Tipping is now at about 20% for good service

[MarchHare]

Originally Posted by getbak

They'd just raise their prices to compensate, and you'd pay the same price for horrible service that you now only pay for excellent service.

If you think service in Calgary sucks now, imagine what it would be like if they weren't "hustling" for tips.

Read the link I posted earlier. According to the evidence, there is very little correlation between the amount of the tip received and the quality of service rendered.

A few choice quotes:

Probably the most common reaction to our service-charge-no-tips policy, from people outside the service industry, was along the lines of, if there’s no tipping, then how will the servers be motivated to do a good job?

When you step back and think about this for a second, it’s actually kind of hilarious. The person asking this question would have a full-time job as a software developer, or lawyer, or journalist, or doctor, always working to a pay rate that was negotiated ahead of time. We would never suggest that a code jockey or surgeon would be motivated to do better work by the thought that their clients, if pleased with the service, might toss in a few extra dollars.

And yet, we restaurant-goers (and I include myself in this, in the days before I worked in restaurants) are not hesitant to suggest that, unlike all other working Americans, restaurant servers are a class of simpletons who require a drip of money every few minutes to keep them on task. By perpetuating the idea that servers, and servers alone, won’t perform without the threat of pay withheld, we dehumanize our neighbors and peers who work taking care of us. I think this helps us not feel bad when we sometimes treat them badly. It’s the Stanford Prison Experiment meets Yelp.

Meanwhile, restaurant workers know what’s up. People who worked in the restaurant industry wouldn’t ask us this question — what will motivate servers to do a good job? Because, inside the restaurant, we know that while the customers think their tips allow them to control the server, in fact the control is illusory. The story of the server being motivated by the customer’s power to tip, is instead a fiction created to make the customer feel important.

One night a few months into the Linkery’s existence, I asked our best server about a table of high-maintenance guests who had just left the restaurant. Specifically, I was curious, given how demanding they were, if this group had tipped high or tipped low.

“I don’t know,” she said. “I never look at the tips until the end of the night. It basically always evens out, if one table tips low, someone else tips high. You always make about the same percentage of sales.”

Another of our better servers joined the conversation to say that she did the same thing. Because, she said, “there’s too much to think about already. You have to not think about the money so you can take care of your tables.”

I wasn’t expecting this attitude from high-performing servers; I had accepted on faith that it was only the tips that motivated them to do good work. Now curious, I started an informal study of our team, watching how they handled the tipping part of the job over the weeks and months. Without exception, the best servers never talked about their tips — as far as I could tell, they never even thought about their tips — until after their shift was over. The best performers were fully engaged with simultaneously filling the needs of 25 people in a busy, crowded restaurant. It’s a complex job and they brought their full selves to it.

[MarchHare]

And the real choice quote is this one:

Here’s the underlying math of the whole thing. Let’s take a typical, Linkery-like restaurant (but one that accepts tips) where the guest spend average is about $25/pp, and our server can count on serving 40 guests in her five-table section on a busy weekend night.

At 21% average tip, her base level of tips is $210 before tipout

If she is able to increase her quality of service to top-tier, and things also go well with the parts of service she can’t control like the kitchen’s work, she would likely increase her average tip to 23%. Now she has increased her tips by $20, to $230 before tipout. She’s pretty dependent on the kitchen for this to work though, so she’ll probably tip out more to them in this case. I’ll estimate she ends up with a raise of $15 for the night.

If the server instead focuses on using the “Mega-Tips” techniques — such as calling the guests by name, touching them on the shoulder, squatting to meet the guests at eye level, and drawing smiley-faces on the check, all things which don’t require assistance from the kitchen — she’ll probably increase her tip average to 23% (or more) as well. In this case she’s less likely to increase her tipout to the kitchen, so she’s really increased her income by a full $20 for the night.

If she focuses on increasing sales to her section, she might get her guest spend average up from $25 to $28 — a very big increase from the business’ point of view. This, at 21% tip, would get her to $235, a raise of $22 from her original base.

Lastly, if she instead focuses her attention on increasing her section size — something which can be done in many ways, from coaxing/bullying the host or swooping in on tables, to emphasizing to the shift manager that it would save labor costs, or even telling a manager that the server next to them is overloaded and should cede some of his section — our server could bump her section from five, to say, eight tables, increasing the number of guests she serves in a night from 40 to 64. If she maximizes her section size, this will at some point stretch her to a point where her guests start getting poor service and are unable to purchase as much as they want. Let’s that happens here: sales per guest drops to $22 (a huge drop from the business’ point of view), tip percentage drops to 19%, and guests are less excited to return. This is a nightmare scenario for the business, and also lousy for the guests, but our server’s income before tip out has risen to $268, by far her highest yet. By pushing number of guests to the maximum possible, she’s made a raise of $58 on the night.

You can play with the numbers and scenarios to get slightly different results. But in general, in most restaurants, increasing the number of guests served is the surest way for a server to increase her income — even if the quality of service decreases markedly. This is because people don’t actually decrease their tip much for lousy service; and that total decrease is not nearly as much as the increase in total tip revenue gained by the server squeezing in some extra guests.

This is the plainest mathematical explanation I can give you to show that the tipping system, which is believed by customers to maximize quality of service, and believed by many restauranteurs to minimize the amount of supervision required of servers, actually works against the interests of both the guests and the business.

Emphasis added.

[Dion]

Originally Posted by Major Major

Trust me, no one is running off and bragging about not tipping on a 100 $ tab.

Who said anything about bragging? Not me.

What if for every bad customer you dealt with you lost 5 dollars off of your paycheque? Then would you say, oh well, I'll just focus on the positives? Nope, you would become surly towards gross customer negligence and find ways to amuse yourself at their expense. This isn't that complicated people!

If I became surly I'd probaly get out of the industry and find another line of work. Life's too short to be in a job where you feel the need to get even with bad customers.

[Major Major]

Not too short to be smug though right? I bartend because it's fun. No one is complaining, I just say sometimes this happens and this is how I act. It is a perfectly reasonable way to react to rare circumstances. No one gets hurt and it is really not that big of a deal.

[TheSutterDynasty]

Originally Posted by Major Major

When I am working in a bar, I have a duty of care towards every single person in the bar and am liable for damages that may occur due to irresponsible service. Added to that, I am sometimes out in situations that could be physically harmful for me, but it is a part of my job to ensure everyone else's safety. I have paid for and taken courses in this regard, and there is more to it then you might think. You cannot compare someone tipping between licensed and unlicensed establishments.

You're a bartender, not a police officer.

I've never seen someone so enveloped in such diluted self-importance about a part-time job that's sole purpose is to pay college tuition.

[Coys1882]

I would prefer to see a way to chose which % of my tip goes to which staff. If the waiter sucked but the kitchen rocked - why can't I direct 100% of my tip to him - in turn letting the waiter know he dropped the ball or vice versa.

[Major Major]

Originally Posted by TheSutterDynasty

You're a bartender, not a police officer.

I've never seen someone so enveloped in such diluted self-importance about a part-time job that's sole purpose is to pay college tuition.

Just doing some basic responding over here. I enjoy doing what I do and will defend it when called upon. The duty of care stuff is all quite true. I work in a busy bar and that is a part of my job requirements.... And diluted self-importance doesn't make any sense.

[puckluck2]

I've always tipped high for great service and average for bad service so I'm probably part of the problem.

But out of spite of the article and the bad service I'm no longer going to tip above average. 10% for bad-average service. 15% for great service.

[Nage Waza]

I tip 15%, with my kids 20%, with something above and beyond 20% and with something devastatingly bad, I tell the server, manager and host what was wrong. I then tip 15% and if the problems were not dealt with I never go back and post a review on line.

[RedMileDJ]

I haven't read the whole thread yet, but here's my take:

I, as a standard, tip 15%, if the service is good.

If the service is above good or outstanding, then I tip 20%. In all honesty, I've only ever tipped 20% or more, at a few Calgary restaurants (Cattle Baron).

If the service is poor, then I tip 10%.

I've ONLY ONCE tipped nothing. It was horrible service. Even the manager called to apologize. Can I say the restaurant?

And what's with Subway and take-out places asking for a tip on the debit machine or having a jar nearby? What? You want me to tip you for picking up my own food? Come on!

[Swarly]

Originally Posted by Nage Waza

I tip 15%, with my kids 20%, with something above and beyond 20% and with something devastatingly bad, I tell the server, manager and host what was wrong. I then tip 15% and if the problems were not dealt with I never go back and post a review on line.

but why the 15%, that makes no sense to say 'the food was bad, the service was bad and they didnt fix any problems after my bringing it to their attention. Here is 15% more than I have to pay'. Giving 15% is a high wage, it gives the server zero reason to change their ways.

Personally I don't have the time or energy to waste training servers every time I go out, I go out a lot, almost every day for lunch and about 10 times a week for dinner/drinks. If someone sucks at their job I save myself about 20% and have no problem letting them know why. If a server keeps getting bad tips they will move on to greener pastures or become better at their jobs, problem solved.

Having said that I can only think of one or two times in recent memory that I left anything less than 10% and usually hit anywhere from 18-30%, I actually find the service in Calgary to be pretty decent but maybe that is just the places I tend to go to.

[getbak]

Originally Posted by MarchHare

Read the link I posted earlier. According to the evidence, there is very little correlation between the amount of the tip received and the quality of service rendered.

It's interesting, although, I don't think it's correct to say they ran a "tipless" restaurant. What they did was convert from a voluntary tip system to a fixed percentage service fee.

He doesn't really explain how the staff was paid, but from my understanding of it, the staff received a fixed hourly wage plus a predefined share of the collected service fee. Presumably, if the restaurant had a better than expected night, all of the staff would reap the benefit, and conversely, they would all take home less after nights where the restaurant didn't do as well.

Essentially, he converted his servers to a partial commission. From the restaurant's perspective, that's great because a waitress can't increase her tip by just putting a smiley face on the bill. To increase her paycheque, she has to sell more food and drink.

When you look at it that way, it makes sense that a system like that will attract high-performing servers because it guarantees that upselling the customer will lead directly to a higher service charge and a higher take-home for the server, with much less uncertainty.


To have a truly tipless system, you need to have one where the servers are paid a fixed hourly wage with no potential gain or loss based on their own or the restaurant's performance.


Tipping is pretty much non-existent in Australia, and service in restaurants and bars is also virtually non-existent.

It's possible that the poor quality of service in Australia isn't because the servers don't care but because the owners try to save money by understaffing and overworking the few employees they do have. From the customer's perspective, it amounts to the same thing. If you compare the experience in Australia to a similar dining experience in North America, it's easy to conclude that you'll end up paying the same price at the end of the meal (after tax and tip) but receive significantly better service in the tipped service culture in North America.

I'd be interested in seeing a study comparing quality of service and server performance between Australia, Canada, and the US. Australia is at one end of the tipping spectrum; the States is at the other end; and Canada is right in the middle.

[killer_carlson]

Is there any analysis over whether increased tipping amounts results in increased disclosure of tips on tax returns?

Whenever these discussions happen the non disclosure for tax purposes is an elephant in the room that is never talked about.

[Rathji]

Would you tip more or less if you knew one way or the other?

[valo403]

Originally Posted by dammage79

Let's not forget those tips also get divided amongst the support staff and bartenders and cooks as well in some places. Add to that the tip out to doorstaff as well. So fifteen percent ends up being in the five to ten percent range at the end of the day. It is circumstantial to the establishment as some places will tip out supports staff a percentage of the sales but I know in most places those tips servers and bartenders get don't 100 percent go to that sole person. So 20 percent would be appropriate if you take all of that into account.

Also most serving staff work limited hours and get paid near minimum wage so yes, in Canadas food and beverage industry it is an expectation to receive tips. Australia and New Zealand pay their staff well and do not allow tips to my knowledge so it is different globally.

It's not customary, but it's certainly allowed, particularly at bars.

[PsYcNeT]

I love going for cheap wings or something at a bar, so with a few drinks + 6-9 bucks worth of wings, $10 is like a super ballin 50% tip.

[return to the red]

Here's the thing about tipping...it's done after all the work has been completed!

You really think a crappy, clueless waitress/waiter will look at the tip after the customer has left and said "hmm maybe I offered crappy service"? Nope that waiter/waitress is gonna say those people were crappy tippers and move onto the next customer.

I used to work in the industry so I always was big on tipping big but now that I'm in sales outside of the industry if I get crappy service i'm not shy on walking out giving less then 10 percent or even nothing. Why should I feel obligated to give you anything at all, crappy service can severly impact a night out, especially if you don't get many to begin with.

[albertGQ]

I know servers get paid well so I stick with the customary 15-20%.

What about cab drivers? Hair dressers? Do they get paid relatively the same as servers?

I heard cab drivers can make ~$100k/year. I don't think hair dressers make as much so how much tip do they deserve?

[PsYcNeT]

Originally Posted by albertGQ

I know servers get paid well so I stick with the customary 15-20%.

What about cab drivers? Hair dressers? Do they get paid relatively the same as servers?

I heard cab drivers can make ~$100k/year. I don't think hair dressers make as much so how much tip do they deserve?

When in doubt, give them $10.

[terminator]

Never do I tip more then 15%.

Unless its a cheap wing night.