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Bakery/Coffee Shop/Cafe Owners: How do you divide employee tips? Are you pro tip pooling?

I'm opening a retail bakery that serves coffee and am wondering how to best divide the tips. I have worked both as as a baker, receiving no tips, and and as barista, receiving all the cash tips immediately at the end of shift, so I can understand both sides of the argument. I understand that the barista/cashier is offering the customer service so should receive tips, but perhaps the bakers/dishwashers/line cooks should receive something as well. I know that restaurant servers most the time hate pooled tipping because they end up making less money, but I think that the cafe tipping system is different because employees are paid a decent enough hourly ($15/hour) and don't rely on tipping as the major source of income.

So what have your experiences been either with pooled tipping or other forms of tipping, such as a point or percentage system?

What is easiest to implement? i.e. what is the least painless for you when you're doing payroll?

Which promotes the best customer experience? the best team work environment?

Smallbusiness | 👁 714 | Posted 2018-11-17 | Share on Facebook | Twitter | Google+

| Modified: 2018-11-17 | Author:

3 Comments

DamagingDoritos 4 months ago

I run three coffee shops/cafes, and we pay out tips alongside paychecks every payday. We drop the tips daily along with the cash deposits, and at the end of the pay period we add up all the tips over pay period and divide by the total number of hours worked during the pay period for each individual location. This essentially gives us an hourly tip wage. We then pay out each employee based on how many hours they worked that pay period, and based on location (if certain employees float a shift or two between locations, they get the appropriate tip wage based on hours worked at each location). Well just add the cash tips to their pay stubs. The card tips are processed through our payroll service provider, but the process is the same. We manage it thru a simple spreadsheet, and keep each pay period saved if someone needs to refer to it or audit it. Weve found this to be the most fair way of doing so, and in 7 years we have had no resistance. Its also a lot easier to manage than having to pay out every shift/day, and since it accrues over two weeks, its usually a pretty substantial amount of money, and people feel like theyre getting a good pay boost instead of cash dribbles each day.

presto311 4 months ago

Since were fast casual and most tips are from advance online orders we pay them out proportional to the amount of hours worked. Id like to figure out how to incorporate different levels of the percentage earned but havent got to it yet.

Sascot 4 months ago

Im not in favor of pooling. Its Socialism if your worst performing employee who gets no tips gets a cut from your best performer. Why be the best of its going to be diluted I am in favor of the best server sharing with the kitchen staff but it should be voluntary so they can ensure better service for their clients That model suits a restaurant more than a coffee shop though


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