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Service workers’ tips slip

June 24, 2008
By CHRISTOPHER KROMER Tribune Chronicle
Brandi Bosley of Leavittsburg can remember a time, only a few years ago, when she could make almost $200 in tips waiting and busing tables on a Friday night.

Now, Bosley, a server at the Sunrise Inn in Warren, says that number is closer to $100.

‘‘We used to have lines out the door to get in here,’’ said Bosley, who noted the decline in customers has been gradual during her three years at the restaurant.

As economic indicators remain gloomy, consumers across the area continue to rein in spending, a trend that has those who work in the service industry — waiters and waitresses, hairstylists, barbers and bartenders — counting up fewer tips at the end of the day.

How much it’s hurting is hard to tell, since agencies such as the Internal Revenue Service and the U.S. Census Bureau that collect employment information don’t break out tip data. While the U.S. Bureau of Labor statistics includes tips in its wage estimates for professions that involve tipping, the information supplied by employers is not broken out separately.

Part of the problem, says Paula Culver, assistant manager at Famous Hair in Champion, is that customers are starting to come in less frequently.

‘‘We used to see our regular customers every six weeks or so,’’ Culver said. ‘‘Now, we see some of them every three months.’’

When customers do pay for haircuts, they have less to leave in tips.

‘‘Instead of getting a $2 tip for an $11.50 haircut, we might get 50 cents,’’ Culver said.

For Andrea Parker, manager of Famous Hair, working in the service industry still has its advantages.

‘‘You can actually go to work and take home money that day,’’ Parker said.

Tipping is so important in the service industry, in fact, that Billy Dreier of Warren, a bartender at the Horseshoe Bar in Warren, said he plots out strategy based on business trends.

‘‘On a day like Monday, when it’s not really busy, a big percentage of my tip is based on service and how friendly I am,’’ Dreier said. ‘‘But on Friday and Saturday when it’s busier, tips are based on how fast I am. People give more tips to keep the service fast.’’

Building a strong relationship with repeat customers is an important part of making tips, Dreier said.

The National Bartenders Association says the amount of tip income can vary by type of bar, but tips across the board probably make up about half of many bartenders’ income — and based on what it’s hearing from its members, tips are down.

With the local economy struggling, however, many who have lost jobs or taken wage cuts are finding ways to cut certain services out of their budget.

‘‘If you lost your job and you have two or three little boys, you can just buzz them in the garage for free instead of paying over $10 per head for haircuts,’’ Culver said.

And when customers bypass certain services, the trickle-down is profound. Culver said most hairstylists are paid on a commission basis. When customer counts are down, paychecks are smaller. Combine that with fewer tips, and incomes can shrink drastically.

‘‘It gets you both ways,’’ Culver said. ‘‘It’s unreliable.’’

While uncertain economic times may make things difficult for service workers, some say there are still benefits.

‘‘You can make fairly decent money here,’’ said Kim McCrystal of Niles, a server at the Sunrise Inn for the past 15 years. ‘‘These are good people to work for.’’

‘‘It scares me to think of doing something else because you don’t think you know how to do something else,’’ Parker said.



The Associated Press contributed to this report.

ckromer@tribtoday.com

 
 

 

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Article Photos

Tribune Chronicle / Steve Schenck
Lisa Gerke, right, a waitress at the Sunrise Inn in Warren, pours a cup of coffee for Debbie Cooley of Niles Monday. Service industry workers say they are receiving fewer tips as economic conditions worsen.