Setu.Technology
GlossaryRestaurant Operations

Tip Pooling

Also called: tip pool, tip sharing

What is Tip Pooling?

Tip pooling collects tips into a common pool and distributes them among staff by an agreed rule — equally, by hours worked, or by weighted points across front and back of house.

Why Tip Pooling matters

Pooling recognises that a good meal involves the kitchen as much as the server, and it removes the resentment that comes from section-based luck. The rule has to be written down, or it becomes the most argued-about part of the job.

Tip Pooling formula

Share per person = Total tip pool × Individual points ÷ Total points

Hours-worked weighting is the simplest defensible basis.

How Tip Pooling works in practice

Agree the basis in advance, publish the split, and record digital tips separately from cash. Digital tips arrive with the payment and must be tracked so they reach staff intact.

Frequently asked questions

Many restaurants include them precisely because service quality depends on the kitchen; the important part is agreeing it openly.

Related terms