In restaurants, a tip out occurs when someone in a heavily-tipped role shares a portion of their tips with other employees. Tipping out distributes gratuities to everyone who is eligible to receive them.
For example, when guests leave a $20 tip at a restaurant, they might assume the entire amount goes to their server. However, servers are not the only ones who contribute to a guest's dining experience. A tip out ensures other employees working in the front of the house share in gratuities, such as:
Barbacks
Bartenders
Bussers
Food runners
Hosts & hostesses
In this example, the server might keep $10 of that initial $20 tip, with the bartender receiving $4, the runner receiving $3, and the busser, barback, and host each receiving $1. The tipping out model acknowledges the contributions of all of these positions, with extra weight given to those who have a more active role in forming a connection with guests.