What's the best way to tip out bartenders? (2024)

WorkforceBy Jonathan Deutsch, Ph.D. on Oct. 18, 2017
What's the best way to tip out bartenders? (1)

Question:

Is it appropriate to tip out bartenders based on total sales, including food, rather than only the drinks they make?

– Kristen, Server, White Dog Cafe, Philadelphia

Answer:

Equitable tip outs for bartenders and other colleagues is one of this column’s most frequently asked questions. It seems to be a universal sentiment among servers that tip outs are too high. Bartenders often feel differently.

This is one of the many areas where our industry lacks standardization. That lack of consistency can breed resentment as well as a feeling that surely the grass is greener elsewhere, contributing to turnover.

As long as we continue to use our illogical and somewhat dysfunctional tipping system, lack of standardization is inevitable. And to some extent, lots of variation makes perfect sense: A casual restaurant where servers are responsible for preparing soft drinks at a service station and only use the bar for alcohol orders would need a different tip-out system from a high-volume bar or club with bites, which would similarly be different from a fine-dining restaurant with a robust wine program. If they all used the same system, take-home pay would vary significantly.

To your question, the answer is, “Sure, why not?”

There seem to be three prevailing tip-out scenarios in place:

  1. Percentage of beverage sales.
  2. Percentage of total sales.
  3. Percentage of tips.

Each has its complainers:

  • Tipping on beverage sales is the most accurate reflection of the work a bartender puts in to supporting servers, but it assumes tips are consistent with sales.
  • Percentage of total sales can be tricky, especially where alcohol sales vary—for example, a slow lunch bartender at a busy place can fare surprisingly well.
  • Percentage of tips helps build consistency in what servers take home, but tends to breed suspicion about honesty since there is no hard record in place in cash-heavy environments.

I spoke with a number of managers about the systems they use, and, as predicted, numbers are all over:

  • “Servers tip 5% of [total] sales to the bar; bartenders tip 25% of that to support staff” (gastropub)
  • “5% of beverage sales” (casual-dining chain)
  • “10% of beverage sales” (independent casual dining)
  • 20% of cash tips (service bar)
  • 10% of tips (independent fine dining)

Morgan Dillon, general manager of Strangelove’s in Philadelphia, says she prefers a system where servers tip “20% [of tips] for a more bar-focused establishment and 10% tip out for more of a restaurant.” She explains, “I think when the hands of servers tip out bartenders [as opposed to a percentage-of-sales system], it creates a sense of unity and teamwork.”

More on bartender tip outs here.

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What's the best way to tip out bartenders? (2024)

FAQs

What's the best way to tip out bartenders? ›

Percentage-Based Tip Outs

What is the average bartender tip out? ›

An option is for servers to tip out supporting staff a specific percentage of their tips. This percentage is usually set by the manager and is non-negotiable. Typically, the bartender will receive 10% and another 25–30% will be split amongst the remaining staff.

How to calculate bar tip out? ›

You'll need to set your own tip out policies, but here's an example of how to calculate tip outs:
  1. Your servers tip out 5% of alcohol sales to bartenders and 2% of food sales to the host.
  2. A server sold $500 in alcohol and $1000 in food.
  3. The server received $300 in tips.
  4. Bar tip out = $25.
  5. Host tip out = $20.
Nov 11, 2022

What is the tip out structure? ›

Tipping out means that waitstaff and bartenders collect tips throughout their shifts, and before clocking off, distribute a percentage of their tips to hosts, bussers, runners, the kitchen staff and anyone else who helped them throughout the night without receiving tips.

Is it normal for servers to tip out bartenders? ›

Percentage of Sales Based Tip Outs

In this structure, individual servers would tip out a certain percentage of their sales to additional staff. The percentages must be determined at your establishment, but it might look like 2 percent to the host, 5 percent to the food runner, and 8-10 percent to the bartender.

How much should you tip out a bar back? ›

In many cases, each bartender will tip out the barback at the end of the shift, anywhere from 1-2% of sales or 5-20% of tips, according to Bars and Bartending .

What is the formula for tipping out tips? ›

To split servers' tips based on hours worked, add up the total amount of tips and then divide that figure by the total hours worked. Then, multiply THAT figure by the hours an individual server worked.

What is the standard server to bar tip out? ›

Tip Out Using Set Percentages

One of the more commonly used systems to apply is for the waiter to keep 70 percent, share 15 percent with the bussers, 10 percent with the runners, and 5 percent with the bar. Remember that this is only a general guideline—flexibility and transparency are key.

What is a standard tip out percentage? ›

A general rule of thumb is to expect overall tip outs of about 20-30%. It can be complicated, for sure, but your POS system can be your best ally. Once you have recommended guidelines or house percentages in place, it is easy to produce reports of each server's beverage and food sales as well as credit card tips.

How does getting tipped out work? ›

This practice usually involves servers giving a portion of their tips or sales to other employees who support them, like bussers, bartenders, and food runners. Unlike a tip split, tip-out isn't an even split. Usually, it's a predetermined percentage or amount based on sales or tips received.

What are tipped out ends? ›

A tip out is when you color the mid-ends of the hair.

What is the tip in tip out maneuver? ›

Tip-In is positive throttle movement from a Closed Throttle position. Tip-Out is negative throttle movement from some Part Throttle condition down to Closed Throttle or near Closed Throttle.

What percentage should servers tip out? ›

Tip Out Using Set Percentages

One of the more commonly used systems to apply is for the waiter to keep 70 percent, share 15 percent with the bussers, 10 percent with the runners, and 5 percent with the bar.

Do you tip bartender after every drink? ›

If you're paying in cash, make sure to leave a tip for every drink. A good rule to follow is about $1 a drink. In nicer bars, leave $2 per drink.

Are bartenders supposed to split tips? ›

Each of the supporting service roles is assigned a percentage of the total tips. Usually, the percentage split would be 10% to the bartender and another 25-30% shared among the remaining employees.

How much should a bartender claim in tips? ›

The Internal Revenue Code requires employees to report (all cash tips received except for the tips from any month that do not total at least $20) to their employer in a written statement.

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