41 Replies to “Is Tipping Out of Control?”

  2. Sorry. I’m old school. The US restaurant biz is set up on a 15% tip basis so servers wind up with some sort of minimum wage. Servers can increase their take by running more tables and working harder to get better tips.

    15% is my baseline for good service. Less for poor service. More for excellent service. 20% is max with one exception; our favorite waiter is so good, we call ahead where he works and reserve a seat in his section. And if he’s not scheduled, we will change the night out for the dinner. He’s that good and gets 22% to 25%. I’m betting the guy clears close to $300 a night (more?) in tips.

    This video is timely. My wife and I had dinner at a chain restaurant. There was only one waitress when we got there. Just under half the tables were occupied and I didn’t hold much hope for decent service.

    Turns out this young woman was born to be a waitress. She was a mind reader. She would look at every table as she passed by on her way to some other table and back to the kitchen. On her next run she already had what you were going to ask for, and for another table, and for another table. Yet, when she stopped at a table, she gave her full attention as though you were the only table she was waiting.

    Where we would normally be asking for the check, she was headed back to the kitchen… and dropped off our check. We have had worse service with 3 or 4 servers for the same number of tables. The lady was a true pro.

    I calculated and gladly added a tip that was something over 20%.
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    I don’t tip cashiers. They are paid some rate, if only minimum wage. It’s not the same part pay part tips system as for servers in the US. What, did they hit that ‘Total’ key in some elegant way that I should tip them? Baroque flourishes on the 1 and the 5 keys? Still no tip.

    1. There was this waitress somewhere in the US, don’t remember where (SW USA, near an airbase). She would handle several tables of 6 or 7. She did not have written note. She would take your order and you did not have to repeat yourself. She was kinda famous for it, so we change places around the table to see what would happen. She got all our orders right, she was a lady (she was about 26) and gave service with a smile. So yeah, big tip, no question. I wonder what she does now.

  3. I worked my way through college waiting tables. I tip generously when I go out. But I don’t go downtown where the wait staff has a $15 minimum wage. It’s too damn dangerous now. So is the neighborhood where I worked through college.

    Fast food? Sorry, no tip. Convenience store? RUFKM? Same thing with the grocery store round up to the nearest buck for charity. Why should I pay money for the grocery store to get a charitable tax credit using my money?

    +++++
    Lydia, For a month we had a four top of ladies that came in twice a week. No tip. I mean ZERO. Well they got good service anyway for a while. After four weeks, we had a big rush one night they came in. Slammed! They were last in line for everything, because paying customers come first. Their food was hot and they got their drinks, but everyone else gave me their orders first, and got their drinks first. Hell, I helped Beth and Vicki’s customers more than those four in my station

    They left me two cents. Funny thing? That two cents more than they left any of us the previous six times.

    We picked up three new tables of regulars from that night, so no one even missed them.

    1. There are a couple of bartenders that I regularly “over tip” as they are always attentive and I never have to ask for the product I consume.

  4. I have no problem tipping 20% for decent table service. What annoys the crap out of me is fast food places like Subways and burrito joints that have the tip prompt on their POS machine – usually preset with 18, 20 and 25% settings.

    1. The push for that came from the CC processors who get from 1.8 to 5% on each transaction, which also includes any charity scam the business is running, tips, and tax.

  5. 20% in a sit down restaurant. 0% in take out or fast food unless it’s upscale. Otherwise you’ll have to tip the gas attendant.

    We have been eating at the same restaurant for 49 days here in Quebec in the field. The staff are awesome. The owner went to his butcher and got us some rib eyes not on the menu. The wine glasses are overfilled. Everyone is happy. People who wait on tables live hand to mouth so why not help them out.

    1. “The staff are awesome. The owner went to his butcher and got us some rib eyes not on the menu. The wine glasses are overfilled. ”

      ————————————
      Steve, that’s what gets 20%+ from me.

      Average service, no special requests, gets 15%.

      A server really on the ball gets around 18% +/-.

      Then you get to a case like you wrote about and servers like that deserve really good tips.

  6. I’m bad at tipping because I often tip too much.
    My girlfriend was in the industry for a long time.
    She said retired teachers were shitty tippers.

    2. Having worked in the restaurant biz for 20+ years in the 70’s-90’s, I can attest to this. Teachers in general are shitty tippers.
      Large groups were notorious for asking for separate which, back in the day, had to be done manually. Large groups, especially teachers, were also notorious for not leaving a tip.
      My wife and I tip 15-20% when we dine out except when we order a bottle of wine. I can’t justify a 15% tip for the 3 minute transaction of opening the wine. I usually deduct the price of the wine from the bill and tip on the balance.
      Don’t get me started on today’s practise of everyone asking for a tip.

    3. I worked as a waitress in third year at a vegetarian restaurant in Winnipeg (back in 1973). I could only work Friday nights, started my shift cleaning the front of house because it was dirty and then took care of 60 people because I was the only server on Friday nights. Then after closing, I was expected to stay and help clean the restaurant again as well as the kitchen. Marianne, the cook and I would enjoy a glass of sherry after (she claimed to the owner that she “needed” the sherry for her recipes!). The owner told me that many customers would only come in on Friday nights because they liked me. Still only made minimum wage of $ 1.50/hour plus any left over food which I could take home.
      I discovered that vegetarians and NDP are the absolute worst tippers of all time.
      I DO tip but not on all of the taxes. I have had some really bad service, so do not tip at that restaurant and NEVER go back.

  7. I’ve had employees. I paid them. I did not expect my customers/clients to pay them. I pay 10% or if somebody works really hard to piss me off, nothing. A tip if I have to stand in line or are served at a counter? Dream on.

    1. @scar – are you US or Canadian? In the US, the gubmint set up the system whereby servers get part of their wages from tips. As I understand it, Canada doesn’t have similar laws.

      If a US restaurant paid the servers what they’d make in the base pay +tips, the menu prices would have to be raised much, much higher than similar restaurants, and that generous owner would soon be out of business.

        1. This approach has been tried by several restaurants in Toronto and has failed. People get sticker shock when they see the price of an item and it’s 15% higher than every other restaurant in the area.

        2. scar: “How are tips not already part of the price?”
          .
          Ah. It seems you are not US.

          I’m not going to look up current actual numbers, but in the US Minimum wage by law might be $10 per hour everywhere but in restaurants. In restaurants, minimum wage by law is say $4 per hour and the restaurant owner prices meals based on the $4 per hour. Tips are not part of the price.

          It is perfectly legal for a restaurant owner to inform diners that the tip is included and reflected in the raised menu prices, and then pay the servers the $4 plus what they’d average in tips for their hourly rate. But then they would be at a price disadvantage vs menu prices at similar restaurants.

          I don’t know what your business is, but let’s say it’s selling and installing tires. You buy the same tires for the same price as the other tire shops in town. But being the fair and generous sort, you pay your employees 20% more than the other shops do.

          You now have a choice. You can absorb the extra 20% labor cost and charge the same as the other shops or you can raise your prices to cover the extra 20%. But of course then all the other shops have a lower price than you do and you will lose sales. Whereas you used to get your share of the town’s tire business, now there are a bunch of other shops cutting into your sales because they sell for less.

          Your profit margin on sales remains the same but net profit declines due to lost sales. Perhaps it declines to the point that the shop goes under.

          Now granted, the restaurant business has more variables than the tire business. Every shop that sells Goodyear tires sells the exact same tires. But maybe a restaurant has some amazing recipes that no other restaurant can duplicate and a kitchen staff that nails each order to perfection. People will pay a bit more, even a fair bit more. But for equivalent menu items, most people will go for lower price just because, for argument’s sake, the amazing $23 hamburger just isn’t worth $9 more than the very, very good $13 burger down the street.

          As Mr. K points out, the approach of raising prices to pay servers more and eliminate tips was tried in Toronto. He didn’t tell the end of the tale, but my guess is that those restaurants either went under, or they went back to the industry standard business model. They no doubt were seeing more empty tables due to higher prices than their direct competitors, and restaurants can’t survive empty tables against their fixed overhead.

          Restaurants are a complex undertaking. The attached article below, that no one here will read, briefly mentions prices halfway through, but in the end, it’s all about getting butts in the booths night after night after night, year after year after year.

          The Anatomy of Restaurant Failure
          https://www.menucoverdepot.com/resource-center/articles/restaurant-failure/

  8. I’m sorry, that’s just plain ignorant. People in the hospitality industry for the most part work their ass off. I appreciate that and will tip 99% of the time starting at 15%.
    When I don’t tip it is usually something wrong with the order and they comp it anyway.
    Staff make minimum wage (and don’t come back and say they show be paying better wages). Tips help them top up their earning and the go getters make more for their efforts. Most hospitality workers are in school and have plans to move on. If a server was paid $20.00+ an hour you would be paying $45.00 for a cheeseburger.

    1. But restaurants, in particular, pre-charging a gratuity is bullshit. If they want to do that charge more for the service and pass the increase on to the employees.
      I used to work in a bar as a waiter. I earned my tips. I didn’t expect them. I treated non-tippers and big tippers the same way.
      Also, I’ll decide what I’m going to tip based on quality of service.

    2. The farmer gets <$1 for the quarter pound of beef and <$0.05 for the wheat in the bun.
      How do you get $45 for a cheeseburger?

      How many tables does a typical waitress work? If there are 5 tables with $60 of sales per table, the gross is about $300/hr so tips 10% is great pay for that work.
      Not sure where you live Bob but around my parts McD's has to pay $20/hr to get staff and convenience stores pay more than minimum wage to keep high school kids working for them (or they go work somewhere else that does pay more).

      2. Not sure where you’re dining out to pay $45 for a cheeseburger. The average price in our local restaurants is $18-20.
        Here’s a breakdown of what it costs to operate a restaurant.
        Food & beverage costs are typically 30-35% of the selling price.
        Wages, including payroll taxes and benefits, are approximately 35%.
        Fixed costs (rent, insurance etc.) and operating expenses (glassware, dishes, trash removal, cleaning supplies, repairs & maintenance, etc.) run about 15%.
        If you operate a franchise, deduct at least 5% for royalties.
        And don’t forget the tax bill that is due every quarter.

        Doesn’t leave much profit at the end of the day.

        1. A hamburger in a typical chain restaurant right now today, I’m taking Earls, Joey’s, BP etc is over $20.00 now. Add options like cheese, bacon etc and you are hitting $25 to $30 now. To pay over $20.00/hour for servers, you will be paying $40.00 for that burger. PERIOD.
          I am talking Winnipeg. Min wage is $15.30

      3. You don’t go to restaurants much, 5 tables at $60.00 per table??? Of course you don’t say how many at the table.
        Try $60.00 per person at any mid tier typical chain. Earl’s, Joey,s BP’s and some good local places.
        McD’s is not a restaurant that one would “go out” or take a customer.

      1. BINGO. I was in Montreal once on a cross continent motorpickle ride. At dinner I ordered a decaf coffee emphasizing, too many times I guess, that it HAD to be decaf or I wouldn’t sleep. I slept nary a wink.

    5. Well don’t bother eating out!!
      NOT A SOB STORY, THEY WORK HARD FOR THEIR MONEY TOO.
      And I bet you make them work their ass off because you are paying with your “HARD EARNED MONEY” Then ignore their hard work.
      I would not serve you.
      There’s cheap and then there’s CHEAP!!!
      What a piece of work…….

  10. In socialist Europe they don’t tip. The prices are high and the service sucks. In capitalist America (at least it used to be) tipping rewards hard work. The prices are lower and the service is great. Relatively speaking.

    On the other hand, I agree, when 20% is the minimum tip amount on the card reader, tipping expectations are out of control.

    1. On machines you can manually enter what ever you want or better yet tip cash and whatever % you like.

  11. I dealt cards at a casino and most of our earnings were tips so I tip well, which is easy since I go out so freaking rarely.

    When i arrived in Soith Korea, I was waiting for someone to get my bags. I asked someone at a counter how much to tip the guy. A man overheard and told me there’s no tipping in South Korea. At all. For anything.

    I got used to that REAL fast….

    PS….It was my first time outside of North America. The guy came, picked up my bags and I quickly followed him outside. My first time in Asia. I looked up at the sky for a few seconds to take it all in. And just like that, the guy was gone….

  12. Is Tipping Out of Control?

    More accurate question: Is the expectation of tipping out of control?

    In a word, yes.

  13. I’ll tip 20% for great service. That means efficient, cheerful and attentive. Anything less deserves less although my wife gets mad at me. I won’t tip someone who merely pours me a coffee or hands me something over the counter. Like Matt says, I could do that myself. I get decent tips when I play and sing and I tip musicians who please me or, at least, are working hard.

  14. Yes.
    Totally out of it on two fronts.
    First the adding a tip on your bill,arrogant,stupid and a gift to the thieving scum over at Revenue Canada.
    Always pay the tip in cash.
    And serving is harder work and damn near impossible to motivate in any other way.
    So while we reward good service with money,there are a never ending bunch of thieves lined up to separate the server from their reward.

    And I cook better steak at home than I have eaten in most restaurants.

    1. Well said, John.
      My wife and I almost always leave the tip in cash. And serving is definitely more difficult than most people realize.
      I also grill a great steak at home but have to admit that sometimes I enjoy a steak dinner at The Keg.

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