Food & Bar
Restaurant Tip-Out
Distribute tips from a server's total sales to the people who supported them. Percentages of sales (not tips) is the industry-standard approach.
FAQ
Why tip out on sales not tips? +
It's fair to support staff regardless of how generous tippers were that shift. Bad tippers shouldn't hurt the busser's income.
Legal requirements? +
FLSA + state laws regulate tip pools. Generally tip pools cannot include managers/owners. Some states require written tip-pool agreements.
Industry norms? +
Total tip-out is typically 4-8% of sales. Above 10% is unusual. Bartender tip-out: 10-20% of bar sales. Bussers: 1-3% of food sales.