[QUOTE=Frylock]
I’ve never heard of a “tip-out.” I’ve worked in food service, though not much. I’ve had a few friends who worked in food service, and they never mentioned it.
I don’t quite understand, from your post, what a “tip-out” is supposed to be exactly. What happens to it? Where does the money go?
I can’t believe a “tip-out,” even if it exists, is exacted against take-out orders as well as dine-in orders, since it is standard for people not to tip on take-out orders.
The idea that a server has to pay for a “tip-out” out of her own pocket if none is provided by the guest strikes me as illegal. I’m not a lawyer. But still… Yet you seem to see this practice as matter-of-course.
[/QUOTE]
Tip-outs, though legally they can’t be mandated/enforced by the restaurant in California, are a regularly expected part of many restaurants. In my restaurant, servers are expected to tip 10% of gross tips to the bussers, 10% to expediters, and 10% of our alcohol sales to the bar. Food sales do not factor in for us, but they do for the bartenders (who actually take most of the carry-out orders, since the bar at our restaurant is right at the front. I think they are expected to give 2% of their food sales to the bussers and/or expediters) It would be interesting to find out if they count their carry-out sales when they tip-out.
Personally as a server, I don’t like taking carry-out orders (I only have to very occasionally) because it still counts towards my total sales (there is no distinction between carry-out and eat-in on the server report), and since I’m a tipped employee the IRS automatically expects me to report at least 10% of my sales as tip income to be taxed. Usually I make a lot better than 10% of course, but after tipping out to everyone sometimes I don’t, and it doesn’t help to have $100 in take out sales on my server report that I didn’t get tipped anything on. (which means I still have to report $10, and get taxed 20% on that, thus losing $2 overall)
