Tipping

[Lorenzoid]

. . . However, it's not a "game", it's someone's income. . . .

I'm the one who often refers to the US tipping scheme as a "game." I disparagingly call it that because what you're paying is not a "tip" in the historical sense of the term but rather simply a surcharge that is understood--by the rules of the game--to make up a part of the person's income. The employer pays a portion of the value of the server's services, and you the customer are expected to pay directly to the server the remaining portion of the value of the server's services. People who leave a smaller tip in order to punish the server for poor service--though that may historically have been the purpose of a tip--are not playing by the rules of the game as they are understood today. The rules are what they are due to complicity of the IRS, Dept. of Labor, and employers. Maybe employees themselves are complicit in this, too, as some are tempted to hide tips from the IRS. Anyway, everyone knows the rules of the game.

 

[J322Y]

I'm the one who often refers to the US tipping scheme as a "game." I disparagingly call it that because what you're paying is not a "tip" in the historical sense of the term but rather simply a surcharge that is understood--by the rules of the game--to make up a part of the person's income. The employer pays a portion of the value of the server's services, and you the customer are expected to pay directly to the server the remaining portion of the value of the server's services. People who leave a smaller tip in order to punish the server for poor service--though that may historically have been the purpose of a tip--are not playing by the rules of the game as they are understood today. The rules are what they are due to complicity of the IRS, Dept. of Labor, and employers. Maybe employees themselves are complicit in this, too, as some are tempted to hide tips from the IRS. Anyway, everyone knows the rules of the game.

I agree except with the part about the employers being complicit. They have no alternative. As indicated by the earlier article I posted, owners are among those who would like to end tipping as it is now. It makes a difficult business even harder.

I like framing a tip as a surcharge. This illustrates that if the customer didn't pay that charge then the owner would, and of course prices would increase accordingly.

I also think most servers would be happier being paid a higher rate with an occasional tip for extra effort. Yes, most avoid paying some taxes (see the link a few posts above), but the bottom line would be roughly equal with a higher wage, and with the added benefit of less stress and drama.

The biggest financial beneficiary of eliminating tips might be the IRS assuming they could capture more tax dollars from servers. If that happened someone would have to make up the difference in server's take-home pay. That wouldn't be the owners, because restaurant margins are very thin. It would most likely be the customers through even higher prices. If that's the case then I guess we can thank the current system of tipping for keeping menu prices lower at the expense of the IRS!

 

[GlennL]

If I go out to a restaurant, after everyone has ordered I do a quick tally in my head of what the rough total will be and then establish a baseline tip. After that, I deduct $1 for every two minutes my drink stays empty. The server can't control the kitchen, but they can maintain the level of tea in my glass.

 

[J322Y]

If I go out to a restaurant, after everyone has ordered I do a quick tally in my head of what the rough total will be and then establish a baseline tip. After that, I deduct $1 for every two minutes my drink stays empty. The server can't control the kitchen, but they can maintain the level of tea in my glass.

This is a fair approach given the system we have.

Because of my background in the business I tend to tip generously, but if I get sub-par service I'll tip accordingly.

 

[Lorenzoid]

If I go out to a restaurant, after everyone has ordered I do a quick tally in my head of what the rough total will be and then establish a baseline tip. After that, I deduct $1 for every two minutes my drink stays empty. The server can't control the kitchen, but they can maintain the level of tea in my glass.

Does your boss deduct money from your paycheck if your performance on some task is poor? My take on the rules of tipping is that I the customer am expected to take on part of the burden of paying the server their ordinary compensation. If the restaurant pays the server less than the normal minimum wage as a tipped employee because the law anticipates they will receive the rest in tips, that clearly implies to me that the law expects ME to pay the rest.

Others can do as they wish, but if I'm dissatisfied with a server's performance I still pay the server their "baseline tip" because it's the part of their ordinary compensation the customer is expected to pay, but I complain to a manager that I was dissatisfied with the server's performance. It's the restaurant's job to punish the server, not mine.

That's how I see it.

The fact that different people have different ideas of what a tip is supposed to represent--ordinary compensation, punishment, reward?--shows just how messed up tipping has become.

 

[J322Y]

This has become an interesting discussion.

Does your boss deduct money from your paycheck if your performance on some task is poor?

Not normally in a direct way, but they could withhold raises and/or bonuses. There are other ways that employers can penalize for poor performance such as less desirable shifts/assignments. Then there are commissioned positions where the penalty for poor performance is more directly related to the work done. These examples don't translate to waiters exactly, but being penalized for poor performance isn't unheard of.

If the restaurant pays the server less than the normal minimum wage as a tipped employee because the law anticipates they will receive the rest in tips, that clearly implies to me that the law expects ME to pay the rest.

I think this point shows why most people aren't happy with the current system; the law doesn't give a damn if you tip or not. The waiter certainly cares, and the management wants happy staff, so they have a stake but everyone is free to dine and dash without leaving a tip. This is the pressure that really doesn't benefit anyone.

Others can do as they wish, but if I'm dissatisfied with a server's performance I still pay the server their "baseline tip" because it's the part of their ordinary compensation the customer is expected to pay, but I complain to a manager that I was dissatisfied with the server's performance. It's the restaurant's job to punish the server, not mine.

I think that makes a lot of sense, and shows good character.

The fact that different people have different ideas of what a tip is supposed to represent--ordinary compensation, punishment, reward?--shows just how messed up tipping has become.

Exactly.

 

[Lorenzoid]

. . .
Not normally in a direct way, but they could withhold raises and/or bonuses. . . .

As can a restaurant owner. But despite poor performance serving a particular customer, the server will get paid for that day, and I will reluctantly do my part as I believe I am expected.

To get a little back on topic, I wonder if people withhold tips from dive crew for poor service? I recall at least one or two really poor divemasters leading a group I was in. I think I still tipped what I would normally have. I keep in mind that all the crew generally splits the tip jar.

 

[TMHeimer]

I'm the one who often refers to the US tipping scheme as a "game." I disparagingly call it that because what you're paying is not a "tip" in the historical sense of the term but rather simply a surcharge that is understood--by the rules of the game--to make up a part of the person's income. The employer pays a portion of the value of the server's services, and you the customer are expected to pay directly to the server the remaining portion of the value of the server's services. People who leave a smaller tip in order to punish the server for poor service--though that may historically have been the purpose of a tip--are not playing by the rules of the game as they are understood today. The rules are what they are due to complicity of the IRS, Dept. of Labor, and employers. Maybe employees themselves are complicit in this, too, as some are tempted to hide tips from the IRS. Anyway, everyone knows the rules of the game.

COMPLICITY OF THE IRS.... Yeah. I'm sure many of you have read my ongoing Pub Thread "FACTA". The tax book in Canada is about the size of a (an old, who has one now) phone book. When income taxes started in Canada it was the size of a travel pamphlet (I've seen one). The current IRS one is about 8 times as thick as a phone book. According to the U.S. tax experts I'm forced to pay here, there isn't anyone alive who knows all it says without looking it up.

 

[KentB]

the entire notion of Tipping just kills me. i still do and i tip quite well usually 20% but I base it on trips to table not so much the full bill. if theres 6 of us and she brings 3 jugs of beer and a bill i really dont think a server deserves a $10-20 tip for 3 trips to the table when the bar is 20' away. however if your drinking pints and server comes a dozen times then the tip is more deserved. however i still think its ******** someone brings me a beer from 15' away and "deserves" a tip yet I own a heating, gas, AC company and as a gas fitter and I don't expect to get tipped for not killing you or blowing you up because well frankly thats my job..........I get the occasional tip in cash but that doesn't change my service. however most "tips" for me are in the form of lunch or beer. the only thing i "expect" is your going to pay your bill.

I have only done a couple local dive charters (husband and wife operation they have a dive shop but do charters as well ), but I haven't tipped.........or seen a single person tip. and Id say I was happy with their service. it never crossed my mind TBH i figured they included that in their fee.

this is a good thread

 

[billt4sf]

From Business Insider (emphasis mine)

Danny Meyer's anti-tipping policy is nothing new — 6 states once banned the practice

Tipping waiters has become like clockwork for Americans.

We don't think twice about handing over 10% to 25% of our bill after eating out at a full-service restaurant.

It hasn't always been this way. In fact, tipping was originally frowned upon in the US and considered anti-democratic, the New York Times reports.

We seem to be coming full circle: The initial grumblings over tipping are resurfacing today, provoked in part by Shake Shack founder Danny Meyer's recent decision to eliminate tipping at all 13 of his restaurants.

Meyer's policy change — which will mean higher menu prices and better wages for back-of-house staff — sparked a a slew of editorials and conversations around the practice, many of which point towards its anti-democratic, sexist, and racist underlying.

The custom originated in Europe, and while its history is not entirely clear, it is commonly traced back to 17th century England. The word "tip" is speculated to be an acronym for "To Insure Promptitude," which was printed on bowls in British coffeehouses.

What is today considered a given started as a purely aristocratic practice — a mere "allowance" that the upper class would offer to the socially inferior.

It made its way to America after the Civil War (which ended in 1865), when wealthy Americans started traveling to and from Europe. They brought the custom back home to show off their worldliness, but it was immediately met with disdain.

Americans considered it anti-democratic, as it encouraged classism and further distinguished the wealthy from the masses.

These initial grumblings escalated into movements. In 1904, the Anti-Tipping Society of America was created in Georgia, and its 100,000 members pledged to not tip anyone for a year, the Times reports.

Anti-tipping laws ensued, starting in 1909 when Washington became the first of six states to pass the new law, but failed to make a significant splash. By 1926, every anti-tipping law was repealed.

Since, tipping has evolved into a given.

However, the early 20th century disdain seems to be resurfacing today.

"The American system of tipping is awkward for all parties involved," Meyer, who owns well-known New York City-based restaurants such as Gramercy Tavern, Blue Smoke, and Union Square Cafe, wrote in a newsletter. "Restaurant patrons are expected to have the expertise to motivate and properly remunerate service professionals; servers are expected to please up to 1,000 different employers (for most of us, one boss is enough!); and restaurateurs surrender their use of compensation as an appropriate tool to reward merit and promote excellence."

Meyer is not the only restaurateur to announce a change to tipping policy. Chef Tom Colicchio has ended tipping during lunch service at Craft, his flagship restaurant in New York City.

Best post on the subject so far!

- Bill