I am seeing more and more hospitality listings that mention "shared tips" as a way to justify a lower base hourly rate. In reality, that usually means the house takes a cut or the money gets split so many ways that you barely see an extra ten bucks a shift.
Is a guaranteed higher hourly rate always better than a "high tip" environment?

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The harsh reality is if you don’t want to share tips or get paid $2.25 an hour don’t work in the industry.

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Exactly the state and federal government needs to align and actually take care of the working class.

A guaranteed higher base usually wins for stability. Tips fluctuate with season, staffing levels, and management policies. High tip environments can be great in specific concepts, but only if transparency and volume are consistent. If you cannot clearly estimate your average take home after splits, the safer bet is the higher fixed rate.

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Yeah it's always best to play it safe especially as tips may dwindle down over time.

In retail, definitely. If you're a server or something, probably not. I have friends clearing 6 figures a year working in fine dining. The money is crazy, even with tip outs.

That's crazy but there's always gonna be money in fine dining! Maybe I need to look into it 😜

Tip pooling works sometimes. I would rather be at minimum wage with tips, shared or not, than the 2-3$. If you can really get tips that put you over, that’s something to consider. It’s the consistency of that that’s hard to deal with.

Absolutely got to be careful with peak times and quiet times for tips and find the balance without losing it!

Shared tips aren’t so bad when everyone on the team has the right work ethic and mindset.

I've seen some Gordon Ramsay nightmares of owners not sharing tips and keeping them for himselfs I couldn't even imagine not trusting my team!

Almost always, yes. A guaranteed higher hourly rate gives stability and ensures your work is fairly compensated, while shared tips can be unpredictable and often end up being less than advertised. It’s easier to plan your life when you know what you’ll actually earn.

Yeah I agree but some tips in industries can be crazy over board and almost make it seem more worthwhile.

I’m curious, does anyone know how much servers were getting paid per hour in the 90s versus the 2000s verse the 2010s versus now?

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