Gratuity models at restaurants and bars have evolved over the years, driven by shifting cultural norms, labor market pressures, and consumer expectations. If it was once standard for a server to earn a tip and keep it for themself, it’s now much more varied based on the operator and how they choose to run their business. And while many restaurants still opt for a more traditional model, tipping out team members based on sales, others have experimented with alternatives, like service charges, tip pooling, and eliminating tips altogether in favor of higher menu prices and higher wages for staff.
In another installment of our tipping series, Full Book spoke with Tommy Lombardo, owner of Ristorante Lombardo in Buffalo, N.Y., about why changing from a traditional tipping system to a tip pool worked for his family’s 50-year-old establishment, and why a weekly tip pool at their younger concept, The Little Club, helps provide better consistency and wage stability for his team.
The following interview has been edited for clarity and length.
Tommy Lombardo, Host & Owner, Ristorante Lombardo & The Little Club, Buffalo, N.Y.
Can you describe the tipping system at Ristorante Lombardo?
Lombardo's is a fine dining, white tablecloth restaurant. We've been in business for 50 years and for about the last 15 years, we've been doing a tip pool for the front of house. (The way we have it set up, it wouldn’t be legal in New York State to include the back-of-house staff in our tip pool.) It’s based on a point system. Servers and bartenders get one full point; hosts, expediters, server assistants, and bussers get a half point; at times we have a polisher polishing wine glasses and things like that and that person gets a quarter point. We total all tips made in a night and divide that by the total number of points. Each person gets their share based on their assigned point value.
We use a Google spreadsheet to track everything. By the next afternoon, our bookkeeper populates it with the previous night’s data. You’ll see how much you made — both cash and credit card tips. Cash tips are handed out directly, and credit card tips show up in paychecks.
Why does tip pooling work for your restaurant?
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