04-03-2012, 06:13 AM
frankie, yes the min wage is super low and the waiters' high income is due solely to tips.
Think about how easy it is to make money if you have a 5 table station. One table has a $50 check and leaves you an $8 tip for an hour of service. If each table left that amount you would have $40 per hour. Work a 5 hour shift where you turn your tables over 4 times and you have made 5*4*8=$160 in tips for 5 hours. Add in the measly base pay and it adds in another $10 or so.
Don't forget to tip-share. Most companies require this. They take 3% of the waiter's gross sales from him and distribute it to the front of the restaurant (hostess and bussers).
If our fictional waiter sold 50*4*5=$1000 in gross sales, he would have to surrender $30 in tip share so his net income for the night is:
income = tips - (gross * .03) + 2.25*hours worked
income = 160 - 30 + 10 = $140 for the 5 hour night
Thats not so bad and you don't claim all of those tips either, so you end up doing much better than the guy working at the computer store. I know all this because my brother and his girlfriend both worked at high volume restaurants while I worked at a retail computer store.
The point is that high volume restaurants are good ways to make money that do not require a college education.
Notice the tip share though. My brother had tables with a $100 total bill and the patrons only tipped $2. He had to tip share $3 for that table's gross sales so he actually lost money on it. This happened once in a while. Some people tip $1 per person regardless of the bill.
Think about how easy it is to make money if you have a 5 table station. One table has a $50 check and leaves you an $8 tip for an hour of service. If each table left that amount you would have $40 per hour. Work a 5 hour shift where you turn your tables over 4 times and you have made 5*4*8=$160 in tips for 5 hours. Add in the measly base pay and it adds in another $10 or so.
Don't forget to tip-share. Most companies require this. They take 3% of the waiter's gross sales from him and distribute it to the front of the restaurant (hostess and bussers).
If our fictional waiter sold 50*4*5=$1000 in gross sales, he would have to surrender $30 in tip share so his net income for the night is:
income = tips - (gross * .03) + 2.25*hours worked
income = 160 - 30 + 10 = $140 for the 5 hour night
Thats not so bad and you don't claim all of those tips either, so you end up doing much better than the guy working at the computer store. I know all this because my brother and his girlfriend both worked at high volume restaurants while I worked at a retail computer store.
The point is that high volume restaurants are good ways to make money that do not require a college education.
Notice the tip share though. My brother had tables with a $100 total bill and the patrons only tipped $2. He had to tip share $3 for that table's gross sales so he actually lost money on it. This happened once in a while. Some people tip $1 per person regardless of the bill.
BSBA CIS from TESC, BA Natural Science/Math from TESC
MBA Applied Computer Science from NCU
Enrolled at NCU in the PhD Applied Computer Science
MBA Applied Computer Science from NCU
Enrolled at NCU in the PhD Applied Computer Science