An Ultimate Guide on Tip An Ultimate Guide on Tip Policy in Hotel Policy in Hotel && Restaurant Restaurant

An Ultimate Guide on Tip An Ultimate Guide on Tip Policy in Hotel Policy in Hotel && Restaurant Restaurant

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What is TipWhat is TipA tip is considered as a monetary incentive which is given by the customers or guests for polite, prompt and efficient service provided by service staffs.

Why Tips are GivenWhy Tips are Given• Tips are considered as traditional policy of the hotel.

• Tips are incentives for the staffs.

• Tips works as a motivational factor for the employees.

• Tips generate extra earning for the service personnel.

N.B: Giving tip or tipping is not the policy of the hotel even it is not mandatory for the guests to leave any tip after receiving service

When Guest Generally provide TipsWhen Guest Generally provide Tips

When guest is satisfied with the food quality

When is guest is pleased with the attention received by the service personnel

When guest is on good mood

When guest is financial capable

How Tips are ProvidedHow Tips are Provided

Tipping is usually based on the total bills without tax. Although the ultimate decision is completely depend on the guest’s decision, the minimum amount for giving tip should be at least 10 % for adequate service.

Here is given a well-accepted and commonly followed guideline for tipping:

•Less than 10% or 10% -Poor service or unpleasant service

•15%-Average service or normal service

•18–20%-Good service

•More than 20%-Extraordinary service or unusually good service

How Tips are ProvidedHow Tips are Provided

Tipping may be executed in various ways, such as:Hand to HandKeeping on the TableAdding with the billAutomatically included with the Check

How Tips are divided among ServersHow Tips are divided among Servers

The amount of tips is to be divided among the servers in some situations which are as follows:

When several servers share the responsibility of one table

If servers pool their tips

In some hotels or restaurants, the servers also have to share a percentage of tips with the bussers, drink runners, expeditors, and other assistants.

How to Increase the amount of TipHow to Increase the amount of Tip

How to Increase the amount of TipHow to Increase the amount of Tip

Continued…….Provide helpful, supportive and efficient attitude.

Pour water and coffee for guests when required.

After completion of the meal, clear the table immediately from the guest’s right side.

Collect soiled and leftover food on tray or bus pan and cover it with a napkin.

Bid farewell guest properly and thank guests as they leave by saying “Thank you sir for coming and enjoy a nice day”.

How to Report TipsHow to Report Tips

Every service associate has to report tip since it is considered as a part of a server’s salary to the following section:

•Internal Revenue Service since

•Restaurant manager

•Social Security

•Medicare taxes

Modern Tip PolicyModern Tip PolicyTips policy has been modified and personalized due to certain drawback of this system.

In order to establish an improved tipping system, a new system of tipping is being introduced “Point System”.

Point System

Point system is to allot certain numbers of points to all service personnel of particular section of F & B per week on the basis of their rank, experience and skills of the person.

How Point System is CalculatedHow Point System is Calculated

Under this system, the tips received in the department are deposited in a sealed and locked box daily by all the responsible persons and at the end of each week the amount collected in the box is totaled up.

And the amount is then divided by the total number of points in the department to determine the point value. After that the point value is calculated and distributed every week for each service personnel in the department.

What is Group PollingWhat is Group PollingGroup Polling system allow the waiters of adjacent work station to group together and pool together the tip amount they received and distribute it equally among themselves at the end of each working day.

Service ChargeService Charge

Service charge is a separate charge which is accounted to the customer and is included in the bill and collected from the guest. Service charge usually ranges from 12% to 15% of the total bill amount. From this amount a fixed percentage is given to each staff member according to his/her status, weekly, fortnightly or monthly basis.