Help with a Math Formula

[Runnin' Rebel]

Here it is:

cash gratuity breakdown on a 1000k dinner check

1000.00 gross revenue
- 81.00 sales tax (8.1%)
___________
919.00 net revenue
x 23 % gratuity
___________
211.37 total gratuity


919.00 x 5% = 45.95 Resturant gratuity, (they take this for themselves out of the after tax net).

919.00 x 18%= 165.42- Server gets 86% of this, RESTURANT gets 14% as shown below
________________
23%= 211.37 total gratuity

165.42 x 86% = 142.26 food server gratuity
165.42 x 14% = 23.16 house gratuity
_________
165.42

Food Server total gratuity = 142.26
Resturant total gratuity (45.95+23.16)= 69.11
__________
211.37

I'm trying to do this on a calculator by deducting the tax, what the RESTURANT takes and what the final tip is for the food server in an easier way

There's a formula that is easier that can be done on a calculator in like 3 easy steps.

Total bill minus tax and what they siphon off from the food server gratuity and what she would get without going through all of the above.


Someone see if they can figure it out please
Thank you

If you could use an a few different totals that would help. Like the check is 2345.54 etc..

[cedargrove]

You answered your own question, because you started with a nice easy amount of $1000, and you don't even need to deduct tax.

Food server gets 14.226% of the total bill (incl tax).

[GoingPlaces]

Ugh, I think my head is spinning...too much. Just tip appropriately, I add 20% or so to the total bill. If the service is really good I may go as high as 25%. It's not rocket science. If you are spending 1K or more on a meal, what's the difference? Are you seriously going to get into this much detail?

[wantonebad]

Yeah it been totally over thought, it's a simple subtraction and then a percentage. Or if you choose Rich's way a calculated percentage, same result. But 18% for a large table is not proper, 20% is a minimum and I'm usually around 22-25% for a large party, support staff for a table of 8 or more goes well beyond the people you see and they get a percentage of what the server gets. JMHO you said 23% but you cutely didn't calculate 23%, gratuity includes tax, remember they have to claim their grat on a percentage od sales. It's been very trendy to subtract tax from their cut, it's not correct IMHO

So the calculation should ignore the restaurant gratuity, $230 is 23% add a supplemental amount to the calculated gratuity to get to this amount and your fine.

[Runnin' Rebel]

No, the tax is on the total bill, on this case 1000.00
The gratuity is on the total bill, in this case 1000.00

Marc, I didn't cutely didn't do anything, I laid out exactly what the establishment is doing, but trying to find a better way of figuring out what this particular person would get.

I did use the 1000.00 as a easier way to explain it. This had nothing to do with how many people are at the table of a typical Resturant. These are mandatory charges that clients sign in a contract. The client knows there will be 8.1 % tax added to the bill and a mandatory 23% added to the bill. So the tax is added on the 1000.00. The gratuity is added on the 1000.00. No gratuity is added after the tax is added or vice versa.

These are contracted events and she's trying to just find an easier way to figure what her tip would be.

So if I understand Rich, just X the total by 14.226 on any amount of whatever the total bill is and that would be her tip

[77T]

I think the real bottom line is to have their office manager to net it out for the $1000 example. Especially since they may also need to withhold income tax and FICA from the server's tips.

Once that answer is determined, it would be a simple multiplier like Rich mentioned - but it needs to include all the variable so she know what will hit her pocket.

[Runnin' Rebel]

All the tips are on her check. Taxes are taken out like regular income. I tried Rich's way and it seems to work fine. That's what I was looking for.

Thanks Rich

[Runnin' Rebel]

Originally Posted by Runnin' Rebel

All the tips are on her check. Taxes are taken out like regular income. I tried Rich's way and it seems to work fine. That's what I was looking for.

Thanks Rich

EDIT: Every food or beverage check total is paid by credit card, which goes through the accounting department who then double checks what the managers numbers are.

The client's do not pay cash after the final bill is signed, all are paid by credit card

[Presa canary]

Man this was tough... This is why I mostly eat out at chipotle. Math was never my strong subject

[james1787]

umm.. on 1k, I would have tipped about 200.

[jolimont]

over 10000

[SearChart]

Originally Posted by james1787

umm.. on 1k, I would have tipped about 200.

A $200 tip? Is that an American thing? here in Europe nobody ever gives 20%-25% of the total bill as a tip.

[Kingair]

Originally Posted by SearChart

A $200 tip? Is that an American thing? here in Europe nobody ever gives 20%-25% of the total bill as a tip.

I even think that tipping in Europe is completely over . . .

Rarely I see someone giving a tip

Guess it all changed when we switched to the Euro and prices skyrocketed . . . overnight . . .

[MonBK]

Originally Posted by Kingair

I even think that tipping in Europe is completely over . . .

Rarely I see someone giving a tip

Guess it all changed when we switched to the Euro and prices skyrocketed . . . overnight . . .

It's more like the tip is included in the check.

[SUBversive]

This blew up my tip calculator app ...

[MonBK]

Here's a good tip............................................... .................................................. .....................don't bet on sick horses.

[SUBversive]

Originally Posted by MonBK

Here's a good tip............................................... .................................................. .....................don't bet on sick horses.

Or stand up in a canoe

[brandrea]

Originally Posted by Kingair

I even think that tipping in Europe is completely over . . .

Rarely I see someone giving a tip

Guess it all changed when we switched to the Euro and prices skyrocketed . . . overnight . . .

I think the difference between Europe and a North America, is that in Europe wait staff and servers are paid a better living wage, and therefore don't rely as much on tips .... Just what I have heard.

As to the OP, in North America I'd tip about $200 on a $1000 tab.

[Kingair]

Originally Posted by brandrea

I think the difference between Europe and a North America, is that in Europe wait staff and servers are paid a better living wage, and therefore don't rely as much on tips .... Just what I have heard.

As to the OP, in North America I'd tip about $200 on a $1000 tab.

Yes they are better paid

Or on a hourly rate or on a percentage of their sales

But doing 3 or 4 services on a 1000 dollar table . . . it adds up quickly . . .

Don't know anyone in Europe making that kind of money besides the owners ;)

[bayerische]

Originally Posted by SearChart

A $200 tip? Is that an American thing? here in Europe nobody ever gives 20%-25% of the total bill as a tip.

It is.

While the tipping in Europe is next to nothing, the tipping in the US has gotten out of hand. (IMHO)

Food prices at restaurants in the US is on par with Europe's. (Except Scandinavia) Restaurant staff in Europe really do not have higher pay than their colleagues in the US. Not so much that it would require the 20% tip.

(Scandinavia is excluded, as it is much more expensive on all levels than the continent)

Some states have quite a high sales tax, so the food you see on the menu, will be around 30% more expensive once it's all payed and tipped for. 35 dollar steak? Sure, doesn't sound bad. 45,50 when taxed and tipped.

And if you don't tip? Ohhhh, I'm not sure I would dare. Better not go again to that place then.

[bayerische]

Originally Posted by Kingair

Yes they are better paid

Or on a hourly rate or on a percentage of their sales

But doing 3 or 4 services on a 1000 dollar table . . . it adds up quickly . . .

Don't know anyone in Europe making that kind of money besides the owners ;)

So how much is a waiter making an hour in the US? I pay mine around 10-11 euro/hour. Remember this is Scandinavian wages. They make less in spain. Maybe half.

[powerfunk]

Originally Posted by bayerische

So how much is a waiter making an hour in the US? I pay mine around 10-11 euro/hour. Remember this is Scandinavian wages. They make less in spain. Maybe half.

About 3 bucks an hour. Basically nothing, except tips.

[MonBK]

Originally Posted by bayerische

So how much is a waiter making an hour in the US? I pay mine around 10-11 euro/hour. Remember this is Scandinavian wages. They make less in spain. Maybe half.

Mine had $2.50/Hour and this was 10 years ago.

[bayerische]

Originally Posted by powerfunk

About 3 bucks an hour. Basically nothing, except tips.

Isn't that below minimum wage?

[powerfunk]

Originally Posted by bayerische

Isn't that below minimum wage?

Yes, it's called subminimum wage, which applies to servers.

[Kingair]

Originally Posted by bayerische

So how much is a waiter making an hour in the US? I pay mine around 10-11 euro/hour. Remember this is Scandinavian wages. They make less in spain. Maybe half.

Hey Andreas

Got no clue but they just changed the minimum wages on July 01 to 9.00 usd in CA

So I guess that this is what most make but probably a lot less . . . .

Plus the tips . . . . but here people need to pay their health insurance so . . .

In Europe 'all' is mostly paid in the monthly wages by the company

Execpt health care about 15.00 to 20.00 Euros a month

Taxes on your wages and 10 or 30 more but that's eveywhere

Now I am talking about Belgium don't know how it works at your place.

[bayerische]

Originally Posted by powerfunk

Yes, it's called subminimum wage, which applies to servers.

Amazing.

Then I get the point that they must be tipped. Restaurant owners must make a ton of money in the US then! No salary costs to speak of.

On top of the wages I pay my staff, I pay 25% of their gross salary in pension funds for them. So a 10 euro/hour waiter will cost me over 14 euro/hour when all extra costs like pension/insurance etc is payed for.

[bayerische]

Originally Posted by MonBK

Mine had $2.50/Hour and this was 10 years ago.

Imagine that.

I'll try and suggest a 2,50 euro salary once I get into work today. Let's see how that floats.

Chef's make quite good money though in the US?

[bayerische]

I must ask what my American staff member made when he worked at a place in Orange County. He's a great guy BTW!

[Kingair]

Originally Posted by bayerische

Amazing.

Then I get the point that they must be tipped. Restaurant owners must make a ton of money in the US then! No salary costs to speak of.

On top of the wages I pay my staff, I pay 25% of their gross salary in pension funds for them. So a 10 euro/hour waiter will cost me over 14 euro/hour when all extra costs like pension/insurance etc is payed for.

It's changing here to but it's gonna take a while . . . Obama care . . . . a lot of people hate it . . .

But that's a personal thing

I rather have a health insurance . . . .

Here they charge you the price of a really nice car to get hospitalized . . . going from a Ford F150 to a Ferrari 458 . . . . so who can afford this privately . . . ?