Restaurant management software developer Restaurant365 has introduced a new tip automation tool to improve payroll precision and efficiency in the US restaurant industry.
The new tool will simplify the complex task of managing tips - a significant component of the US economy.
The American Economic Association highlights that tips contribute billions of dollars to the US economy each year.
For restaurants, the accurate distribution and accounting of tips are vital for both daily operations and long-term success.
Restaurants have often relied on non-standard, manual processes for managing tips, but these were prone to errors and inconsistencies.
The Restaurant365 tip automation tool is designed to seamlessly connect point-of-sale (POS) systems with payroll, thereby eliminating the need for manual data entry and auditing.
This system allows users to establish multiple rules to ensure tips are shared and pooled correctly, in line with company policies, and without the need for manual calculations.
Restaurant managers and staff will have more visibility over the entire tipping procedure due to the automation of the entire workflow.
The Restaurant365 mobile app allows staff members to view their tips, including the total tips received for each pay period split down to shift totals.
Restaurant365 product senior vice-president Mark Calvillo said: “As with many other restaurant management functions, we've long seen leaders spending too much time working with disconnected sets of generic tools and spreadsheets that prevent them from performing at their best.
“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.”
In May 2023, Restaurant365 raised $135m in a funding round co-led by KKR and L Catterton, with participation from existing investors Bessemer Venture Partners and ICONIQ Growth.
Following the funding round, the valuation of Restaurant365 exceeded $1bn.
