As a customer, you may have wondered how much of the tip you leave actually goes to the server. The truth is, servers often have to share their tips with other staff members, such as bussers and bartenders. This practice is known as “tipping out,” and it’s a common occurrence in the restaurant industry.
In this article, we will explore the ins and outs of tipping out, including how much servers typically tip out, who they tip out to, and why this practice exists. By the end of this article, you’ll have a better understanding of how your tip is distributed and how it impacts the hardworking staff members who serve you.
Servers usually tip out between 15% to 20% of their total sales to support staff, such as bussers, bartenders, and hosts. However, the exact percentage can vary depending on the establishment and location. Some restaurants have a set percentage while others allow servers to determine the amount based on their sales. It’s important for servers to budget for tip outs since it’s a significant part of their income.
How Much Do Servers Tip Out?
As a server or a waiter, tips are an essential part of your earnings. However, what many people don’t know is that servers often have to tip out a portion of their tips to other staff members. This practice, known as “tipping out,” is common in the restaurant industry, but the amount can vary depending on the establishment. Here’s a closer look at how much servers typically tip out.
What is Tipping Out?
Tipping out is a practice in the restaurant industry where servers share a portion of their tips with other staff members. This can include bartenders, bussers, food runners, and other support staff who help ensure that the dining experience is smooth and enjoyable for guests. The idea behind tipping out is to create a more cohesive team and ensure that everyone is fairly compensated for their work.
The amount that servers tip out can vary depending on the establishment and the specific job duties of each staff member. For example, a server may tip out 10% of their tips to a bartender who creates their drinks, 5% to a food runner who delivers their orders, and 2% to a busser who clears their tables.
How Much Do Servers Tip Out?
The amount that servers tip out can vary quite a bit from one restaurant to the next. However, there are some general guidelines that can give you an idea of what to expect. Here’s a breakdown of how much servers typically tip out in different types of restaurants:
- Casual Restaurants: Servers typically tip out 10-20% of their tips to other staff members.
- Fine Dining Restaurants: Servers may tip out as much as 30% of their tips to other staff members, including bartenders, food runners, and bussers.
- Chain Restaurants: Tipping out can vary depending on the specific chain and location, but servers may tip out 5-10% of their tips to other staff members.
It’s important to note that the amount that servers tip out is not necessarily set in stone. Some restaurants may have a set policy, while others may allow servers to negotiate with other staff members to determine an appropriate tip-out amount.
The Benefits of Tipping Out
While tipping out may seem like an extra expense for servers, it actually has several benefits. First, tipping out helps to create a more cohesive team by incentivizing everyone to work together and provide excellent service. When everyone is working towards a common goal, the dining experience is more enjoyable for guests and staff alike.
Second, tipping out can help to ensure that support staff members are fairly compensated for their work. Bartenders, food runners, and bussers all play an important role in the dining experience, and tipping out helps to recognize their contributions.
Finally, tipping out can actually help servers to earn more money in the long run. By providing excellent service and sharing their tips with other staff members, servers can create a positive work environment that encourages guests to return and leave larger tips.
The Drawbacks of Tipping Out
While tipping out has its benefits, there are also some potential drawbacks to consider. First, tipping out can be a significant expense for servers, especially in fine dining establishments where the tip-out percentage is high. This can eat into their earnings and make it more difficult to make ends meet.
Second, not all staff members may feel that they are fairly compensated through the tipping out system. For example, a busser who only receives a 2% tip-out may feel that their contributions are undervalued compared to a bartender who receives a 10% tip-out.
Finally, tipping out can create a sense of competition between staff members, especially in establishments where the tip-out percentage is high. Servers may feel pressure to provide excellent service to guests in order to earn larger tips, which can lead to stress and burnout over time.
Tipping Out vs. No Tipping Out
Some restaurants have chosen to eliminate tipping out altogether and instead pay their staff a higher hourly wage. This can create a more equitable system where everyone is paid fairly for their work, regardless of their specific job duties.
However, eliminating tipping out can also have its drawbacks. For example, it may create less of an incentive for staff members to work together and provide excellent service, as they are not directly sharing in the tips that guests leave.
Ultimately, the decision to implement or eliminate tipping out is up to each individual restaurant. However, it’s important for servers and staff members to understand how the system works and what the potential benefits and drawbacks are. By working together and communicating openly, restaurants can create a tipping out system that is fair and equitable for everyone involved.
Frequently Asked Questions
Here are some common questions regarding server tip outs:
1. What is a server tip out?
A server tip out is a percentage of a server’s tips that they give to other staff members who helped them provide excellent service to customers. The amount of the tip out varies depending on the establishment and the role of the staff member.
For example, a server may tip out a percentage of their tips to the bartender, busser, and food runner. The tip out is a way for servers to show appreciation to their colleagues and ensure everyone is fairly compensated for their work.
2. Why do servers have to tip out?
Servers have to tip out because they rely on other staff members to provide excellent service to customers. For example, a bartender may make drinks for customers at the bar, while a busser may clear tables and ensure the dining area is clean and tidy.
By tipping out, servers acknowledge the hard work of their colleagues and ensure they are fairly compensated for their contributions to the overall dining experience.
3. How much do servers usually tip out?
The amount servers tip out varies depending on the establishment and the role of the staff member. In general, servers may tip out between 15-20% of their tips to other staff members.
For example, a server may tip out 5% of their tips to the bartender, 5% to the busser, and 5% to the food runner. The specific amounts may vary depending on the establishment’s policies and the agreement between the server and the staff members.
4. What happens if a server doesn’t tip out?
If a server doesn’t tip out, it may affect their working relationship with other staff members. The staff members may feel undervalued and may not provide the same level of service to the server in the future.
In some cases, the establishment may have policies in place that require servers to tip out. If a server fails to tip out, they may face disciplinary action or even termination.
5. Can servers receive tips from other staff members?
It is uncommon for servers to receive tips from other staff members. However, if a staff member wants to show appreciation for exceptional service, they may choose to tip the server.
It’s important to note that in some establishments, tipping policies may prohibit staff members from tipping each other. Servers should always check with their employer before accepting tips from other staff members.
In conclusion, the amount that servers tip out can vary depending on a variety of factors. However, it is important to remember that tipping out is a crucial aspect of the restaurant industry and helps to ensure that all staff members are fairly compensated for their hard work.
Additionally, it is important for servers to understand their specific restaurant’s tipping out policies and to communicate with their coworkers to ensure a fair distribution of tips. By working together and maintaining transparency, servers can create a positive and supportive work environment.
Ultimately, the restaurant industry relies heavily on teamwork and collaboration, and tipping out is just one way that servers can contribute to the success of their establishment. So the next time you dine out, remember to show your appreciation for your server’s hard work by leaving a generous tip!