Tipping Bartenders in 2023: How Bartenders Can Increase Their Tips and Income
Sep 13, 2022
How Bartenders Can Increase Their Tips and Income?
Quick Answer:
Stop worrying about tips!
- Focus on Sales through suggestive selling, upselling, and building a group of regulars
We have all been that bartender.
Some of us still are…
The big tip hunter…
The auto grat assassin…
The Ms. Cleo wannabes trying to figure out which guests will tip the most so we can pour the bulk of our professional efforts into them.
And, we all have been burned…
This way of thinking is a trap…
A trap most of us fall into when starting our bartending careers. We imagine the bar full of low maintenance, high tipping guests lined up to throw $100 tips all night. When this does not happen (because it never does), we begin to complain and our attitude turns to shit affecting not only our tips but our overall working experience.
Most of us are not psychic.
We can not tell who will tip and who will not, just by looking at them and guessing. Big tips come in all shapes and sizes. And shitty tips come from every direction. Some of my best tips have come from people of perceived “non tipping demographics” the same way I have been stiffed by Gucci loafers and rolexes. But nurturing large gratuities is far from a roll of the dice. The solution my friends is to bank on an old industry standard and working it.
What I mean is, if we want to better control our income and increase the amount of money we can make, we need to think in the language of salesmanship … 20%… Whatever 20% of our liquor, beer, wine, and food sales are, is what we can kind of bank on in tips by the end of the shift, including the big tips and the low or no tips. Sure sometimes we can make more than 20% and even spiking 30%+ some nights, however 20% is pretty much what we make.
This is where using the sales triad of upselling, cross selling, and suggestive selling as well as building a regular clientele base comes in. Because building regulars takes a while and we want to make more money like soonish, sharpish, nowish, let us start with the sales techniques that we can implement Immediately.
“THE SALES DUKE, THE SALES!”
At the risk of sounding like a used car manager, salesmanship is separates the… childlike humans from the adult like humans. To better understand the the relationship between sales, salesmanship and our direct income, here is a basic equation:
Income = 20% of sales - that’s it
If the standard tip percentage is 20% of our sales and we happen to sell $500 worth of food and beverage in any given shift, we can then expect $100 in tips for the shift.
If we happen to sell $1000 in a shift, based on the 20% standard, we can expect $200 in tips for that shift.
If we can sell $5000 in a single shift, we are looking at $1000 in tip for the shift, regardless of shitty tippers.
This basic equation shows how sales affect income.
How exactly does a bartender sell $5000 in a shift when it is dead and nobody is spending any money? How can we turn those $500 in sales shifts into those $1000 then $2000 in sales shifts? Increasing our sales first is a matter of making sure our guests know what is available and delicious.
This is where the “Suggestive Selling” technique comes into play.
Suggestive Selling
Sure there is a menu that our guests can look at and sure we might be intimidated to just start blabbing about our favorites, but this is actually an opportunity to start seeing higher income as a bartender. Studies show that diners are more likely to order appetizers, desserts, and additional beverages when their server or bartender suggests them even when the guest did not originally intend to. This is called suggestive selling and it works because it makes ordering easy and people are generally lazy.
Imagine the anxiety associated with the question: “What would you like to eat?”
This is an open ended question.
Answering this question requires breaking conversation, celebration, and fun to ponder the ebbs and flows of desire and appetite while we stare them down. From a service standpoint, asking this question can relegate us to standing there awkwardly while the guests discuss their likes and dislikes and past experiences, which is great when there is time for such rapport building however, detrimental to high volume service. When busy and chasing down sales, we want to make it easy for the guests to order as much as they comfortably can so we can move on to the next sales opportunity. We want to offer items that will actually add to the experience so the guest leaves feeling like the money they ended up spending matches their dining experience. It is important to suggest items that are in the mid price range for the menu and to be careful not to push the check too high and the guest feels ripped off.
Left to their own devices, appetizers, soups/salads, and desserts are ordered at random intermittence. Ask easier, bite sized, closed ended questions while making our suggestions and throw in some creative and descriptive words to add to the enticement.
“Would you all like to get some warm spinach and artichoke dip or a refreshing cup of gazpacho started while you look at the menu?”
Or
“Welcome! We are known for our handmade margaritas, should I get some started for you while you settle in?
These are closed questions. There are two answers, yes and no. The point is, for the lazy, ignorant, and distracted guest, accepting these suggestions is a much easier way to get service started. This also takes the pressure off the guests and their company so they can just enjoy the vibe and each other.
The two main goals of suggestive selling are:
a: getting service started quickly breaking the ice
b: enticing your guests to order specials and extra items like apps and desserts.
In order to raise sales without additional guests or foot traffic, we need to raise the amount each guest spends…
This occurs when, instead of a beer and a burger or a small glass of wine and a salad, the guest orders wings, a burger, and two beers or a martini, a salad, and a key lime pie.
Breaking this down further we can see where the extra income comes from.
Example A
- Organically sold
Beer - $5
Burger -$12
Total = $17
Tip (20%) = $3.14
Or
Small wine - $6
Salad - $7
Total = $13
Tip (20%) = $2.60
This represents organic sales which are sales that the guests would order on their own.
- Suggestively sold
Beer x2 - $5
Wings - $10
Burger - $12
Total = $27
Tip (20%) = $5.14 (+$2.00/ 60%)
Or
Martini - $12
Salad - $7
Key Lime Pie - $6
Total = $25
Tip (20%) = $5.00 (+$2.40/ 52%)
Interesting...
As you can see, merely suggesting the additional beer or wing appetizer or key lime pie, we increase the chances of the guest ordering these items. The same guests that are already in the bar. If every guest orders suggested items, it is not unreasonable to expect an additional 50% - 60% increase in the total tip amount. If have of our guests take us up on half of our suggestions, we can expect 25% - 30% increase in tips. That is extra money we can make today with Suggestive selling. Not to mention, the guest leaves feeling more satisfied and having a better experience, potentially causing them to return for another visit soon.
The key to making this work is to be confident by knowing your menus and suggesting specific dishes, cocktails, and products.
Suggest sliders or wings instead of “an appetizer”.
Suggest the house margarita or a local beer instead of “a drink”
Suggest Key lime pie or Brownie sundae instead of “a dessert”
Use descriptive words like “house made”, “fresh”, and “delicious “ when making your suggestions.
Do this for every course and every guest and you will improve your income.
Again, not every guest will order our suggestions. If we get shot down, we keep throwing things out there. Always be looking for that extra sale. Some guests will have questions and some guests will want to peruse the menu and discuss options. When dealing with these types of guests, using the “up selling and cross selling” techniques really shine.
Upselling and Cross selling
Upselling is a sales technique that involves recommending higher quality (and higher priced) modifications to what the guest has already ordered. For instance, if the guest orders a vodka martini, we would suggest or “upsell” Ketel One vodka instead of the cheaper house vodka. Or if a guest orders a Caesar salad, we would recommend adding a protein like chicken, steak, or shrimp. This differs from suggestive selling because the guest already knows what they want to order. We are merely trying to not only enhance the quality of their order giving them a better overall experience, but we are trying to increase the total of the check, tab, or bill. These additions can take the form of upgraded spirits, higher quality cocktails, bottles instead of glasses of wine, and food modifications like adding cheese, extra sides, and the aforementioned protein. Once again, using this technique requires the confidence that comes with a deep understanding of your menu and product.
The key to this technique, like suggestive selling is to be specific and use those closed questions.
Example A:
- A guests orders a vodka martini
“Would you like Titos or Ketel One?”
One choice is more expensive than the other but both are more expensive than the rail or house vodka. I know this sounds oversalesy but think about it...
A martini made with what ever the house vodka happens to be is not going to be as delicious or smooth as a martini made with a more premium vodka. The martini made with premium vodka will add to the quality of the experience. Most guest will take us up on this upsell. We get a bigger tip, the guest gets a better martini, both parties win.
Offering/ recommending higher quality, more expensive spirits as an upgrade works with almost every cocktail.
Example B:
- A couple sits in the bar and after perusing the menu, are ready to order their dinner which consists of a crab cake dinner, a 5oz filet, and two glasses of merlot.
Let’s in this example implement some suggestive selling and then the up sell.
“Excellent!” - always verbally validate the guest’s choices
“Would you care to add an additional crab cake for only _____?”
“We can also upgrade the steak to an 8oz. for _____, then you both can share.?”
The guest will accept or reject but at least we have tried.
“Wonderful!”
“Cay we start you off with a caesar salad or a cup of our house made clam chowder?
The the suggestive sale…
Of course we will suggest dessert and coffee later but let's assume the guest take us up on every suggestion we make.
- Additional crab cake = +$12
- Large filet = +$8
- Small Caesar salad = +$6
- Cup of clam chowder = +$6
With just these suggestions we have added $34 worth of sales to the check. That’s an additional $6.80 worth of tips, before suggestively selling dessert and coffee and cross selling the wine.
If this happens 10 times in the night, we are talking an additional $70 in tips for the shift.
Is it starting to click?
I mentioned “cross selling the wine” which brings us to the final piece of the sales triad.
Cross selling
Cross selling is what amazon does when they show the “frequently bought together” items at the bottom of whatever item you are looking at. It is the practice of offering complimentary items to an order that first and foremost enhance the the user or in our case diner experience as well as add to the price of the check.
In Example B, a cross sell opportunity would be to offer the a bottle of the wine the guest already ordered.
“You are having the same wine, should I just bring the bottle?”
“We can cork what you do not finish to take home.”
This will add to the experience because a bottle of wine is personal and fresh. A bottle of wine also is control. Control of the flow of their alcohol. Very attractive. This will also add to the price of the check which will add to our overall tip amount. Cross selling shares aspects of suggestive sell and up selling. After all, we are suggesting an augmentation to the experience and we are trying to add thing to the check. Cross selling is more thematic.
Most “Taco Tuesday” deals are an example of cross selling.
Usually these involve tacos, tequila, and Mexican beer.
Start using these techniques immediately and practice them.
Study your menus, ask the chef questions, and come up with new ways to enhance the offering of your establishment.
Suggest, up sell, and cross sell your way more money.
As people continue to have better and better experiences with you based on your suggestions and quality of service, notice that they tend to come in more and more often.
These returning guest are down as regulars. As their number grows, the number of days in the weeks stays the same. Soon there will no longer be slow days because we have our own “fans” filling our bar every time we work.
This is how to increase your tips…
Want to know More?
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The law of supply and demand is now in our favor and now is the time to cash in.
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