool. Current employees, industry contacts, and even customers can serve as invaluable sources for recommendations and referrals.

Once you find potential candidates, move those that seem like a good fit to the interview stage. The interview process is a valuable opportunity to assess each candidate’s aptitude and skills, as well as their personality, attitude, and ability to get along with other employees. 

How Do I Start Recruiting?

To recruit new employees for your restaurant, start by writing a detailed job listing. Next, distribute that job listing using multiple channels, including job boards and social media. Finally, use candidate interviews to identify applicants with the right skills, attitude, and personality to work in your restaurant.

Common Restaurant Recruiting Tools

Recruiting the right people for a restaurant involves a wide range of tools. Here are some of the most common tools used in restaurant recruiting.

  • Job boards: Online job boards like Indeed, Glassdoor, and Caterer.com are excellent places to post job openings and reach a large pool of potential candidates.
  • Social media: Platforms such as LinkedIn, Facebook, and Instagram can be powerful tools for sharing job openings, showcasing your restaurant’s culture, and engaging directly with potential applicants.
  • Recruiting agencies: Specialized hospitality recruiting agencies have extensive talent networks and deep industry knowledge, making them valuable resources for finding and hiring qualified candidates.
  • Word of mouth: Don’t underestimate the power of word-of-mouth recommendations. Encourage your customers and vendors to refer their friends and former colleagues or ask other restaurant owners or industry professionals for recommendations.
  • Employee referrals: Many restaurants successfully recruit through their current employees. Offering referral bonuses can incentivize your staff to recommend talented individuals from their network.
  • Hiring events: Hosting job fairs or open interview days can quickly and effectively screen multiple candidates at once. They also allow candidates to get a firsthand look at your restaurant’s culture and atmosphere.

Tips for Successful Restaurant Recruiting

Every restaurant owner knows a skilled and dedicated team is critical to a successful business. Recruiting top talent is no easy feat, especially in an industry as dynamic as hospitality. Here are some tips to elevate your restaurant’s recruiting, allowing you to attract, hire, and retain top employees: 

Define Your Ideal Candidate

Before you start your recruiting process, have a clear understanding of the type of candidate you are looking for. This means defining the skills, experience, and qualities essential for the position. Having a clear definition of your ideal candidate will help you target your recruiting efforts and attract individuals who are the best fit for your restaurant.

Optimize Your Job Descriptions

Creating a strong job description is another crucial step in improving your recruiting. An effective job description should provide a clear and compelling overview of the role, its responsibilities, and the skills and qualifications required. It serves as the first point of interaction between your restaurant and potential candidates, so it should reflect your restaurant’s culture and values while capturing the essence of the job. 

Focus on Employer Branding

Employer brand is the public’s perception of your restaurant, including its reputation as a workplace. In recruiting, branding is the image that potential candidates have about the working environment, culture, values, and benefits of being an employee at your establishment. This sets your restaurant apart from competitors, making it an attractive place for top talent to work.

Investing time and resources into developing a strong employer brand can significantly enhance your restaurant recruiting efforts. You can share your restaurant’s branding through various channels, including your website, social media accounts, job postings, and during the interview process. Sharing stories of your current employees’ experiences, highlighting career growth opportunities, and showcasing the unique aspects of your restaurant’s culture are effective ways to build a strong employer brand. 

Remember, potential candidates are not just looking for a job—they are looking for a positive and rewarding work experience. Employer branding is a valuable tool to communicate these things to potential employees.

Create a Restaurant Recruiting and Hiring Team

Assembling a dedicated recruiting and hiring team is another effective strategy for enhancing your restaurant’s recruiting process. This team could include managers, supervisors, or experienced staff members who understand the restaurant’s culture, expectations, and the skills required for each role. The recruiting team’s responsibilities include interpreting the job descriptions, screening applications, conducting interviews, and making hiring decisions.

Having a dedicated recruiting team also helps streamline the hiring process and ensures that hiring decisions align with your restaurant’s needs and culture. This team can also provide valuable insights into the applicant’s potential fit within the existing team, as they are familiar with the daily operations and demands of the restaurant.

Ask Current Staff for Referrals

Referrals from current employees are often high-quality, as individuals typically recommend candidates they believe will fit well within the existing team and culture. Employees making recommendations will likely have firsthand knowledge of the candidate’s work ethic, skills, and attitude, contributing to a more reliable assessment of fit for the job role.

Implement a successful referral program by incentivizing your staff. You can do so through financial rewards, extra time off, or recognition for successful hires. Encourage your employees to recommend friends, former colleagues, or acquaintances from their professional network who they believe would be a great addition to your restaurant team.

Leverage Social Media

Social media offers a powerful means to reach a broad pool of potential candidates. You can use social platforms like LinkedIn, Facebook, Instagram, and Twitter to showcase your restaurant’s culture and job openings effectively.

  • LinkedIn: A professional network like LinkedIn can be highly effective for posting job openings and scouting for potential candidates with specific skill sets. LinkedIn’s robust search feature lets you find professionals with the experience and qualifications necessary for your restaurant.
  • Facebook and Instagram: These platforms are ideal for showcasing your restaurant’s culture. Regularly post photos and videos of your team in action, highlighting the positive aspects of working at your restaurant. Use targeted ads to reach potential candidates in your area when you have job openings.
  • Twitter: Twitter is an excellent platform for quick, real-time updates. Use it to announce job openings, share updates, or retweet positive comments from employees. Using relevant hashtags can help increase the visibility of your posts.

When using these social media platforms for recruiting, engage with users who comment or share your posts. This interaction builds a more substantial online presence and makes potential candidates feel valued and seen. Social media platforms also offer a valuable opportunity for potential employees to interact with your brand before they even walk through the door, helping you to attract candidates who genuinely resonate with your brand and work culture.

Attend Job Fairs and Industry Events

Job fairs and industry events are excellent opportunities to supercharge your restaurant recruiting efforts. These gatherings offer direct access to many potential candidates, many of whom are actively seeking job opportunities. They provide an avenue for face-to-face interaction, facilitating a more personal and immediate connection than digital platforms.

Network actively with attendees at industry events, as it’s a prime opportunity to meet potential candidates and other industry professionals who could refer candidates to your restaurant. These events often attract passionate individuals who are involved in the industry and may be seeking new opportunities or who can connect you with potential candidates.

Offer Competitive Compensation and Benefits

Offering competitive compensation and benefits packages is a compelling strategy to attract and retain top restaurant talent. Salary is often a primary consideration for job seekers. However, comprehensive benefits can distinguish your restaurant from competitors and show potential employees you’re invested in their well-being and development.

A competitive compensation package can include a fair wage or salary, tips, and bonuses tied to individual or team performance. On the other hand, benefits could encompass health insurance, retirement plans, paid time off, or even unique perks like staff meals, gym memberships, or professional development opportunities.

This comprehensive approach attracts quality candidates and boosts employee morale and job satisfaction, reducing employee turnover. It signals to potential employees that their efforts are valued and rewarded, fostering loyalty and commitment. It’s essential to clearly communicate these benefits during the recruitment process so candidates can fully appreciate the total value of their compensation package.

Create an Engaging Application Process

The application process is often a candidate’s first impression of your restaurant and can significantly influence their decision to apply. Make sure your application process is user-friendly, mobile-friendly, and engaging. Provide an option for candidates to upload their resume or link to their LinkedIn profile, as this can save them time and effort in filling out a lengthy application. 

Take advantage of technology by including video interviews or assessments in the application process. This provides an opportunity for candidates to showcase their skills and personality and gives you a better understanding of their qualifications before scheduling an in-person interview. It can save time and effort for both parties, resulting in a more efficient and effective hiring process. 

What Position is the Most Important Recruitment Decision in a Restaurant?

The most critical recruitment decision for a restaurant is management. Managers serve as the backbone of the restaurant, running operations, coordinating staff, and ensuring customer satisfaction. Their competence directly influences the restaurant’s atmosphere, efficiency, and, ultimately, profitability. Moreover, a proficient manager can mentor and uplift the staff, fostering a positive work environment conducive to high performance and staff retention.

Manager retention is critical in the restaurant industry. The constant presence of a reliable manager offers stability and consistency, which is beneficial for both the staff and the customers. Frequent management changes can disrupt the workflow and create uncertainty, which can negatively affect the morale and productivity of the team. That’s why it’s essential to have an effective management training program to ensure you instill managers with the right attitude and skills and aid in their professional development to avoid high turnover in these key positions.

You might also be interested in

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!)

Kickfin is excited to share the latest addition to our integration marketplace. Read on for all the details around our partnership with Union POS. (If you’re a current Union POS customer and you’d like to learn more about how Kickfin automates tip pooling and payouts, schedule a live demo here.)

AUSTIN, Texas (August 13, 2025)—Kickfin, the leading tip management software, today announced the launch of its integration with Union, the purpose-built POS and engagement platform powering the nation’s busiest bars, nightclubs and restaurants.

Thousands of operators use Kickfin to eliminate tedious tip calculations and remove cash from the tip distribution process so managers can move faster, track everything, and ensure accuracy and compliance.

Untitled design - 2021-04-29T114014.973

By activating the Kickfin-Union integration, we eliminated clunky spreadsheet formulas and fully automated our tip pooling process. After going live, we reduced our time to close out by an average of 30 minutes after every shift.

The Kickfin-Union integration gives Union’s customers the power to auto-calculate tip pools in a matter of clicks and send payouts directly to employees’ bank of choice—no cash or pay cards required.

“By integrating with Kickfin, we’re giving operators the power to choose best-in-class tools that work seamlessly with their Union POS and data,” said Alex Broeker, the CEO and founder of Union. “This direct integration brings automated tip management to our operators while unlocking new opportunities for operational efficiency, employee satisfaction and simplified compliance.”

KPG Hospitality, which operates experiential bars and unique concepts throughout Texas and Tennessee, was among the first operators to activate the Kickfin-Union POS integration.

“Our venues run at a very fast pace. When you consider the time it takes managers to manually calculate tip amounts every day, after every shift, across every location, it’s a lot of unnecessary admin hours,” said Troy Cramer, the managing partner at KPG. “By activating the Kickfin-Union integration, we eliminated clunky spreadsheet formulas and fully automated our tip pooling process. After going live, we reduced our time to close out by an average of 30 minutes after every shift.”Key Features of the Union + Kickfin Integration:

  • Automated Tip Pool Calculations: Calculate complex tip pools in seconds, saving managers hours of administrative work while ensuring accuracy and transparency.
  • Instant Cashless Payouts: Pay out tips directly to employees’ bank of choice instantly, eliminating the need for cash handling and bank runs.
  • Simplified Compliance: Maintain a digital record of every payout, making tip reporting and tax compliance straightforward.
  • Enhanced Tracking: Easily track tips by pay period with comprehensive reporting capabilities.
  • Streamlined Operations: Implement complex tip policies with just a few clicks through an extremely easy-to-use interface.

“Our integration with Union, a leading POS system built specifically to support the busiest venues in the industry, makes perfect sense,” said Kickfin co-CEO Brian Hassan. “Together, we’re creating a solution that saves time, reduces errors, and delivers a better experience for both operators and their staff.”

Available immediately through both Union and Kickfin, venues can integrate their systems and begin leveraging these capabilities today. To learn how this partnership can transform your tip management operations, schedule a demo at GetUnion.com or kickfin.com/demo.

About Union
Union powers a first-of-its-kind venue operating system purpose-built for the nation’s busiest bars and restaurants. More than a point-of-sale, Union connects 1,500+ establishments with 5M+ consumers and leading brands through real-time consumption data. The platform drives operational efficiency, enables frictionless mobile ordering, and facilitates brand-patron interactions that enhance venue loyalty. With $2B+ in annual transactions, Union creates a virtuous cycle where venues improve customer experiences, brands gain direct consumer engagement, and patrons enjoy personalized rewarding hospitality—transforming high-volume operations into next-gen guest experiences. To learn more about Union, visit http://www.getunion.com

About Kickfin
Kickfin is a leading digital tip management platform that automates tip pool calculations and delivers cashless tip payments directly to employees’ bank accounts. Designed to eliminate the administrative burden of tip management, Kickfin helps restaurants, bars, and hospitality venues save time, reduce errors, and improve employee satisfaction. With features like instant payments, digital record-keeping, and simplified compliance, Kickfin is transforming the way venues handle tip distribution in today’s increasingly cashless economy. 

If you’re in the market for tip management software, you might find yourself comparing Kickfin and TipHaus. 

Kickfin is the largest provider of instant tip payouts on the market and has processed more than $2 billion in employee payments for all kinds of restaurants, from “mom-and-pops” to national franchises — and everything in between. 

Kickfin and TipHaus are both designed to digitize tip distribution for restaurants. However, there are some significant differences between the two platforms that you’ll want to consider before making a decision. 

Kickfin and TipHaus: Compare at a Glance

Why Do Operators Choose Kickfin Over TipHaus?

Kickfin Offers Better Pricing 

Kickfin’s direct-to-bank transaction fees are more competitive than the transaction fees TipHaus quotes their customers.

This is primarily due to the fact that Kickfin is the largest provider of instant payouts in the country (validated by Visa and MasterCard data), with more than $2 billion in employee payments and multiple payment processor relationships.

Employees Prefer Kickfin

Kickfin was built to make life easier not just for operators, but also for their employees.

  • No app downloads: Kickfin only requires a one-time, 30-second enrollment for employees. (No app downloads or extra phone storage needed!) Payment history and reporting data can be viewed as needed simply by logging into their browser.

  • No paycards required: Kickfin also doesn’t require pay cards, while TipHaus offers “HausMoney” as a primary payout option for employees. HausMoney is essentially a pay card that employees’ tips are loaded onto. Funds aren’t available to use until the following day. HausMoney may be free for operators, but many employees don’t want to be forced to use a pay card due to the hassles of transferring funds to their own bank accounts, as well as the transaction fees and wait times they may incur. They’d prefer their earnings streamed to their accounts instantly, after every shift—which is how most Kickfin customers choose to pay out their employees.

Zero Prefunding* With Instant Payouts

With Kickfin, customers can send instant, direct-to-bank payouts with zero prefunding required.* While TipHaus does offer zero prefund, employee payouts must be sent to a TipHaus paycard (HausMoney). In other words, if you want to use a zero prefund option with TipHaus, you won’t be able to offer instant, direct-to-bank payouts to your employees.

Option to Manually Input Tip Data

With TipHaus, a POS integration is required, and all tip payment data is generated by the software’s tip calculator.

Kickfin was designed for ultimate flexibility. While many customers use Kickfin’s POS integration to auto-calculate tip amounts, some restaurants don’t need automated tip calculations and prefer to use Kickfin unintegrated. That isn’t an option with TipHaus.

Additionally, some Kickfin customers use Kickfin to auto-calculate tip pools, then manually upload other tip data on an as-needed basis. This comes in handy when you need to pay out “extra” staff, like entertainers, security guards, etc.

Easy, Accurate Distribution of Auto-Gratuities and Service Charges

Kickfin tracks Tips and Auto-gratuities separately. As a result, you can report those types of payments to payroll separately and handle them independently for tax purposes.

Why does that matter? In light of the 2025 “No Tax on Tips” legislation, tipped employees no longer have to pay federal income tax on the first $25,000 in tips earned each year. However, they do need to pay taxes on earnings from services fees, autogratuities and other compulsory charges that are not considered tips by the IRS.

(If 100% of your service charges does not go to your employees, Kickfin allows the “house account” to retain a portion of service charges, while the rest is distributed to your team.)

Enhanced Tip Calculation Functionality and Features

Kickfin’s Tip Calculator was designed to be both highly robust—so it can handle the most complex tip pooling policies—while also being incredibly simple and intuitive to use.

A few unique things about Kickfin’s Tip Calculator:

  • No data sync delays: Tip calculations are immediate and on-demand. With Tiphaus, a data sync process is required which can add extra time to your tip calculation process.

  • Built-in flexibility: Kickfin releases new Tip Calculator features on a regular basis based on feedback we regularly source from customers. For example, Kickfin now offers check splitting for both individual checks and groups of checks, making it easier to handle large parties and events.

  • Ease of use: Customers regularly shout out our sleek, high-quality user interface compared to other platforms. Notably, we’ve made it easy for managers to review all details before hitting “submit,” ensuring the accuracy of every payout.

Cash Tip Tracking and Payouts

Many operators choose 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. Again, that’s easy to do with Kickfin.

Multiple Payment Processors for Guaranteed Deliverability

For many employees, especially those living paycheck to paycheck, it’s critical that they receive their tip earnings and that they’re instantly accessible/ready to use.

TipHaus uses only a single processor. Kickfin uses multiple payment processors to ensure deliverability of payouts should a processor experience a disruption or become insolvent.

Direct POS Integrations

All of Kickfin’s POS integrations are direct API integrations, while TipHaus has been known to utilize third-party software to integrate with some POS systems. The problem with third-party software is that it can be susceptible to more connectivity issues, creating problems with data reliability.

Top-Ranked Customer Support

Kickfin has an award-winning Customer Success team that is exclusively focused on helping our operators get the most value possible out of Kickfin.

Every member of our team is based in the U.S. We provide free, personalized training and onboarding for your whole team, and when questions or issues arise, we can be reached by phone, email, text or chat. We also have a robust library of support documentation and videos that provide step-by-step guidance for every aspect of the platform.

Credibility and Recognition

At the end of the day, Kickfin’s large and fast-growing customer base speaks for itself, as do their rave reviews of the platform.

For multiple years, Kickfin has been the only tip management software that is recognized on both the Inc. 5000 and Deloitte Fast 500 lists. Kickfin has received recognition from peer software review sites like G2 and Capterra for consistently high customer rankings and reviews.

*Zero prefund is available to select customers after a credit review to confirm their fit with the zero prefund program.

Ready to take the next step?

See why thousands of restaurant pros use Kickfin to auto-calculate tip pools and pay out tips in real time, no cash or math required! Get a demo today.

 

We’ve been talking about “No Tax on Tips” for months, and now it’s a reality. But what exactly does that mean for restaurant operators and their tipped employees?

Signed into law on July 4, 2025, as part of the broader “One Big Beautiful Bill” tax package, the new policy eliminates federal income tax on tipped earnings (up to a cap…along with some other caveats…) for qualifying workers. 

While No Tax on Tips garnered widespread support from hospitality employees and employers alike, there’s still a lot of confusion about how it works, who qualifies, and what it means for your restaurant team.

Our FAQ breaks it all down: the fine print, the benefits, the limits—and how you can make sure your team is positioned to take full advantage.

What does “No Tax on Tips” actually mean for my team?

The No Tax on Tips Act has created a new federal income tax deduction — up to $25,000 of “qualified tips” per year for employees in traditionally tipped occupations. 

  • Tipped employees can deduct up to $25,000 in tips from their federal taxable income. (For added context, based on Kickfin customer data, the average tipped employee earns $125 per shift and works 15 shifts per month. That totals $22,500 in annual tip earnings.)

  • The deduction starts to phase out at $150,000 in annual income.

  • The deduction is currently restricted to those who earn $160,000 or less in 2025, but that’s expected to change in coming years to account for inflation.

  • These earnings are assessed based on employees’ income as of December 31, 2024.

Two other important items to note:

  1. Deduction, not exclusion: This is a deduction, not an exclusion. That means all tips still need to be reported; the deduction will be claimed when your employees file their taxes. The deduction is on top of the standard deduction ($16,000 for individuals, $32,000 for married couples filing jointly).

  2. Other taxes still apply: This bill is all about federal income taxes, so Social Security and Medicare taxes still apply. Also, keep in mind that this is a federal tax deduction. States will individually decide whether or not to align with the change.

Which types of tips are eligible?

The bill applies to cash tips—but it’s technically a little broader than that. According to the Senate Finance Committee, “cash tips” includes:

  • Physical cash tips

  • Credit card tips

  • Tips shared through pooled or tip-sharing arrangements

Other types of charges and fees that restaurant customers pay are not eligible for the dedication. 

Essentially, any earnings from compulsory charges are not considered tips. Even if a restaurant passes those funds on to employees, they’re not eligible for the deduction. Do employees have to report their tips to get the deduction?

Short answer: Yes. And aside from being legally required to fully report their tip earnings, it actually behooves them to do so. 

It’s no secret that many tipped employees don’t fully report their tip earnings. There are a variety of reasons for this: general confusion about tip reporting, poor tracking, and of course, a desire to avoid taxes. 

Credit card tips are automatically tracked in most POS systems, so those are typically accounted for. Cash tips, on the other hand, are often underreported. 

Again, because this new bill is a deduction, not an exclusion, employees must report their tip earnings to qualify. 

Not only will this (legally) allow employees to reduce their tax burden; reporting their full income can really come in handy with things like loan applications, unemployment benefits, and Social Security earnings.

Is this all good news for employees?

Again, for the most part in the hospitality and service industry, there’s a lot of support for this legislation.

It will put money back in the pockets of many tipped employees—which can make a meaningful difference, especially for those who live paycheck to paycheck.

But some in the industry have voiced concerns: 

  • Lowest-earning tipped workers won’t see much benefit. Many of the lowest-earning tipped workers wouldn’t benefit much, or at all.because they’re not paying a significant amount in federal taxes to begin with.

  • Some workers excluded: Not all hospitality employees are tipped employees – if you’re not operating a tip pool for example, a lot of your BOH employees aren’t going to see any benefit here.

  • Service/surcharges/auto-gratuity: Compulsory charges are not considered tips, so even if all of those funds are going to the employees, they will still be taxed. Again, that means BOH workers who aren’t tipped but who benefit from service charges won’t get a tax break.

What do restaurant operators need to do?

While there’s no major compliance burden on employers (yet), the smartest operators are thinking ahead—especially when it comes to digitizing tip management.

Here’s why that matters:

  • Accurate reporting: Employees need clear, auditable records to claim the deduction

  • Transparency: With platforms like Kickfin, employees can log in to view their full payment history—no guesswork required

  • Tip pooling: If you want your BOH team to benefit, you’ll need to operate a formal, compliant tip pool.

  • Efficiency: Automating tip pools (and ensuring accuracy), managing payouts, and syncing with payroll is easier than ever.

Is it time to hit the reset button? 

If you’re already using a digital tip management platform like Kickfin, you’re a step ahead—your team will be well positioned to take full advantage if and when the law goes into effect.

If not: This new policy is a great reason to refresh your tip management approach, including digitizing your distribution process, re-evaluating your tip pool policy, and improving payment tracking for your team. And good news—Kickfin can help with all of that. Let’s talk.

See Kickfin in action!