CINCINNATI — At the Corner Pub on Cincinnati’s west side, bartender Melissa Metz can count the cost of the economic hangover in the stack of bills she has at the end of a shift.
Those tips make up the majority of her income, but they’ve been dwindling for months amid rising gas prices and other economic woes. Right now, her weekly income from tips is down about 25 percent.
“Some people are coming in less and maybe not staying as long when they do come in,” Metz said. “And normal customers who would normally tip $5 are tipping about $2 now.”
Bartenders, waiters, hair stylists, cab drivers and other workers who depend on tips for much of their income are among those who say they are seeing decreases as customers feeling the economic pinch trim their gratuities — or sometimes omit them entirely.
The pinch can come from many sides, as customers are also cutting down on how often they eat out, have their nails done and get other services that typically involve tipping — or spend less each time, meaning a lower total to tip on.
How much it’s hurting is hard to tell, since agencies that collect employment information, such as the Internal Revenue Service and the U.S. Census Bureau, don’t break out tip data.
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.
Association President David Craver said the economic pressure on bars and restaurants now is high, especially in very competitive markets.
“There is less overall business to begin with, and then on top of that, people are a little tighter with their money,” Craver said. “Someone who might have tipped $5 may only be leaving $3 now. The next thing you know, everybody’s making 25 to 30 percent less on a monthly basis than they normally do.”
Waitress Jewell Cundiff, 24, is trying to pick up extra days at the Anchor Grill in Covington, Ky., to make up for it.
“We used to get tips of about 20 percent of a bill, but now it may be 15 percent or less,” said Cundiff, who says 75 percent of her income at the diner depends on gratuities.
“People just aren’t eating out as much either,” she said. “If you don’t serve as many people, you don’t get as many tips.”
Michael Lynn, a consumer behavior professor at the Cornell University School of Hotel Administration, has studied tipping behavior and isn’t surprised workers are reporting that it’s declining. Since his studies show that people with high incomes tip more than people who earn less, he said, it follows that people tip less when the economy sours and their income drops.
“Paying $80 to fill up your gas tank can really put a chill in people,” said Anthony Townsend, a professor in the College of Business at Iowa State University. “And people react to more apparent times of economic distress by tending to economize around other issues.”
Neil Tibbitts of Boston, a former waiter, said he has been trying to dine out in less expensive places but always tries to leave at least 20 percent.
“If the service is good, that should be rewarded.”
That should be good news for Metz, who is trying to make up her lost income the only way she knows how.
“I was working a 40-hour week; now I’m working 50,” she said.
What they’re making an hour
Numbers employed and median hourly wage, including tips:
Waiters and waitresses: 2.4 million; $7.62.
Bartenders: 498,090; $8.22.
Hairdressers, hairstylists and cosmetologists: 343,320; $10.68.
Taxi drivers and chauffeurs: 165,590; $10.01.
Manicurists and pedicurists: 52,730; $9.60.
Barbers: 12,110; $11.31.
Source: U.S. Bureau of Labor Statistics
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