The Ranch Downtown Coffee Shop

Employee Bonus (Tip) Policy

At The Ranch Downtown, we believe in providing fair and competitive compensation to our employees. Unlike restaurants or other businesses that rely on a reduced hourly wage supplemented by customer tips, our team members are paid a full hourly wage for their work and service. Because of this, customer tips are viewed as an additional bonus earned through excellent hospitality, teamwork, and customer experience.

While customers may choose to leave a gratuity, tips are never expected or solicited. The Ranch Downtown is committed to creating a welcoming environment focused on hospitality rather than tip-driven service. Employees are strictly prohibited from requesting or soliciting tips from customers in any form. Violations of this policy are considered serious misconduct and may result in immediate termination.

To ensure fairness and consistency, the following policy will apply to all coffee shop team members.

Tip Collection

• Customer tips will be collected in a locked tip jar located at the coffee shop register area.
• The tip jar will remain secured during business operations.
• The tip jar will be displayed behind the counter and should never be placed directly on the customer counter or in a manner that appears to solicit tips.
• If a customer leaves a cash tip on a table or elsewhere within the coffee shop, the employee should place the funds into the designated tip jar. Violations of this policy are also considered serious misconduct and may result in immediate termination.
• Tips will be collected once per month by Jessica Luna.

Tip Handling Procedures

• After collection, Jessica Luna will deliver all tip funds to Ana Luna for verification, recording, and processing. This provides two-factor verification of funds.
• Management reserves the right to document and reconcile all tip amounts for payroll and recordkeeping purposes.
• Tip payouts may be processed through payroll when applicable.

Bonus Distribution

• All eligible coffee shop team members will participate in the weekly tip pool.
• Bonuses will be distributed on a prorated basis according to the total number of hours worked by each employee during the applicable time period.
• Employees who work more hours during the term will receive a proportionately larger share of the tip pool.
• Tip calculations will be based on official payroll and timekeeping records.

Eligibility

• Team members must meet and follow all policies of TRD to be eligible for bonuses. Any violation during the term period results in ineligibility for bonus.
• Only employees actively working in The Ranch Downtown coffee shop operations during the applicable term period are eligible to participate in the bonus pool.
• Management reserves the right to determine eligibility for employees who work across multiple departments or positions.
• Any employee with active policy violations may not be eligible for the bonus based on performance.
• Any employee who is late to work or misses a scheduled shift without following proper notification procedures will not be eligible for the bonus.
• Management reserves the right to make final determinations regarding eligibility and distribution.