Tipping in the United States has gotten out of control
cnbc.com
cnbc.com
Lots of small businesses in our area have kept the "fair wage and wellness fee" they added during COVID times and there's a long paragraph of text on the bill that explains why it's important and how it's helping them pay staff, yadda yadda. Seems like the entire cost of running the business and keeping people employed has been passed on to the customer.
I enjoy a good meal and a good show, and I am happy to support local businesses. But a $5.25 latte and a $24 pizza and $14 for a salad that is only three pieces of lettuce or a $100 ticket that becomes $175 after fees...I'm starting to opt-out entirely.
Is that not the only way it can work? Unless a business is being subsidised by someone as a hobby or Softbank is pouring money into it for it to be set on fire (more charitably in some kind of growth phase where they can stomach taking a loss for years), then the income from the customers surely has to cover the costs.
That's a big part of why I get so angry about this. This practice has subverted a good and very nice human act into a something demanded. It strips out all of the value of tipping.
</european-pov>
As a business owner you set the price of a product or a service while factoring in all costs, including wages.
Tipping should not be mandatory and if it is then it means something is profoundly wrong with the way the specific industry works.
"I really like the food, I like the space, but I can't keep buying a $15 bottle of juice and a $22 sandwich with a single slice of meat, and I don't know why I'm on the hook for all of these extra fees..."
One of our local eateries recently closed their doors because they just couldn't make it work. They ruined goodwill with customers by substantially increasing the cost of everything, every few weeks: sandwiches, drinks, small baked goods, small bags of chips, etc. On top of that, they added one service charge after the next, and it always came with a plea to help them stay open.
But they made a lot of bad decisions along the way, like opening up a fancy organic eatery in a part of town with no foot traffic and no parking, by taking on even more debt to expand their space and open up another pop-up store before they had got the basics rights with their first location. Fewer and fewer people came to visit and that was that.
Who else do you expect to pick up the tab?
I'd prefer no tips, an increase in price, and no hidden bs fees/tips
Edit: evenly meaning an increase in prices proportionally increases employee pay
Right, which is preferable by far. At least that makes the whole thing noncoercive.
Businesses should pay their people a reasonable wage, not make the employees beg, or rely on guilt and coercion to get your customers to make up for what the business doesn't want to do.
This is all business everywhere (other than the trillions of dollars exchanged in corrupt government contracts).
Just be honest, pay the workers what they should be paid, and price the goods and services accordingly.
HELL YES
I would much, much rather pay more and know the staff were getting real wages. This is complicated by the fact that a large number of FOH workers prefer the $2 hourly plus tips because they don't disclose most of the tips on their taxes.
I'd much rather a restaurant tack on a 20% or even 25% service fee that everyone, including the assholes, must pay rather than asking for tips and depending on my decency to compensate for the restaurant underpaying its employees, while allowing assholes to get away with contributing nothing.
This is frequently said, but has anyone done any work to show that it's actually true? That tips work as an incentive for measurably better or improved service? Or to what degree it is true? Just wondering.
I have a lot of friends in the service industry and, like people in many other careers, beyond a particular baseline of compensation and satisfaction, it seems that good performance is as much about intrinsic motivations as it is about extrinsic factors. The best people often simply want to do a good job. If the tips or overall comp isn't satisfactory, they either find a different place to work or take additional shifts at another bar or restaurant.
Because if every restaurant doesn't do it, the one that holds out from doing it and hides the extra cost behind a noticed-on-the-menu-later surcharge (or simply keeps asking for tips) will get more business because customers have trained ourselves to sort by lowest-price-first-then-choose-that-one.
> or remove the "restaurant wage" and force them to do minimum wage?
Several states and cities don't have the tip-credit restaurant wage and do require restaurants to follow minimum wage, regardless of tips. Tipping is still incredibly prevalent in those places because it's still a way for employees to make more money without the owner having to figure out how to pay for it through prices.
Here’s a hint: Being a “good person” aka compassion is not the only virtue.
Contrast with conscientiousness which is doing what is right (even when it hurts someone).
Or how about we just just get rid of this tipping ridiculousness altogether and the social judgement associated with it?
Again I think that's the way to go, instead of the weird shell game of value we have now, but I think a lot of people will not agree. What people really want is for tipping to become purely voluntary or go away, but also for nothing else to change.
Uhm, much of the rest of the world works without tipping, and it seems to work out just fine for everyone (even in the developed world). Tipping is a weird America thing, and it has made me mostly avoid full service restaurants...and now I'm being asked to tip at self service and take out places, ugh.
Do you realize we just went through a crisis where the country nearly defaulted on its debt because our Congress somehow has the legal ability to pass a budget but then not agree to actually fund the budget they themselves passed just a few months earlier? The only way out of that was to agree to pass a law saying we'd cut public spending even further, outside of the regular budgeting cycle, even if the budgets themselves don't say to do that. We just pass laws saying we're going to ignore and contradict other laws we just passed, mostly because the structure of our representative system severely overweights the representation given to underpopulated states, originally because that prevented slavery from being banned and we had to give them that power for them to agree to be part of the country, but now who even knows why? Uncharitably, because billionaires and gigantic businesses that don't want to get taxed have convinced people in these states that stronger public spending would benefit atheists and foreigners and not them. Charitably, it's more inertia than anything else and it's more or less baked into the American identity that this is how we do things and it's why we're special and successful, not that we have a resource-rich country that was underpopulated because of smallpox killing all the natives and across two vast oceans from a couple of world wars that destroyed any plausible industrial competition for most of a century.
But again, what are any of us supposed to do about is? My choice as just a single person who happens to make more than enough money to pay well above the posted price for anything I regularly purchase is to tip generously or take this kind of principled stand that I'm going to singlehandledly change centuries of cultural habits and expectations by stiffing hourly service staff, because well, the rest of the world has done it.
But people will end up paying the same either way.
How so? I mean, when you go to restaurant there is some sort of the contract, that for paying X you get Y food. Why would anyone not willing to do anything more beyond this deal should be considered an asshole?
People work hard outside restaurants also, often harder, and they don't get tipped anything.
People do want to work, for decent wages, not exploitation and begging via 'tips'.
I'm sympathetic to this, but surely the customers who don't tip aren't the ones screwing them. It's their employers screwing both them and the customers.
Federal law requires that the tipped employee be paid at least the regular federal minimum wage. I'm sure various state laws have something similar for when the state doesn't just match the federal minimum wage.
https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-emplo...
There are, of course, plenty varying of ideas about the minimum wage.
I'm a good tipper, and it's not to feel good about myself, but because it seems the right thing to do. (Some people don't think there's a distinction there, often voiced as "they're just trying to feel good about themselves" to excuse one not doing the right thing themselves, but others do think there's a distinction.)
So long as tipping exists, I'll now have to try not to think of my tip as subsidizing jerks who tip poorly, since that's a little annoying, and I can't do anything about that.
Let assholes do their asshole things, I do mine.
As tipping screens have become more common in retail/counter service through wider and wider usage of iPads as payment, and as suggested tipping amounts on the pre-selected options have increased, I have not started tipping any more at all than I ever did (20% on services where wait staff served our table but nothing for normal behind-a-counter transactions). I just learned to hunt down the zero percent button or the 'enter your own amount' button very quickly.
In case you didn't see this story... https://www.independent.co.uk/life-style/tipping-culture-eti... ...there is an attitude spreading that tipping is necessary.
https://viewfromthewing.com/austin-airport-shop-demands-tip-...
Oh...and the Burgerville union demanding that tips be pushed in the drive thru... https://www.coworker.org/petitions/we-demand-tips-in-the-dri...
Another article about it... https://thinkingoregon.org/2022/04/23/heres-a-tip-to-busines...
Or, just this morning as I was getting coffee at a drive-through coffee stand, I handed my card to the person and she asked "How much would you like to leave as a tip. It's totally optional!"
This is abusing how human relations work. Saying "it's totally optional" in no way reduces the social and emotional pressure of this.
Although I did say "Nothing," because that's insane.
Interestingly, at a different coffee place I frequent, they never mention tips directly. They have a tip jar that is also labelled "If you want to put a tip on your card, just tell us!"
I tip them from time to time. But if you pressure me, either verbally or through those crazy-making POS keypads, you won't get a dime from me. And I'll be less likely to return. I'm fed up.
Perhaps many people aren't recognizing that that's a 'no thanks' button that makes tipping non-mandatory?
I would be happy if 18 and 10 were the bottom options, depending on the place. It’s frankly not easy to even choose those.
Pre-pandemic, I tipped 20% for restaurants or delivery, and 10% to “restaurants” for pickup, if it was a restaurant with table service. I still mostly do that, but it’s often the lowest option these days. I do not appreciate there being a lowest tipping amount of 15% for fast casual. It is quite a bit of work to get to the 10. Depending on the exact place, it’s fuzzy if really that is appropriate or not, I really don’t think it’s appropriate for a restaurant without table service to be requesting a tip of 10% or higher for pickup, but here we are.
Firstly, a tip should be something that is asked for AFTER the service has been provided, as it's meant to both reward and incentivize good service. Modern POS systems have broken this construct by prompting for a tip at places like Panera, Five Guys, Starbucks, and others before any service has been received.
Secondly, a tip should be directed to those who provided the service. Yet, in the POS systems described above, there's no way to know who is receiving the tip. Oftentimes even the manager doesn't know.
Lastly, IF the above is going to be violated, then, at the very least, a customer should be assured that the staff behind the counter will not see the tip amount right away. As it is, I'm made to worry that if I don't tip well, the staff will see it and adjust the service I get.
The whole process is guided by dark patterns that seek to leverage guilt and the threat of being perceived as a bad customer to extract higher tips in lieu of raising wages and adjusting prices to match.
In Spain, we just leave a couple of Euros, maybe more if service was exceptional. There simply isn't the same pressure for diners to tip, as all waiting staff earn a living wage.
Tips here are simply an incentive/reward for good service, rather than absolutely expected in order to supplement the wages of underpaid staff.
In many large cities in the US the starting wage for a fast food worker can be $18+/hr. For someone working in an upscale restaurant can easily get hundreds per day in tips.
$18/hr is also a typical American salary for a new teacher [1], or $25+ with more experience, and I don't think working in an upscale restaurant should pay better.
[1] Many hits on Google.
There are a lot of cultural differences (obviously) but the cost of living is generally less overall. Cafes and restaurants here are often staffed by either younger people still studying (and usually living at home), or older people.
It isn't a route to riches by any stretch, but people get a set minimum wage which should be enough to afford rent/shopping without needing to be supplemented with tips. That said - life is hard and the cost of living is definitely going up here. You wouldn't earn hundreds of Euros in tips even in the best Spanish restaurants though.
There is no definition because it is impossible to define. Everyone will say a number based on their very specific circumstances, problems and expected quality of life (Which will also vary from person to person)
The elephant in the room is that besides trying to define a number for a livable wage there is nothing else but an extreme status quo replacement.
It's a form of tax evasion, yet I have never heard to have been an issue (prosecuted)
it's not just tipping but also sales tax, restaurant "courtesy fees", airline fees, fuel surcharges, resort fees, electric surcharges (I pay more in fees than I do for the actual electricity!), auto sales bills, etc.
The US is allergic to the concept of having to advertise an out-the-door number, because that wouldn't make for compelling advertising, and that's the focus in the US.
The waiter kept making us eat “fast” by asking “dessert now?” unasked as we were still eating entrees.
When we paid he stayed there completely still, and my father asked “…so?”. And he said the tip was too little. Dad said “I tip what I want and your service was horrible anyway”.
He threw a literal tantrum and furiously ran into the kitchen, to never be seen again. We walked out after that.
It left a mark on me as the symbol of US tipping culture, due to the impact actually being on a situation causes vs reading about it.
Never has any of the sort happened anywhere else in my life.
You’re comparing a country and seat of a world religion to a theme park.
And, even so (even if it was in Italy, that is), is it not an italian restaurant just because it’s touristic and not “for locals”?
That just sounds like a No True Scotsman.
Well, you'll notice I didn't say inside the Vatican, which is in fact a serious place with serious art treasures.
> And, even so (even if it was in Italy, that is), is it not an italian restaurant just because it’s touristic and not “for locals”?
I didn't say it wouldn't be Italian, and I didn't say Planet Hollywood isn't American. I did say they are both extreme outliers. Bill Gates is American, but his life and mine have almost nothing in common apart from language and what our passports look like. You don't learn much about American lives from looking at Bill Gates.
I have to say that in 40 years of dining out, I have never encountered any such behavior. I absolutely believe you went through it, but I tend to find Americans impressively polite on average.
However (and at risk of sounding hostile), can I ask what other cultures have you experienced?
All cultures have good and bad things, it’s not xenophobic or racist (I hope) that the Chinese have statistically better school conduct and order, while the Russians are impressively tough, the Spanish are very chill and relaxed, and many more examples.
As with all previous examples, Americans have many such qualities, but I wouldn’t have thought to say polite as one of them. Maybe for the Japanese. Hope it doesn’t offend anyone. At least around here Americans have more a fame of being loud-ish and sometimes a bit lacking in reading the room. It’s absolutely terrible but, have you watched Emily in Paris? Kind of like that.
I however understand you considering Americans polite if your other comparison is, for example, Egypt.
Just so it doesn’t offend anyone, here’s some qualities I associate with Americans. Creative, resourceful, fighters for freedom and their own personal rights (litigious too), despite the current political climate.
I've visited many other countries but I should have added that most of my adult time has spent in high-end neighborhoods on the West Coast. Except for Poland and France I've never spent more than a couple of weeks in a country outside the USA. I grew up not rich in Southern California and people were polite there too. In my old age I am beginning to suspect that people are just nice to me for some reason, or that I don't perceive rudeness as well as I should.
On an individual level Chinese, Poles, rural Americans, and Russians are sort of like New Yorkers: once they know you're not going to kill them they're ridiculously warm and welcoming. Also New Yorkers: I have more than once been asked if I needed directions when I stood on a street corner consulting my nav. In 40 years of visiting New York City I just have never found people rude, whether it's bus drivers or wait staff or people in the finance district. Which means my impression of things may be suspect.
Tipping in this country should be called what it is: customer subsidization of service worker wages. Restaurants are allowed to pay their workers below minimum wage because of the expectation for tips. The answer has been clear for a while now. Require full minimum wage (not that it's enough) for all service workers regardless of their role and require that all tips be pooled for everyone working a given shift.
As others have mentioned the tipping culture in the U.S. has its roots in the abuses of the antebellum South. Tipping is paternalistic and many people treat it as a way to exercise power over service workers. It needs to be abolished, but as with most things we'll probably have to do it in phases.
When I waited tables in college, I treated it as compensation for my work above and beyond the status quo. Now it's simply an expectation, regardless of the quality of work or experience.
- The quality of the service I came to get is significantly impacted by a single employee
- That employee is the one receiving the tip
- I am only asked for the tip after I have been able to judge the quality of the service
When those things are true (waiters, haircuts, Uber drivers) then I'll tip generously and with high variance. When they aren't (fast food, Starbucks, etc) then I try not to tip, although fighting the peer pressure is definitely hard.
The goal is that the best hairstylists/waiters/drivers make enough in tips to have it be a high-paying job they love, and the worst are incentivised to move to an industry where their skills are a better fit.
If the general quality of the service is good for reasons not related to a specific employee, I'll do all the normal things (rating highly on Google Maps, returning frequently, recommending to friends), so tipping is only arguably useful when it's directed feedback to a single person. I do wish restaurants allowed a separate tip line for "tip the waiter" and "tip the chef" though.
My biggest qualm is when tax is included into the pre-defined tip denominations because it’s absurd but also messes with my mental math.
Edit word
Those POS devices don't prompt for a tip by default. The amounts they offer for the denominations are configurable as well. Companies offering to add a tip to picking up your coffee chose to do so.
Why is this desirable for employers? One: It doesn't cost them anything and improves employee retention (or: they don't have to pay their employees as much). Two: They get control over that tip money, and can distribute it (or not) how they like. Yes, I've heard about this too, where tip money is equally distributed among all shift employees, or as well as a disciplinary step employers have kept all the tip money for that day. Three: If it's a self-owned business, they may get free money from someone who feels pressured to tip. Yes, some of that may be legal, but it goes on anyways.
My favorite is when they have the screen set-up so the largest tip is furthest to the left where you'd expect the smallest to be.
I've had numerous instances in Europe, particularly in Ireland and the UK, of shops, grocers, cafes, etc with touchscreen POS devices that ask customers for a tip percentage with every sale, only for the staff to quickly reach over on every sale and press "no tip". It seems like a rather inefficient way of not having tips. I don't know, however, whether it comes from owners trying to establish tipping and staff disagreeing, or an inability, administratively or technically, to figure out the configuration.
It's clearly configurable if you look on the websites of Square, Stripe etc.
In Denmark I've twice had waiters reach over once they saw my Danish credit card and press "no". "Sorry, I thought you were tourists/American as you were speaking English."
we should actually pressure the POS services as well as the card networks to cut this practice
it'll probably be far more effective too than trying to talk to service industry workers given the conflict of interest
Not only is that social truce now violated, it is violated specifically within our new global environment of every-transaction-of-any-kind-is-a-novel-attempt-at-customer-exploitation. Every supposed price is already a mystery, and every voluntary tip screen is a mystery with an ethical puzzle and a face to face confrontation.
I’ve drastically scaled back my use of services because it is emotionally taxing for me to confront the utter pettiness of trying to guess how much I should be paying for hot noodles from day to day.
0% for non-services like taking my order at the counter and having to pick up a call-in
10% for everything else
I don’t care if you screw up or move the earth for me, that’s what you get. That’s what everyone gets. It’s made my life so much simpler.
To me the idea of a tip is basically as some sort of recognition of status. It feels like an aristocratic tradition of sorts - a recognition that the money is not much to the giver but is to the recipient. At least in proportion to the service rendered.
And it only makes sense for like, kind of personal favours with some sort of emotional connection where the person goes above and beyond.
When it comes to just like, literally giving money for everything ever, like buying a coffee, it just seems bizarre. If you're on the same level as someone else then tipping just seems weird.
So all tips that represent the difference between an employee's base wage and the minimum, those are basically going into the employer's pocket first, and only represent actually increased compensation for the employee once they get over the minimum.
Looks like the states that don’t allow tip credits against minimum wage are Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington.
It used to be a gift, a special thank you for service above and beyond. Then it became expected for certain jobs (in large part because of a change in US tax policy).
Now it seems to be expected for everything. Employers use it to supplement wages, which in my view turns it into a kind of extortion.
Tipping has really gone from a nice gesture to workers to a whole other beast where customers are massively subsidizing the pay for workers. It's a lose-lose for anyone but the businesses.
If you're having a nice meal and you're satisfied with the service delivered you can leave a little extra. But there's no pressure or expectation to do so.
I remember visiting NYC and being baffled by how the hamburger listed at $ 5 ends up costing $ 12 in the end.
https://time.com/5404475/history-tipping-american-restaurant...
The sooner the US can move past that era of its history, the better.
EDIT: I didn't expect "let's move past slavery" to be such an unpopular opinion on HN. Yikes.
If for a fare wage, does the server deserve less because I ordered a salad instead of a steak?
If for service, what is 'good service'? Can you quantify it? Do you even want it to begin with?
Perhaps the next time you're about to sit down at a restaurant you should request the 'zero tip' experience. This should give you a lower bound from which to judge off of, if indeed you value the 'service' enough at all.
Do I continue to tip even thought I now know my servers make a fair wage (and the bill often includes healthcare mandates etc.)?
But if a company would change the name to anything else, there would be a huge revolt.
But it has to stop being effectively mandatory, and employers should not be factoring tips in when they're determining what they pay their employees.
The weirdest one was a bicycle shop where they charged me $120 before taxes for a “tune up” on a $500 bicycle and then presented me with the 20, 25 and 30% menu. I almost laughed out loud on this one.
I love to tip if I actually got a great service at a traditional sit down restaurant where a waiter actually takes care of my order and pays attention.
But getting tired of every food place trying to force us to pay Tips. Don't forget delivery charge if you order delivery AND then you still gotta pay that drive a Tip (expected to).
TIL. I'd never even thought about the possibility of it being an acronym..
Edit: Nevermind snopes says that isn't true https://www.snopes.com/fact-check/tip-sheet/