Ever wonder how airports manage to bring the flavors of a region to hungry travelers? SSP America, the aviation industry's "Food Travel Experts," with over 250 tipped employees at their SeaTac location, does just that! Their mission goes beyond delicious food; they also strive to cultivate a positive and inclusive work environment. However, managing tip distribution for their team posed a challenge. Learn how TipHaus revolutionized SSP America's tip allocation system, ensuring fairness and transparency, reducing conflicts, improving operational efficiency, and ultimately contributing to a happier, more engaged workforce.
Executive Summary
Region:
International airports in the US, Canada, and South America.
Business Type:
Contract food services provider
# of Locations:
34
Interviewee:
John Wolfred, HR Manager
Problem:
SSP America's pre-TipHaus system led to lack of transparency over tip sharing, with inconsistencies in how different units handled tips. This lack of structure caused confusion and required a dedicated staff member to manage tip distribution, adding cost and inefficiency.
Solution:
TipHaus automated tip distribution at SSP America, ensuring fairness and transparency, which made employees more flexible, while detailed insights reduced financial discrepancies and streamlined workflows.
Background
SSP America has established itself as the aviation industry's leading expert, celebrated for introducing the region's culinary delights to airports and creating a true sense of place. Dedicated to fostering an inclusive and supportive work environment, they strive to ensure their team members can thrive. Their mission is to deliver exceptional local dining experiences to every airport they serve, driven by steadfast principles and a solid foundation. In a conversation with John Wolfred, HR Manager at SSP America’s SeaTac location, we explore how TipHaus has been instrumental in evenly and transparently allocating tips at SeaTac, one of 34 airports and 179 revenue centers, minimizing financial discrepancies and instances of cash mismanagement, and significantly reducing employee turnover.
Problem
The lack of standardized tip distribution at SeaTac led to frequent arguments and discouraged role rotation, limiting operational flexibility. With over 250 tipped employees and inconsistent practices across units, pooling tips became a major challenge. Each unit managed tips differently, resulting in inconsistent employee compensation. Maintaining spreadsheets for tip tracking required a dedicated staff member, and the manual system lacked transparency, making it difficult to identify and address errors.
Solution
By automating tip distribution, TipHaus ensured fair allocation, reducing conflicts over tip sharing and promoting role rotation among employees. The software provided detailed insights into sales and transactions, reducing financial discrepancies and mismanagement. TipHaus also facilitated easy identification of issues and refunds, enhancing compliance with union agreements and state regulations. This transparency and efficiency saved over 100 hours in manual calculations and over $4,500 monthly in SeaTac by eliminating the need for a dedicated tip management role and reduced employee turnover, boosting retention and overall satisfaction.
"I like all of it. The breakdown sections are fantastic. I can easily see sales by location and team members, which is incredibly helpful. Plus, the detail is amazing! If there's ever an issue with a refund or someone forgetting to ring something in, it's easy to pinpoint the exact transaction, time of day, and even the employee involved. It's brought a lot of transparency to the whole process.
We've even had some interesting side effects. There have been a few times where employees have requested transfers to different areas after seeing how much others are making in tips through the TipHaus data. It's definitely helped us be more upfront with new hires about tip expectations too. With our new tip pooling system, we can now confidently quote a base salary that includes what they can expect to receive in tips."
John Wolfred
HR Manager
Results
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SSP America's transition to TipHaus has delivered a winning combination for both their employees and their bottom line. Tip discrepancies are a thing of the past, replaced by a culture of transparency and trust fostered by the platform's fair and automated tip distribution. Streamlined workflows have freed up valuable time for staff, allowing them to focus on delivering exceptional service to airport travelers. With compliance ensured and operational efficiency boosted, SSP America is well-positioned for continued growth and success.
