Help! What's an appropriate tip?

12 years ago

I'm coordinating a corporate holiday party (relatively small scale as to number of attendees, but dealing with fairly high-end restaurant for catering). The restaurant is providing two servers and one bartender, and in addition to food/beverage costs and certain rentals, we will be charged $225 for the assistance of the servers/bartenders - so $75 apiece. The party will probably last around 3 hours. I'll be the one paying the final bill (via corporate credit card), which will be tallied after the party, as our beverage/bar cost will be on a consumption basis. My contact at the restaurant has not been terribly forthcoming when it comes to helping me determine what amount of tip for the servers is customary - only saying that it's "entirely at our discretion." I at not at all certain what to do as far as tips go. It may be difficult for me to have cash on hand for them, and I prefer that everything is handled on the corporate credit card for expense report purposes anyway. DH thinks that 100% tip per server is appropriate. He believes that they will simply be paid their regular wage, and the $225 will go to the restaurant as payment for providing the servers. I just want to make sure I do the right thing ... WWYD?

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Comments (11)

User
Original Author
12 years ago
I should add that the total food and beverage costs, to be tallied after the event, will be in the range of $2,000-$3,000.
User
Original Author
12 years ago
Sorry, I'll get it all out here in a minute! ... I should also add that the bartender will be serving beer, wine, and mixed drinks, and the servers will be passing appetizers and replenishing a table of appetizers and desserts. This is not a sit-down dinner.
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blfenton
12 years ago
I assume that you meant 10% and not 100% tip - unless your DH is very generous.
User
12 years ago
Well, I've done this before, and you're right, you don't know what they will actually be paid.

If it were a private party at my house, staffed by a company I hired, I would probably tip them about $30-50 each, if they are there 3 hours, depending on prep, how much they have to hustle, how much they help clean up, etc.
User
Original Author
12 years ago
Actually, I meant 100% of the $225 that the caterer has stated is the cost for the services of the bartender and waiters. So that would be $75 each for the evening. Demifloyd, thanks for weighing in ... $50 sounds like a fair amount to me, so that's probably what I'll go with. (Not quite as much as DH feels appropriate, but this isn't his "baby" so he doesn't get the final say. ;-))
folkvictorian
12 years ago
You'd said:

"It may be difficult for me to have cash on hand for them, and I prefer that everything is handled on the corporate credit card for expense report purposes anyway"

but I'd suggest you somehow work it out so you can tip them with cash. There's absolutely no way to determine if a credit card tip gets to them or not. Instead, I'm sure the servers would greatly appreciate your verbal thanks along with an envelope of greens.
DLM2000-GW
12 years ago
I was about to say the same thing as folk - do try to have cash tips. Credit card tips are becoming more and more suspect. Some establishments will take their credit transaction fees (charged by their card processor) out of the tip - a really nasty business practice if you ask me. If you pay the bill with credit and the tips with cash, they will take that transaction fee out of the profits, as it should be.
User
Original Author
12 years ago
I do see the logic of having cash on hand for the tip, and because you guys made it sound like such a great idea, I am presently trying to work that out. However, it depends on whether or not I can use my company credit card at an ATM to obtain cash ... we operate cashless here for the most part, and the dinner is kind of a one-off thing that's making "business as usual" a bit difficult for me. I'm going to give it my best shot though. :-)
terezosa / terriks
12 years ago
However, it depends on whether or not I can use my company credit card at an ATM to obtain cash

I believe that yuou will incur hefty "cash advance" fees if you use your credit card to get cash at an ATM.
nicoletouk
12 years ago
I would also ask the catering manager point blank if you are being charged any gratuity on the bill they will present to you at the end of the night. Most restaurants have an automatic gratuity for parties. Actually, I don't know of any that don't. It bothers me that your contact is being evasive.

In my area, this gratuity is usually 20% added on to your bill. Make sure you are aware of this, as sometimes restaurants don't go out of their way to point this out. It is very common to people to double tip by adding a tip onto a bill that they don't realize already contains one.

Also, even if the gratuity is added on to your bill, free free to add a little extra if you feel the service warrants it.

I would have no problem charging the tip on a credit card. They MAY deduct the credit card processing fee before passing on the rest of the tip to the waitstaff, but is only about 3% or 4%. It is crummy, true, but has become an accepted restaurant practice. It is also costing your waiter only about $1.50 (on a $50) tip) and very convenient for you - the customer with the dollars.

Nicole
User
Original Author
12 years ago
I'm unable to use my corporate card to obtain a cash advance, so that's out. I'll be meeting the catering manager tomorrow face-to-face, and will go over the contract then - and will be sure I come away with a clear understanding of whether or not they are adding a gratuity, and then make my decision about tipping additionally, if they are adding it on. I do trust this restaurant to act fairly; they have an excellent reputation and I know they are appreciative of our corporate business.

Thanks for putting me a bit more at ease in handling this.