What is Gratuity known as?

Gratuity: Gratuity is money given by a customer to staff in a restaurant as appreciation for the service they offered. Commonly called a tip, gratuity is usually added to restaurant bills and is earned by servers, bartenders, or other service staff.

Restaurants commonly offer gratuity, which can be either-

• Freely given by a customer;
• Added automatically to a bill; or
• Shared among the staff in tip pools.

Amounts given as tips are highly varied; they depend in large part upon quality of service, and also upon local customs for tipping.

How Does Gratuity Work in Restaurants?

Gratuity is typically a percentage added onto the bill.

Here is the typical way that it is done-

• A customer is presented with a check after their order.
• The customer selects an amount or percentage to add for a tip.
• The tip is added to the payment total.
• The restaurant processes the tip on the POS system.
• The tip is divided according to the restaurant's policy.

Sometimes, the gratuity is automatically added by the restaurant for large group reservations or private events.