After six years of serving and bartending, I swore, if ever given the chance, I would set the record straight regarding proper tipping etiquette when dining out.
A tip represents a portion of a server’s expected wages, and it should only be paid when the individual has successfully performed the work for which he or she was hired. I will not address what to do in situations of poor or inattentive service. Instead, my purpose is to educate those who misunderstand or are unaware of proper tipping etiquette under normal circumstances.
Many are under the impression that a tip represents a type of optional ‘bonus’ for a job well done. Never has a half-truth been so exploited.
A full-service dining establishment recognizes that the product it provides is two-fold. It is to provide food and beverage of acceptable quality with an expected level of service.
Likewise, the costs incurred to the establishment are two-part: the cost associated with preparing the food and the cost of providing the service.
In an attempt to maintain a “good faith” relationship with the customer, a significant portion of those costs are deferred directly to the customer rather than including the service fee as part of the bill. This deferment manifests itself as the expected 15 percent gratuity for standard or adequate service, with the opportunity to increase the amount for exceptional or especially attentive service.
With costs redirected, the establishment only pays the employee a rate of approximately $2.15 per hour. (That amounts to a mere $86 per 40 hours of work.) The restaurant could pay its employees more, but the cost increase would result in higher menu prices.
This custom is not universal. In many European countries the service charges are included in the price of menu items or added as an additional charge. Consequently, expected tips rarely exceed 1 to 2 percent of the bill while the establishment pays the server a significantly higher wage.
Occasionally, this occurs in the United States. If your bill shows a gratuity or service charge, the establishment has merely opted to make the bill all-inclusive. (If a service charge is included, it most frequently calculated at 15 percent.) In this case, a tip is not necessary though one may consider a small “bonus” if the service was outstanding.
Now consider the ramifications for opting not to leave an appropriate tip. In doing so, one has essentially stolen. You have left without paying for services rendered.
Worse, the costs are absorbed solely by the person who served you. Establishments do not offer compensation for un-tipped transactions. For these servers, tips are their livelihood. By opting not to tip them, one takes away from the server’s salary, which impacts their ability to provide for themselves.
If an obligation to fairness still fails to motivate you to adopt better tipping practices, I can provide reason more self-serving in nature: poorly tipped servers remember.
Simply put, people behave in a manner consistent with the way they are rewarded. Thus, good tipping for good service only encourages more good service.
If concerned your tip will go to waste since you may have a different server on your next visit, have no fear. Not only do wait staff have lasting memories, they also relish the opportunity to share their experiences with fellow workers.
Be rest assured that as you frequent an establishment your reputation regarding your tipping behavior precedes you.
Each of us enjoys good service, just as each of us enjoys being paid fairly for the work we do. Do your part and take care of the people who take care of you.
To ease the pain of calculation I can offer the following tips:
Fifteen percent equals $1.05 for every $7 spent. Or double the tax (for a total of 18 percent) and add or subtract accordingly.
Joshua Welch is graduate student in industrial engineering. He can be reached at [email protected].
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Tips are more than ‘bonus’
Joshua Welch
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September 25, 2003
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