by Lindsay Page

Created on: June 30, 2009

How much should I tip? Take it from a veteran of the service industry: tipping is not as basic as a percentage calculation. I've heard from many people that "restaurant owners should pay employees more so customers don't need to leave a tip too". Others say that they "always leave at least 15%". I've even heard stories from fellow servers of patrons who tell the server when mistakes are being deducted from their tip. To better understand the art of tipping in a bar or restaurant, customers first need to understand a bit about the industry.

Many Americans view tipping from a short-sided perspective. They figure that if the service is good, they'll leave 15% of the check amount. They whip out their cell phone tip calculators or double the sales tax upon delivery of the tab and throw down the appropriate amount. Calculators are for math students. Here's some industry insider information for you:

-In most states, servers and bartenders are only making minimum wage, and as a tipped employee, that may be substantially less than the acutal minimum wage for the state. So, the person running to get you a sixth glass of iced tea, more napkins, a bit more dressing, and more crayons for your kids makes less money per hour than the high-school drop out that can't seem to put the right soda in your to go cup at the fast food drive through. And the fast food worker also gets benefits; servers rarely get any. Could restaurant owners pay us more and relieve the public from tipping altogether? Probably, but then you'd see a huge jump in menu and drink prices to compensate for the doubled or tripled labor costs. Tipping keeps operating costs lower.

-Consider others. Bartenders and servers don't get to serve anyone and everyone who walks into a place. Their workload is determined by which sections of the establishment they are scheduled to serve. If a server's section is full, they aren't getting any new customers. Take this into consideration when deciding what to tip. If a customer sits at a four-person table alone and proceeds to drink coffee for three hours, that server generally loses out on a large amount of money that he or she could have made from three tables of four. Also consider the amount of time they take to check on your drink levels and refill you as needed-time with you is time away from other tipping customers. The longer you stay, the more you should tip. No matter the cost.

-We all pay taxes. Servers and bartenders are not exempt from paying taxes on the $5 bill you left. That's obvious. What many patrons don't know is how that is tracked. A server is required to declare their tipped earnings at the end of his or her shift. The owner of the establishment pays taxes, too. The declared amount by the collective group of tipped employees over the course of a year must make up at least a certain percentage of the total year's sales or the owner is taxed on the remainder. So, if customers don't tip enough, servers don't declare enough, owners don't make enough, and operating costs go up. This means higher priced nights out for patrons. Tipping pays our taxes.

When deciding what to leave for a tip, the percentage calculations are a basic starting point and guideline. Tip more for running the server around, camping at a table for hours at a time, and be mindful of the fiscal system. Of course, tipping a server who can't seem to get anything right and doesn't seem to care is entirely optional.

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