Restaurant tips go digital with new Toast feature

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Restaurants using Toast’s point-of-sale system can now automate tip calculations and send money directly to workers’ bank accounts through a new integration with gratuity platform eTip. The collaboration leverages Toast’s existing infrastructure to eliminate manual processes that have long been a source of inefficiency in restaurant operations. By syncing with eTip, the system pulls real-time sales data to determine tip amounts, ensuring accuracy without the need for manual input from managers or staff.

Automated tips replace manual calculations

The San Francisco-based company says its software pulls sales data from Toast to handle tip splits, distribution, and reconciliation. Managers no longer need to tally totals by hand or cut paper checks. Instead, the system deposits the final sums electronically.

Nicolas Cassis, co-founder and chief executive of eTip, called the integration “a faster, simpler, and more streamlined experience” for operators. In a statement, he said it eliminates one of the most time-consuming back-office tasks while giving employees quicker access to earnings.

Toast’s network covers more than 160,000 restaurant locations, including about 20% of small and independent U.S. restaurants. The integration places eTip inside Toast’s Partner Ecosystem, which already includes over 200 other technology providers focused on sales, customer engagement, and staff operations. Beyond digital tipping, the company offers services such as earned-wage access and on-demand payouts.

Tipping rates hold steady at nearly 20%

Data from Toast shows tips at full-service restaurants have averaged 19.3% of meal tabs for at least two years. Quick-service locations see lower rates—15.8%—but those figures have also remained stable since early 2024. On customer credit card payments, employees may receive tip payouts in cash at the end of a shift or see tips included in their next paycheck, according to industry information.

Beyond digital tipping, eTip offers earned-wage access and on-demand payouts.

For restaurants, the appeal is simpler: fewer manual processes and fewer errors. Whether servers will see a noticeable difference in take-home pay remains unclear, but the shift toward automation appears inevitable as more operators adopt digital tools.

The integration arrives as labor costs continue to rise and staffing shortages persist in many regions. Some owners may view the system as a way to attract workers by offering faster payouts, while others might hesitate over the fees associated with instant transfers.

Toast did not disclose how many of its customers have already enabled the eTip integration, but industry observers expect adoption to grow as restaurants seek ways to reduce administrative overhead.