Tipflation

[NYCgrrl]

Later this month I’ll be eating at a Michelin rated eatery. This thread kind of makes me wonder what will happen there. Guess the days of doubling the sales tax are long gone.

 

[China Expat]

Everything is annoying these days.

 

[hertamaniac]

I view it as tipping the customer.

The wages and customary tipping should be built into the overhead. I'd be happy to tip 30-40% in exchange of a reciprocal tip of 10-20% for supporting the entire staff and management if they provided exemplary service.

 

[disykat]

I live in an area with no tip wage, everyone gets at least $16 an hour and the tip expectation is still 20% or more. It irritates me, but I still generally do 20% at restaurants with table service.

My DH and I have a totally different theory on tipping. I'll tip higher when they are either swamped and managing it well or really slow and I know they won't be making other tips. If it's just normal paced and I can look around and calculate that their hourly take is going to be more than I've ever imagined making per hour, I don't feel so generous. He doesn't believe me when I calculate it out for him that it's more than he makes. (And yes, I include that they have to tip the house, etc. in my calculations - I've waited tables before and it was quite lucrative unless it was really slow.)

 

[SpaceMan5]

Tipping in the US is out of control right now. We used to eat out a lot and tip 20%+, but now with sky high prices and expected tips at 25%+, we eat at home a lot. Everyone wants a tip now. At our nearby bakery you grab a tray, select your items, bring and bag your items, and the tip screen defaults to 15%. Really? On items I picked and bagged myself. It’s insane and everywhere I go it’s like this.

You speak the truth, 100%. Insanity

 

[focusondisney]

If it's just normal paced and I can look around and calculate that their hourly take is going to be more than I've ever imagined making per hour, I don't feel so generous

This is what I often think too. Especially at places like WDW, where there is no slow time. From open to close, those restaurants are packed. No disrespect to servers. It does annoy me that I am expected to tip a server essentially the same amount I made in an hour as a 44 yr veteran RN, just for bringing us 2 cokes, salads & entrees, because we ordered expensive steaks. Especially when I can estimate that all their other tables will be giving them that much too. I keep telling my husband this is crazy & we should cut back the percentage. We’re so conditioned tho, so we’re still tipping 20%. One of these days we’re really going to do it. Oh, and I have no problem clicking No Tip on all those counter service pick up screens.

 

[kanne323]

2. Tips by cash are great for the server or worker but tips electronically are costly to both employee and employer. Here's why. At my shop we "used to" have the tip option on our square reader. I removed it because of one employee that just doesn't "get it". We do custom auto stereos, window tint and accessories. My Square reader charges me 2.75% + $.10 per transaction. If he received a $20 tip, I paid $0.55 which is no big deal if it's just $20 but what if it's $100 per week? That's $143 a year I pay which again is not that big a deal .... stay with me here. Add the $0.10 per transaction and were around $200 a year roughly. Still not bad for a good employee. Now the tricky part. First, I have to put it on his paycheck so now he pays taxes on it. (my guys are 1099) Not my problem right? wrong! I just made $5200 more income at my business that I have to pay taxes on. For money I never received. Calculations show that for me to break 100% even I would need to hold 27.85% of his tip. I'm pretty good with math and what I am not good with, my calculator is. I plugged the numbers straight into my Quickbooks and showed him but he said he would rather just not get tips electronically at all if he loses a percentage. Sadly, he rarely receives a cash tip. But when he does, He keeps 100% of it as it has no bearing on my profit and loss.

I'm curious- you said that your employees are tipped for doing custom auto stereos, window tint, etc. Are they paid less than minimum wage?

 

[tony67]

The one thing that really irks me about the whole tipflation thing - why do we need to increase the tip because of inflation? The prices of the food and drink go up, so the bill is higher, so its 20% of a bigger number. So its a larger tip.

Also in many states, the states where this seems to be the bigger issue, the minimum wage is reasonably high for a tipped employee and\or is going up.
https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

BTW, I have a lot of friends in the industry and they are paid higher than the states non-tipped employee minimum wage. They cant find people so they have to pay more.

Then there are the places that we started tipping during the pandemic to help them out, but now they still expect a tip...and they want more. Oh and if you don't tip they have an attitude...so I just don't go back.

Last is all the self check outs. Why do they ask me to tip when I am checking myself out. Who am I tipping. Who gets the Tip. Why would I tip.

I do like how tipping is done in Europe. In much of central Europe you just round up. So if a bill is 58.25 euro when the waitstaff come back you just say 60 and tap and pay and done. Americans tipping 20% is actually an issue. The waitstaff are thrilled, but the locals get very annoyed. You are driving up the expected tips. And they now because its all done verbally with tap and pay.

 

[snowwite]

I've always been a generous tipper (by older standards, i guess - always tipped 20-22%) because in Florida, tipped minimum wage was MUCH less than minimum wage and also less than the tipped minimum wage mandated in many other states.

(Plus, also to make up a bit for some international visitors who vacation in my touristy area from other countries and are (or often pretend to be) clueless that tipping is expected on table service dining. They frequently leave NOTHING, according to a few family members who waited tables.

But I 100% agree with you...it is getting NUTS. I predict customers are going to start rebelling and this may skew in the opposite direction pretty soon.

I am dining out a lot less these days...for that and skyrocketing menu prices. Just not worth it.

I have not seen this in Fl yet but in CA we frequently saw a new fee tacked on before the tip which was another 5% to cover kitchen and back of house staff. I feel like employers need to pay staff a fair wage and not expect customers to tip higher to cover it. It’s getting out of control. We typically do 20-25% for lunch or dinner and probably more at breakfast because a lot of time breakfast tip would be under $5 so I would round up. Some of the rules around tipping make no sense. Like basing it on what you order. Is it more work to carry a plate with a steak than a burger?

 

[tony67]

Some of the rules around tipping make no sense. Like basing it on what you order. Is it more work to carry a plate with a steak than a burger?

Yeah...like tipping a dollar for a drink. So $1 to open a beer and $1 for a complex mixed drink - like a Zombie. (I'd tip more than a dollar for a complex well made drink, but lots of folks tip the dollar regardless)
I recall years ago when a beer was $3 getting attitude because I tipped a dollar every other drink. It was just opening a bottle of $3 beer.

Tipping more because its a more expensive bottle of wine is another crazy one. Its the same work regardless. (For the most part, I guess the less expensive one could be a screw top)

One other place where tipping really annoys me is the food booths at Universal during events like HHN.
The drinks are in a pre made in a big vat and not that good and you expect a tip on top of the exorbitant price.
Same for the food items. Tips should not even be part of that.

 

[LoveDaisy]

Yeah...like tipping a dollar for a drink. So $1 to open a beer and $1 for a complex mixed drink - like a Zombie. (I'd tip more than a dollar for a complex well made drink, but lots of folks tip the dollar regardless)
I recall years ago when a beer was $3 getting attitude because I tipped a dollar every other drink. It was just opening a bottle of $3 beer.

I bartended at a college bar 25 years ago. I’m was regularly tipped $1 for every beer I opened and mixed drink/shots usually $2. Interesting 25 years later people are still tipping the same amount. I never go to bars so I had no idea it was still $1 a beer.

 

[tony67]

I bartended at a college bar 25 years ago. I’m was regularly tipped $1 for every beer I opened and mixed drink/shots usually $2. Interesting 25 years later people are still tipping the same amount. I never go to bars so I had no idea it was still $1 a beer.

Paying cash that seems to be the standard still - depends on the bar etc... If a beer is $8 people will throw down a $10 in most cases.

The reality - most people run a tab and pay at the end, order food etc... so its probably higher as they tip the standard 20%. I usually just bring a $20 and tip that in cash. Cash is always preferred for the tip.

EDIT: BTW - These bartenders are making crazy money - even at $1 a drink in some cases. I've seen them tip out the runner $150 on a busy night. (The runner is more of a bar back in this case, but still - that's a nice bit of money)

 

[dpswift]

DH and I only go to a few restaurants and they are more designed for families so I had no idea this was going on.

In sit down restaurants that have 2 suggested tips I usually tip by rounding off the higher amount either up or down to the nearest dollar unless something wowed me about the service.

The restaurant we go to weekly is a pizza pub. If we order from the counter is always put a dollar or 2 in the tip jar. If we pay as you go for drinks it is a dollar per drink. If we run a tab or sit at the bar and order food we tip 20%.

By the way I work in one of those counter service restaurants that allow tipping. The card readers options start at .50 and go up to $3. Most people leave nothing. I understand that a few people feel guilty if they don’t leave a tip,but honestly it is the norm. The tips we do get are shared between everyone. The tips add about $2 a hour to our paycheck.

 

[Babs Johnson]

There are a few express refreshment kiosks at Baltimore Orioles Camden Yards. Just bottled non-alcoholic beverages in cooler doors and bags of packaged peanuts, chips, etc. There is an employee in case of payment tablet issues, but otherwise it’s 100% self service. The tablets have a default tip included. You need to manually hit “no tip” if you disagree with extortion.

I think other sports facilities have the same setup too, as do some airports. One report I read about the Austin, Texas airport said there is NOT a no tip option. You must choose one of the suggested tips.

I’m pretty sure that 100% of the tips in these situations go to the concessionaire, not to the employees.

 

[LoveDaisy]

EDIT: BTW - These bartenders are making crazy money - even at $1 a drink in some cases. I've seen them tip out the runner $150 on a busy night. (The runner is more of a bar back in this case, but still - that's a nice bit of money)

It was good money back then too, it’s how I paid for graduate school. It was less hours/work than being a waitress and the hours were better for me at the time I’d go in after my on campus job or night class.

 

[Lsdolphin]

I think what is especially crazy is that servers used to only receive a very small wage and pretty much depend on tips…but now most receive a higher base wage and still expect 20-30% tips. Also seem to be tip jars everywhere you go even grocery stores want you to give money to whatever non profit …I give plenty to charities of my choice and resent being expected to contribute to businesses who should give out of their own pockets if they want to donate to a cause. I claim my charitable contributions on my taxes why should my donations be claimed by grocery store as their contribution…

 

[dpswift]

There are a few express refreshment kiosks at Baltimore Orioles Camden Yards. Just bottled non-alcoholic beverages in cooler doors and bags of packaged peanuts, chips, etc. There is an employee in case of payment tablet issues, but otherwise it’s 100% self service. The tablets have a default tip included. You need to manually hit “no tip” if you disagree with extortion.

I think other sports facilities have the same setup too, as do some airports. One report I read about the Austin, Texas airport said there is NOT a no tip option. You must choose one of the suggested tips.

I’m pretty sure that 100% to the tips in these situations go to the concessionaire, not to the employees.

Agree this is just plain wrong. Just like in restaurants where they add a tip for large parties and don’t tell you. My overly generous father has been hit by this a few times.If I am there I try to remind him to check

 

[TwoMisfits]

I think what is especially crazy is that servers used to only receive a very small wage and pretty much depend on tips…but now most receive a higher base wage and still expect 20-30% tips. Also seem to be tip jars everywhere you go even grocery stores want you to give money to whatever non profit …I give plenty to charities of my choice and resent being expected to contribute to businesses who should give out of their own pockets if they want to donate to a cause. I claim my charitable contributions on my taxes why should my donations be claimed by grocery store as their contribution…

I agree. I literally NEVER give when a business asks at checkout. If they wanna give their money, great. They don't need to get credit for giving my money.

 

[_19disnA]

Doesn't bother me when some place asks for a tip, I just ignore their 'tip jar' or whatever they have out. I still tip 15-20% in most sit-down type restaurants and don't feel bad about doing that. Every person doing some job in a store isn't entitled to a tip.

 

[Kathryn Merteuil]

I remember recently we went out, and it was a group of like 8 (which I am assuming automatically builds in a tip). The receipt showed that there was a 20% tip imposed into the bill already.... THEN at the bottom it had "tip suggestions" like 18%, 20% etc...on top of the price that included a tip.