Why Tipping Is Impossible to Get Rid of in America
kottke.org
kottke.org
Okay, so make all added fees, including tips, illegal. All prices everywhere include sales tax. All meal prices include gratuity, or everyone in the restaurant is paid a tipless wage. Let people get over the sticker shock.
Increasingly, everything in this country has three prices: the sticker price, the price with sales tax, and a third price which depending on the industry is either the price with gratuity, the price with fees, or the subscription price.
You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket science. That we deserve to explore the stars, and if we met alien intelligence we'd sit at the table as equals.
But turns out a normal human has emotion overriding even the simplest logic and basic arithmetic defeats most of us - I imagine it's not even just the "average" Joe - a lot of very intelligent people will see that $25 burger and decide that they'd rather go somewhere where the burger is $20, because it "feels cheaper".
Monkey sees banana, monkey wants banana. Except this monkey can build rockets and nuclear reactors.
I don't know if it's a uniquely American thing, but the ability to wrap one's head around future cost additions or commensurate value is just completely not there, at all.
Look at something as simple as sales tax - in the US, that's not included in the price on the shelf, but in most of the developed world it is. It's not like there's some centuries old custom at work there - it's regulation.
Are there hidden fees that most people don't know about? (Most people know about sales tax.)
Do a lot of people just ignore the fact that they're going to have less legroom and won't be able to reserve a seat if they can get a lower price?
Those are different things. The former is a dark pattern. The second just means a lot of people are very price sensitive.
Because 4 is greater than 3.
Let me tell you something about marketing firms, many of don't exactly hire competent statisticians or people with a rigorous scientific background to investigate matters, and I doubt the situation was any better back in the 80s. Even today I've seen such firms ask leading questions, push people to give certain answers, have incredibly biased or non-random focus groups, or many other very basic mistakes.
> It turns out the majority of participants incorrectly believed one-third of a pound was actually smaller than a quarter of a pound. [1]
Sure maybe only a single person asked the question but it sounds like they then polled the entire focus group afterwards. I'm not too sure what leading question to ask to get somebody who understands 1/3 > 1/4 to answer the inverse.
[1]: https://awrestaurants.com/blog/aw-third-pound-burger-fractio...
The book makes a lot of unsourced and unverified claims about how A&W's burger tasted better than McDonald's in blind tests, and a bunch of other claims about how A&W should have outperformed McDonalds, but all because Americans are too stupid to know that 1/3 is larger than 1/4, A&W failed to capture market share and that's why they had a major decline in the 80s.
There is no other source for this story whatsoever other than the literal owner of A&W. The marketing firm (Yankelovich, Skelly and White) never released any details, no one else at the company ever wrote about it, and there's no way to independently verify any of these details to really understand what actually happened.
As an FYI, McDonald's had a third pounder burger on their menu for 6 or so years and never seemed to have any issue with customers reporting feeling ripped off because of it. They removed it along with all of their premium menu items as part of an effort to simplify their offerings.
They will pay $65k for a truck that is known to have incredible margins for the manufacturer, and be delighted to do so, unless they find out they could have gotten it for $59k.
One I remember from Richard Thaler years ago was that, if you were comparison shopping in physical stores (this was pre-Web), if you saw a TV in a store that was $1 more expensive than in another store you had shopped in, you'd probably just shrug and buy it. But if some $2 item were $1 more, you'd probably go back to the first store even if it cost you more than $1 to do so--because fairness/being ripped off. (And I think most people are cheap at some level in many contexts.)
If 99.9% of the time I go to a restaurant the number I see is eventually adjusted by sales tax+tip, my mental "value" heuristic is going to be comparing that number to how hungry I am, how soon I think I'm getting the burger, how good I think this place is, etc.
If half of restaurants abolished tips I'm sure I would develop the ability to incorporate that into my heuristic.
And sure like any heuristic it has its failure modes but in general, if you look at a whole population, those heuristics tend to be pretty astonishingly effective in aggregate.
Anna Gunn played the emasculating wife of Walter White in "Breaking Bad". She was not a popular character (and wasn't supposed to be, at least at first).
She received a myriad of death threats on social media for that portrayal.
https://www.vulture.com/2013/08/breaking-bads-anna-gunn-conf...
I cannot express how bananas that is that people can't separate fiction from real life in this way. That these people are such emotional creatures that it never occurs to them that the way they feel towards the character is invalid towards the actress.
Look at page 9 of this PDF.
[1]:https://www.westga.edu/academics/research/vrc/assets/docs/th...
Interestingly for me this translation of thought into language is much slower for writing than it is for speaking (with typing intermediate but closer to writing). I was diagnosed with Dysgraphia[1], as part of that evaluation I was given the Wechsler Adult Intelligence Scale—Third Edition (WAIS-III) when I was 16 years old, it gave me a verbal IQ of 147, a performance IQ of 125, and a full-scale IQ of 143. So I think I'd serve as a counterexample (sample size 1, though I know there are others) to the "left side of the curve" correlating with a lack of inner monologue (at least for this particular measurement, there are many others). Perhaps it goes the other way around, and the people who have to slow their thoughts down to translate everything into language are the left side of the curve, but more likely they're uncorrelated aspects of cognition.
And some people have more than one voice in their head.
It would be interesting to compare the total number of voices in the collective heads of humanity with the total population to see what the average number of voices is in a head.
[1]:https://netflixlife.com/2020/08/12/the-office-lindsey-broad-...
Isn't that the whole foundation of capitalism?
If I'm the best at making widgets I can pump them out at $4/pop while the competition needs to do $5/pop and eventually my process for widget making is the dominate one. Maybe somebody innovates and gets down to $3/pop but in the end society is able to get more widgets/$.
IMO, the real problem is all of these hidden fees. The idea of a price is that it's how much something will cost. The fact that you can juice your sales by providing a non-total price is a market distortion and should be corrected.
At least for me, personally, I'm nearly at the point where I want to stop tipping entirely. It just seems so unnecessary and just another way that the capital class deflects blame for inadequate employee pay.
I'm way less likely to tip when I see a flip-around screen. I hate them.
You dont tip in any other context. If you want the deluxe experience you order the deluxe option.
To me this seems wrong. If tipping were so great then why isn't it universal? What is special about restaurants?
Taxis/Uber/Lyft want tips. Same with barbers/salons/spas.
I know that the gray market is a big factor. Untaxed cash transactions under the table. But it is weirdly institutionalized and normal.
We have just decided to politely tolerate certain kinds of trivial illegal activity. But all-cash businesses do become a key vehicle for money laundering, and thus does have wider negative impacts.
It's not just that some low wage employees get tax-free funds. It aids organized crime.
I'm not exactly sure why it works like this, and contrary to the title this article doesn't really explain why.
I know people who have explained how being a cabbie etc was only lucrative because of cash tips.
But yea, electronic POS is now more common.
I believe that generally it's in industries that directly replaced personal servants: people who cook and serve your food, carry your things around, make your bed, do your hair, chauffeur you around. I'm not sure why tipping happens in those jobs though.
I do give my monthly housekeeper something at Christmas and I've seen other contexts where there's the expectation of contributing to a Christmas bonus for staff as well.
Personal servants being distinct from your lawyer or your doctor or therapist.
If tipping were good and respectable and promoting better market dynamics or service... then it would actually be more important in the medical field.
If I get better food service by tipping, then I definitely want better medical service by tipping.
Incidentally I've known plenty of people over the years who have worked in food service who never seemed to be lacking in cash for drugs, big car payments, expensive clothes. If just one sucker is willing to tip you 15% once per hour you're doing fine. If you're going home with hundreds of easily tax evadible dollars in your pocket at the end of the day stop complaining to me.
When I was younger, It made sense to me to tip housekeeping if you make a small ask of them, or to tip a service worker if you make a request outside the norm; you're asking more of them than most people after all, and you want to add some grease. But what is with tipping for doing the standard of exchanging money for goods and services?
More context : the state take over some employers responsibilities by providing healthcare, unemployment, and retirement insurances. ( none of that is free, it’s been pay by both employers and employees )
More context : prices are fair, in the sense that middle class folks in those place can afford to go get intoxicated in bars and eat food in restaurant.
Now the question, dear American friends : what type of exceptions make those things unreal in your place?
It’s not a trick question, I live among you since a while. I don’t see tips going away like I don’t see firearms disappear.
But I’m merely an experienced watched of your society, so maybe you can explain me why tips are still a thing.
It seems like a common theme here.
In regards to worker liking the untaxed incomes: I live in a US city that rely on tourism and thus the service industry.
I had countless conversation with industry worker about this and it seems like a chicken and egg problem.
They need it because the base pay is shit, but they also hate the irregularity of it. ( triple pay in season, not worth to work outside of it )
They also would take more stability in order to raise family.
Most stop to find « a real job » when they reach their 40 or so.
Another unmentioned way is if customers just get fed up with paying tips and start tipping less. I get annoyed with any digital payment screen that only offers default tip options of 18% or more and take my revenge by sometimes selecting no tip.
I think it's easier for restaurants to stop tipping simultaneously than for every customer in America to stop.
This is certainly one possible long-term outcome too. Restaurants seem to be going for the triple whammy of raising prices+adding opaque fees, and also soliciting tips more frequently and expecting to receive them in higher amounts, and also automating/paring down more and more of the restaurant's processes. This is all very exhausting and irritating to experience as a consumer especially knowing I could eat about just as well for 1/8th the price at home, so I limit eating out as much as I can.
Also 18% is diddly. I pretty much tip 20% or more with very few exceptions. Times are hard, prices have gone up, but I still make tech money and service folks make a lot less.
I did restaurant work in my teens and 20s and have no interest in doing it again. But I do like being able to eat at restaurants and get carry out, so the least I figure I can do is tip generously to support the folks who make that possible.
On the other hand, leaving excessively high tips encourages restaurant bosses to keep the base wage low, since you are relieving the bosses of the market pressure to pay a competitive wage.
There it is. I'm picking up my pizza and there is a tip screen. Four large tip options at 18, 20, 22 & 25%. I have not taken a bite of the pizza. I'm the one picking up the food and delivering it to my house. I ordered it via the app, never conversing with a person. I paid the carryout pricing. The only interaction I had with a human was ~15 seconds at this point and it was purely to remit payment. Nobody in this establishment is a waiter so they are all required to be paid above min-wage.
The tiny 'no tip' button was tapped and the kid looked sad. I am made to feel/look like a jerk for not paying an unexpected fee. What a bizarre world.
Prior to that the only way to equitably pay them alongside front of house was to pay them a higher wage out of the food costs. Those increased food costs put the restaurant at a disadvantage in the market even if the total take (food plus tip) was the same.
The issue I have with tipping is that it's everywhere. From the person who takes your order at a coffee shop, dining, ridesharing, and it's become ridiculous. Ban the solicitation of gratuities in drink and eating establishments; conversely you could make no-tipping a contingent for a restaurant license.
If people want to tip, fine, but enough with the asking.
Like, I don't think it is the right lesson to say that the higher price points scare away people in the abstract, as if everyone who is eating is paying the meal plus 15% and they are just being dumb by not realizing they are paying "the same" in a world where tipping doesn't happen. (edit: And yup... I now see other comments leaning into "Americans are bad at math").
It isn't that uniform: a lot of people tip 10% while many are tipping 20%; there are people who aren't tipping at all and people who routinely tip 30%... and it doesn't stop there! There are also people who at least occasionally throw in some massive tip... I myself have, for various reasons that made sense at the time, thrown down a >100% tip on small checks.
Sure, some people like the awkward "control" over the wait staff, but that is also simplistic: there are people who make it a status symbol and proudly are known among their friends--the wait staff doesn't matter--as "big tippers"; and there are people who get into friendly competitions with their friends over who tips the most.
The result is that this turns into a kind of "pay what you can" at best and an awkward gamified mechanic to force people to stretch to pay more at its worst, resulting in people who have the money to pay subsidizing the people who don't, which maybe is actually a good thing? If nothing else, I see why it is profitable, even if customers ALL kind of dislike it.
(It also, though, causes people who "feel the weight of society" and feel a need to tip to ensure people get paid to subsidize the people who have the money but are selfish and don't give a shit. My guesses as to the balance of people who don't tip much because they can't and those who don't tip much because they won't affects my personal feelings on whether it is "fair" or not.)
A summer or two working in a food truck where the internal temp was around 49C will teach you appreciate jobs where you sit on a few softball meetings and write documentation.
https://dash.harvard.edu/bitstream/handle/1/9491448/here's-a...
The US is incredibly corrupt. It's our culture. I think it makes people feel they have more control over situations because they can pay to influence outcomes.
I have had orders cancelled by the driver because they found something that tipped higher despite me tipping $7 for something down the street less than 1 mile from my house. I have also tipped $20 only for instructions to be ignored where I put my gate code, unit# and ask for it to just be dropped off at my door step but the driver is so lazy they leave the food on the ground outside the gate on the street.
Edit: Reddit says the driver gets ZERO.
My biggest complaint are services that don't show the driver the tip until after they deliver. I want them to know!
For the record, I’ve been a delivery driver before. Getting tipped at all was amazing, so I literally can not imagine pounding on the door, handing the person their pizza and telling them that they should tip more because I want more money.
I could see it eventually going the way of internet advertising.. so noisy that a significant minority rejects the system altogether.
I tend to tip high when I do - but recently I've just been questioning it since the tip request has gone up even more.
Still no healthcare for all.
>It's almost like your country hates its own people
Not even almost, it is. It’s a page out of the republican party’s playbook to disseminate blame or criminality towards anyone who is different.
Was this necessary to get your point across? Honestly, invalidated much of the article for me. I find that assumptions like this betray the poisoned viewpoints of the author.
There are a handful of very hot, busy venues with high prices and turnover, but those are the exception, not the rule. FAANG salaries vs. the average IT / tech worker.
See also: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped https://www.minimum-wage.org/tipped
So, no, I don't think I'll listen to people in the restaurant industry tell me why I have to pay mystery wages to the employees.
Anyone telling you that customers "enjoy the agency" is selling you a line of bullshit. Servers will sell you that. Restaurateurs will sell you that. Customers will not.
Says who? Just don't tip if you hate the service. That's what I do.
Culturally, the tip is part of the price. They just can’t call the police for a dine-and-dash because it legally isn’t. So I don’t think just not tipping is a realistic option. So it’s what you owe in all but law.
Which is not me defending tipping. I find the thing ridiculous and distasteful enough that I probably just won’t eat where tips are at that level of expectation more often than not. It’s not such a necessity that if I don’t have line-item veto that I won’t veto the whole thing.
I wish folks with this attitude got docked some of their pay when their co-workers or boss decide they weren't happy with their work.
I just consider tipping the surcharge for not having to do service / restaurant work myself any longer. Been there, done that, don't want to do it again.
That's unnecessarily hostile. I worked customer service up to a year ago, and I never felt obligated to tips. I did my job and got my money. Every once in a while, a customer would tip me for good service, but it was never required. Tips were on top of my wages, not part of them.
> I just consider tipping the surcharge for not having to do service / restaurant work myself any longer. Been there, done that, don't want to do it again.
Then what am I paying for? If $6 is a more appropriate price (for the item) to cover wages than $5 is, then the business should charge $6, not $5 plus a "hidden" fee.
Ha! It’s hostile if it’s coming out of your pocket. It’s okay if it’s someone else’s. Got it.
Even if the people with nothing but their own dislike of it have only that, it's still more. Because they are customers.
The only thing you can really use as proof is that customers don't hate it enough to collectively stop. Which is hardly an endorsement.
Tipping is the standard in America and other 3rd world countries. The rest of the world should just get used to it and stop complaining.
Which countries? I’m super curious since I have work/school friends from all over and afaik it’s mostly just a US thing due to federal minimum wage set to less than $3. And Canada just follows suit.
Yea tips exist in other countries but not the regimented 15-18-20-25% and is usually only given for large groups at a fixed rate.
Raise prices and be transparent with pricing - which is difficult with tipping since most people are bad at math and don't take out a calculator to see what $127 meal will really cost.
Tipping is a service tax and becoming an entitlement to a generation of workers who have never and likely will never have to really work.
No. Tipping is going away. Learn how to pay your employees properly.
Anecdotally, the culture gap between America and Europe when it comes to obligatory tipping is wider than the issue of tipping. Americans seem to generally value superficial pleasantness more than Europeans do. If a waitress in America is having a bad day, people still expect her to put on a pleasant face for the customers, while in Europe people seem to think it normal that a waitress having a bad day would treat other people in a natural fashion, clip and surly. For my part, I prefer the American culture and try my best to reciprocate. If I'm having a bad day, I try to remain superficially pleasant when interacting with waitresses, or anybody else. My bad day shouldn't become somebody else's bad day.
Tipping is not necessary for that sort of culture, but I do think it helps to reward it, and washes out those waitresses that can't manage it.
'Expect', one word with two very different meanings.
1. To predict or believe that something will happen
3. To consider reasonably due. Synonyms: hope, want, wish
They 'expect' a tip in the sense that they want one, but they don't 'expect' tips in the anticipatory sense, because tipping glorified cashiers just isn't part of the American tipping culture. Baristas and the like put tip jars on the counter but I'd guess that only 1 in 10 people ever put anything in those jars. I never do.Federally that wage is $2.13 per hour.
Consider that single 20% tip on a $40 order once an hour is enough to clear the federal minimum wage. It doesn't take much, if you can't make that much in tips then either the restaurant is dead or you're consistently fucking up orders.
An appeal to the decisions of society? I'm not sure that's the argument you're looking for; American society has decided that it works differently for waitresses.
I don't blame someone for wanting and accepting more... It just feels weird to tip when the service is baseline, vs say a waitress where they take your order, bring drinks, refills, corrections, additions, etc. and generally with a pleasant personality.
The expectation of tipping for more and more things and the ratcheting up of default amounts in digital payment systems are somewhat annoying. But knowing that you'll be paying 20-25% more or so in a lot of situations between tipping and sales tax isn't really that much more of a mental burden. Honestly, I'm more bothered when restaurants also tack on various fees for "living wage" or health insurance or whatever.
Idk where your at but where I'm living in America, these kinds of places still very much encourage a tip and will still give you some dirty glances if you skip the tipping page at checkout. On principle, I won't tip these places, but there's very much still a social expectation.
What makes you say this? As another comment points out, minimum wage is lower for restaurant workers in most (all?) states. How would a restaurant without tips outcompete in this system?
Such restaurants can out-compete restaurants with waitresses by simply offering the sort of self-service that most people prefer, if in fact most people prefer that. It's not as though these restaurants are forced to pay their waitresses more; they don't have waitresses at all. That's one less expense they have to worry about.
These places still ask for a tip. Even to-go only places practically demand tips.
I was recently told by a friend that it was just as socially expected to tip for counter service as it is to tip at a sit down restaurant.
They want to push the perception that society thinks you should tip for counter service, but it's not real (at least not yet). I don't tip for carry out or for retail transactions. Tips are reserved for people who perform a service (waiting on my table, cutting my hair, etc) and not for every employee I interact with who handles food.
There was an exception made at the height of the pandemic for restaurants that had few if any indoor diners. We tipped them for carry out because it's money they would have been getting if it were safe to eat inside like we wanted to. Now that most people are back to their old habits (safe or not) I think it's fine to stop tipping for carry out orders.
Because the entire tipping culture is based upon shame if a non-insignificant amount of people feel that they are expected to tip whenever asked for a tip, it ends up being the the same as if there was an actual social obligation to tip. Then there can become one.
*There actually is a social obligation to tip counter staff - only if you're ordering an alcoholic drink though.
You're right about bartenders being the exception. That I tend to view more as an outright bribe for better drinks and faster service which is honestly not ideal either.
I do think businesses are taking advantage of our guilt and conditioning to try to normalize tips where they never existed before. Hopefully your friend can be brought around to see that. The fewer people who accept it, the slower it will spread. I really hope "tip creep" pisses people off enough that we start to question the entire culture of tipping.
False! In my locale waitstaff make the same (high) minimum wage as everyone else.
I still think about this interaction to this day. I don't think the system "washes out" anyone - because(based on my single and anecdotal experience) people will tip no matter what, because otherwise they might look bad.
I don't hesitate to refuse a tip if the server is truly rude, but I'll also not return to that restaurant for a long time. This has only happened a handful of times in my life. If the service is neutral then I'll leave a neutral tip, usually 15% unless the total is low and rounds up to a nice whole number.
Generally such restaurants serve significantly different kinds of food, and are typically lower quality. You can't expect these kinds of restaurants (typically fast food, food trucks, buffet food, etc.) to out-compete restaurants that they are hardly even competing with in the first place (e.g. fancier sit-down restaurants).
I assume you haven't eaten at any of those kind of restaurants since 2019.