How Can I Create a Fair Tip Distribution Policy for All Restaurant Staff?

Dear all,

I am really confused about this since I am an HR professional in a management company that runs a restaurant. My boss asked me to create a policy for tips and to find a fair way to distribute them. This is really confusing because we have chefs, waiters, cashiers, and other staff members. Since tips are to ensure promptness, it should benefit everyone.

Can you help me with this? Fairness is my main concern. I really appreciate your help.

Thank you.

Hi Patricia,

Usually, what I find in most places is a kind of charity box where all the tips go into that box and then distributed evenly. If I can have a better and clear picture of this, I can assist you in a better way.

Regards,
Raj

Dear Raj,

Thank you for your help. What we do in our restaurant is to collect all the tips (that are given to the waiters) in a locked box, and then we will distribute them into portions to all the staff in the restaurant.

This is where I am confused. Does the chef deserve as much as the waitress? Does the cashier deserve as much as the manager? Because we believe that we should distribute the tips to all of the employees.

The restaurant is a fine dining sushi place, and people in my country, Lebanon, are generally generous when it comes to tipping.

Dear Patricia,

I feel that you can distribute 50% to 75% of the tips evenly, and the rest can be distributed according to their income basis. Alternatively, you can consider setting targets or offering performance bonuses, if possible.

Regards,
Raj

Dear All,

Few things come to mind.

- Each member of the restaurant is entitled to a share in tips because this is a team effort. When I tip personally, I am happy from the chef to the cashier, bartender, and security guy.

- The problem is how to distribute. What should be the criteria? Age, income, number of years in the restaurant, etc.

- Ideally, some portion should be paid monthly along with the salary, which is like a sort of performance bonus. Plus, some amount should go towards long-term benefits like a pension, medical insurance, annual holiday, or Diwali (Festival) gifts, etc., which can be discussed with each employee before making a decision.

- Group comments are invited to understand which is better.

Regards,
Govind
Coach & HR Consultant
98338 90250

Hi,

Here is a suggestion. Since the quality of service is teamwork, you need to distribute suggestion cards to every customer along with the bill. A customer is more interested in three things, i.e., quality of the food, service, and courteousness. So, you should clearly mention each and every service rendered, such as the taste of the food, the courteousness of the waiter, and the appearance of the security staff. These individuals should receive a higher share compared to other team members like cashiers and managers, who should get an equal share.

Provide a rating scale for the services, and at the end of the day, distribute the tips to the team members depending on the points they have earned from the rating scale. This is fair distribution and will also provide a chance to understand the service rendered by the staff.

Regards,
Mrityunjay