Customer Story: Honest Burgers

Customer Stories: Honest Burgers

How Honest Burgers improved their employee retention by 30.5% with TiPJAR

“TiPJAR played a crucial role in reducing staff turnover rates. Enhanced pay structures, coupled with weekly payouts and clear financial benefits, has definitely contributed to employee satisfaction and loyalty."
Maureen Sandbach
People Director at Honest Burgers

If Honest Burgers isn’t on your radar, you might wanna get in-the know. With 40 thriving locations, these hospitality trailblazers are dedicated to serving up burgers and chips in the most honest way possible. Their focus on quality and genuinely memorable dining experiences has given them legendary status in the UK – and as they are pioneers in their service – they too have been pioneers in helping TiPJAR become what it is today.

 

Honest chose to adopt TiPJAR in early 2020, just before the onset of Covid-19 in the hope that they would be able to drive additional earnings for their teams during one of the most challenging periods for the industry in recent history.

Since then they’ve helped us grow our platform, and in turn – they have had dramatic success though their early adoption of cash-equivalent tipping, and then SUPERTRONC in April 2022.

£8.5M+

Total tips collected as of January 2024

£4.5M+

Tips collected & distributed in 2023 alone

40

Thriving Venues

815

Awesome team members

51%

Increase in tips year on year from 2022 to 2023.

 

“Over the past couple of years, this collaboration has brought us numerous benefits, especially in terms of clarity regarding payments. The system ensures a clear separation between the service charge and the business's financial transactions. It's entirely transparent, allowing our team to see the incoming funds and the distribution, ensuring everything aligns perfectly. This level of transparency minimises administrative tasks for our small payroll team.”
Tommy Giraux
Head Of Projects at Honest Burgers

4 years of collaboration

Since the implementation of TiPJAR in 2020, the results have been nothing short of remarkable (if we do say so ourselves). Together, TiPJAR and Honest have collected and distributed an impressive £8 million in tips, providing vital financial support to the dedicated team members who help make Honest Burgers a success. In 2023 alone, £4.5 million was distributed!

Moreover, the introduction of Supertronc versus cash-equivalent methods led to a staggering 3653% increase in tip volumes between 2021 and 2022!

“Upon launching service charge with TiPJAR's Supertronc, we realised it significantly streamlined our processes and likely saved us from potential challenges like the new legislation coming in, that we might not have been aware of at the time."
Tommy Giraux
Head Of Projects at Honest Burgers

Leveraging TiPJAR in aid of recruitment

Recruitment and retention has been a critical focus for most hospitality businesses since Covid, but Honest Burgers has leveraged TiPJAR to make significant strides in both areas.

One key strategy employed by Honest Burgers has been to actively promote their utilisation of TiPJAR, emphasising the average hourly rate, inclusive of service charge. This additional compensation, ranging from £3.50 to £5.00 per hour atop base wages, serves as a compelling incentive for prospective team members.

By showcasing their commitment to fair and transparent tip distribution through TiPJAR, Honest distinguishes itself from competitors and enhances its appeal as an employer. Moreover, this approach helps them stand out amidst the multitude of businesses vying for staff, elevating the visibility of their job postings and increasing their ranking in search results.

"We're able to promote the average earnings that a team member gets, stating the pay rate plus the average earnings from TiPJAR. This positions us in a higher echelon when people do Google searches and look into SEO. I would say that it has helped, considering our turnover is going down. It may not be the sole factor, but it's definitely something we reference. The weekly pay is indeed an enticement.
Maureen Sandbach
People Director ar Honest Burgers

THE IMPACT ON RETENTION

TiPJAR’s impact on employee retention cannot be overstated. Honest has witnessed a remarkable reduction in employee turnover since implementing TiPJAR. Previously, the turnover rate averaged around 106.05%, but since adopting TiPJAR, it has dropped significantly to an average of just 75.48%! 

There are many factors that could contribute to this: 

  • Weekly payouts so their staff get access to frequent, on-demand income
  • Fair distribution: Honest Burgers chose to adopt an equal points model, meaning everyone in the team gets their fair share for their hours worked in any given day
  • Transparency means there’s no funny business going on – the team can look at any tip split and understand how they’ve received their share, providing total trust with their employer
  • TiPJAR’s user-friendly platform and efficient payout system elevates the typical tronc experience – promoting the employee experience and empowering staff with the ability to take ownership over their earnings
"Most of our guys are eagerly waiting for the money. It makes a big impact on them, especially on Fridays just before the weekend. The fact that they are looking at it minute to the hour when they're gonna get it, and they know it straight away means it's very much a part of our way of living. It's now part of our DNA"
Tommy Giraux
Head Of Projects at Honest Burgers

an employee engagement tool, like no other!

TiPJAR revolutionises the employee experience by providing seamless and transparent tip distribution, empowering team members and fostering a culture of engagement and satisfaction. As Tommy from Honest notes above, the anticipation of the team receiving their TiPJAR earnings creates a palpable sense of excitement, with employees eagerly awaiting their payouts each week.

This punctuality and reliability not only makes a significant impact on their financial well-being but also instills a sense of belonging and investment in the company’s success.

TiPJAR becomes deeply ingrained in the daily lives of Honest Burgers’ team members, with its accessibility and real-time updates seamlessly integrating into their routines. From tracking earnings, to relying on its efficiency as part of their DNA, TiPJAR has become more than just a tool—it’s become a fundamental aspect of their way of living.

By simplifying the complex process of tip distribution and offering clear, transparent mechanisms for rewarding hard work, TiPJAR enables businesses to prioritise employee well-being and incentivise staff effectively. This sentiment is echoed in Tommy’s recommendations to other companies below, highlighting TiPJAR’s pivotal role in navigating evolving legislation and fostering a culture of fairness and recognition.

TiPJAR not only streamlines tip distribution but also strengthens the bond between employers and employees, driving engagement, loyalty, and mutual success.

"I've been recommending TiPJAR a lot, especially to external companies, with the discussions we've had in the last few months, specifically now as legislation is changing, and people are trying to find a legal way to split tips while also incentivising their staff. The daily split is a huge pain if you were to do it yourself, but through your integration and with the ability to direct it, that can be made an optional absolute breeze. I think that's huge for both small and large businesses—being able to reward people working busy shifts, your best people, where they can make the most money and reward them for it, keeping it transparent, clear, and tenancy."
Tommy Giraux
Head Of Projects at Honest Burgers

The reasons why Honest Burgers chose to adopt TiPJAR:

Aligning their tip distribution methods with their company ethos of honesty and transparency was a consistent challenge for Honest. TiPJAR became an instrumental solution by seamlessly integrating with their values, ensuring clear separation of tips and providing a user-friendly experience, reinforcing Honest Burgers’ commitment to integrity in all aspects of their business.

Honest Burgers faced a challenge with traditional tip distribution methods, where often frequent delays impacted their team's financial well-being. In response, TiPJAR was introduced to provide a solution for swift and regular tip payouts, ensuring Honest Burgers' hardworking team receives their well-deserved earnings promptly.

TiPJAR emerged as the solution, offering a cash-equivalent approach that maintained a clear separation, eliminating confusion and ensuring a fair distribution process for Honest Burgers' team. 

Honest chose to adopt TiPJAR in 2019, just before the onset of Covid-19 in the hope that they would be able to drive additional earnings for their teams during one of the most challenging periods for the industry in recent history

Tommy Giraux, Head Of Projects at Honest told us “This initiative was particularly successful during the pandemic, providing a way to supplement the income of our staff who were adversely affected.”

They then began considering the introduction of a service charge, but their goal was to streamline the process and keep it separate from our business operations to ensure clarity and compliance.

This is where TiPJAR comes in - we worked together to deliver our product now know as "Supertronc" - and the rest, well, it's history.

Compliance with tip management regulations posed an ongoing concern a lot of operators. Introducing TiPJAR addressed this challenge by providing a platform that ensures adherence to ever-changing legal standards. This not only mitigates risks but also provides Honest Burgers with peace of mind, aligning with their commitment to ethical and lawful business practices.

Honest faced challenges (as many hospitality operators do) in attracting and retaining top talent in a competitive market. TiPJAR emerged as a valuable tool to address this concern, allowing Honest to showcase average earnings transparently and position themselves attractively in recruitment efforts, as well as fostering loyalty among their existing team.

The burden of administrative tasks related to traditional tip distribution systems became overwhelming. To alleviate this challenge, TiPJAR was introduced, offering a streamlined approach that reduces administrative burdens, allowing Honests team to focus on more strategic aspects of their roles.

"What's great about TiPJAR is that it's completely independent of the business. It's a true tronc scheme in its entirety, where all the money goes directly to the team members' pay for the hours they've worked. The business has no interference whatsoever. Additionally, there's no commission taken by TiPJAR. We pay you guys for the service, and it doesn't get deducted from the tronc either."
Tommy Giraux
Head Of Projects at Honest Burgers

check out how they introduced tIPjar to their teams:

We absolutely love the creativity used to engage the team here! Special thanks to Tommy for sharing these gems with us. 

Please note that our system has come a long way since these were produced, so not all information shared may still be perfectly accurate.

"With the work that you're doing, I think you're probably positioning yourself as a market leader in certain ways now."
People Director at Honest Burgers

2023 Financial Results

During the 2023 period, their turnover grew by £10.1m, reaching £48.3m—an impressive 26% increase.

This success was driven by an 11.3% rise in like-for-like sales. Honest Burgers also significantly reduced group operating losses by 54%, bringing them down to £3.1m. Notably, their adjusted EBITDA before exceptional items surged by 192%, reaching £3.5m. 

With the use of TiPJAR’s products, Honest Burgers have been able to motivate their team to drive sales, allowing them to focus on their profits. We are proud to have played a role in Honest Burgers’ remarkable journey.

26%

Increase in turnover

11.3%

Rise in LFL sales

54%

Reduction in group operating loss

192%

Surge in EBITDA before exceptional items

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