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Gratuity-based jobs take hit in bad economy


Tipping2-0731-Gen
By Mark Busch
Urban Grille server John Biggers cleans up a table the afternoon of July 24 at the restaurant. Biggers said good customer service is very important if you want to receive a decent tip in these tough economic times.
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By Erin Sauder, esauder@mysuburbanlife.com
Geneva Republican

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Geneva, IL -

John Biggers has noticed that when it comes to tips, really good ones seem to be fewer and far between.

“I’ve noticed I seem to have to hustle more for the same amount of tips I used to get,” said Biggers, who works at Urban Grille, 524 W. State St., Geneva.

It is a trend he has been noticing more and more during the current economic slowdown.

Workers who rely on tips are especially susceptible, since their weekly bread and butter depends on the generosity of others.

Biggers has noticed people are spending less when they eat out, which also decreases his tips.

In an attempt to save money, many people will forgo soda or iced tea and opt for water instead, said Jeanette DiPasquantonio, owner of Urban Grille.

“Or people will split meals or omit dessert,” she said.

However, Urban Grille server Cheryl Puccini hasn’t noticed a change in her tips.

“The customers are good here,” she said.

David Craver, president of the National Bartenders Association, which represents both servers and bartenders, said penny-pinching trends have been a “double whammy” for members of the association, who have seen a decrease in clientele and gratuity percentage.

“We’re seeing about a 20- to 25-percent slowdown of people coming in the door,” Craver said, sharing data from member surveys.

According to Kim McLynn, spokesperson for the consumer-tracking agency NPD Group, the federal economic stimulus checks will be a shot in the arm for the restaurant industry. However, the outlook was less optimistic in a consumer-sentiment survey by food-service consultancy Technomics Inc.

Asked how they planned to use their government checks, a meager 9 percent of 1,500 respondents said they would “eat at a nice restaurant,” and only 3 percent said they would “eat out more often.”

“(Restaurant) traffic across the board — regardless of what segment you look at — is down,” said Technomics President Ron Paul. “Casual dining has been hit the hardest — your Applebees, your Ruby Tuesdays.”

Although restaurant-industry performance improved in May, as measured by the National Restaurant Association’s comprehensive index, confidence is shaky. The Expectations Index, which measures restaurant operators’ six-month outlook, hit its lowest level on record in May.

“While the restaurant industry is absolutely feeling the economic squeeze right now, it is still moving forward at a solid pace — both when it comes to sales and job creation,” said Annika Stensson of the National Restaurant Association. “We expect to see sales reaching $558 billion this year, and our industry is one of few that keeps adding jobs despite rising overall unemployment rates.”

While the economic forecast remains dreary, servers in Illinois got some help last week in the form of a 25-cent minimum-wage increase, which was applied to the base pay of service workers.

The word TIP is considered by many to be an acronym: “To Insure Promptness” or “To Insure Prompt” service.
• Restaurant servers pay taxes on 8 to 10 percent of their total receipts, not the actual amount of tips they earn. If you don’t tip them, they lose money because they are paying taxes based on the amount of your meal.
• There is some debate about tipping on wine. You should tip because sommeliers are tipped out a percentage of the evening’s gratuities.
• Tipping the host upon entering a restaurant in order to get seated quicker or be placed at a better table is more akin to a bribe than a tip.
• When tipping a cab driver, a 15 percent tip is considered standard, except in New York, where 20 percent is standard.

RECOMMENDED RATES
CABS 15 percent of fare; no less than 25 cents

TATTOO ARTISTS Referrals, praise and repeat business are often better than a tip, but $10 to $15 is the minimum for a $150 tattoo

CHAMBERMAID $5 a night minimum, more if long stay; consider $7 to $9 a night

ROOM-SERVICE WAITER 15 percent of bill

BELLHOP $10 for bringing you and your luggage to your room; $5 for opening and showing the room

LOBBY ATTENDANT None for opening door or calling taxi from stand; $1 or more for luggage help or finding a taxi on the street

DESK CLERK None unless special service is given during long stay; then, $5

CONCIERGE $5 to 10 average. More for special services or favors

HAIR STYLIST 15 percent of the cost, generally a minimum of $1; if you do not get your hair cut often, then $5 is suggested

MANICURIST $1 or more, depending on cost

PIZZA DELIVERY $1 to $2 if short distance, $2 to $3 for longer distance, $5 or more for large order

FLOWERS $2 to $5 for flowers, $5 to $10 if it is a large plant or for heavy or large deliveries

POKER DEALERS $5 per session, win or lose; winners should tip at least $10, but 10 percent or more is not uncommon

Source www.tipping.org

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