By Brianna Murphy

Consumers are cutting back to deal with the weak economy, but this is directly affecting students working as restaurant servers in Johnson City.

“I have noticed a decrease in tips here lately,” said Amber Cartier, an ETSU nursing student who works at the Firehouse Restaurant in Johnson City. “We are not as busy as we used to be, say, two years ago.”

Server's income goes down with business

Because Tennessee has no minimum wage law, servers at most restaurants are paid the federal minimum wage of $2.13. That is the minimum wage of $6.55 minus a $4.42 tip credit according to the U.S. Department of Labor. Servers base their income not on the $2.13, but on the tips they receive at the end of a customer’s meal.

In the environment brought on by the troubled economy, a GfK Roper Report says 55 percent of Americans are eating out less than they did last year. People eating out less means fewer tips for servers and fewer tips mean less income.

Many ETSU students working as servers have realized the decrease in their income and are now faced with changing their habits to compensate for the lost money.

“For the past two months, my average tip amounts have dramatically decreased,” said Tiffany Wingrove, a junior Human Services student who works at the Firehouse Restaurant, a locally owned business.

Another problem servers face is diners not tipping at all or walking out on their bill. Some businesses require the server to pay a percentage of the unpaid check, while others require the server to pick up the entire bill.

Christine Bradish, the general manager at the Firehouse, attributes the decrease in tips to people cutting back their spending while eating out.

“It’s been in subtle ways,” said Bradish. “It’s not a drastic difference.”

People who are still choosing to go out to eat are trimming the cost by splitting entrees or ordering water, Bradish said.

“On average, two people would spend $30-35,” Bradish said. “Now they are spending $22-25.”

If a customer planned on tipping the standard 15 percent, the tip would be $1.20 less. While it is not a large amount, over the course of a night it adds up.

Dealing with the decrease

For servers like Cartier, the decrease does not apply a harsh blow. Cartier works to pay her car insurance and for extra spending money. Since she still lives at home, rent is not a concern.

Wingrove has an internship that pays most of her bills, so she uses the money for groceries and gas.

When a server is using tips for full support, however, the situation is magnified.

Kara West, a nursing student who works at Applebee’s Neighborhood Grill on North Roan Street, waits tables to pay all of her bills.

“If I don’t get tipped, I don’t get to pay my bills,” West said.

In order to compensate for the decrease in funds, West said she has to pick up more shifts and work later shifts so she can keep her bills paid.

“It puts a strain on school because I can’t study as much,” West said.

Wingrove and Cartier have both looked for creative ways to make up for the decrease in tips. Since Wingrove spends her tips on groceries and gas, she said she has tried to make things like bread and milk last longer, as well as the gas in her tank.

“When I go out with friends, we carpool instead of each of us driving individually,” she said.

Cartier has taken many of the same steps other consumers have.

“I’ve tried to cut down on eating out,” she said.

Christine Bradish at the Firehouse has taken note of the difference between servers who pay all the bills and those who only pay some.

“The people who are paying their own rent are picking up shifts, but the people working for extra money, I’d say not,” she said.

Optimistic management

Although servers experiences shortages, many restaurant managers and owners are optimistic about their situations. Mike Harwood, the general manager at the Johnson City Applebee’s, said that although he’s been out of the restaurant for a month, he hasn’t noticed the economy’s effect.

“Initially it hurt when gas prices shot up,” Harwood said, “but since it’s gone down our customers have been coming in strong.”

At the Firehouse, owner Tom Seaton takes encouragement from the fact sales are only off 5 percent from this time last year.

“We’re feeling good about it,” Seaton said. He said he does recognize the effect of decreased sales on the servers, though.

“That is where the problem is,” he said.

Bradish sees servers’ attitudes towards the decrease as positive and recognizes the work servers are putting out.

“I haven’t seen morale go down in employees,” she said. “I don’t think any of it is reflective of service.”

Servers in Johnson City, June 2008

• 1,920 people work as servers
• Servers make $2.13 per hour plus tips
• Average income is $15,700 per year

Sources: Tennessee Department of Labor and Workforce Development and U.S. Department of Labor

Graphic: Brianna Murphy