I work at a licensed store and we just recently gained the privilege of being able to accept tips. I work on a college campus so these tips pay for ramen for the baristas. But since we are new to this, we haven't established a very efficient way of splitting the tips fairly, especially with everyones weird shifts. How do you guys do it?
Splitting Tips(11 posts) (9 voices)
at corporate stores we put all the tips in the safe and on mondays it all gets counted and divided by hours.
all the tips are collected everyday in tip bags, and once a week (usually monday but it's not set in stone) someone comes in for 2 paid non-coverage hours to divvy them up. we try and get a different person each week to do it to keep everyone honest.
Here's an example:
Add up everyone's hours. Let's say the total labor for this week was 30 hours. From collecting tips throughout the week, you get $100 to be split among 3 partners.
Al worked 15 hours. 15 hours divided by 30 total hours = .50
.50 of $100 is $50
Bo worked 10 hours. 10 hours divided by 30 total hours = .33333
.33 multiplied by $100 is $33
etc etc. To find your hourly tip rate, divide total tips by total hours. So $100 divided by 30 hours comes out to $3.33 an hour in tips.
(Correct me if I'm wrong, this is how I interpret tips because I never get to do them)
Monday is the start of the new business week.
Tips are collected approximately twice daily (more if necessary) and dropped into the safe (as witnessed by a coworker). There's an appropriate tips drop bag and label for recording purposes in the DCR book.
On Monday, all of the tips from the previous week are pooled together and sorted. The person who's doing the tips (as the task is known) cannot be the salaried manager or assistant manager by the way. Loose change is rolled up, exchanged (at the bank) with small bills, and reentered into the store money circulation.
There are four numbers:
1. total tips for the past 7 days
2. total hours performed by all baristas/ss
3. the resulting hourly rate for distributing tips
4. your hours for that week
The total tips is divided by the total hours, and that creates the hourly rate for tips. Multiply your hours last week by the hourly rate, and that's how much you should be receiving.
This method is fair and everyone gets a good share of the tips based on their work. Partners do ask that tips on major holidays should be withheld for those who actually work those days. This is due to the fact that no one wants to work on a holiday and tips are generally higher. It would be unfair to split the higher tips earned that holiday with partners who didn't work it.
$3.33/hour? I'm transferring to that store! :P
Just an example with easy math. :) I have covered quite a few stores and whenever I come back to collect my tips I always try and find out what their tip rate is. At my current store it averages out to just $1/hr. :| I'm not sure if it's still the case but the highest rate I've encountered was $4 and some cents/hr.
I know :) Ours is usually around $1.25/hour.
we usually get about 2 bucks an hour...luckily most of our customers are regulars :)
86 cents. And almost all of our customers are regulars.
Print out the tip calculation sheet. Round each person's hours to a whole integer. Total the # of hours. Divide the total tips by the total # of hours. Multiply the tip/hour rate by each person's hours. Simple.
Ours seems to average around $1.50 an hour, which sucks, considering how busy the store constantly is. It's because at least half of the people who come to our store pay with their credit cards or gold cards.
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