Background

John Wade II serves as President of Delmonico’s Italian Steakhouse; a New York established restaurant chain, fusing a casual steakhouse with fine Italian dining. Founded by Wade’s father in 1998, the company operates six locations, including five across Upstate New York and one in Orlando, Florida. We spoke with Wade about why he switched to Branch to deliver same-day digital tip payouts to his staff. 

Before: Security Concerns and Cash-Handling Hassles

Prior to finding Branch, Delmonico’s was tipping out servers each night in cash. Yet with consumers increasingly paying via credit card, keeping enough cash on hand for tip payouts was becoming a challenge. Not only would it require additional administrative hassle, such as manually counting out cash at the end of each night, but it also posed a security risk keeping large amounts of cash at the restaurant. 

“We were having to keep anywhere from $10,000-$15,000 in cash in the store to pay out server tips. That’s a big security issue, and it didn’t sit right with me,” says Wade.

Wade had been debating either finding a digital solution or putting tips onto servers paychecks, but he knew that making them wait two weeks for their tips wouldn’t make anyone happy. He was also struggling to find a solution that would allow servers to maintain control over their tip declaration. 

Then one day, while browsing Nation’s Restaurant News, he learned about worker payment solutions with Branch—and it sounded like it was tailor-made to solve his problems. With Branch, Wade discovered he could provide immediate access to tip payouts without the security concerns or administrative hassle of cash handling.

“It seemed like the perfect fit,” says Wade, “and I loved the aspect that servers could still control their tip declaration.”

He was equally pleased that Branch wouldn’t cost anything to implement.

“I knew that these other competitors couldn’t beat your price—free. It was a win-win for the business and we were all-in.”

Implementation: Flexible Ways for Servers To Get Tipped Out Immediately

Ready to hit the ground running, Wade rolled out Branch at one Delmonico’s location and, pleased with how seamless it was to use, quickly implemented it at the other five.

Branch works with Delmonico’s Aloha (a Branch integration partner) point-of-sale-system to help pay servers their tips immediately. Servers can be paid each day through Branch if the POS cash out says they are negative, meaning the restaurant would owe them money. If this is the case, they fund that portion of their tip payout through Branch. If their tip payout is positive, they take their tips in cash. 

Instead of all servers walking out with 100% cash tips, this solution allows them to take what they can in cash but get the rest immediately onto their Branch Card, without the need for Delmonico’s to keep large amounts of cash on hand. True to Delmonico’s model, this was a fusion of cash and digital tip-outs tailored for Delmonico’s needs, and what Wade referred to as a “perfect solution.”

“It did exactly what we wanted it to do,” he says. "I’ve had almost no questions from the staff—it just runs smoothly.”

He also appreciates the built-in flexibility and cost-effectiveness of the solution, for both the business and his employees.

“They can set it up so they can get their money directly—and it costs them nothing and it costs us nothing, so it’s a perfect solution,” says Wade. “Plus, the servers still control their tip declaration, which is huge to our staff.”

Results: Improved Accuracy, Security, and Time Savings

With the help of Branch, Delmonico’s has been able to go from keeping $10,000-$15,000 in cash on hand at each location to under 1k, greatly reducing their security risk. They’ve also been able to save managers time on nightly tip payouts.

“Our managers and payroll admins love it,” says Wade. “They previously had to count out cash each night, and now they just go into the software and plug it in. It’s definitely been a time saver.”

Wade estimates that managers have saved roughly 3-7 hours per week on tip payouts; time that can now be spent on the guest experience. 

He also emphasizes the improved accuracy of tipping out through Branch, and how he appreciates being able to pay people to the penny. 

“People work hard for their money,” says Wade, “and I don’t like it if payroll is off by even a cent. When we paid out in cash we would have to round, but now with Branch we can pay the exact amount each and every time.”

Though Wade notes the seamlessness of Branch and how easy it is to use, he’s also quick to offer that if he ever does have a question, Branch’s professional services and support team is highly-responsive. 

“The Branch Team has been nothing but stellar,” Wade says. “If I send an email at nine o’clock at night, I get a response that night, which is huge for the restaurant business because then we can keep things moving.”