Interesting article on U.S. Tipping

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drrich2

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A recurrent topic in ScubaBoard threads (and elsewhere) is the prevalence of tipping in service sector jobs like waiting tables at sit-down restaurants. It's strongly associated with the U.S.A., and neighboring areas where U.S.-tourism has a strong influence (e.g.: the Caribbean), and far less so in some other areas such as much of Europe, from what I gather from other's posts. Many people wish we didn't have a tipping culture; ambiguity about how much to tip without over or under-paying, coupled with a sense that the price should be the price, pitting against the idea that tipping culture puts a portion of the server's pay in the hands of the customer and incentivizes better service.

A recurrent theme in causation is alleged to be that greedy business owners refuse to pay their employees a 'living wage,' putting customers in the position of having to make up the difference to these exploited employees after they've already paid what was supposed to be the cost of the meal, diving, etc... But is that the truth?

This thread isn't about another contentious arm-wrestle over who's right. It's an interesting look at why the U.S. has this. The Guardian has an online article ‘The numbers don’t lie’: why no-tipping policies can hurt US restaurant workers, by Gene Marks. Some U.S. business managers tried to get away from tipping culture, and it didn't go well.

I didn't know tipping became especially popular when Prohibition cut into restaurants' profits.

Also, if one restaurant eliminates tipping and pays more, it has to charge higher prices up front, which can send customers elsewhere...even if the final cost ends up being much the time. And some 'high-profile' eateries had trouble with recruitment and retention when using a no tipping model.

Regardless, why should things in the U.S. be substantially different than in the U.K. or other western European-style culture nations, which are fairly similar to the U.S.? Marks wrote:

"It’s because the US is, at its core, an entrepreneurial, free-market culture. And tipping is an entrepreneurial model. Customers are conditioned to tip and employees are conditioned to earn their tips – like any entrepreneur. And like any entrepreneur the better an employee – and their organization, and their team – the more money is made.

“We treat our sections like our own small businesses,” write six workers with more than 50 years of experience in the restaurant industry. “To us, the restaurant floor is an interwoven system of independent entrepreneurs that runs like a well-oiled machine. We have no issue with an increased minimum wage for non-tipped workers, but for our industry the tipping model works for the guests, the employees and the company.”

I have countless clients that are endlessly searching for ways to motivate their employees. They try team building apps. They give out awards. They offer performance bonuses. If only they had the built-in motivational tool that is the tip. When implemented the right way, it is a tool that turns an employee into a partner. It is all the motivation needed."

Regardless of whether you prefer or abhor U.S. tipping culture, it was a thought-provoking article and Gene Marks' explanations help understand it better.

1.) There's a historical basis for why it became particularly prominent in the U.S.

2.) There's a cultural basis for why it continues to dominate, not just in terms of custom, but the way many employees think and operate.

3.) At least sometimes it's staff, not management, driving this.

4.) While there's an obvious cost to the customer in awkwardness, uncertainty and bother, there are benefits in service quality control for employees, management and customers in the business.
 
As I see it, we in the US have created this cycle of tips being expected and employees relying on tips. The huge momentum behind this cycle makes it difficult to break, but it could be done, I believe, and after the pain is over then service-sector employees and clients alike could finally rest easy. I do not buy the "entrepreneur" argument. Is my dental hygienist or the guy who changes my oil an entrepreneur, too? I recall in other tipping threads people mentioning how much worse they perceive the service in certain non-tipping cultures, but I don't believe that's universally true. I get service that is just fine in Belgium, and in some respects even better than the US, in my opinion. I can't stand servers who disingenuously fawn over me, introducing themselves by name, seemingly wanting to be my best friend for the next 45 minutes--all obviously intended to induce a larger tip. I'd rather have a non-tipped, reasonably-compensated, professional server treat me with modest efficiency and professional indifference to my well being. I recently saw another interesting article on tipping, this one in the Economist (paywall behind this link): Do tips make for better service?
 
The entrepreneurial thing aside, I think it's the hyper-liberalism that is the basis of American culture (from my perspective at least, a 'stranger looking in'). It's a spiral that has to be broken, if you want to get rid of the tipping culture. And it only works if everybody goes through that change at the same time. And co-ordinated.
And that's where hyper-liberalism comes into play. Because there is no central (federal) top-down structure to implement this, people only focus on the short term pain, and not on the long term gains. It does require a living wage as well. For example, to regulate minimum wage better, by law. But as with most 'social' policies in the US, the government is not who you should look at to accomplish any change. ('Social', not 'socialist'.)
Again, from a European point of view, this is unbelievable. It just turns everyone into a 'sales' person. And I hate salespeople... The fake and 'pretend' way of smiling, talking... The service does not necessarily increase like @Lorenzoid described.
 
It is interesting how this "American" habit has travelled to other cultures.

Here in Canada, where tipping is also common, the first thing the credit card machines in restaurants and bars ask is "how much tip?". Many provide multiple single button suggestions - I once saw 20% as the smallest suggestion going up to 50%. Sneaky...

On a recent trip to Germany only a very few restaurants (2 of 20?) pointed out that "the tip was not included", but then provided a machine with no option to add a tip. I am sure they will learn....
 
Having worked in the casino industry for a number of years (technical not service) I have seen this question being asked for 30 years. I tip for good service, and yes I can distinguish between a service employee and a technical/professional employee. I don’t like the rise of the tip jars that pop up at random businesses. In the beginning casino workers were actually not paid at all and depended on tips for wages. Over time they were paid a bare minimum that only covered insurance and taxes. I also don’t tip if I don’t receive good service. And tips should never be automatically added to checks. It’s up to the consumers discretion.
 
It is interesting how this "American" habit has travelled to other cultures.

Here in Canada, where tipping is also common, the first thing the credit card machines in restaurants and bars ask is "how much tip?". Many provide multiple single button suggestions - I once saw 20% as the smallest suggestion going up to 50%. Sneaky...

On a recent trip to Germany only a very few restaurants (2 of 20?) pointed out that "the tip was not included", but then provided a machine with no option to add a tip. I am sure they will learn....
In Germany, Belgium, the Netherlands, and most Scandinavian countries, tipping is extra, only if the service is extraordinary. Machines that are used reflect that.
In Italy for example (and some other Mediterranean countries too), tipping is more common. And there often is a service fee ('coperto') of 1 or 2 euro/person when you sit down. It literally covers some extra service that is needed if people use a table.
Standing in a bar, an espresso is 1 euro. Sit down inside and you pay 1.50 for it. Sit outside and it will be 2 euro. More steps to take - higher price.
 
Do you anti-tippers stiff your dive crews as well? I see the benefit of being shown areas their standard divers don’t see, better care for my five equipment. Happy they fawn over us because we show appreciation for their skill and service. In the restaurant realm you are tipping for a dining experience.
 
The big factor in the USA is I find you can't 'go out' for a meal with good company. They rush you in, then stand over you trying to get you out again, even clearing tables before you have finished.

In Europe, you go out for the evening, you sit, you talk, you drink, you talk, you eat, you talk, etc. Eating out is an occasion not a rush. If I want fast food I go to a MacDonalds!
 
I don’t think it’s that easy because this is built into why and how America separated from Britain much differently than all the other colonies. One might think it’s dated for the modern world, but the American idea is built around a celebration of individual liberty, not any particular ethnicity, religion, or creed. We are imperfect to be sure, but any unified federal rule has been very difficult to implement as compared to other similar large high income nations. Rather than seeing us as an exception, we might just be a prelude to future trends.
 

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