Earnings in food services and drinking places usually are much lower than the average for all industries. In 2002, average weekly earnings were highest in special food services ($258) and lowest in drinking places, alcoholic beverages ($171). Average weekly hours in all food service industries were lower than the average for private industry. Low earnings are supplemented for many workers by tips from customers. Waiters, waitresses, and bartenders, for example, often derive the majority of their earnings from tips, which depend on menu prices and the volume of customers served. In some establishments, workers who receive tips share a portion of their gratuities with other workers in the dining room and kitchen.

Earnings vary by occupation, geographic area, and by type and size of establishment. Usually skilled workers, such as chefs, have the highest wages, and workers who are dependent upon tips to supplement earnings have the lowest. Many workers in the industry earn the Federal minimum wage of $5.15 an hour, or less if tips are included as a substantial part of earnings. A number of employers provide free or discounted meals and uniforms to employees.

Unionization is not widespread in the food services and drinking places industry. In 2002, less than 2 percent of all employees were union members or covered by union contracts, compared with about 15 percent for all industries.