The Great Debate

GRATUITY. Who, what, when, where…why?

In the hospitality industry tipping has long been part of the economics of how employees are paid. The range of the 5 W’s is vast and at times controversial. In less progressive environments, basically the server “tip shares” on an honour system, essentially they decide what to tip out based on a feeling. The problem with this is, people are generally greedy, and don’t share willingly. This creates animosity with other members of the team that are paid similarily on an hourly basis, but receive no compensation beyond this. In the middle is a scenario were a percentage of tips are paid out on the gross amount of tips collected. For example the server collected $100 in an evening and tips out 5% to the BOH, amounting to $5. The problem with this again is relying on honesty, and a number of other factors. A better idea, which has been around for some time is a percentage paid on sales. For example 3% of gross food and beverage sales daily. $2,000 in sales would be a tip out of $60. A little better, no? There are also many things that can make this scenario problematic as well. If you would like more information on a superior, performance based system I personally use, feel free to contact me.

Click the image for a wiki definition of gratuities!