Comments on: Tipping vs. bribing your bartender http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/ Money Magazine looks at a wide range of personal finance issues and asks for your feedback. Tue, 22 Dec 2009 00:19:01 +0000 http://wordpress.com/ hourly 1 By: Bar Cop, Pennsylvana http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-19431 Bar Cop, Pennsylvana Tue, 28 Jul 2009 11:00:47 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-19431 Free drinks do add up quite fast. For example I just caught a bartender giving out 52 free drinks in a 9 hour shift. These drinks are bottle beer $1.50 per bottle = $78.00. When it accounts to basically buy one get one free it is stealing. Free drinks do add up quite fast. For example I just caught a bartender giving out 52 free drinks in a 9 hour shift. These drinks are bottle beer $1.50 per bottle = $78.00. When it accounts to basically buy one get one free it is stealing.

]]> By: jaderdavila, sao paulo, brazil http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-19412 jaderdavila, sao paulo, brazil Mon, 27 Jul 2009 21:55:17 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-19412 selling booze brings so much profit that the owners dont care they let the bartender offer a freebee selling booze brings so much profit
that the owners dont care
they let the bartender offer a freebee

]]> By: Fort Collins, CO http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18196 Fort Collins, CO Thu, 09 Jul 2009 05:09:13 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18196 Whoa: "In that case, you’re right: the bartenders are stealing and so is your pal." Your pal is stealing for tipping and getting a free drink? What, is he saying, I'll tip you more if you give me another free one? And if you don;t I have a gun that says you will. Come on. I've worked as a bartender, and if I was feeding anyone free drinks and pocketing the big tip... Hey, great mug shot Kojak! But then again, you get the knowledgeable telling people about the 1000% markup. You then have 1000% stupid people paying, don't you? I'd sell anything at that markup, wouldn't you? The story line: If you tip and get free drinks, is it stealing? On the patient side, only if you have a gun... Whoa: "In that case, you’re right: the bartenders are stealing and so is your pal."

Your pal is stealing for tipping and getting a free drink? What, is he saying, I'll tip you more if you give me another free one? And if you don;t I have a gun that says you will. Come on.

I've worked as a bartender, and if I was feeding anyone free drinks and pocketing the big tip… Hey, great mug shot Kojak!

But then again, you get the knowledgeable telling people about the 1000% markup. You then have 1000% stupid people paying, don't you? I'd sell anything at that markup, wouldn't you?

The story line: If you tip and get free drinks, is it stealing? On the patient side, only if you have a gun…

]]> By: Stephen Rys Austin TX http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18195 Stephen Rys Austin TX Wed, 08 Jul 2009 20:52:14 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18195 This is utterly normal in the bar, restaurant, or hospitality business as the respondents point out. Free drinks - i.e. beer on tap or hard liquor - are virtually free to the owner of the bar, as well. Consider cheap nozzle vodka - $5 a shot (or setup), with a nominal cost of $10 a fifth (which is 20 shots). Thus a free drink costs the owner $0.50, + the ice, cranberry juice (or whatever), cleaning of the glass, etc. The liquor business - at a hot spot especially - is by FAR the most profitable part of the hospitality industry (something like a 1000% markup for cheap booze; probably 500% for the good stuff). This rivals a McD cola, which costs you $1.75 and them perhaps $0.18. None of this holds true for BOTTLED beverages or wine, where the markups are "merely," 300% or so. My bar hosts, therefore, are instructed to provide a free drink - one - to every regular (typically their 3rd, not their 1st, drink). This doesn't hold for bottled beer drinkers, who get free appetizers (as does everyone else) instead. That the bartender makes a bit of a rakeoff on such deals bothers me not at all. If they win, I am winning - they bust their bums, are attractive, attentive to my customers; I get happy consumers who come back again and again. I do have the occasional barkeep who does the "one for you, three for me," bit - and my honest CUSTOMERS typically alert me to this (needless to say, I keep tight, tight, tight, inventory control). That guy gets a warning....and not once has the offense been repeated. Good bartenders understand the old maxim of killing the Golden Goose. This is utterly normal in the bar, restaurant, or hospitality business as the respondents point out.

Free drinks – i.e. beer on tap or hard liquor – are virtually free to the owner of the bar, as well.

Consider cheap nozzle vodka – $5 a shot (or setup), with a nominal cost of $10 a fifth (which is 20 shots). Thus a free drink costs the owner $0.50, + the ice, cranberry juice (or whatever), cleaning of the glass, etc.

The liquor business – at a hot spot especially – is by FAR the most profitable part of the hospitality industry (something like a 1000% markup for cheap booze; probably 500% for the good stuff). This rivals a McD cola, which costs you $1.75 and them perhaps $0.18.

None of this holds true for BOTTLED beverages or wine, where the markups are "merely," 300% or so.

My bar hosts, therefore, are instructed to provide a free drink – one – to every regular (typically their 3rd, not their 1st, drink). This doesn't hold for bottled beer drinkers, who get free appetizers (as does everyone else) instead.

That the bartender makes a bit of a rakeoff on such deals bothers me not at all. If they win, I am winning – they bust their bums, are attractive, attentive to my customers; I get happy consumers who come back again and again.

I do have the occasional barkeep who does the "one for you, three for me," bit – and my honest CUSTOMERS typically alert me to this (needless to say, I keep tight, tight, tight, inventory control). That guy gets a warning….and not once has the offense been repeated. Good bartenders understand the old maxim of killing the Golden Goose.

]]> By: Portland, ME http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18193 Portland, ME Wed, 08 Jul 2009 18:50:03 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18193 If it's stealing, it's the bartender doing it. If you give him/her a $10 bill for a beer, he can put $5 in the register and $5 in his jar, or he can put $0 in the register and $10 in his jar. Same thing if you don't tip at all, he can put it in the till or in his jar - it's entirely up to him. If it's stealing, it's the bartender doing it. If you give him/her a $10 bill for a beer, he can put $5 in the register and $5 in his jar, or he can put $0 in the register and $10 in his jar. Same thing if you don't tip at all, he can put it in the till or in his jar – it's entirely up to him.

]]> By: Bar Biatch - Dallas, TX http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18192 Bar Biatch - Dallas, TX Wed, 08 Jul 2009 18:22:14 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18192 The real answer is that it is a fairly simple calculation. It's an end #'s game. You know how much liquor you purchase, how much revenue/sales your bar is taking in. Therefore, with a proper POS, you have gross totals of how many ounces of liquor were sold and how many were given away. Weekly staff meetings and oversight maintain the proper proportions of keeping customers happy thinking they are getting a great experience, and not losing money by over-indulging the free drinks deal. The real answer is that it is a fairly simple calculation. It's an end #'s game. You know how much liquor you purchase, how much revenue/sales your bar is taking in. Therefore, with a proper POS, you have gross totals of how many ounces of liquor were sold and how many were given away. Weekly staff meetings and oversight maintain the proper proportions of keeping customers happy thinking they are getting a great experience, and not losing money by over-indulging the free drinks deal.

]]> By: Jack Germantown, MD http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18188 Jack Germantown, MD Wed, 08 Jul 2009 17:28:50 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18188 If I "sell" you 20 dollars worth of drinks, but "comp" you an equal number I cut your bill and my tip in half. Does this make sense to a bartender? They aren't dumb, they keep the math running in their head... If I "sell" you 20 dollars worth of drinks, but "comp" you an equal number I cut your bill and my tip in half. Does this make sense to a bartender? They aren't dumb, they keep the math running in their head…

]]> By: Michael, Burlington Vermont http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18185 Michael, Burlington Vermont Wed, 08 Jul 2009 16:23:28 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18185 A restaurant with bar in my town went out of business because of too many free drinks from bartenders. Much of this is the fault of the owner, for failing to notice what was going on, but still, the practice can easily get out of hand. A restaurant with bar in my town went out of business because of too many free drinks from bartenders. Much of this is the fault of the owner, for failing to notice what was going on, but still, the practice can easily get out of hand.

]]> By: Dobie, Indianapolis IN http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18183 Dobie, Indianapolis IN Wed, 08 Jul 2009 16:17:57 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18183 Whether it is stealing from the bar owner or not, it may just not make economic sense. How much extra are you tipping in order to get a free drink? How many free drinks are you geting? You may be spending more than you are saving. Whether it is stealing from the bar owner or not, it may just not make economic sense. How much extra are you tipping in order to get a free drink? How many free drinks are you geting? You may be spending more than you are saving.

]]> By: Dan, Fort Worth, Tx http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18180 Dan, Fort Worth, Tx Wed, 08 Jul 2009 16:05:03 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18180 Who cares. Men have been paying to get into clubs/bars while women get in free. That is gender discrimination. Women are bribing society with their tears. Who cares. Men have been paying to get into clubs/bars while women get in free. That is gender discrimination. Women are bribing society with their tears.

]]> By: Jenna, Hoboken New Jersey http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18179 Jenna, Hoboken New Jersey Wed, 08 Jul 2009 15:12:25 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18179 I have been a bartender for a long time (second job). The fact is, a good bartender brings the customers and keeps the customers. It is a good business decision on the part of the owner of the establishment to allow this to happen. Put it this way, it is always going to happen. If the owner is not going to allow it, you can be dang sure the owner at the next corner bar is going to reap the rewards of his ignorance. People are bartenders for the following reasons: they know the money that there is to be made, they have a great personality and they are attentive people. But most of all, people are always going to drink in good times and bad. The bartender is there with your poison in hand :-) I have been a bartender for a long time (second job). The fact is, a good bartender brings the customers and keeps the customers. It is a good business decision on the part of the owner of the establishment to allow this to happen. Put it this way, it is always going to happen. If the owner is not going to allow it, you can be dang sure the owner at the next corner bar is going to reap the rewards of his ignorance. People are bartenders for the following reasons: they know the money that there is to be made, they have a great personality and they are attentive people. But most of all, people are always going to drink in good times and bad. The bartender is there with your poison in hand :-)

]]> By: Matt, Hartford CT http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18177 Matt, Hartford CT Wed, 08 Jul 2009 13:19:41 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18177 What is "stealing" is charging $4.50 for a domestic bottle on a Wednesday. What is "stealing" is charging $4.50 for a domestic bottle on a Wednesday.

]]> By: simon, princeton, nj http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18175 simon, princeton, nj Wed, 08 Jul 2009 10:57:15 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18175 Thank you, captain obvious. Captains obvious, or in fact Dr. obvious. Thank you, captain obvious. Captains obvious, or in fact Dr. obvious.

]]> By: Joe Sowell, VA http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18174 Joe Sowell, VA Wed, 08 Jul 2009 09:05:37 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18174 I was a bartender and was allowed to give free drinks to good patrons. I tip well when I go out for food or drink. It is a two way street. Unless you have worked in this type of business, you may not be familiar with "comping" good clients drinks. I was a bartender and was allowed to give free drinks to good patrons. I tip well when I go out for food or drink. It is a two way street. Unless you have worked in this type of business, you may not be familiar with "comping" good clients drinks.

]]> By: gb-ch, cherry hill, NJ http://moremoney.blogs.money.cnn.com/2009/07/07/tipping-vs-bribing-your-bartender/#comment-18172 gb-ch, cherry hill, NJ Wed, 08 Jul 2009 02:56:51 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1591#comment-18172 So, how many free drinks do bar owners approve of? So, how many free drinks do bar owners approve of?

]]>