When I started this series of blogs, I knew "tipping would be the coup de gras. I've wrestled with how to best approach this topic as I could well write a book in order to cover everything I really want to say. (My first two drafts were over ten pages each when I realized both times I had only covered 75% of what I deemed necessary to address). In creating this series I did do some research using both primary (interview) and secondary (print) sources and it was the comments I heard and read about tipping that really resonated the loudest. But none of what came across my desk had greater impact on me than the following comment from a gentleman (a term I use loosely here) diner:
When I eat out I tip around 10% of the bill. People say I'm cheap, but I'm not eating out to pay someone's salary. That's not my responsibility. If what I tip is not sufficient for my waiter, then it's on the restaurant's [management] to pay their staff more.
Okay jack@$$, it is your responsibility to pay these people because tipping is the custom here in the U.S. You don't want to tip, then move to Europe where it is not the expected practice. When you eat out in a full-service restaurant (a place where you are seated, someone takes your order, delivers your drinks and food to you, and handles your payment), tipping 18%-20% of the bill needs to be figured into what you're willing to spend before you ever leave your house. If you aren't going to be able to afford the proper tip, then you don't need to be eating out in the first place.
And yes, I said 18%-20%---NOT 15%---is standard. Now I'm going to attempt to explain why that is the case. Here are a couple of things you need to know up front:
*Most servers/bartenders make $2.13/hr. This is what the federal government mandates as base pay for tipped employees. (I know some places pay more, particularly in the state of California, but higher hourly rates are the exception rather than the norm).
*Though not theoretically proven, most tipped employees pay roughly 8% in taxes (social security and federal income tax) based on their net sales. (Hence the reason they are required to claim a minimum of 8% tips). Note that most restaurants require employees to claim everything.
*Tipped employees are required to "tip out" a percentage (this amount varies from restaurant to restaurant) of their net sales to other co-workers. These include but are not limited to: busboys, bar backs, bartenders, dishwashers and greeters.
In an effort to keep this simple, we are going to assume the following numbers for our imaginary employee:
*They are paid a salary of $2.13/hr by the restaurant.
*8% of their net sales will be deducted for tax purposes.
*They "tip out" 2% of their net sales.
*They work a five hour shift.
*Their net sales are $100/hr.
*For Scenario 1, the employee made 20% in tips from their sales.
You ready? Pay attention.
5hrs. X $2.13/hr. = $10.65
5hrs. X $100 net/hr X 20% tips = $100
So it looks like our employee just made $110.65 for their five hour shift, right? But hold on. We need to figure out the take home pay after taxes and tip out.
$500 net sales X 8% tax deductions = $40.00
$500 net sales X 2% tip out = $10.00
Total deductions = $50.00
$110.65 - $50.00 = $60.65
There you go. This employee at $60.65 only takes home just over half of what they made.
Now let's take a quick look at Scenario 2. This server only received 10% in tips from guests. All previous numbers remain the same except the $100 in tips. At just 10%, this employee only made $50.00 in tips. So $10.65 (hourly pay) + $50.00 (tips) - $50.00 (deductions) = $10.65. At 10% tips this employee would have made $10.65 for a five hour shift. Seriously, who can support themselves, much less a family on $10/day? Understand now why your tip is their pay?
These employees seldom receive a paycheck. Deductions are made up front and as a result not only are their paychecks often "Voided," but because there wasn't enough on the paycheck to begin with (at $2.13/hr), they frequently write a check to the IRS every April. Personally, in the last two years I have received three paychecks, none of which were over $13.00. Furthermore, I have owed the IRS seven of the last ten years.
A couple of other things to consider when tipping:
*Servers prefer cash tips vs. charge tips.
*If using a coupon or receiving a discount when dining out, your tip is based on the original total. A good rule of thumb is to tip the greater amount of 20% of the the bill or tip the amount of the coupon/discount.
*If just having drinks, $1.00/drink is standard.
*If your server was rude or horsing around with co-workers instead of taking care of you, by all means, tip less than %18-%20.
*If your server had a personality, kept your drinks full, anticipated your needs without you having to say anything, etc..., tip greater than 18%-20%. Anything from your server having to clean up spills to splitting checks constitutes a couple of extra dollars on their tip.
So there you have it. I hope you've found this series useful. It has kind of surprised me the number of people who've wittingly responded, "These tips need to be sent out via radio/tv." What do you think? Did you learn anything? Is there anything you take issue with? Let me hear from you. Until next time...Keep it real!!!
No comments:
Post a Comment