7shifts launches software to streamline tip pooling


Dive brief:

  • 7shifts, a management software provider for restaurant operations, has released tip pooling software designed to streamline the distribution of tips among employees.
  • The company designed the tool with the contribution of restaurant customers. Brent Beatty, senior product manager for 7shifts, said the company’s tip pooling program could save hours of work for restaurant managers and has received positive responses from customers since launch. of the tool.
  • Earlier this year, 7shifts secured $ 21.5 million in funding from Union Square Hospitality Group. USHG CEO Danny Meyer has verbally supported tip pooling as a way to equalize wages between the front and back of the house.

Dive overview:

7shifts says its tip pooling program is designed to speed up the calculation and distribution of tips by connecting to restaurant point-of-sale systems.

“It reduces manual data entry,” Beatty said of 7shifts’ tip pooling tool. “Extract information from your point of sale, and obviously your business, with a custom set of rules, then spit out a report on the other end that tells you who should get what.”

Because different states have different tip pooling rules, 7shifts gives restaurants the flexibility to design their own tip pools based on local regulations. Beatty said this feature, along with the program’s connection to outlets and other catering systems, would increase transparency for employees.

The company says its tip pooling solution reduces the need for managers to spend hours entering tip data by hand.

“The less time you spend in the back office in a spreadsheet, the more managers can go out, manage the room or serve their clients,” Beatty said.

Meyer argued in a popular LinkedIn post that tip pooling can reduce wage inequalities between the different restaurant teams, especially when the front desk tips a lot.

But tip pooling is not necessarily a perfect solution to pay for the differences between waiters and kitchen staff.

In response to Meyer’s post, Adam Kerr, director of food and beverage at the Bardessono Hotel and Spa in the Bay Area, said tip pooling was not working.

“Pooled advice never brings desired results,” Kerr wrote. “Pay for the kitchen what it deserves, budget it accordingly.”

The Ministry of Labor recently delayed the implementation of new rules governing the inclusion of certain workers who perform work with and without tips in tip pools.

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