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.

[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.

[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

[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!

[Runnin' Rebel]

Most resturants in Brasil include the tip on the check. I don't have a problem with that cause it's a cultural thing. I don't have an issue with the tip as long as as the service is commensurate. I don't remember in Europe or the UK because it's been a while since I've been there.

What bothered me here, (Las Vegas) is the practice that all corporate events that hold their meetings at the hotel with receptions or dinner is the 23%. They call it a service charge and the hotel locks up almost 7.5% of the gratuity on top of the 85.00 they charge for the chicken dinner.

I think they should disclose this, most people think the staff receives the full amount.

Union food servers working here make about 15.00 per hour plus gratuities

[77T]

Originally Posted by Runnin' Rebel

What bothered me here, (Las Vegas) is the practice that all corporate events that hold their meetings at the hotel with receptions or dinner is the 23%. They call it a service charge and the hotel locks up almost 7.5% of the gratuity on top of the 85.00 they charge for the chicken dinner.

The practice is based on the "lost opportunity" costs when supplying a fixed price sitting. There are costs that are fixed and then the variable costs. Each expense dollar for a banquet is expected to earn a commensurate profit that the same dollar would have earned at any of the other open restaurants.

I've hosted receptions/banquets at upscale hotels around US and the contracts always had a fixed surcharge for service. And it was above and beyond the food/beverage price. It's not just LV.

The thing that grates on many excellent servers' nerves is that they have no way to increase their earnings during a banquet - each gets a fixed amount whether they provide great service or poor service. The upside is they also don't get penalized in the tip for poor recipe execution by the chef

[adamlea]

Originally Posted by Runnin' Rebel

What bothered me here, (Las Vegas) is the practice that all corporate events that hold their meetings at the hotel with receptions or dinner is the 23%. They call it a service charge and the hotel locks up almost 7.5% of the gratuity on top of the 85.00 they charge for the chicken dinner.

Since I waited tables while I was in college and law school, I had to weigh in on this thread. My experience has been that the entire tip always went to the server(s) - the restaurant never got any of it. Almost all of the places I worked added gratuities for parties of 10 or more to ensure that the server got a decent tip.

Serving a group is hard work - getting all of the food out at the same time, making sure all of the orders are correct, beverage/cocktail service, etc. Invariably, as soon as I served a drink, someone else would order another one. You're constantly on your feet going back and forth between the table(s), the kitchen, and the bar.

Sure, it was my job - but aside from tips, I was only being paid $2.35/hr., which pretty much covered taxes withheld from my checks. You'd be surprised at how many people would leave $75 or less on a $1,000 check and not think twice about it. In addition to a server's gross hourly wages, the restaurant reports 15% of a server's gross sales as income.

Anything less than $150 on $1,000 puts the server in the red. If the "service fee" is, in fact, a large party gratuity that all goes to the server(s) - as it should - then I don't see a problem with it. If it's just a way for the hotel to pad the bill, then that's a disingenuous and deceptive practice.

When I dine out, I expect attentive service. By the same token, I understand that a server can have an off night and that sometimes a delay or a screw-up is completely beyond a server's control. I pretty much have to serve myself before I'll leave anything less than 15% and most of the time I tip 20% or more if the service is exceptional.

I waited on Evel Knievel once and he left me $50 on a $30 check. Generosity is a class act all the way around.

[powerfunk]

Whoa, "restaurant gratuity?" Never heard of that. That sounds shady. The servers should get all of anything called "gratuity" in my book...

[VICI]

Originally Posted by powerfunk

Whoa, "restaurant gratuity?" Never heard of that. That sounds shady. The servers should get all of anything called "gratuity" in my book...

[daveathall]

I'm sort of confused here fellas, forget about corporate for a minute, when me and my wife go out for a meal if the bill was £100 or there about I give the waiter/waitress £10 (10%). What would be an acceptable tip in the US please?

[bayerische]

Originally Posted by daveathall

I'm sort of confused here fellas, forget about corporate for a minute, when me and my wife go out for a meal if the bill was £100 or there about I give the waiter/waitress £10 (10%). What would be an acceptable tip in the US please?

No!

I tip in Europe about 10%, if the food and service is good.

But I think it's different for me, since I'm a restaurant owner but have worked my way up from dishwasher!

[daveathall]

Originally Posted by bayerische

No!

I tip in Europe about 10%, if the food and service is good.

But I think it's different for me, since I'm a restaurant owner but have worked my way up from dishwasher!

What is the "No!" for Andreas?

Also, I don't think anything should be different as regards tips, if we both go to the same restaurant, both receive the same service, why should you tip different from me? I tip at 10%.

[bayerische]

Originally Posted by daveathall

What is the "No!" for Andreas?

Also, I don't think anything should be different as regards tips, if we both go to the same restaurant, both receive the same service, why should you tip different from me? I tip at 10%.

The no is for, it wouldn't be acceptable with a 10% tip in the US. Not in your waiters eyes anyway...