10 Restaurant Management Tips for Your Business

Running a successful restaurant requires juggling staff, food quality, customer service, finances…the list goes on (and on). Whether you’re a seasoned restaurateur or a management newbie, implementing effective restaurant management strategies is crucial to the success of your restaurant, team and bottom line.

Chances are, you’re already doing a lot of these things — but it’s never a bad idea to revisit your restaurant management approach and make sure you’re covering all your bases.

Here are 10 restaurant management tips to help you navigate the restaurant industry, boost efficiency, and take your business to the next level.

1. Invest in restaurant technology

Your tech stack impacts every aspect of your approach to restaurant management.

The standard restaurant tech stack has changed in recent years — and it continues to evolve as new innovations roll out. Here are some essential tech tools every restaurant owner should consider leveraging:

Point of sale (POS) system: We know, we know…a POS is table stakes. But there are a ton of options out there — and if you haven’t done so lately, it could be worth revisiting your current POS to make sure it’s checking all your boxes. An advanced POS system goes beyond processing transactions. It can track sales, organize menu items, manage staff, and offer detailed reports to aid in business planning.
Inventory management software: Our motto: Automate what you can — and that includes inventory management. Accurate inventory tracking reduces waste and helps boost profits. Inventory management software helps you keep track of what’s in stock in real-time, predicting what you need to reorder and when.
Payroll software: A good payroll system simplifies the complicated task of managing staff wages, benefits, and tax deductions. It automates calculations, reducing the chance of errors and ensuring your staff is paid correctly and on time.
Tip management software: If you’re still paying out credit card tips in cash, it’s time to hit the “easy” button. Tip pooling and distribution software can be run as a standalone system or integrated with your POS to calculate and distribute (cashless!) tips instantly to your employees’ bank of choice. That means no more bank runs, a lot more visibility into tip payments for easier reporting — oh, and happier employees. (Sign up for a demo to hear more from one of our experts about what we do and how it can help you.)
Reservation and online ordering system: In today’s digital age, an online reservation and ordering system is non-negotiable. It allows customers to make reservations or order food online, improving their dining experience and boosting your bottom line.
Customer relationship management (CRM) system: Sometimes, leaning into automation and digitization can also mean less personalization. But for most restaurants, it’s still important to maintain that human touch and build meaningful customer relationships. A CRM system can help you do just that. It stores customer data, tracks their preferences, and ultimately allows you to better understand their preferences — creating a more customized experience and ultimately customer loyalty.

2. Formalize your staff training program

Investing in regular staff training is another key restaurant management strategy that gives your people what they need to succeed.

A well-trained staff will not only possess the necessary skills to perform their roles efficiently, but they also reflect your restaurant’s standards and values. Whether it’s the kitchen staff preparing meals or the front-desk staff interacting with the customers, every individual contributes to the overall customer experience.

Staff should be trained on how to handle various situations, from managing customer complaints to upselling menu items. Training also ensures that hygiene and safety standards are consistently met.

3. Consider the employee experience

The hospitality industry is known for high employee turnover. Part of that is due to the nature of the job — many employees join the workforce during transitional seasons of life (think: college kids); there’s seasonality to consider, etc.

But turnover is also due to the fact that hospitality is a grind — and if you’re not meeting you’re staff’s expectations when it comes to things like culture, flexibility, and even benefits, then they’ll look elsewhere. (And they’ll likely find something, given the tough labor market.)

In addition to simply keeping your restaurant running, having a high staff retention rate makes every aspect of your operations easier. When your staff stays with you for a long period, they become more familiar with your standards, operations, and expectations, and are better able to deliver consistent, high-quality service.

Frequent turnover, on the other hand, can lead to inconsistencies in service delivery and creates more headaches when it comes to scheduling and management. Plus, the cost of recruiting, interviewing, and training new hires adds up over time – especially if new staff only stays for a few months. Turnover also ups your admin burden when it comes to tasks like payroll and user management for your tech systems.

A few retention-oriented tactics you can incorporate into your restaurant management plan:

Competitive wages
Employee benefits (which may be more financially feasible than you think!)
Career growth opportunities, with a clear path to achieve them
A fun, respectful workplace culture

One key factor contributing to employee satisfaction and retention in the restaurant industry is the fair and prompt disbursement of pay and tips. That’s where Kickfin can help. Kickfin is a digital tip distribution platform that enables restaurant owners to send tips directly to their employees’ bank accounts, instantly after their shift.

By eliminating the need for cash handling, Kickfin not only increases efficiency but also ensures transparency and fairness in tip distribution. Employees can expect to receive their tips promptly, fostering a sense of financial security. Moreover, the immediacy and reliability of Kickfin’s system can boost employees’ morale, leading to increased job satisfaction.

4. Focus on Customer Experience

As a restaurant manager, prioritizing service is crucial to ensuring your customers feel welcome and receive a high-quality experience. That includes:

Greeting guests: Invest time in training your staff on how to interact with customers — which starts the moment someone walks in the door. A genuine, prompt greeting sets the tone for the overall dining experience.
Communication: Employees should be able to communicate clearly, listen to customer needs, handle complaints with professionalism, and provide quick solutions. Not only does it demonstrate your restaurant’s commitment to satisfaction; it’s also a great way to help your employees boost their tips.
Efficiency: Quality service means efficient service. Make sure orders are taken accurately and delivered to tables promptly. Regular staff meetings can be useful to highlight areas of improvement for both front-of-house and back-of-house — and it’s an opportunity to recognize efforts of staff who consistently go above and beyond.
Feedback: Feedback, whether positive or negative, is a powerful tool for improvement. Consider using comment cards, online surveys, or simply asking customers about their experience. This not only shows your customers that their opinion matters, but it offers insights into how your service and food are perceived and where there might be room for improvement.

5. Be aware of online reviews

In today’s digital world, online reviews significantly influence a restaurant’s reputation and customer decisions. Continuously monitor and respond to reviews on platforms like Yelp, Google, TripAdvisor, and social media.

Negative reviews, in particular, should be addressed promptly and professionally. Avoid getting into online battles: Simply apologize for any shortcomings, acknowledge the customer’s dissatisfaction, and suggest a resolution. This approach shows potential customers that you’re dedicated to providing exceptional service and willing to make things right when they don’t go as planned.

Positive reviews deserve your attention as well. Thank each customer for their feedback and express your delight in serving them. It will encourage repeat business and inspire others to visit your restaurant. You might even consider incentivizing those who have had positive experiences to share them more widely.

6. Always be marketing

Continuous marketing is essential to keep your restaurant at the forefront of customers’ minds. Actively promoting your restaurant on various platforms, like social media, flyers, and local newspapers helps you reach a broad audience and increase visibility. Social media platforms, in particular, offer cost-effective and highly engaging ways to connect with customers, showcase your food, and build a community.

Regular updates about new menu items, special discounts, and events can entice customers and increase sales. It’s also beneficial to leverage local publications, as they can help you attract a local crowd and build a loyal customer base. Distributing flyers and circulars in nearby areas can be effective, too, especially for promoting new offers or events. Keep in mind that marketing is a continuous process – not a one-time, check-the-box restaurant management task.

7. Experiment and innovate

The best restaurant management plans leverage outside-the-box thinking. Don’t be afraid to experiment with different aspects of your business — for example:

A dynamic menu can keep your patrons excited and curious about your offerings. Trying out new recipes or introducing seasonal dishes can provide a unique dining experience, attracting new customers and encouraging regulars to keep coming back.
Creative pricing strategies can drive profitability. Offering discounts during slow hours, or bundling certain items together at a lower price, can boost sales and enhance customer satisfaction.
If you have the space, hosting private events can also increase sales while making your restaurant feel like an entertainment destination — and can be an opportunity for new guests to visit your business.
Live music nights, themed dinners, or cookery workshops can generate buzz around your establishment and foster a sense of community amongst your customers.
Rethinking the decor — whether it’s a true overhaul, a spruce-up, or simply decorating for seasonal trends — can make your space feel fresh and inviting, which in turn elevates the dining experience.

8. Be aware of your cash flow and accounting

Keeping a close eye on cash flow and accounting is essential for maintaining sustainable restaurant operations. Inconsistent or inadequate cash flow can lead to various challenges, potentially affecting your ability to pay employees, suppliers, and other expenses.

Remember, as a manager, your continuous focus on cash flow and accounting is critical to the financial health and success of your restaurant. Using technology like bookkeeping software can significantly aid in this endeavor, allowing you to focus more on delivering exceptional food and service to your customers.

This is another area where digital tipping can make restaurant management more efficient. With more credit card tips than ever before, many restaurant managers know the pain of not having enough cash in the safe to pay out tips at the end of a shift. Kickfin makes it easy to distribute tips instantly (no cash required) by instantly transferring funds to your employees’ bank accounts. Not only do real-time, digital payouts make for happier customers — it also makes reconciliation and reporting a breeze, and gives everyone greater visibility into cash flow.

9. Connect with a mentor or other restaurant owners

Establishing connections with a mentor or other restaurant owners can provide invaluable insights and guidance for your business. A mentor with industry experience can offer advice based on their own triumphs and mistakes, helping you to navigate the challenges of the restaurant business and stay up-to-date with the latest trends and best practices. They can provide a fresh perspective when you’re faced with difficult decisions, and their wisdom can prevent you from making common mistakes.

Similarly, joining a community of restaurant owners or managers can offer a platform for mutual support and information exchange. Communities often host forums or meetings where members discuss industry changes, innovations, and common hurdles, providing practical solutions based on their experiences. Amidst the ups and downs of the restaurant business, these connections can serve as a lifeline, providing emotional support and reassurance.

Having a mentor and being part of a community enables you to continuously learn, grow, and adapt, enhancing your ability to manage your restaurant effectively and successfully.

10. Be the manager you’d like to work for

Being a successful restaurant manager takes more than just business acumen; it requires embodying the qualities of a leader. As a manager, you need to be an excellent multitasker, capable of overseeing several operations simultaneously.

You also need to be transparent. Being open and honest with your staff fosters a sense of trust, respect, and loyalty. Share relevant information, provide clear instructions, and involve employees in decision-making processes where appropriate.

If you own or manage a restaurant, you set the tone for the entire establishment. A positive attitude is contagious, inspiring employees to put their best foot forward and delivering an exceptional dining experience to customers. Through your enthusiasm, commitment, and resilience, you can create a motivating work environment that translates into the overall success of your business.

People live paycheck-to-paycheck

Not just some people are living paycheck to paycheck. Most people are.

That’s right: around 64% of U.S. consumers are just getting by. Even more shocking, 51% of consumers who earn over six figures are still living paycheck to paycheck, despite their higher tax bracket.

It’s a major reason why employees need access to their earnings sooner rather than later. The pressure of watching your bank account slowly drain in the two weeks between payday is putting a lot of pressure on people, leading to a much greater demand for instant payments than ever before.

Instant payouts are now table stakes

A PYMNTS study found that people of all ages prefer to be paid out immediately, as well as some other interesting statistics:

When given the choice, 68% of respondents said they would opt for an instant pay out
40% of gig workers surveyed were willing to pay a fee for an instant disbursement
81% of respondents were willing to switch jobs to an employer that offers instant access to earned wages and tips

It’s safe to say instant payouts are becoming the expectation for today’s modern workforce. But not all instant payouts are created equal.

Consumers are much more likely to engage with an instant payout system if they aren’t required to share their bank account and routing numbers and can access funds with just their debit card credentials. Why? It’s faster, more convenient, and feels more secure.

Instant payouts and tip management: a perfect use case.

Instant payout innovation has come at the perfect time for the restaurant industry, which is struggling more than ever with the hassles and cost of cash.

If you’re in the restaurant biz, then you know: Most consumers pay with credit cards these days, not cash. That means there’s rarely enough cash on hand to pay out tips at the end of a shift. But employees still want and need instant access to their tip earnings.

Enter: instant payouts. Offering employees the option to receive their tip earnings directly to their bank of choice, the second their shift ends, can go a long way in improving employee satisfaction and ensuring their financial security.

But instant payouts are more than a work perk for employees. The operational benefits for employers range from reduced administrative burden and significant time savings to stronger compliance and streamlined reporting.

Modernizing your tip management strategy: 5 best practices

There are three key components to your tip management strategy:

Tip pool policy: How are you divvying up tips among your staff?
The payout method: How are you distributing those payments?
The systems and tech: What are you using to facilitate those payments?

Under the current circumstances, restaurant operators are under immense pressure to bring their tip management into the future.

5 best practices for tip management

Based on our experience working with restaurant operators across the country, we’ve found that these five practices are the perfect recipe for building a successful tip management system.

Determine the right model and method for your restaurant, based on your location and tech stack
Get a written tip policy (and get it legally approved)
Solicit employee feedback in a structured way
Leverage technology for efficiency, accuracy, and compliance
Don’t over-complicate (but do over-communicate!)

Tip management solution must-haves

When seeking a new tip management solution, make sure you carefully vet each system to see if it really meets your needs, or if it’ll be just as frustrating as cash. Here are a few suggestions for what should be on your checklist:

Instant payouts
Direct to bank of choice
Availability of employee funds
Payroll option
Integrations
Simple implementation + onboarding process
Around-the-clock customer service

Big emphasis on strong customer support teams. Restaurants and bars don’t have “typical” business hours, so neither should your tech support.

Bar Louie automates payouts with Kickfin

In a recent case study, we took a deep dive into our partnership with Bar Louie, a chain with over 60 locations that took advantage of our new integration with Toast. They made the switch from cash payouts to Kickfin’s instant, direct-to-bank payouts and haven’t looked back.

Two-minute tip-outs

Before Kickfin, managers spent an average of 45 minutes per shift working through Bar Louie’s complex tip out policy and counting cash. The tip pooling rules were important to them — it’s what makes the entire staff feel like they’re getting their fair share.

Using the Kickfin Toast integration, Bar Louie was able to automate the tip pool calculation process and send tips straight to employees in under two minutes – a potential annual savings of 15,000 labor hours across all locations.

>> See more customer success stories

Do you want to see these kinds of cost-saving results at your business? Let’s talk. Get a demo of Kickfin and see why restaurant owners and employees alike trust us to manage their tips.

Product and Company News

New Tip Calculation Features You Don’t Want To Miss

Big news: Kickfin’s best-in-class tip calculation tool has some exciting new bells and whistles.

If you’re already using Kickfin’s tip pool calculator, then you know how much time and hassle you’re saving by automating everything. (And if you’re not? Head over to our tip pooling software page to see how it works!)

As we partner with more restaurants to bring their tip management into the future, we’re continuing to innovate our product so we can address their biggest pain points.

In this case, that means enhancing our tip pooling features so you can auto-calculate tip amounts even for the most complex tip pool or share policies.

Check out a few of our latest features that will make tip calculations easier than ever.

🕺 Splitting large party tips

If your restaurant often hosts large parties, you know that the tip share can get confusing. Say one server is taking care of a party of 40 with a bartender assigned to only make drinks for that party. Meanwhile, the server has a few other two-top tables that are getting drinks from the main service bar. At the end of the night, how do you ensure that the large-party bartender gets their fair share of the tip out (without spending an hour on your phone calculator)?

Kickfin can now automate that process for you, alleviating questions from your event bartender and saving time and effort on the part of your managers.

📲 Seamless POS integrations

Kickfin is partnering with the top POS systems to integrate seamlessly with your existing restaurant tech — including Toast, Heartland, Shift4 and more.

DID YOU KNOW? Kickfin integration users get access to new product features first, like our new tip-out transparency tool — which allows your staff to log into their Kickfin accounts and see exactly how their tips have been split between team members. An added layer of visibility can go a long way in cultivating trust (and eliminating those pesky tip disputes).

💸 (Re)Allocation of manager tips

We’re always listening to feedback to improve the Kickfin experience, and this one goes out to all of our restaurant partners who asked us to streamline the manager tip reallocation process.

>>Learn more about managers and tipping laws

In most cases, managers are not allowed to earn tips since they are salaried employees. But we all know that managers often step in and take care of tables to help servers get out of the weeds. Well-meaning guests will most likely leave a tip, not knowing that the manager technically can’t accept them — so where does that money go?

Kickfin now features a default pool, where tips “paid” to a manager are automatically redistributed to tipped staff based on your restaurant’s tip policy.

🤓 Improved labor data accuracy

We all know how easy it is for an employee to forget to clock out after a long shift. And sure, they aren’t going to get paid for a 16-hour overnight shift, but when payday comes around, those extra hours create a nightmare for your payroll team.

With Kickfin, all employees are required to be clocked out in order to finalize payments — so you’ll catch the labor data mistake long before your payroll team has to sort it out.

🔑 Even better security

We’re committed to protecting your business (and your employees’ hard-earned money), so we’re adding an extra layer of security for certain transactions.

You can now enable double approval of payments that meet certain conditions:

First payment for new employees
Employees getting their first payout in X number of days
Employees receiving more than X payouts in a 24-hour period.

With these extra guardrails in place, you can always be sure that the right money is going to the right person. Reach out to our support team to configure your custom security measures.

Using Kickfin is a win-win for operators, managers, and employees alike. Restaurateurs save on cash delivery and labor costs, managers shave hours off their workload, and servers have the same instant payment that they’re used to — without the hassle and uncertainty of cash.

Want to learn more about Kickfin? Let us show you the ropes with a 10-minute demo!

Hiring, Training and Retention, Restaurant Management

Kickfin Announces Integration with Toast

You heard it here first: 2024 is the year of integrations.

First up — Toast! A trailblazer for cloud-based restaurant management technology, Toast is a favorite POS system for restaurants, food trucks, and bars. You probably know them best for being the first to create handheld POS devices, drastically changing the entire restaurant ecosystem. To make life easier for their customers, Toast partnered with Kickfin to create an integration that makes tip pooling, tip distribution, and calculation smoother.

As restaurant tech innovators ourselves, this partnership is the perfect fit for Kickfin.

Our goal at Kickfin is always to save time for managers, prevent loss for operators, and create more financial freedom for hospitality employees through pioneering technology that digitizes many of the analog processes that the restaurant industry is built on.

As a member of the Toast Partner Ecosystem, we’ll be able to deliver our product to Toast customers and modernize their tip management systems with ease. Using technology that they’re already familiar with, Toast customers can reap the benefits of Kickfin with minimal ramp-up upon implementation.

“No two restaurants split tips the same way, but invariably, it takes too long and involves too much risk,” said Justin Roberts, the co-CEO of Kickfin. “This integration allows for the utmost customization with a near-zero learning curve — truly the best of both worlds for restaurants that want to save time, reduce labor costs and make life easier for their team.”

And one of their partners is already enjoying the ROI with Kickfin. Bar Louie takes great pride in making tip distribution equitable for all of their employees, so they rely on a complex tip pooling system to ensure fair pay. Prior to using Kickfin, managers at each of their 60 locations spent 45 minutes at the end of every shift to make calculations and divvy out funds to all of their servers. Now, they’ve streamlined their tip-out process with Kickfin — and managers are doing the same work in less than a minute! That’s an annual average of 15,000 hours saved across their entire chain.

>> Hear more Kickfin success stories

After implementing Kickfin, managers can spend their time on what matters most: delivering excellent customer service. That means more table touches, more support for your staff, and more time to focus on server training.

With managers spending more time on the floor (instead of counting cash in the back), you’ll see better customer reviews, better service, and increased sales — all from digitizing your tip-outs with Kickfin.

We’re excited about our new partnership with Toast and the opportunity to make digital tipping a reality for their customers. For restaurants who aren’t using Toast, don’t worry! We look forward to providing similar integrations across the restaurant tech industry.

Want to see these results for yourself? Find out how to become a Kickfin integration partner or check out a demo of our platform.

Product and Company News

Kickfin Makes Inc.’s List of Top 10 Fastest Growing Companies in the Southwest

No growing pains here!

We’re thrilled to announce that Inc. listed Kickfin in their list of the top 10 fastest growing companies in the Southwest. (In fact, we earned the #1 spot in the software category and were listed as #9 overall!) We’re honored to be included alongside innovative companies that are making a big difference in our region.

Inc. measured Kickfin’s growth from 2020 to 2022 — which wasn’t an easy time for the restaurant industry, to say the least. In spite of the challenges posed by the pandemic, restaurant concepts across the country embraced Kickfin’s technology.

As a group, the 2024 Inc. honorees averaged 136% growth and created 17,606 new jobs over a two-year period. Individually, Kickfin grew by a whopping 1,304% (yes, really!).

We want to recognize and thank both our amazing customers and the Kickfin team for being part of our success story and allowing us to be a part of theirs.

Our Customers

For years, restaurants manually calculated and paid out cash tips — despite the increasing hassle and liability those old-school methods entail. It’s not because operators are tech-averse; there simply wasn’t a good way to automate the process that didn’t create new friction or require new workarounds.

That’s precisely why we developed Kickfin. Of course, we’re proud of what we built and the team behind it (more on that below). But we owe a great deal of our success to the customers who trusted us enough to give Kickfin a shot — especially those early adopters who are now some of our longest-standing customers.

There’s a leap of faith involved when you partner with a vendor and layer in new technology, particularly when it impacts something as important and sensitive as how you pay your people. We don’t take that lightly, and we are incredibly grateful for the opportunity to serve each and every customer who’s been on this journey with us.

>> Hear from our customers about their experiences with Kickfin

Our Team

Every person on our team wholeheartedly believes in our mission and vision for the future. In short: we’re here to make the tip management process insanely easy for everyone so that paying out your people is (almost!) as great as getting paid.

As backstory: Our co-founders, Brian and Justin, came up with the idea for Kickfin while dining out together and noticing that an armored car was dropping off cash. They asked why a restaurant would need a cash delivery when most patrons pay by card; the manager explained the cash was needed to pay out tips at the end of the shift. The inefficiency (and expense, and risk…) of that process was a lightbulb moment for Brian and Justin.

They set out to build a team who not only understood the problem, but could think critically and creatively about a solution — and bring it to life.

From sales and marketing to product and support, every Kickfin employee has had a hand in the growth and success of our company, thanks to their passion for our purpose and their commitment to being best in class.

We’re proud of what we’ve achieved thus far, and we’re excited to continue collaborating with our customers, innovating on their behalf, and taking Kickfin to the next level together. Onward and upward!