Restaurant365 Adds Tip Automation Tool to Restaurant Management Platform

Restaurant365 has added a new tip automation tool to its restaurant enterprise management platform.

Aimed at improving payroll accuracy and efficiency for restaurant leaders, the new Restaurant365 Tip Automation allows restaurant managers to set customizable rules to streamline tip payouts, payroll and compliance, the company said in a Thursday (Feb. 29) press release.

“With Restaurant365 Tip Automation, restaurant companies of all sizes can create automated, integrated workflows that streamline manual work so leaders can focus on what matters most — their guests and teams — with the confidence that tips are properly managed and accounted for,” Mark Calvillo, senior vice president of product at Restaurant365, said in the release.

Many restaurants rely on nonstandard processes to manage tip distribution, often leading to manual calculations and potential mistakes, according to the release.

Restaurant365 Tip Automation simplifies this process by connecting point-of-sale (POS) punches with the payroll system, eliminating the need for manual data entry and auditing, the release said. Users can create rules to accurately manage tip shares and pools, ensuring that tips are distributed according to company policies.

The automation not only streamlines the process but also builds trust among employees, as they can see their tips in the Restaurant365 mobile app, per the release. This increased visibility allows employees to better manage their finances.

One early adopter, Chad Arnold, a Summer Moon Coffee franchisee, said in the release that the tool saves him four to five hours a week.

“Now, it’s simple for me to delegate and teach someone how to use tip automation versus a spreadsheet, and from an employee standpoint, it’s regulated; they know a software is managing the process, so it builds trust,” Arnold said.

The new tip automation tool joins Restaurant365’s cloud-based solution that offers accounting, inventory, scheduling, payroll and human resources (HR) functionalities, per the release.

New tipping solutions are a way restaurants can hold on to their staff during labor shortages, Tony Smith, co-founder and CEO of Restaurant365, told PYMNTS’ Karen Webster in an interview posted in May 2023.

“Tips are very important,” Smith said. “Two of the things that we have around … we have pay cards that can be issued through us, and then also the opportunity to pay the employees every day.”