September 28, 2006
Inside the House: Where Does My Money Go?
Inside the House is a DCist feature offering an insider's view of fine dining issues by the hostess at a D.C. restaurant. Her views are strictly her own and do not in any way represent those of her employer.
Let’s be honest. Who hasn’t thought, every once in a while, “Gee, these waiter dudes have it easy. No matter what they do, their 20 percent is as good as in the bank as long as they don’t screw up too badly.” Even if nothing goes wrong, you may feel inclined to hold back if you think that giving a fifth of your bill to the waiter is just plain excessive.
What you may not suspect is that a princely chunk of change you add on the “tip” line doesn’t go straight into your server’s pockets. Like any good performer, a server relies on a crew of support staff to deliver seamless service.
How does the crew get paid? By the server, who has to "tip out," or pay them a percentage of the total tips for the night, which – you guessed it – leaves a lot less for him or her. And who makes up the crew? All the nameless people you see darting around the dining room who sometimes have seemingly no contact with your table. Different restaurants have wildly different rules for tipping out, but here’s an example.
Bussers
Notice these quiet guys who silently step to the table to refill your bread and water? They are your server’s life support system – if they weren’t around to clean and reset tables, remove your dirty plates and keep your water glass full, it would have taken you ages to get your server’s attention. Because then servers would have had to do it themselves, leaving them with less time to attend to your needs. For that vital service, waiters typically pay bussers around 10% of their total tips for the night.
Runners
Chances are, if you see someone who can move through the crowd with rare efficiency without elbowing others out of the way, that person has done serious time running food. Runners are a critical link between the kitchen and the dining room – they rush food from the kitchen and set it up on trays near your table. From there, your server will pick it up and set it in front of you. Without good runners, your food would languish under the heating lamp, growing a crust or wilting, and your server would have less time left for you after these endless hikes to the kitchen. The runner's cut is also around 10% of the total tips for the night, paid by every server.
Bartenders
Drinking wine by the glass or cocktails with your dinner? Most likely, your server will have to trek to the bar ask the bartender to fix your drinks before fetching them to the table. What’s their cut for lending a hand? Around 5% of the total tips for the night.
Polishers
No dishwasher in the world is quick or powerful enough to turn over massive volumes of glassware and silverware that a fine dining restaurant needs to keep going on a typical night. And no restaurant wants to run out of salad forks in the middle of service. For that reason, there is usually a person in the back of the kitchen charged with picking up freshly washed, still-dripping glasses, knives and forks, and hand-polishing them till they are ready to use. Servers pay polishers a set amount per night anywhere between $5-$10. You don’t want to wait for your knife longer than a second, do you? Or leave your dirty fork camping on a table next to you waiting for the next course?
In addition to these fairly constant elements, some restaurants make servers share tips with hosts, sommeliers and other assorted characters of the fine dining theater. So in reality, your tips put food in more than one mouth, and your generosity (or lack thereof) affects many more folks than just your server. By the time everyone is paid, the server is left with much less than 20%. And that’s before the taxman takes his cut – but that story deserves its own column.
Photo of tip jar at Beecher's Handmade Cheese in Seattle, Wa. by Michael Mugmon and used with his permission.
|
Well you learn something new every day. Tipping out, polishers and runners are all new to me.
And sometimes people forget (or don't know) that servers (unlike barristas and other minimum wage employees) only make $2 an hour, so tips are usually vital to their income, not just some extra cash in their pocket.
In fact, many times after paying taxes each week on the tips I claimed, my paycheck would actually say "void" in the cash line, so tips were the only income I'd take home.
1. What does this have to do with DC?
2. Duh!
A lot depends where you work. I was a waiter for many years, and we did not have any of that support staff, plus we had vacuuming and sidework.
It seems that years ago there weren't all these specific people in restaurants. However I can't compare because I moved from one geographic and socioeconomic area to an entirely different one.
I still think it's a fairly easy job, and it's shameful how bad some people are at it, even with all the support. It's all about managing time, and anticipating your customers needs- good skills for any job.
Frankly, I think it's all bogus. The tip should go exclusively to the waiter. If the waiter feels like it, she/he can tip out.
Reataurants really get a steal on this. They should simply pay the bussers, the polishers, the runners more money. I mean, it's like the entire restaurant industry is running on the black market. The waiters get paid nothing and everyone else gets minimum wage (or less in the more unscrupulous establishments)--and the entire labor operation is incumbent on people tipping--which they really dont have to do. (And often they don't leave 20%).
Conversely, if anybody on the food chain screws up (cold food, dirty glasses, sloppy drinks), this should come out of the tip accordingly.
I nominate tipping as the new unresolvable mac-vs-pc debate of the 21st Century. You will always have cheapies who think that Bible tracts are an appropriate tip, as well as servers who think they should get an automatic 20% just for showing up. The topic has been done to death on Chowhound.com and Plastic.com.
Consensus: if you don't like living on other people's largess (or the lack thereof), look for gainful employment elsewhere. And if you can't tip appropriately, eat at home until you can.
If you want to wait tables and make some decent scratch, move to California. Resturants are required by law to pay waiters minimum wage.
It depends on the laws of the state. In California, for instance, there is no separate wage for servers. They are paid at the same minimum wage (or more) that every other hourly employee gets. I think that's one reason you get better service, you can actually make a career of being a waiter. Or at least make a living.
Frankly, I think it's all bogus. The tip should go exclusively to the waiter. If the waiter feels like it, she/he can tip out.
I used to be a hostess at a national chain of family restaurants. We got *slightly* more than the servers (maybe a dollar?) and got a portion of their tips. Worst-paying job EVER. Even on a crazy Friday or Saturday night, I made around $6 per hour. I only stayed because it was a spare job (I was juggling three) and I loved my coworkers.
There are a lot of people that rely on your tips. What you think should happen doesn't really matter. What matters is that the waiter usually has no choice and everyone relies on your tips.
.com/news
/washington/
2006-08-02
-minimum-wage_
x.htm?csp=34" > Seven states right now allow workers to keep their tips on top of getting paid the state's minimum wage: Nevada, California, Washington, Montana, Alaska, Minnesota and Oregon.
One quick question. Who are all the people that are holding guns to the heads of restaurant employees forcing them to work where they do? If the pay is bad, go elsewhere, get another skill, or get better education.
Something is only worth what someone will pay for it.
"One quick question. Who are all the people that are holding guns to the heads of restaurant employees forcing them to work where they do? If the pay is bad, go elsewhere, get another skill, or get better education.
Something is only worth what someone will pay for it."
Man, you are some kind of ignorant fuck.
One other thing to remember - servers pay taxes on the total amount of food they sold that night. When I was waiting tables about 5 years ago, it was 8%. So if you don't tip or tip under that amount, you're actually taking money out of their pockets.
Frankly, I think everyone should have to work in a restaurant or retail at some point in their life. You can totally tell in this society who hasn't. (Usually the people who make comments such as "who is holding a gun to their head to work there".)
"Something is only worth what someone will pay for it."
Money rarely captures the entire "worth" of anything.
Great column, thanks for the great insider information. I had heard about "tipping out" but had no idea the magnitude that was involved. Seems like waiting tables is a field for the risk-prone--big potential upsides and yet big potential downsides. I worked fast food because I was a chicken. At least then, I figured, I would be able to budget based on how many hours I was going to work. My sister was a waitress and always seemed to be going through boom and bust cycles.
One tipping nuance question though, I always thought you should leave 18-20% on the total bill...what is the argument behind only tipping on the pre-tax bill or not tipping a full amount on wine? I have never understood that.
The tipping situation probably varies restaurant to restaurant. I used to work at a very high class place -- 5 star, 5 diamond, etc -- at one point they had a system where all tips were pooled by waiters, bussers, runners and bartenders, and your pay was figured by a formula that included 1) the # of shifts you worked, 2) the point value of those shifts (dinners bringing in higher tips were worth more than breakfasts), and 3) your personal point value, which was a way to reward seniority, position (waiters got more than bussers) and skill, etc (typically new hires would be the lowest). Everyone got the same base hourly wage below the minimum wage. Oh, and cash tips were divied up and handed out in cash at the end of the week, but credit card tips went into your paycheck, meaning you couldn't skirt the IRS and not declare all your tips!
This system had to be scrapped because the big earners...the dinner waiters...all threatened to quit...in essence, they were subusidizing the low tip earners like the breakfast staff (who were generally either new hires or people not qualified to work a dinner shift)
The new system in place left bartenders and waiters still earning below the minimum wage, but bussers were bumped up to about $1 over, all breakfast staff were bumped up to about $2-$3 over (breakfast really is the worst shift in the world), and food runners got close to $10 an hour (but they also didn't have to come in early to do any prep work and got to leave as soon as the last dinner was server...no clean up).
As for tip allocation: bussers got 15-20%, based on performance (bussers also did a ton of prep work, all polishing, cleaning tables, changing linens, and coffee orders), bartenders got 5% of the alcohol sales (which could be significant with a high-priced bottle of wine), and the runner, along with his $10 an hour, got 50 cents for each reservation.
I think everyone should work in the restaurant industry for at least 6 months. That would totally change thier views and attitudes when they eat out at a restaurant.
han and S,
I've worked both as a server and in retail. I quit both quickly as they paid too little for the effort involved. It is a ton of work. But seriously, no one held a gun to my head and I quit. If people are so unhappy with the money they make as a server, why not try something else? Something tells me they do ok otherwise they would quit. Why work a job that underpays (financially) if something better if possible.
And han, you didn't answer my question. I know it may seem obvious to you, but please indulge me and answer my questions. Keep in mind, I've worked the job.
Answer your questions? You didn't ask any, you just made a snotty observation that happened to have a question mark at the end. There are lots of reasons that people take, and then stick with, jobs that aren't entirely ideal in terms of compensation or any number of other characteristics. When waitstaff try to inform people about how they are paid, so that the customers who have an inordinate degree of discretionary power over waiters' earnings are actually conscious of the effects they're having, that's not whining and complaining about the low pay. It's attempting to illuminate the situation so that the pay doesn't go even lower.
Uh,you "quit quickly" after working in retail and restaurants ... and then what?
Did you sleep on the street for a while, or go to shelters?
Did you only eat at soup kitchens, or did you go on welfare?
Don't assume your circumstances are shared by all.
Nate,
That seems hardly worth sticking at such a job. I just don't get it, obviously.
Where I worked previously we didn't give money out to the entire staff. They were paid separately. Honestly, I didn't even know that happened. Serious question: If a runner provides poor service, is it ok to drop a 20% tip to 18% (10% less reflecting his portion)? Seems like you then punish everyone for one persons mistakes. How do I reflect my disappointment with part of the service experience without punishing them all?
Serious question that will sound snotty: when did I, as the customer, sign up to have any "discretionary power over waiters' earnings"?
The thing is, a lot of servers and bartenders get compensated in non-financial ways. Namely they aren't stuck in a 9 to 5 job. They have more flexibility to do other things during the day. Plus, a lot of them just like the job/lifestyle. I would imagine that a large percentage would keep their current jobs over a desk job that paid slightly more per hour (as many temp jobs do).
To this day, my favorite job I ever had was in a restaurant.
Hmm, I always thought that the compensation was fantastic. As a full-time waiter/bartender right out of college, I was making tons more money than my friends in their entry-level jobs. Plus, I had days free. Things such as insurance benefits, retirement, etc. meant little to me at that stage of the game. Then again, I had fewer financial obligations.
After I got a day job, I continued to work part time because my starting salary didn't take me very far in DC, lo those many years ago. I bartended three nights a week easily pulled in an extra $2000.00 a month. I grew to hate the hours and the bullshit, bit I was ADDICTED to the cash. It was a lot of money and instant gratification. It took years before I could wean myself off of it and finally quit.
It's a tough job. I respect anyone who can do it as a career.
Jim,
I finished my degree, moved to DC and now work for a consulting firm making pretty good money. Sure, not everyone can do that, but there are tons of jobs out there. If the money is so bad, why not work as a janitor, a retail clerk, a garbage man, a security guard, landscaper, etc, etc.
I think Reid is right. There's a lot more to the line of work than money that makes it worthwhile. How many people are a waiter with absolutely no other options for work?
I don't agree that it should be allowable for any employer, restaurants included, to bypass minimum wage laws by additional income, particularly when it is entirely at the discretion of customers who may or may not be 'educated' on the tipping policy of any particular restaurant. Why in the hell would I, as a customer, want the responsibility of determining a person's "worth" on any given night? And I certainly do not want to take the time and effort to calculate what that should be. Tipping should be entirely optional and given to staff for exceptional or above-average service, and the staff should be paid as the market bears, which will vary depending on the quality of the restaurant and thus the necessary skills of the employees.
"Serious question that will sound snotty: when did I, as the customer, sign up to have any "discretionary power over waiters' earnings"?"
Serious answer that will sound snotty: the moment you decided to step into a nice, sit-down restaurant instead of a McDonald's or your own kitchen.
And while I'm happy that you were able to get a good job with a consulting firm, DL, that's not the reality for most people. Most people just can't quit their job, and hope they have a new one in time to pay the rent.
No, Robis. I enter a restaurant for food. I am glad to pay for the food, but I don't want to determine a waiter's worth. I would be fine if restaurants just worked the cost of paying their wait staff a livable wage into the price of a meal. We aren't expected to tip most service industry employees. Their cost is factored into the price we pay. Go into a retail store and someone will assist you. You don't tip them.
Granted, not everyone can be a consultant, but I named many other jobs anyone can do. There are always tons of "for hire" signs up at any time. If you are making enough to live on as a waiter, and you don't want to do another job, then quit complaining about tip ettiquette and such. You must be making decent enough money or you wouldn't do it.
So, waiters, I guess now you know. You need to all get different jobs.
Actually, this is highly revelatory. The economics involved here more or less prove that it is the practice of tipping that allows the concept of "waitstaff" to even exist. I guess if everyone just stops tipping, we get wish fulfillment for Team Cheapie: former waiters become ensconced in new employment, and a new ladle and chafing tray regime takes root from Cafe Citron to Shoneys. Retail cuisine becomes a determinist utopia at last.
Jason,
No one makes as much money as they think they should. You either accept what you get or you do something about it. But it's tiresome to hear this whole tipping thing all the time. If you don't like your pay, feel free to go elsewhere. You are not forced to be a waiter and I'm not forced to pay you because you chose waiting tables as your job. You choose to be a waiter. By staying in your job, whatever it is, you are saying that you accept the conditions of your employment. We aren't talking about sweatshops here.
In London you don't tip waiters. On my travels there I've experienced good service and bad service. Same here. Tipping isn't the only way to do things.
But what you are arguing isn't even an argument. It's just zero-sum non-thought masquerading as insight.
Of course, waiting tables isn't a sweatshop. Because we tip. And we thus prevent our restaurants from becoming cafeterias.
Clearly, "all of you waiters should get another job" isn't actionable or practical. You cannot seriously be proposing that the world would be better if all restaurants, devoid of the waiters who followed your advice, were either self-serve or tended to by persons who are presumably so odious on their face to not be worthy of tips.
And I'd just as soon not import the added expense and concomitant awful service from Europe, thank you very much. If you don't like tipping, just say so--there's no need to couch it in the gibberish of this non-argument.
Here's some truth: I meet precious few people who are of the sort of character that makes me think, "Now, here's a person I would gladly bring food to, if asked!" I certainly don't count myself as a member of this rarefied class! So when I tip a waiter, I'm copping to the fact that I know I'm not instrinsically special enough to warrant the special favor of having food brought to my table.
As far as I'm concerned, I see a lot of people who aren't at all worthy of any special attention walk into restaurants every night and nevertheless receive treatment that surpasses the basic human interaction they're entitled to. When you tip, it's at least symbolic of this honest admission.
Discussions about tipping inevitably lead me to the same conclusion: Everyone is entitled to their own opinion. Pity, then, that the only opinions anyone has pertain to their own entitlement.
Jason,
When did I say ALL waiters should get another job?? Come on, talk about "masquerading as insight"! You can't even read. My point is that waiters who are unhappy with their jobs (in this case not enough tip money) can go get another job. That wouldn't be everyone. My guess is that most waiters are happy with their jobs, though they want more money like we all do.
This is just ridiculous:
"Here's some truth: I meet precious few people who are of the sort of character that makes me think, "Now, here's a person I would gladly bring food to, if asked!" I certainly don't count myself as a member of this rarefied class! So when I tip a waiter, I'm copping to the fact that I know I'm not instrinsically special enough to warrant the special favor of having food brought to my table."
Let's use the example of a shoe salesperson. If you go into some low-end shoe store, the people who work there are often rude and unhelpful. However, you go into a high-end department store and the shoe salesman is fantastic and knowledgeable. I'll never forget being in a high-end store and buying a pair or dress shoes. The guy who helped me told me about how he is a career shoe seller. He has worked his way up to this store and he makes good money. He hoped to one day to make it to NYC. I didn't tip him, nor was it expected of me. But the guy was all over my feet and extremely helpful. Why? If there's no tip, what was his motivation?
Waiters, in my opinion, should stop complaining about tippers and instead focus their attention on the restaurant owners and legislators. They should be paid like everyone else. If you are a good waiter, you'll get a high hourly wage. If not, you won't.
If you choose to work in an industry that deals solely with the public, well, you get what you get.
For the record, I always start a meal assuming a 20% tip to the waiter. It can go up with exceptional service, or it can go down (quickly) with poor service.
dl is on the money. People aren't arguing that waiters shouldn't be paid and should only serve people out of the gratitude of their heart. They should serve because they are paid to do so, and how much they are paid should be up to the restaurant owner not the customers. As dl said stores and restaurants that care about service will pay more for polite, helpful workers and those that don't, won't. Look at In-N-Out in California, they pay ~50% more than other fast food restaurants and it shows, the workers are much quicker and friendlier and as a result In-N-Out has a cult-like following. Restaurants can do the same thing with waiters and then patrons wouldn't have to deal with all of the crap of tipping.
I worked for a few years at a top UK restaurant and the tips were divided equally between all staff on duty (waiting staff, all kitchen staff and management). Simple and keeps everyone in the chain on their toes.
Pound-per-pound, the waiters in the US make their tips far more easily (mediocre service, but still get your 20%) than in semi-tipping places like the UK where you need to *actually give good service* for your tips.
Feh. The only difference between a high-end shoe store and a low-end one is the "kiss your behind" markup. Figures you wouldn't notice.
Reality is, whatever you think of the service under the regime of restaurant tipping, it will sink by several orders of magnitude once the worst waiter in the room is getting paid the same as the best. 'Tis called "French Waiter Syndrome." Nooooooo thanks.
"Figures you wouldn't notice."
Figures you'd be a fucking jackass too. Here's the point that you keep missing. By definition, there will always be a "worst waiter in the room." The idea is to decrease the gap between the worst and the best by paying higher salaries and letting go those who underperform. It works in every other line of business, why not restaurants? For example, Sommer clearly should let you go from the DCist staff. Fortunately you aren't being paid anything.
"The only difference between a high-end shoe store and a low-end one is the "kiss your behind" markup."
This is just plain wrong. Shoes all fit differently. Ever bought a pair of running shoes? Did you get them from DSW or Pacers? The employees at Pacers can help you find the best shoe for your foot and exercise habits. At DSW you are lucky if someone is awake to help you. The same can be said for a waiter helping you match a wine to your meal.
Faulty reasoning and a snotty attitude from a DCist writer? Nooooooo thanks.
The best waiters in the room don't need a wage increase from their employer. They get it through their work. Point of fact: they would stand to lose a lot of money if you took away the practice of tipping and paid them a wage. Sure, you could set a higher wage level for your best people, but the history of restauranteuring teaches us that owners are LOATHE to part with money that could be in their pocket (and who can blame them? We're talking about businesses that have a high-invest, low-success rate).
So, on the whole, using a fixed wage--essentially an artificial restraint on the free market forces within a restaurant--would mean LESS money for waiters rather than more. At that point, rather than get paid less for, I suppose, the noble glory of waiting tables, the best waiters--the ones earning a living, the ones who patrons request at the door--leave the job, thus downgrading the service across the board.
What you are left with are the same servers, cut from the same cloth from those shoe stores you assiduously avoid, who do just enough to get by and earn their ten bucks an hour.
Anyway, what's the point of arguing? The system works. The practice of tipping is not going away in our lifetime, so there's no need on my part to argue on behalf on something I'll enjoy to my dying day. Cheap does what it does, the big tippers enjoy better service, and if I really need a lecture from an emotional cripple, I'll become a Scientologist.
Oh, and by the way...when a restaurant owner has to use his pocket money as an employee incentive for superior service, guess where the cost gets passed to? Uhm, duh. I shouldn't even need to answer that. So, changing the system from tips to no tips results in (read this slowly!)--no benefit to the consumer.
Jason,
Guess where the money comes from? No shit Sherlock! It would come from the consumer (not the restaurant owner). It woulod result in higher prices. But doesn't it already come from the consumer? Tips vs. higher price of my steak? Why do shoes cost more at Pacers than DSW? Why are consumers willing to pay it?
An emotional cripple? I guess we see where your argument comes from... certainly not reason or economics.
"So, on the whole, using a fixed wage--essentially an artificial restraint on the free market forces within a restaurant--would mean LESS money for waiters rather than more."
You need to elaborate on this. Why would it mean less money? And just how do "free market forces" work in every other service industry??? You imply they don't. Care to provide an economic explanation?
I submit that there would be two benefits to the consumer... better service and reduced hassle about tips. If tipping worked so well, it would be in place in every other service industry (lower prices to consumers, right? right?) and people would stop bitching about low tips. If it worked so well, why are people fussing about cheap tippers?
Seriously, Jason. Form an argument, not an opinion. And I swear to God, if you ever were such a smart ass to me in person, I'd put a stop to it very quickly.
(Yeah. I doubt it.)
I haven't even registered an OPINION yet. In my opinion, tipping works out very well for the consumer. Of course, I only have my own record of dealings with restaurants to work from. Nevertheless, in my opinion, it's nice to walk into an establishment, get seated, and immediately get brought a glass of your favorite beer without asking. It's nice to get the odd round of drinks or a dessert for the wife served gratis because I've cultivated a relationship with a waiter or restaurant. In my opinion, it's awfully sweet when the owner drops by your table or offers you something off the menu--just 'cause--something that made my last trip to the Alpine in Arlington that much more special. And, if you want to think small, it's nice to walk into Tryst and get your to-go coffee free every fourth time because they know you're a generous tipper. In my opinion, there's nothing like getting in and out the door quickly.
All of the above advantages come from developing a history of cordial relations with waitstaff, and being known as a generous tipper. It's the difference between having the host shout your name when your table is ready and having them come and get you. It's the difference between telling the waiter that you've got a show to catch and are in a rush, and having them actually give a crap. And, I'd be willing to bet it's the difference between my almost never having a bad time out at dinner and the litany of complaint so often lodged on these boards.
What can I say? I see the gratuity as an opportunity for investment, and the proof of my claims can be measured in the dividend. But then, that's just my opinion. And a system that removes that opportunity, leads the quality waitstaff to ply a different trade, downgrades the level of service into French Waiter Syndrome, and otherwise makes my dining out more ordinary instead of less special is something I can live without. As things are, the practice of tipping is well-entrenched, and I pretty much could not be happier about it.
[now, I'm done harshing everyone else's mellow. You want to follow up, you'll have to use imadcver[at]yahoo(dot)com.]
"If tipping worked so well, it would be in place in every other service industry (lower prices to consumers, right? right?)"
If those other industries were magically exempt from minimum wage, then perhaps.
Sometimes tipping DOES incentivize better service in other businesses. The second-to-last time I bought a camera, I (stupidly) walked into the Best Buy out at Pentagon City. I quickly found the camera I wanted, but the thing was under glass, with no way of getting it out. I flagged down no less than four people to ask to have the camera, only to be told that they didn't have the key, they'd find somebody, blah blah blah.
It wasn't until I took a buck out of my wallet and started shouting, "I WILL GIVE A CRISP ONE DOLLAR BILL TO WHOEVER WANTS TO OPEN THIS CASE AND GIVE ME THIS CAMERA! ANYONE AT ALL! IF ANY OF YOU CUSTOMERS WANT IN ON THIS ACTION, JUST LET ME KNOW!" that I got the camera. And, the manager who helped me lacked the temerity to take the dollar I offered him, so, bonus.
I'm not sure if that's a great anecdote for tipping. It's far more likely that the manager wanted to quiet the man who was yelling in his store. If you had yelled sans dollar bill and not gotten a response, then you might have a better example.