Restaurant Business Tip Methods - One of the most repeated questions in my Restaurant Transformation Intensive group coaching program from newer members is questions about restaurant tipping policies. And while this is mainly a member driven discussion, I want to share my view on restaurant tipping policies, which has changed over the years. Stay tuned, and I'll share with you my views and transformation on restaurant business tip methods.

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Welcome to my YouTube Channel. I am David Scott Peters, a restaurant coach and speaker who teaches restaurant operators how to cut costs and increase profits with my trademark Restaurant Prosperity Formula. Known as THE expert in the restaurant industry, I apply my no-BS style to teach and motivate restaurant owners to take control of their businesses and finally realize their full potential. Thousands of restaurants have used my formula to transform their businesses. To learn more about me and my coaching program, visit [ Ссылка ].

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First, let me share with you, I'm very old school. Very. My thought process stems from growing up in the restaurant industry in the 1980s and the 1990s. When it comes to divvying up tips among staff, I had some very old school thinking that needed to change. When I was a restaurant employee, I never believed in tip pooling, other than behind the bar. Somebody worked the service well, so the others could work the bar. In this case, we shared our tips. We were a team. If I were working alone, the last thing I would want is to share my tips with that subpar performing server who is walking and only took a few tables. When I’m hustling my butt off and giving great service, I deserve the tips.

So much about running a restaurant has changed over the last 40 plus years. When you think about this, when I grew up in the 1980s and got my first job, minimum wage was $1.35 an hour.

Today, in many places across the country it is $15 an hour. If I look back, just about everybody was a tip credit state where you could pay somebody way below minimum wage because their tips brought them up or over a minimum wage. Well, tip credit states are almost extinct.

Rents have skyrocketed from the old days, a lot having to do with chains who came into markets and were willing to pay double the rent to secure a place.

Food cost has exploded like an atomic bomb on your restaurant’s P&L. Customers used to walk in the door with cash in hand. Remember, they had a wallet and greenbacks they'd pull out.

Today, 90 percent or more of your receipts are credit cards, which means the credit card companies are taking their 2–3 percent out of your back pocket.

The industry went from green paper and an adding machine to now needing software. We need third-party delivery services and all these things are pulling from your margins. Plus the needs of employees, have changed. They want more than a paycheck. They want to feel a part of something bigger, a part of a team.

My restaurant owner members have taught me what is starting to make things work better in the restaurant.

Tip pooling with the entire restaurant, other than managers, of course, is becoming more and more popular because it allows restaurants to recruit better employees, keep better employees for longer in both front of house and back of house.

Now we're seeing people who are paying really healthy wages hourly, but also showing the benefit of working here that you may make $4, $5, even $6 more an hour more than at the restaurant down the street because of tip pooling. When you stretch these tips as far back as to the cooks, your restaurant becomes a more attractive place to work.

You'll ultimately have to decide what fits best for your restaurant, whether it's tip pooling or going individually. Just know that it's something that's very important to your restaurant's future. To figure that out, you have to know your company culture, your future plans, and your current team members and how you can adjust because things have changed.
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