Malone's, a Kentucky staple known for its warm hospitality, tackled a common restaurant challenge: a time-consuming and error-prone tip management system. This case study explores how Malone's partnered with TipHaus to revolutionize their back-of-house operations, empowering employees, eliminating cash handling, and streamlining workflows.
Executive Summary
Region:
Louisville, Lexington
Business Type:
Steakhouse
# of Locations:
1
Interviewee:
Calvin Strickland, General Manager
Problem:
Malone's struggled with a manual tip system. Staff spent hours calculating tips and handling cash, leading to errors, stress, and security concerns for managers transporting large sums of money.
Solution:
TipHaus automated Malone's tip management. Servers now receive daily tip payouts, eliminating cash and manual work. The system simplifies tip-outs, provides transparent records, and streamlines payroll processing, saving managers significant time.
Background
Malone's, owned by Bluegrass Hospitality, has 4 locations in Kentucky and is known for its diverse menu and warm hospitality, with 40-60 tipped staff per location, has unlocked a new level of operational efficiency with TipHaus. In our conversation with Calvin Strickland, General Manager of the Louisville location, we explore how TipHaus empowered their employees with greater transparency, daily tip payments, and eliminated the need for nerve-wracking cash runs.
Problem
Malone's faced a time-consuming and stressful manual tip management process. Every week, one of the management staff spent 5 hours calculating tips on spreadsheets and distributing cash tip-outs using envelopes. This system was prone to errors and created a significant burden for both managers and servers. Not only did the servers lack transparency, as they didn't have clear records of their tips, but the payroll processing was a tedious task, taking a significant amount of time – up to 2 hours per location each week. On top of that, the managers had the added pressure of carrying large sums of cash (around $30-40,000) to have enough cash on hand for daily tip outs and also dealt with frequent time consuming bank trips, causing security concerns.
Solution
TipHaus revolutionized Malone's tip management by automating the entire process. Enabled by our Earned Tip Access program, Malone's servers who choose to get their tips daily rather than on paycheck now receive their electronic tip payouts the next day from the shift worked, eliminating the need for cash handling and manual calculations. TipHaus simplifies tip-outs with just a few clicks, saving managers valuable time and reducing stress. The system also ensures tip transparency with clear records of earnings. Earned Tip Access also allows servers to withhold tip percentages for tax purposes, making tax season easier and providing them with greater control over their finances. Additionally, payroll processing is now streamlined, taking only 30 minutes compared to the previous 1-2 hours.
"Before TipHaus, bank runs were a constant worry for me and our managers in other locations. Carrying around $30-40,000 in cash, you couldn't help but feel paranoid. Those trips easily took 30 minutes each way, so TipHaus saves us close to 2 hours a week just on this, not to mention the amount of stress! And that's not even counting 5 hours each week that my old boss spent wrestling with manual tip calculations on spreadsheets which were also prone to errors and discrepancies were not uncommon.”
Calvin Strickland
General Manager
Results
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