What Happens To The Tips You Give Chili’s Servers?

Audio By Carbonatix

Working in restaurants can be rewarding, but it is often frustrating, especially for servers who rely almost entirely on tips to make a living. Between long shifts, demanding tables, and low base pay, many in casual dining say the job often leaves them drained and underpaid. Now, one Chili’s server has shared exactly why the company’s tipping system feels stacked against workers.

TikTok creator @lifeofmdp posted a video explaining how Chili’s requires servers to give up a portion of their tips through what’s known as “tip out.” The video got more than 214,000 views and struck a nerve with many viewers.

“I work at Chili’s as a server, and I love it. Great management, great people. I couldn’t have asked for a better staff to work with,” he said, before adding, “but I hate our tip-out system so much.”

He broke down what happened during a recent shift.

“I made $180 in tips today, which is phenomenal for a seven-hour shift,” he explained. “But we have a tip-out system that says you have to tip out 5% of your sales. Not your tips, your sales.”

That day, his sales totaled around $1,400, meaning 5% of it came to $70.

“So instead of going home with $180 in tips, I had to tip out $70, which leaves me with $110,” he said. “I made more money working my regular nine-to-five job.”

He added that no matter how hard servers work, the system makes it nearly impossible to get ahead.

“If you work harder and get more tips, you’re also generating more sales,” he said. “So it never matters. It’s like a catch-22.”

What Is Chili’s ‘Tip-Out’ Policy?

Chili’s, like many restaurant chains, requires servers to tip out support staff such as bartenders, food runners, or bussers, often around 5% of sales.

A common breakdown is 4% to food runners and 1% to bartenders. This practice is meant to share earnings with staff who earn low hourly wages, but many servers online argue that it feels unfair in practice.

This policy doesn’t sit right with all servers. Some complain about its unfairness, saying they are often required to tip out even when support staff aren’t present or when someone gets cut early to save the company money.

Commenters Call It ‘Stealing’

In the comments, many sided with the TikToker, saying they would be furious if they found out their tips weren’t going entirely to their server.

“So in other words, they’re stealing the tips that we leave for the servers – say less!!” one user wrote.

Another asked, “If you made zero tips would you still have to pay 5% of sales?” The creator confirmed, “You’re correct.”

Others suggested he find a new job. “No way. Go somewhere else. They are relying on the servers to pay their other staff. Chili’s is cheap,” one person said.