The Tip Distribution Logic Page helps you set up and manage how tips are distributed across your team, making it easy to ensure the process is streamlined and transparent for everyone.
Navigating the Tip Distribution Logic Page
To visualize your Tip Sharing Rules and Tip Pools, navigate to the Tip Distribution Logic page from the left-side menu.
To filter rules, click the "Status" dropdown and select from active, inactive, or all created rules (excluding deleted ones).
To sort rules, click the "Sort By" dropdown and select to sort by location, name, effective date, or created date for easier navigation.
To view or edit a rule or tip pool, click on it or three dots at the right of each row. You can also choose to delete a tip-sharing rule or deactivate it.
To create a copy of the rule or tip pool in the current location, click "Duplicate".
To copy the rule to a different store, click "Copy to Locations".
💡Tip: You can schedule the deactivation of a rule or tip pool to plan changes to your structure without disrupting your current setup. Read How to Edit Rules Mid-Pay Period for more information.
Differences Between Tip-Sharing and Tip Pooling
While Tip pools are designed to evenly split tips among tip earners within a specific group, Tip-Sharing rules redistribute a portion of tips from tip earners to non-tip earners. For example, tip sharing might involve transferring a percentage of tips from servers to cooks or from bartenders to barbacks.
Tip-Sharing Rules will be calculated first, and Tip Pools will be calculated second. There is no way to change the order.
Tip Sharing Rules are all calculated at the same time then Tip Pools are all calculated at the same time.
| 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 method to 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. |
What Are Tip Sharing Rules?
Tip Sharing Rules enable the distribution of a percentage of tips from one job code to another. This is most effective for rewarding job codes that assist a job code that generates sales with tips.
Example:
A rule might distribute 3% of credit card tips and/or gift card tips and gratuity service charges from Servers to Cooks.
A rule might distribute tips equivalent to 1% of drink sales from bartenders to barbacks.
What Are Tip Pools?
Tip pools allow you to share tips within a group of job codes. You can also control whether or not a job code in a pool will receive tips from the pool or how much one job code receives from the pool in relation to another. Tip Pools can be an effective tool for incentivizing teamwork.
Example:
A Tip Pool for Bartenders to evenly distribute tips from the bar among the group.
Set up a Tip Pool that includes both Cooks and Servers, allowing their tips to be shared collectively.
Tip pools are most effective when used to distribute tips within a group of job codes, such as Bartenders or Event Servers. For instance, you can create a Tip Pool that includes all Cooks and Servers, allowing both roles to share pooled tips.
⚠️ However, setting up a Tip Pool exclusively for a position that does not ring sales, such as Cooks wouldn't work, as there would be no contributions to the pool without another group generating tips to add to it. ⚠️
Learn more about Tip Sharing Rules and Tip Pools:
💬 Still have questions? Contact our customer success team here or click the Chat icon in the bottom-right corner of your Client Dashboard. We're here to help