How do I find out whether a family diner’s servers rely on tips and tenure?

Ask the seller to explain the pay setup in detail: base wages, how tips are pooled or kept, and whether anyone is paid on the side. Have your accountant look at the payroll records to see that they match the description. Informal arrangements are the ones to look at closely.

Next, find out tenure. Request a staff list with start dates and roles. A group of long-serving servers carries the regulars’ relationships and the know-how; a group that turns over often tells a different story. Ask who the seller would be most upset to lose.

If the seller agrees, speak with the senior servers once the sale is serious. Ask what they like about the job, what they would change, and what they worry a new owner might do. Their worries show where the risks are. Finally, think about your own changes. A new schedule, a different section layout or a shift in menu prices can change how much tip income servers take home, and some will leave. Ask your lawyer about taking over employment terms. Ask the seller to explain any difference between what servers say they earn and what the records show, and keep the answer in writing.

Key takeaways

• Get a clear written account of base pay and how tips are shared.
• Match the staff list and start dates against payroll records.
• Think about how your planned changes would affect what servers take home.