Why is a waitstaff's tip tied to the cost of the meal?

Question

I took a friend to a fancy restaurant where our meals (without drinks) came to over $100. I tipped my usual 25%. As I thought about it later, though, I realized that if he had even as few as 4 tables during that hour we were there, he could easily have earned over $120 per hour in tips (some tables also having drinks and having more than 2 patrons). The restaurant was reservation only and booked solid all night, so he would have had at least 4 hours at that pace. That seems like an awful lot for a server, even if averaged over 8 hours per day (which is more than I make as a top level computer programmer). Although he was a pleasant enough server, he wasn't any better, more attentive, or better dressed than servers at most family restaurants where meals cost $20 or less per person. I don't know anything about the hospitality industry, so I am clueless as to why this huge difference. Is there something about being a waiter at an upscale restaurant that justifies that kind of hourly pay?

Answer 1

25% is a big tip. If in the upscale dinning places the service isn't the best you should only put 20% down.

Answer 2

This question has alot of variables. As a career server, I can say that there are a few reasons why your tips are based on the cost of your meal.

1. Most servers are paid far less than minimum wage because they are expected to make up the rest of thier wage in tips. The IRS expects you to make 15% of your total sales in tips. Not all places require you to claim tips based on sales, but at tax time the government gets pretty interested in this figure. The lower your sales are, the lower your income is.

2. If you worked at Wal-Mart, your pay would be less than if you worked at a fancy specialty boutique. The same goes for servers. If you work in a gourmet place, you are expected to know much more about the food and even ingredients than if you work at a place that slaps precooked food on a plate. For example, when was the last time you had an indepth conversation with your pizza delivery guy about the product he/she was bringing you. The less knowledge and training that is required, the less pay you earn.

3. At fancier dining places, servers usally have far less tables that they are responsible for. And people usually stay longer at these types of places. That means less sales for that server, and less tips.

4. And you are a far more generous tipper than most servers see. I work at a small cuban place where the average check is $8-$10 per person. I usually work 4-5 hour shifts. Some days I will only make $45. Others I will make $150. I wish that everyone tipped like you. Then I would always make $150 or more. (These figure work out to be 10%-30% of my sales, and I tend to do better than most of the people that I work with.)

So...tipping is higher at fine dining establishments for many reasons. I hope this helps!

Answer 3

most waiters and waitress dont make much in wages but they should find another job if possible, i dont feel it is the customers place to buy dinner and pay the help too

Answer 4

What justifies it is that it's an upscale restaurant. It's the same in almost any field. If you go to let's say Supercuts  and spend $20 for a haircut the tip wouldn't be the same as if you went to Mario Tricoci and spent $75. If you work in a more upscale area you would probably make more than if you worked in a not so nice area. It's the same in a restaurant there is a difference between working at Chili's or working at Gibson's and whatever restaurant you go to if you get a good waiter or waitress make sure you tip good it's a hard job and most of them only make like $2 an hour.

Answer 5

I remember when I worked at Applebee's, I had to report 15% of my nightly income as tips before I turned in the cash to the safe, I believe it was for tax purposes?

Either way, if I made more than 15% that night, it was essentially pure cash payment, but if I made less than 15% (rare but it happens with big parties who are jerks) in a night I would take the hit.

Answer 6

most of the time a waiter has to split tips with other staff especially in hotels as i had to that but customers think we get keeping them but it's not always the case

Answer 7

you only stayed 1 hour?most stay on average 1.5 to 2 hours

you would never reserve a table for 6pm and 7pm,you would leave 2 hour gap.that said a server probably turns his tables 3 times in the nite,most would use 4 or 5 table sections.So,that would be 12 to 15 tables in a nite,if table average 100 that would be 1200 to 1500 a nite,at 20% thats 240 to 300 in tips,they would probably tip the kitchen 2%,the bussers and hosteesses 1% to 2%,and the bar 1% to 2%.

some restayrants make the servers tip the floor managers as well,to tip out 5% or more is NOT uncomman.that would be $60 to $75 ,so you see their take home is alot less.tipping is tied to price because if you can afford a $100 meal you can afford a 15 to $20 tip,if all you can afford is $20 meal then $4 is alot.it's all relative.

Answer 8

Hourly pay for most wait staff is very low, so they rely mostly on tips.  You could have tipped him less, and with a clear conscience.

Answer 9

As a former food server, I can honestly say no, there isn't any justification to why the average server pockets $20 per hour cash.  Of course, you are NOT the average tipper at 25%; in fact, you are our biggest dream.  I tip 20% always, unless the service is just horrid, in which case I still tip 10%.  So, fancy restaurants don't really have any excuse as to why their servers are banking an average of $50 per hour, cash.  But hey, I want to give you a big THANKS from everyone who has ever waited on you...I gaurantee that most of your servers whisper about the huge tipper that you are.

Answer 10

This is interesting because any resturant that I have been that needed reservations already automatically takes a percentage and tags it onto the bill for a tip. Are you tipping an additional 25%?

Answer 11

If you ever befriend people who are in the industry, you will learn the hours are variable. 25% is an excellent, I normally do  not recommend tipping over 15-20% in the USA.

The place you went sounds like it is a top of the line restaurant. The average table does not spend $100. I would venture to say, it is closer to $20-$30 for several people. Then you factor in that is probably $6 for what is probably about 45 minutes worth of waiting. If the person works a horrible shift when they only have one table, then they are out of luck.

Believe me, it's one of those jobs that you are lucky to have a steady stream of customers. You could easily not make rent if you have a lousy shift.

On a side note, you do not tip bus boys - because they make minimum wage -  and you never tip the owner.