So it appears, its a case by case basis, but everyone does have to pay for tips and other items not covered by the dining plan. I wonder if Disney ever considered an all inclusive price, where everything is covered and you would truly not spend a penny on food/ drinks, and including tips as well. I wonder if people would be willing to pay extra for that. Where you would just get an arm band or something, just show that at any restaurant and thats it, and maybe exclude signature dining and special character meals. There would no more keeping track of credits or anything. I am sure there is a reason why they dont.
"Free Dining" is just another form a discount, it's going to have varying savings from family to family and resort to resort, just like a room discount. Free Dining means you are getting the
Disney Dining Plan for free. They don't advertise or even imply that any food item at Disney will be free - just the cost of the package dining plan.
We have stayed at all levels of resorts at Disney, The Poly is, and will always be, my all-time favorite resort, but now that most of our kids are priced out as adults and we have no need or desire to nap or rest at the resort, as we did when they were small, we mostly stay at the value resorts now and do free dining. A room discount saves us about $700.00 off full rack rates at Disney (a decent discount), but a Free Dining discount saves us about $1,500.00. So, even with paying somewhere between $200 and $300.00 on tips, we are saving AT LEAST $500.00 more with a free dining discount over a room discount. Also, tips really are the only thing we pay out-of-pocket for, foodwise, while traveling to WDW on a free dining discount. We pack some quick breakfast items like donuts, muffins, granola bars, etc. that we eat on our walk to the bus stop and that's our "breakfast". We use our CS credit for an early lunch around 11 or 11:30, use our snack credit around 3:00ish and use our TS credit for dinner around 6:30 p.m. Sometimes we will use snack credits for breakfast items or drinks in the food court in the mornings. So, tips really are our only out-of-pocket expense when on a free dining discount.
Free Dining is the reason we have never bought into the Disney Vacation Club (DVC) and as long as they have free dining discounts we won't - it's just too big of a money saver. It's a minimum $25,000.00 buy in for us to do DVC, with the size of our family, and we haven't spent that much on
Disney vacations in almost 8 years of free dining trips.