SOP – Tips and Gratuities distribution in Hotels
SOP Number: F&B – 36
Department: Food and Beverage Service – General
Date Issued: 07-Aug-2014
Time to Train: 30 Minutes
Tips distribution is to be done every month / bi-weekly by the Captain accompanied by any of non Management Team Member to attest and witness the counting of tips.
This procedure is a supplement of the Human Resources department general tips policy and must be followed and adhered to by all concerned Team Members of the hotel.
1) Collecting and recording of Tips from outlets:
Collect the tip box from each outlet Eg. Coffee Shop, IRD, Specialty restaurant etc.
Record the total amount of tips received on to the register.
Tips are counted every 15th and end of the month.
Count the tips in the pantry or back office .
If there is any foreign currency or chips on the Tips box then change them in exchange for cash.
When Team Member exchanges Foreign currency or tokens into cash at the Team Member’s Bank, the below information is required in the bank record:
Name and ID number of the Team Member receiving the tips
Amount of chips being cashed
Team Member’s signature
Bank Cashier’s signature
Captain must be assisted by one (1) Non- Management Team Member when counting the tips.
No cash are to be taken out of the property without the approval of the Department Head.
Both the Team Member receiving the tips and Manager will sign in the logbook acknowledging receipt.
2) Captain/Assistant Manager prepares the monthly Tips Distribution Sheet.
3) Distribute the tips to all concerned Team Members.
Choose a quiet period (when restaurants are not busy) to distribute the tips.
Normally 25% of the tips is shared with the kitchen staff and rest with F&B staff.
The tips will be shared equally by all full time employees
Management is ineligible to accept tips.
Show the Tips Distribution Record to all Team Members.
4) Ask the staff to sign the Tips Distribution Sheet after receiving their share.
Staff should double check the tips received before signing.
Tips distribution must be witnessed by the Supervisor and/or Duty Manager and a Team Member.
Training Summary questions:
Q1. What is the purpose of tips distribution?
Q2. What all details to be recorded when staff exchange foreign currency and chips?
Q3. Normal percentage of tips shared with kitchen staff?
Q4. Is manager level staff eligible of tips?
Q5. What is the appropriate time to distribute tips?