Gratuity - is it Gratuitous?

[Jedi_Master]

To tip or not to tip, that is the question.

Do you tip at restaurants and bars? If so, how much?

Do you tip your barista, or your mailman, or your garbageman? If so, how much and how often?

Would businesses be better off paying their employees a reasonable wage and passing that cost off to the customer, rather than relying on the customer to help the employee overcome the cost of his or her wages?

Is it appropriate for a restaurant, bar, coffee shop or some other food/beverage to add a "service charge" to the bill, or automatically add gratuity?

Does tipping encourage good service?

All perspectives welcome.

Spoiler: My opinion

Full disclosure: I waited tables for almost 12 years, and I am a strong supporter of tipping at restaurants and bars, primarily because in the United States servers are paid - in my opinion - a criminally low wage. However, I am reluctant to tip a barista, or some other employee that I know is receiving a full wage, even if it is too low.

I also am irritated at the "tip jar creep" where tip jars are appearing at more and more establishments. For example, my mechanic now has a tip jar on his front desk.

But as a whole, I thinking that gratuity has a useful place, and it does allow talented people to make far more than they ever would be paid if they had to rely on their employer to pay them a proper wage.

 

[RoJoHen]

As an American who has been in the industry for the last 10 years, I understand the importance of tipping. I understand that servers and bartenders are, typically, not paid a reasonable wage. They have a whole set of wage laws because American culture has come to think of them as "tipped employees." National Tipped Minimum Wage is only $2.13/hour. The expectation is that they get paid in tips, and their paychecks are really only there to cover their income taxes.

Is it fair to the consumer? I don't know. I've been waiting tables and bartending a long time, and most people seem to have no problem tipping. I've also been doing this long enough that it doesn't bother me when the occasional person doesn't tip me. Some people are crappy tippers. Some people are awesome tippers. Most people are average tippers (15-20%).

I don't see the custom changing anytime soon. I have worked tipped jobs, hourly jobs, and salaried jobs, and I have to say, I definitely prefer being a tipped employee. And maybe it's because I've been a tipped employee for so long, but I also love leaving tips for people! My average tip is probably around 40%. If you give me good service, you will definitely get rewarded for it.


As for other industries, I always tip when I get my haircut. I've been going to the same girl for about 7 years, so I tend to tip her more and more as time goes by. I don't actively tip my baristas, but if there's change from the transaction I'll throw that in their tip jar.

I got a tattoo about 7 years ago. It was my first and only tattoo, and I didn't know that people usually tip their tattoo artists, so I didn't. It still haunts me to this day.

 

[Taylirious]

I tip regardless of how good the service is and I tip where it is appropriate. I don't frequent places where tipping is custom all that often but when I do it is a lot because I don't go out much anymore. I have been known to tip anywhere from 50-100%. I am crazy like that.

 

[Miss Chicken]

I live in country where we don't tip. The minimum wage here is $18.70 an hour and that includes people in the hospitality industry. I do however usually tell pizza delivery men and taxi drovers to keep the change but that is usually only $1 or 2 at the most.

I am usually happy with the service I receive.

I would be interested to see how our prices compare so here is a link to a menu of my local bistro. An Australian dollar is currently worth around 80 cent US.

Shoreline Hotel menu

 

[Alidar Jarok]

I think gratuity serves a useful purpose. I think it's important to keep in mind you're paying for labor rather than adding a bonus for exceptional service. If they changed the name to something else, that might help clear the confusion. But I do think it's a good thing that it's flexible. If you get bad service, you have a right to pay less for the lower quality.

I also do think it improves service, but not in the way you think. Labor is already an expensive part of a restaurant - and that's at $2.23 an hour. If they had to pay everyone minimum wage during that time, even when there were no tables, they'd dramatically cut the wait staff. You'd end up with one or two servers responsible for eight or nine tables each (typically, the maximum anyone should have is five). At least charging the table the service charge helps ensure they're not getting paid for more tables than they're working, so they can ensure there's adequate staff at all times (although it's never perfect, particularly late when many have been cut).

Of course, I say all that knowing full well that other countries manage just fine. So I do think the concerns are overblown. But they're still things to take into account.

 

[RoJoHen]

Of course, I say all that knowing full well that other countries manage just fine. So I do think the concerns are overblown. But they're still things to take into account.

Well, you'd either have to cut your staff, which would severely impede service, or hike your prices to compensate.

 

[Locutus of Bored]

I predict that unlike the 900 previous threads on this subject, this thread will resolve the issue of tipping once and for all and will do so without any hyperbole, generalizations, or anger that's completely disproportionate to the topic of conversation.
-- Psychic Nikki


I tip well because that's what is expected here in the US and what the servers require for a decent living. However, I wish the practice of tipping was regulated out of existence (at least, the part where it's needed to pay the servers a decent wage --if you want to do it for good service over and above any extra charge on the bill, by all means, go for it) and that a living wage for servers was standard and incorporated into the bill like most other businesses and countries do.

[yt]https://www.youtube.com/watch?v=q_vivC7c_1k&spfreload=10[/yt]

 

[Jedi_Master]

I would love to see tipping the server to be like tipping the postman: done on special occasions and only to say thank you for exceptional service.

The stress of not knowing what you are going to make on a given shift is exhausting.

Some days I would have $1500 in sales and only make $140 bucks after tip-out (a really insulting practice) and then other days I would have $900 in sales and make $200 or more. It's hard to budget when you have such wide range of possible incomes.

 

[Tora Ziyal]

I predict that unlike the 900 previous threads on this subject, this thread will resolve the issue of tipping once and for all and will do so without any hyperbole, generalizations, or anger that's completely disproportionate to the topic of conversation.
-- Psychic Nikki

I tip well, because unfortunately that's the way it works here in the U.S.

But I'd prefer to have employers all pay their staff appropriate salaries and charge customers accordingly. Why do we treat workers in the hospitality industry (and a couple others) so differently than others? Can you imagine hospitals paying doctors lower wages and expecting patients to tip to make up the difference? Or buying some renovation supplies at Home Depot and being expected to tip the staff for answering questions?

Doesn't make sense.

 

[Mr. Laser Beam]

I tip...over.

srsly, I tip where tipping is customarily done, and I do it gladly. But I ultimately think that all employees should be paid a decent wage, which does not take tipping into account. Any tipping should be a bonus.

 

[Botany Bay]

Taking the economic impact on the server out of it, I can tell you how it seems from my point of view as the customer both in Australia where I live, and the USA where I spent a month this year, and travel there whenever I can.

USA
Reasonably priced meals, with massive servings. Almost without exception the waiters are knowledgable, ultra friendly, and go out of their way to make even a meal at a pancake restaurant something special for the diner. Is it the thought of pocketing a tip that makes the service so good? I don't know.

These days I tip anywhere between 20% of the pre-tax bill and the sky's the limit. I regret I used to tip 10% plus a bit extra, but then it was explained to me that servers are taxed in their earned income plus an assumed amount for tips, so I feel bad about that.

Australia
Comparable restaurants are much, much more expensive, with smaller portions here due to the high minimum wage, plus additional "penalty rates" that apply for late night, weekend and public holiday work. These penalty rates are significant -- eg : a 50% extra loading applies for employing certain staff on Sundays. Employers strongly oppose penalty rates, but most support the minimum wage. Given the meals are so much more expensive, the only tips given are "Keep the change" when paying in cash, or a few dollars in the tip jar on the way out if the service has been great.

The difference in service standards between the USA and Australia is frankly worlds apart. It's the first thing you notice when you get back to Australia -- no complimentary refills, slower service, much less attention during the meal. We have a lot to learn about restaurant service (and retailing) from America. That's not to say there aren't some fantastic hospitality people here, but, in general, an "acceptable" waiter in Australia wouldn't last five minutes in the USA.

Is it the tips that spur people on to excellence? I don't know, but there is certainly a big, big difference in the experience for the customer between the two countries.

 

[MacLeod]

Taking the economic impact on the server out of it, I can tell you how it seems from my point of view as the customer both in Australia where I live, and the USA where I spent a month this year, and travel there whenever I can.

USA
Reasonably priced meals, with massive servings. Almost without exception the waiters are knowledgable, ultra friendly, and go out of their way to make even a meal at a pancake restaurant something special for the diner. Is it the thought of pocketing a tip that makes the service so good? I don't know.

These days I tip anywhere between 20% of the pre-tax bill and the sky's the limit. I regret I used to tip 10% plus a bit extra, but then it was explained to me that servers are taxed in their earned income plus an assumed amount for tips, so I feel bad about that.

Australia
Comparable restaurants are much, much more expensive, with smaller portions here due to the high minimum wage, plus additional "penalty rates" that apply for late night, weekend and public holiday work. These penalty rates are significant -- eg : a 50% extra loading applies for employing certain staff on Sundays. Employers strongly oppose penalty rates, but most support the minimum wage. Given the meals are so much more expensive, the only tips given are "Keep the change" when paying in cash, or a few dollars in the tip jar on the way out if the service has been great.

The difference in service standards between the USA and Australia is frankly worlds apart. It's the first thing you notice when you get back to Australia -- no complimentary refills, slower service, much less attention during the meal. We have a lot to learn about restaurant service (and retailing) from America. That's not to say there aren't some fantastic hospitality people here, but, in general, an "acceptable" waiter in Australia wouldn't last five minutes in the USA.

Is it the tips that spur people on to excellence? I don't know, but there is certainly a big, big difference in the experience for the customer between the two countries.

It's very similar in the UK, sure they make at least minimum wage and any tips are extra, but the only way to get that extra is to provide service that goes above expectations.

But is it also partly cultural in that some nationalites are more like to complain about medicore servidce whilst others will let it slide to a point. When I had a job that involved staying in hotels/eating out 5-6 nights a week, I did complain about poor service occasionally but those were the rare exceptions when I recieved really poor service. One time there was only me and a few other diners and some 15-20 mins passed when no waiter come to see if I wanted anything else. I eventually had to go and seek them out. Yes I did get part of my meal complimentary.

Yes I've been to the States a couple of times and experienced great servive there but I've also experienced the same kind of great service here in the UK. But as a Brit, all I really want is to be taken to my table when it's ready, the menu's brought, ask if I would like a drink and give me a few mins to look over, come back to take my order. Maybe ask a couple of times if I want anything else during my meal, then ask If would like to see the dessert menu or a coffee. A final check to see if I want anything before being asked If i would like the bill. Now in the US they might increase the frequencies of visit but is that down in part to simply what the cultural expectations are?

 

[Miss Chicken]

I am usually quite happy with the service, size of meals and prices when I go out for a meal in Australia. However I usually only go to hotel bistros not top class restaurants.

If I go to my local hotel I buy a main meal which means that I also get to use the all you can eat buffet (which is self serve). I usually get a small plate from the buffet to eat while I wait for the main meal. The server tends to come by once in a while to ask if we want another drink, to ask if we like the meal , or if we want desert or a coffee, that is all I need. I don't want a server hovering around too much.

There are some other hotel bistros I go to and I am happy with their meal size though they don't have buffets. I do not mind waiting 20 minutes for a meal because I am usually out with friends and family and it nice to have a chat and a drink before the main meal arrives.

When my son was moving to Brisbane we had a going away dinner at my local hotel. There were 10 adults and 2 children present and it cost me just under $400 (for all the main meals, the buffet and initial drinks, plus 2 deserts) and I was quite pleased with that price. When people wanted another drink they went to the bar so it wouldn't be put on my bill.

 

[Alidar Jarok]

Now in the US they might increase the frequencies of visit but is that down in part to simply what the cultural expectations are?

There's a bit of a chicken or egg thing there, though, isn't there? The cultural expectations include giving a tip at the end, so it's hard to separate whether the more frequent visits are due to receiving tips or not.

 

[jaz'a]

I can't remember the last time that I got bad service in a restaurant. If they provide bad service they don't lose a tip (I don't give one) but I won't be back. It's the bosses job, not mine, to make sure that the employees do their job.

 

[jaz'a]

I would love to see tipping the server to be like tipping the postman: done on special occasions and only to say thank you for exceptional service.

The stress of not knowing what you are going to make on a given shift is exhausting.

Some days I would have $1500 in sales and only make $140 bucks after tip-out (a really insulting practice) and then other days I would have $900 in sales and make $200 or more. It's hard to budget when you have such wide range of possible incomes.

What is "tip-out"?

 

[Jedi_Master]

I would love to see tipping the server to be like tipping the postman: done on special occasions and only to say thank you for exceptional service.

The stress of not knowing what you are going to make on a given shift is exhausting.

Some days I would have $1500 in sales and only make $140 bucks after tip-out (a really insulting practice) and then other days I would have $900 in sales and make $200 or more. It's hard to budget when you have such wide range of possible incomes.

What is "tip-out"?

It means that a portion of my tips, my take home money, is given to the bussers and the bar.

That portion (in most restaurants) was based on a percentage of my total food and beverage sales. So if I sold $150 worth of bar beverages, I owed the bar $7.50. If I sold $1000 worth of food, I owed the bussers $20.

So no matter what I made that night in tips, I would have a set amount that I had to pay the staff. Now it makes sense to take care of the people who clean your tables and make your drinks, and indeed if I had a great busser or a crackerjack bartender I would give them extra money for helping me out. But using the wait staff as a source of income, thus reducing the cost to the employer, seems wrong.

 

[Miss Chicken]

I can't remember the last time that I got bad service in a restaurant. If they provide bad service they don't lose a tip (I don't give one) but I won't be back. It's the bosses job, not mine, to make sure that the employees do their job.

The last time I got what I considered bad service was at the cafe at the Adelaide Museum about 5 years ago. Having spent the morning at the Museum my sister and I decided to get some lunch. As it was a 'cafe' we didn't realise we needed to book. The woman was rather rude about this but gave us a table. The woman who took our order was surly. I ordered a 'gourmet hamburger', I cannot remember what my sister ordered. We waited and waited for our meal and it took about 40 minutes to reach us. The hamburger was as far from 'gourmet' as one could get. It was no better than a McDonalds burger and about 3 times the price.

 

[Timewalker]

The last time I got what I considered bad service was at the cafe at the Adelaide Museum about 5 years ago. Having spent the morning at the Museum my sister and I decided to get some lunch. As it was a 'cafe' we didn't realise we needed to book. The woman was rather rude about this but gave us a table. The woman who took our order was surly. I ordered a 'gourmet hamburger', I cannot remember what my sister ordered. We waited and waited for our meal and it took about 40 minutes to reach us. The hamburger was as far from 'gourmet' as one could get. It was no better than a McDonalds burger and about 3 times the price.

What did they do, round up the cow and kill it first? There's no reason on any planet why a hamburger should take 40 minutes.

One of the worst service instances I ever had was at the Carriage House Inn, in Calgary. The waitress there seemed to have a problem with deigning to serve those of us attending the science fiction convention. And this was back before smoking was made illegal in restaurants in this province, so to add to her problems, I needed a table in the nonsmoking section. Thank goodness her supervisor happened to wander by, or I wouldn't have had any breakfast. That was on Saturday morning, and I decided I wasn't going to bother eating there for the rest of the weekend.

 

[Jedi_Master]

The day after my wife and I got married, we decided (late in the day ) to go out to eat.

We went to Chili's and sat for 30 minutes without a single person, including two managers stopping to talk to us. We went from there to Longhorn Steakhouse and waited 30 more minutes without any talking to us. Finally we went to Olive Garden and had a nice waitress. We gave her an rather large tip, partially out of gratitude for the fact someone had finally waited on us.