Future Business Leaders of America (FBLA) Agribusiness Practice Test

What kind of salary is typically received by a waiter or waitress?

1. A base salary

2. Salary plus benefits

3. Salary and commission

4. Only commission

The correct answer is: Salary and commission

In the context of waitstaff compensation, they often earn a combination of a base salary (which may be minimal due to the nature of tipping in the food service industry) and additional income through tips. While the structure can vary significantly by location and restaurant type, many waiters and waitresses aren't paid a traditional salary in the same manner as other professions. Instead, they often receive a small hourly wage and rely heavily on tips for the bulk of their income. This system effectively turns their earnings into a mix of base salary and commission based on the service they provide, as larger tips correlate to better service and performance, which is akin to a commission structure. This model tends to provide an incentive for excellent service, as a happy customer is more likely to leave a generous tip, thus directly tying their earnings to their work performance. Options solely referring to a base salary, salary plus benefits, or commission do not accurately capture the typical earning model of waitstaff in the industry.