Eat, Drink, and Tip: Exploring Economic Opportunities for Full-Service Restaurants

This exploratory study sought to empirically confirm anecdotal observations by local area full-service restaurant servers, who reported that their tip income was nearly always better when customers purchased alcoholic beverages. Analysis of unambiguous point of sale guest check and credit card recei...

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Bibliographic Details
Published inJournal of foodservice business research Vol. 15; no. 2; pp. 176 - 194
Main Author Frash, Robert E
Format Journal Article
LanguageEnglish
Published Taylor & Francis Group 01.04.2012
Subjects
alcohol
alcoholic beverages
beverages
consumers (people)
credit
income
profitability
restaurants
tips
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Summary:This exploratory study sought to empirically confirm anecdotal observations by local area full-service restaurant servers, who reported that their tip income was nearly always better when customers purchased alcoholic beverages. Analysis of unambiguous point of sale guest check and credit card receipt data confirmed a positive relationship between alcoholic beverage purchases and servers' tip percentages. This is encouraging news for the restaurant industry, especially during the current economic downturn, because increased tip levels should motivate servers to sell more alcoholic beverages, which are highly profitable. Managerial implications are discussed.
Bibliography:http://dx.doi.org/10.1080/15378020.2012.677649
ISSN:1537-8039
1537-8020
1537-8039
DOI:10.1080/15378020.2012.677649