Tipping has been a major part of server income seemingly forever. But recently people are wondering if that’s the best way to compensate front of house employees. Is tipping on the way to becoming extinct?
Tipping allows restaurant owners to pay a lower wage to servers, keeping down their employment costs. If tipping is eliminated, pay will have to be raised to at least minimum wage.
Working in restaurant recruitment for more than 15 years, we have seen many servers like being paid in tips and are attracted to the hospitality industry because of the income potential. Particularly for those working in upscale restaurants, it’s possible to earn hundreds of dollars for a part-time shift, making it an attractive option for students, artists or parents looking for extra income.
Servers are able to exert some control over their own income, by providing excellent service and by upselling to check totals. They are willing to pay their dues at lower cost restaurants to gain the skills they need to work in fine dining where prices and tips are higher.
In the best case scenario, tipping rewards the hardest working, most attentive servers; however that’s not always the case. There are diners who simply don’t tip well regardless of the service level. Problems occur that are outside the control of the server, but they still get blamed for them. If the expeditor misses an order or the chef prepares a dish incorrectly, it affects diner experience, and they may reduce or skip the tip even though it’s not the servers fault.
Would it be more fair if tipping was eliminated?
Many factors will need to change to successfully do away with tipping.
- Base pay will have to increase
- Restaurant prices will need to rise
- Diners will need to get on board
The downside?
Unless all restaurants turn off the tipping option at once, if you choose to eliminate tipping, you could lose your best performers – those who think they can earn more with tips.
For more discussion on issues that affect the hospitality industry, contact Horizon Hospitality, a leading restaurant recruiter. We offer industry insights and help hotels, restaurants and resorts to attract top hospitality talent. Contact us today to learn more or begin your search.
