What Is a Tip Out? Restaurant Tipping Methods

Cody Cromwell
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How Tip Out Works

In America, most tipping is done in large restaurants. In particular, many patrons tip a certain percentage of their food bill, usually in the neighborhood of 18-20%, to the restaurant’s wait staff.

But, tipping has its rules. In particular, some people believe that splitting the tip with more than one server is an automatic signal of consideration for their respective work. Or, some people believe that splitting the tip at all means that the service was substandard and unfair.

But, tipping is not just an American phenomenon’. We’ll look at tipping practices in other cultures as well. But until then, here’s a quick glance at how tipping works in America.

Choosing a Tip Out Method

Tip out methods can be confusing. Which one is right for you and your restaurant staff?

In a restaurant, the service staff works for a percentage of the total tab. Usually, this is based on the type of establishment. For instance, a fine dining restaurant may pay a percentage base on the check total, while casual dining might pay a base amount. At the end of the day, the tip out method is meant to ensure fair compensation for the service staff while the restaurant owners make their profit.

The tip out methods available involve the use of a tip line on the credit card receipt. It’s important to note that this company option has become more popular in the last 10-15 years, but it’s not the only way to tip out in a restaurant. Continue reading to de