We recently sat down with Aleksandar Stepanovich, Co-Founder and CIO of Gratuity Solutions, the company that pioneered automated tip pooling and distribution for the hospitality industry. Since 2009, Gratuity Solutions has grown to serve over 14,000 locations nationwide through its PayDay Portal platform, processing more than $1 billion in earnings. As a technology company ourselves, we were eager to learn how Stepanovich and his team have leveraged AI and custom software to solve one of hospitality’s most persistent operational challenges.
Q: What problem were you originally trying to solve when you built Gratuity Solutions’ platform?
A: When we started in 2009, tip distribution in restaurants was almost entirely manual. Managers were spending hours every night calculating tip pools, splitting earnings across shifts, and reconciling everything with payroll. It was error-prone, time-consuming, and a compliance nightmare, especially for multi-location operators dealing with different state laws. We saw an opportunity to automate the entire flow from POS data through to payout, and that’s exactly what we built.
Q: How does AI factor into what is essentially a payroll problem?
A: It’s much more than payroll. Our platform runs over 150 unique algorithms that function as an AI application, handling everything from jurisdiction-specific tip pooling rules to real-time compliance checks. Each client has a unique business logic configuration: different tip pool structures, shift differentials, service charge allocations. Our system has to process all of that automatically every single day. The AI layer is what makes it possible to serve 14,000 locations without requiring manual intervention at any of them.
Q: For companies considering a digital transformation of their back-office operations, what lessons can they take from your experience?
A: The biggest lesson is to start with the problem, not the technology. We didn’t set out to build an AI platform. We set out to eliminate the pain of manual tip distribution, and the technology evolved because the problem demanded it. I’d also say that integration is everything. Our platform connects directly with over 20 POS systems, multiple time-and-attendance providers, and all the major payroll platforms. If your solution doesn’t fit seamlessly into existing workflows, adoption will stall no matter how sophisticated your algorithms are.
Q: What role does real-time payment technology play in your platform today?
A: It’s become central to our value proposition. Today’s hospitality workers expect same-day or even instant access to their earnings. We’ve integrated with eight payment partners, including Visa Direct, DailyPay, and Branch, so employees can choose how and when they get paid, whether that’s to a bank account, debit card, or prepaid card. That kind of payment flexibility is a major retention tool for our clients. Some report up to a 30% reduction in turnover after implementing our platform.
Q: Where do you see AI-driven automation heading in hospitality over the next few years?
A: I think we’re just scratching the surface. Right now, our platform automates the calculate-and-distribute cycle, but there’s enormous potential in predictive analytics: forecasting labor costs, optimizing staffing models based on tip data trends, even flagging compliance risks before they become legal exposure. The hospitality industry has been slower to adopt enterprise technology than other sectors, but that’s changing rapidly. Operators are realizing that the ROI on automation isn’t theoretical. Our clients see an average 6.5x return, and that’s a compelling business case for any chain looking to scale efficiently.
