Why Waiters and Waitresses Are Having a Tougher Time in This Economy Than Most

Just about everyone is facing challenges in this tough economy. But one group of workers is getting hit from a many of different directions all at once during the recession - waiters and waitresses.

All but the very low end restaurants (or the very lucky ones) have seen a sharp decline in customers in the past year. Like me, I'm sure if you walk around your local business district at prime lunch or dinner time you will see that most restaurants have a lot of empty tables or they have closed up shop all together.

Wait staff are paid a very low hourly wage. In most states their hourly wage is a fraction of the actual minimum wage and can range from $2.50 - $4.00 per hour. The idea behind this low hourly wage is that the waiter or waitress will make enough in tips to bring their real hourly earnings (their hourly wage plus their tips) to at least the minimum wage.

Since waiters and waitresses work almost entirely for tips, the current economic downturn that has led to fewer restaurant customers has obviously led to lower earnings for most wait staff. But fewer customers is only one of the challenges that waiters and waitresses face today.

Many restaurants, including some of the biggest casual dining chains out there, are offering amazing deals: $5.00 all inclusive lunches, 3 course dinners for under $20.00, 2 for 1 entrees and half priced early bird specials. As consumers we are happy about these great dining offers and the lower bills that they bring. On the other hand, these deals can have a dramatic impact on a waiter's paycheck. Say a restaurant has a typical per person average check of $20 for dinner and the average waiter at that restaurant serves 50 guests per night. Assuming a 15 percent tip, that waiter will earn $150 in tips for the night. Now, say all of the deals and specials bring down the check average to $14 per person. This seemingly small decrease will reduce the waiter's nightly tips to just over $100. Over the course of a week the waiter's tips will decrease by about $250 and on a monthly basis they will have $1000 less income.

Another challenge that waiters and waitresses face in today's economy is the new idea that being frugal is good. Now, I am not saying that frugality is a bad thing, but frugal customers can be a serious problem for wait staff. Many people who eat out today are taking advantage of some of the great deals out there, choosing their restaurants based on price and being careful about the prices of the food that they order. This in and of itself leads to smaller per person checks which then leads to smaller tips for waiters. But many people today are cutting back on the tips that they leave their waiters. They feel that in this tough economy they can not afford to be as generous with their tips. So their normal 20 percent tip becomes 15 percent, or the standard 15 percent tip becomes 10 percent. Over the course of a month, even a small decrease in the average percentage of the bill left as a tip can have serious consequences for a career waiter.

So, the next time you decide to splurge on a nice dinner and the person waiting on you is working hard, friendly and courteous, remember that they are facing a multitude of shifts in the economy and attitudes of the consumer and that their income depends at least in part to your generosity.