Tip Sharing / Tip Pools
| Tip Pools | Tip Sharing Rules |
How it Works | Tip pools allow you to distribute a pool of tips among a job code or group of job codes. | Distribute a percentage of tips from one group of job codes to another |
Use Cases | Distribute a percentage of tips from one group of job codes to another | Good for sales-based rules, directly tipping out support staff, and rewarding tip earners based on their personal workloads. |
Who Uses Them | A common methodology for bartenders and baristas | A common methodology for servers |
Scenarios | Two bartenders; one is ringing sales, and the other is at the well. All the tips are pooled together, and each bartender takes a cut of the pool. | Server tips out 3% of food sales to the kitchen and 2% of drink sales to the bar, each server retains the rest of their tips. |
Tip-sharing and tip pools work in very similar ways. You can think of tip pools as a way for tip earners to split tips evenly and tip-sharing as a way to reward non-tip earners by taking from tip earners, i.e., taking from servers to give to cooks, taking from bartenders to give to the barbacks, etc.
Tip pools will activate after tip sharing, so you have the option of stacking a tip pool on the backside of a tip-sharing rule. For example, this would be done for two bartenders sharing 3% of their food sales with the kitchen and then pooling their tips.
If you use daily distributions and everyone works the same amount of hours, they'll all make the same amount of money. If they are not supposed to make the same amount, we can change that by configuring distribution points.