Complete Recommendations Section $-$ Provide practical and actionable suggestions for improving the change process based on your analysis.I. $$ IntroductionOverview of the Organization and Change InitiativeEstablished in $1945$ in Quezon City, Philippines, Max's Restaurant is renowned for its fried chicken and other traditional Filipino cuisine $($Maxs Restaurant, $2024).$ Max's, originating as a modest family enterprise, has expanded into a worldwide brand with numerous establishments in the Philippines, North America, and the Middle East. Because it combines tradition, quality, and a warm ambiance, the restaurant is regarded as a beloved eating destination by both Filipino communities and international customers $($Maxs Restaurant, $2024).$Max's Restaurant has implemented a creative transformation strategy in recent years to adapt to shifting market dynamics and technological advancements. This initiative's emphasis on digital transformation included the introduction of online meal delivery services, enhancement of digital marketing strategies, and integration of technology into daily operations $($BusinessWorld$,2021).$ The main changes included improved customer loyalty programs, digital menus, and ordering through smartphone apps. The COVID$-19$ pandemic accelerated these efforts, pushing Maxs to pivot quickly as dine$-$in restrictions challenged traditional business models $($Sanchez$,2022).$ The goal of this initiative was not only to address immediate operational challenges but also to establish a resilient omnichannel strategy that could drive long$-$term growth.Purpose of the Study and Its RelevanceThis case study aims to critically evaluate Maxs Restaurants digital transformation, emphasizing the problems faced, solutions implemented, and results attained. This study aims to explore:$*$ The strategic decisions that enabled Maxs Restaurant to transition successfully to digital platforms.$*$ Operational changes, including supply chain adaptations and employee training initiatives.$*$ The role of technological innovations in enhancing customer experiences and operational efficiency.$*$ The financial and market impact of Maxs digital initiatives.$*$ Broader lessons on managing organizational change within the highly competitive food and beverage industry.This study is particularly relevant for business professionals, restaurateurs, and marketers who are navigating digital transformation. It provides insights into the importance of agility, innovation, and strategic management when adapting to market shifts $($Maxs Group, $2024).$ The case of Maxs Restaurant also illustrates how traditional brands can thrive in a digital$-$first world by leveraging technology and fostering resilience $($ABS$-$CBN News, $2024).$II$.$ Research MethodologyThis research study employs both primary $($interviews of employees$)$ and secondary data in examining the Max's Restaurant centralized tipping policy. Its overall aim is to determine the effects of the new policy, the manner in which it was administered, and the reason. The research also assesses how the regulation impacted the processing of payroll, satisfaction of employees, service effectiveness, and overall operations in restaurants. The research aims to give a thorough analysis of the impact of the new policy on employees $($front$-$of$-$house and back$-$ of$-$house$)$ and the management based on these business modifications.Secondary ResearchMax's Restaurant is a well$-$known company for their outstanding service to customers and promotion of Filipino food. Although the company's tipping practices are not made public, its official website highlights its dedication to teamwork and employee satisfaction $($Max$\text{'}$s Restaurant, $2024).$ And one of the researchers, who is an employee at Max's Restaurant, is familiar with the company's internal practices and is aware of centralized tipping systems.Centralized tipping policies are becoming increasingly popular in restaurants. The news story by Whitehead and Reserva $(2025)$ states that centralized tipping guarantees fairness since tips are shared evenly among front$-$of$-$house and back$-$of$-$house staff members. This facilitates an equal distribution of tips. As a result, it increases worker satisfaction, and minimizes attrition. Also, centralized solutions make payroll and tip easy to manage, minimizing mistakes and maximizing accurate wage and tip calculation.In an effort to create a more equal workplace environment, other restaurant groups, such as Calgary's Earls Restaurant, have implemented tip$-$sharing policies. Feedback suggests that such policies close the gap in pay between kitchen and server, foster a more team$-$based working environment, and promote fairness and cooperation among employees $($Ferreras$,2016).$This research study serves as the foundation to understand why Max's Restaurant practiced a centralized tipping policy and how it aligns to industry norms.Primary ResearchTo complement the secondary research, interviews were conducted to gather and collect insights from the employees of Max's Restaurant.To conduct an interview, it was done in in$-$person interviews and lasted for about $15-20$ minutes for each employee. Names were anonymized to guarantee honest and accurate feedback. The method used is qualitative research through semi$-$structured interviews where it comprises $14$ questions tackling the reasons behind changes, planning and implementation strategy, employee reactions, challenges and successes during the process, and lessons that they learned.Interviewee ProfilesFour employees were interviewed to represent different perspectives on the centralized tipping policy$\mathrm{.}1.$ Acting Restaurant Manager with $10$ years of experience.$*$ Explained why the change was necessary and how it was put into place. It also covered what management hoped to achieve and the long$-$term goals for the new policy$\mathrm{.}1.$ Senior Server with $5$ years of experience.$*$ Shared the initial reactions of front$-$of$-$house staff and explained their concerns about changes$1.$ Production Supervisor with $5$ years of experience$*$ Shared how the change benefited back$-$of$-$house employees and described its impact on teamwork$1.$ New employee with $8$ months of experience$*$ Provided insights into how new hires view fairness in tip distribution.By combining secondary research with primary research, this study provides a comprehensive view of the centralized tipping system at Maxs Restaurant.$$III$.$ Findings and AnalysisInsights from research and interviews$*$ Acting Manager $*$ The vital revelations from the acting manager was that to eliminate unfair practices from some servers that prioritizes high tipping customers and decrease the concerns like food theft, a new centralized tipping system was needed. This kind of change aligned with the restaurants values that makes sure that there would be a fair system of compensation for all staff and improving service quality. Employees initially had mixed reactions, with some concerned about earnings, but over time, teamwork and fairness improved.$$ According to the acting manager, the biggest challenge was adjusting to the system, as some employees, particularly servers, struggled with the shift and a few even left their jobs because they were used to getting their own tips. And because of the change there was an unexpected benefit that came out which was they improved in terms of communication and cooperation among them. The management has learned that clear communication and employee involvement was crucial for a smooth transition, and they are now considering making the tip distribution more transparent.$*$ Senior Server $*$ The valuable opinion of the senior server was that the tip distribution process was now more simplified than before and it also lessened the disagreements between the employees. Some employees felt that their individual efforts are not fully recognized under the new centralized system and there were concerns about the potential earning deductions from the front servers but gradually their teamwork improved, the conflicts lessened, and the restaurant operations are now more efficient. The senior server suggested that if there are any restaurants that consider a similar change, they should test the system first, get the feedback and make sure to be open to it to make sure that fairness is still valued.$*$ Production Supervisor $*$ The crucial observations from the production supervisor are that she$/$she saw the centralized tipping system created a more balanced and equitable work environment. Since centralized tipping is common in the industry, it made sure that both front and back, namely servers and kitchen staff respectively, received fair compensation. The product supervisor initially thought that the transition was difficult because the kitchen staff were unfamiliar with receiving tips, and there was also the confusion about the way it will be divided but steadily the new system encouraged better teamwork and appreciation for all the employees. One of the most important lessons from the production supervisor was to improve the process. The management needs to consider making the distribution method more transparent to maintain fairness and gain trust among the staff.$*$ New Employee $*$ The important observation from the new employee is that even though they were not present before the system was implemented the teamwork and overall support of the staff were great and even though the new employee heard mixed opinions from other employees, they admitted that the new tipping system created a fairer working environment. The new employee pointed out that if any restaurant is planning a similar change, it is important there is clear communication and employee engagement to make sure the concerns are addressed and ensure there is a smooth transition.Application of course concepts to analyze the change initiative$*$ Type of Change and Change Management Strategies $*$ The type of change that was implemented at Maxs Restaurant is a planned change with some of its aspects of the incremental change. It is planned because management announced that the change is happening because of the unfair tipping practices and to improve the fairness in terms of the operational quality of the restaurant. At the same time, the change was also incremental because it needed time to adjust and adapt by the employees, they also needed trainings to learn the new system of tipping process, this has become ideal for the management rather than an abrupt transformation because they were able to fix issues in regards to change resistance during the process that led them to have a smoother transition. $*$ The change management strategy that was used was the Lewins Change Model which consisted of three stages: Unfreeze, Change, and Refreeze. In the Unfreeze stage, the management communicated that there will be a change regarding their tipping system to boost fairness and operational efficiency. They had a talk with the employees and asked for feedback before the implementation. The next stage is the Change, this is where the tipping system was introduced and the training was provided, it is also where the concerns and issues of the employees were addressed. Lastly, in the Refreeze stage, the new system was reinforced, and the employees were able to adapt. The management also observed that teamwork also improved, and they made sure that there are transparency measures to be taken into account to improve the process. By using the Lewins Change Model, they were able to control any negative concerns and address them faster. According to MTD Training $($n$.$d$.),$ one of the advantages to using the Lewins Change Model is that it is easy to understand, and it puts people first. It is easy to understand. It is easy to understand in a way that there are only $3$ stages to the stages to implement the strategy effectively and it puts people first because to effectively implement this strategy it is important to address employees concerns and adjust policy process that most benefits all the employees.$*$Role of Leadership, Communication, and Organizational Culture $*$ Maxs owners needed to have effective leadership skills to do the transition the change by having clear objectives, engaging with employees, and ensures the restaurants values of fairness and teamwork. It is also important that there is an effective communication, the management are also responsible to conduct meetings, explain the reason for change and encourage feedback from the employees to address the concerns that might arise. The organizational culture at Maxs consists of collaboration and equality and this helps how the employees adapt in the change and although there were some employees that resisted the change but because of their culture of teamwork it helps the employees adjust and acknowledge that there could be benefits of a more effective system.$*$ Impact on Employees and Organizational Outcomes $*$ The new tipping system had both positive and negative impacts on the employees. In the beginning the staff servers were concerned about potential reductions in their personal earnings, which led to some resistance. Over time, because of teamwork the tipping system improved, and it also reduced the conflicts within the employees and increased fairness in terms of earnings between the server staff and kitchen staff. Improved effective communication also made employees more open which resulted in them able to say their concerns and felt valued when those concerns were addressed. The new tipping system improved to a smoother restaurant operation, better staff morale and it reduced the disagreements over the tip distribution which led to a more cohesive work environment. The management is focusing on refining transparency in tip distribution to strengthen employee trust and engagement.