In today's digital age, the use of cash for everyday transactions is rapidly declining. According to a recent Gallup poll, 60% of Americans no longer rely on cash for the majority of their purchases. As a general manager or owner of a full-service restaurant, it's highly likely that you already accept cashless tips from your patrons. However, you may still be following the traditional practice of pooling tips and paying your staff in cash. Unfortunately, this process introduces additional risks and consumes valuable time and effort. It may be time to consider cashless tipping for your restaurant staff.
Four signs you should consider cashless tips for your staff
1. If you're making regular bank runs
If you find yourself or others regularly making bank runs to withdraw cash for staff payouts, it’s time to explore a cashless tipping solution. Regular bank runs add an unnecessary burden for managers of full-service restaurants. Every bank run takes your managers away from critical tasks such as overseeing operations, managing staff, and ensuring exceptional customer service. Additionally, bank runs increase the risk of theft or loss during transit, putting the manager and the business at potential financial and security risks.
By adopting a cashless tipping solution, managers can eliminate the need for bank runs altogether, streamlining operations and allowing them to focus on more strategic aspects of running a successful restaurant.
2. If you're opening additional locations
As your restaurant expands and opens new locations, the logistics of managing cash tips and moving cash between establishments becomes increasingly complex. Just ask Keith Mungo, Director of Operations for the New River Valley Domino’s franchises. Mungo, who oversees 15 stores, had several issues with using cash for tips. He was uneasy about keeping large amounts of cash on hand, and needing managers to move money around to keep up.
“I didn’t want a supervisor doing that for multiple stores and carrying around $8,000 in cash,” Mungo says. “If something were to happen, who’s liable? Where does that money go?”
Mungo discovered Branch, a cashless tipping solution that has eliminated the need to move cash between stores. Mungo can now focus on running the business efficiently and effectively, rather than being burdened by the constant movement of money.
3. If you or your employees are having problems with theft
Theft is an unfortunate reality in the restaurant industry, and cash tips can be particularly vulnerable. If you have noticed an increase in cash theft at the end of shifts, transitioning to digital tips can significantly mitigate this issue. With cashless tip payouts, tips can be transferred instantly and securely to your employees' accounts, reducing the risk of someone unexpectedly walking off with cash. As a bonus, you won’t need to pay your managers for the additional time it takes to count and tip out staff at the end of the night.
4. If you're implementing a new POS system
Implementing a new point-of-sale (POS) system presents an opportune time to introduce cashless tips. Since your team will already be undergoing training for the new system, it’s an ideal time to facilitate the transition from cash tips to digital tips. By incorporating cashless tip payouts into your POS system, you can streamline the process and ensure a seamless experience for both your staff and customers.
Pick the right cashless tipping solution
If you are looking for a convenient, safe and secure way to tip your staff, Branch may be the right solution for you. Using Branch, you can instantly send tips or other disbursements to employees’ accounts. These trackable payments can be automated or sent as one-off tips, even on day one with a new employee.
Branch also enables you to quickly fix errors that would be otherwise tough to spot and correct with cash. Molly Dobbins, Operations Managers for Fox Companies, says that cashless tipping has been a huge relief for the Jimmy John's franchises under her management.
“Branch has saved us a lot of time and a lot of hassle—we no longer have to run around to stores and bring cash anymore. If there’s any issues with something not being entered correctly, we can fix it on the back end rather than relying on someone in the store to do it,” says Dobbins.