Case Study
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Collective Hospitality

Collective Hospitality

How Collective Hospitality Streamlined Tip Management, Saving a Minimum of 98 Hours per Month Across 7 Locations and Reducing Legal Liability as They Scale

Collective Hospitality, owned by Alex Marquetti, operates seven locations in New York, with a focus on delivering exceptional dining experiences and seamless operations. As the group expanded, Alex recognized the need for a more efficient and transparent tip management solution. That's when they turned to TipHaus to help streamline tip distribution and improve operational efficiency across their restaurants.

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Citrico
Results

90%+

Fewer tip questions

from staff thanks to the free TipHaus app

98 Hours

Of manual labor saved

per month across all 7 locations

100%

Success rate

in addressing user concerns from customer support

Executive Summary
Region

New York

# of Locations

7

Business Type

A mix of Mexican cuisine (Citrico Café), nightclubs, dive bars, and other restaurant concepts

Interviewee

Alex Marquetti, Owner

Problem

Manual tip calculation and tip distribution was time-consuming, error-prone, and difficult to scale across multiple locations. The employees had frequent questions related to tip calculations and the owner needed a system that could support complex tip pooling, automated gratuity, and provide transparency to employees while reducing manager workload.

Solution

The owner implemented TipHaus to automate tip calculation, ensure tip transparency, and reduce manual labor. The platform integrated seamlessly with Collective Hospitality's tech stack, saving time, improving cash flow, increasing trust among staff, and completely reducing legal liability as the business scaled.

Reduce tip calculation time by 80% while eliminating manual errors and discrepancies—ensuring accuracy and legal compliance

Calculate your ROI

Background

Collective Hospitality is a thriving restaurant group in New York, known for its diverse offerings, from Mexican cuisine and nightclubs to other unique restaurant concepts and dive bars. Alex Marquetti owns and operates seven of their locations, while other locations are managed by different partners. Collective Hospitality places a strong emphasis on creating a positive and transparent work culture, and TipHaus has played a pivotal role in supporting this mission.

Problem

Before implementing TipHaus, Alex and his team relied on spreadsheets to manage tip distribution across their locations. This method was not only time-consuming but prone to errors, especially as the business grew. The need for a more scalable, transparent, and accurate solution became evident, especially for larger events. Alex was frustrated with the inefficiencies, and after exploring other options, TipHaus emerged as the best choice, offering the detailed and complex setup needed for Collective Hospitality’s operations.

Solution

TipHaus was introduced to Collective Hospitality in 2022, initially at one location for a quick pilot test, and quickly expanded across all seven of Alex’s owned restaurants in New York. The system automated tip pooling (18% to the pool), allowed employees to keep their own tips, and supported automated gratuity, which, despite Alex’s initial hesitation, became necessary for consistency across locations. The ability to automate and customize tip distribution for unique events and large parties was also crucial, as Collective Hospitality frequently handles 10-15 large group events each month.


By integrating TipHaus into their existing tech stack—which includes Toast POS, R365 and 7Shifts —Alex and his team streamlined operations across multiple locations, ensuring everything from tip distribution to payroll and scheduling was seamlessly connected. The system’s auto-reconciliation features also meant that managers spent less time on manual tasks and had more time for operational duties.


One key advantage of TipHaus was the introduction of the TipHaus Employee App, which was made available for free to all tipped employees. The app provided full transparency into tip calculations, allowing staff to instantly see how tips were distributed, which reduced the number of questions and confusion about tips. This shift significantly minimized the time spent by managers addressing tip-related queries. Instead of handling multiple conversations with staff about discrepancies or misunderstandings, managers could focus on running the day-to-day operations. The ability to offer instant visibility to employees not only increased trust but also enhanced morale, creating a more harmonious work environment.

TipHaus solved time-consuming and repetitive tasks prone to error. It’s a set-it-and-forget-it system, except for special events. The ability to customize tip setups for each event has been a game-changer for us. On average, we save over 3.5 hours per week per location on manual tip management. When you multiply that by 7 locations, the ROI is clear.

Alex Marquetti, Owner

Alex Marquetti

Owner

Results

30 Minutes a day saved in the manager's time not using spreadsheets (3.5 hours saved per week per location), totaling 98 hours of manual tip management saved monthly across 7 locations


90%+ reduction in tip-related inquiries from staff, thanks to the free TipHaus Employee App, which provides full tip transparency


100% success rate in addressing user concerns from customer support


Streamlined operations with the auto-reconcillation feature and seamless integration with Toast POS

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TipHaus has transformed the way Collective Hospitality handles tip distribution, saving time, reducing errors, and improving transparency. As Alex Marquetti expands his business in New York, TipHaus continues to support him by providing the operational efficiency needed to scale successfully. With the flexibility to handle complex scenarios like large events and automated gratuity, TipHaus is now an integral part of Collective Hospitality's tech stack.

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