Tipping. Everyone has their own opinions about the practice.
You normally don’t hear much arguing about it unless you’ve come across someone who believes that tipping is stupid.
So, what set me off about tipping?
The other night I was at one of our favorite restaurants.
It isn’t the cheapest place, but it’s on the beach so we expect to pay a bit more than a typical chain restaurant.
The shock came when we got our bill.
Restaurants Suggest Tipping Amounts
I’m sure you’ve caught on to the recent trend of restaurants printing suggested tips on the receipts.
Generally, they calculate how much your tip should be if you want to tip 15%, 18% or 20%. I think that’s fair because that’s the range I normally tip in.
In my mind, I feel I should tip 15% if service is average, 18% if service is great and 20% if I didn’t have to think or ask about anything, such as needing a refill because my glass was empty.
Fifteen percent for just doing the basics of your job seems pretty fair to me. After all, I’ve been a server before and know that some people tip even less than that.
Not All Suggested Tips Are Equal
This time we got our bill and saw three suggested tip amounts at the bottom, but something didn’t look right.
The tips were called Good, Great and Excellent, which is in line with my normal tipping practices.
However, they didn’t list the percentages associated with each category and that fact had me suspicious almost immediately.
I took out my phone and did some quick calculations and found out that Good was 18%, Great was 20% and Excellent was 22%.
Who tips 22%? And why does this restaurant feel I need to tip 22%, not the standard 20%, for great service?
Before we get into the argument, let’s first discuss what I actually tipped. Needless to say, I didn’t tip 22%. In fact, the service wasn’t that great either. I’d call it OK, not even good.
Just so everyone doesn’t think I’m cheap and stiffed the guy, I tipped the server just a tiny bit less than 18% because it was a nice even round number.
Now, let’s get to the fun part.
Why Do Servers Feel They Deserve Higher Percentages Now?
News flash. As waitstaff, you aren’t entitled to a tip if you don’t do a good job.
It is part of your pay, but it is part of your pay for doing your job and doing it at least halfway decently. It is an incentive and you need to work for it.
I have no problem tipping the standard 15% to 20% for service that isn’t awful.
In fact, I’ve only stiffed servers two or three times in my life and the stories from those encounters would shock most people.
The problem is, servers these days keep thinking they need larger and larger tips. Twenty percent isn’t a great tip anymore, it seems.
I’ve heard servers complain if they don’t receive at least 20% for their tip. That’s absurd.
Why do servers think they deserve tips in excess of 20%? They say that things are getting more expensive and they need to make more money.
Unfortunately, most don’t realize the flaw in their logic. As things get more expensive, the meals at their restaurants also get more expensive.
They are already getting a bigger tip. After all, 20% of $20 is more than 20% of $10.
Others Think Tipping In America Is Ridiculous
While I agree that tipping is out of control and I do wish it wasn’t a thing, it is something that we must live with.
Unfortunately, people from other countries may think tipping in America is ridiculous because they aren’t used to our customs. When these people refuse to tip, it hurts the servers and everyone that gets a share of tips.
I do wish that everyone was paid their fair rate and we didn’t have to worry about tipping, but I don’t see that changing anytime soon.
So, while you may think tipping in America is ridiculous, don’t stiff your server. If you can’t afford to tip or don’t agree with tipping, eat somewhere where tipping isn’t normal.
Tips For Servers That Want To Make More Money
I have a tip for servers who want to make more money in tips.
Instead of continuing to work at the restaurant you’ve been working at for years, go out and get a job that pays more.
I’m not saying you should stop serving. Just consider the following ways to earn more.
Do you genuinely like serving? That’s great. Keep with it. Just find a way to increase the dollar amount of your tables’ checks by selling them more food. That way, your 20% will be worth even more.
Want to know an even bigger secret that will make you more money?
Instead of working at Applebee’s for the foreseeable future, try your best to increase your serving skills.
Once you’re an excellent server, go get a job at a nicer, more expensive restaurant. The bills will be larger there and your tips will be too.
Want to read even more about tipping? We have another article about the topic that explores concepts like why does everyone want a tip. Check it out here:
So, what’s your take on tipping? Do you think we should be tipping more than 20% on a regular basis these days? Why does everyone want a tip? Has tipping gotten out of control? Or am I just cheap? Let me know down in the comments.
Lance Cothern, CPA holds a CPA license in Indiana. He’s a personal finance, debt and credit expert that writes professionally for top-tier publications including U.S. News & World Report, Forbes, Investopedia, Credit Karma, Business Insider and more.
Additionally, his expertise has been featured on Yahoo, MSN, USA Today, Reader’s Digest, The Huffington Post, Fast Company, Kiplinger, Reuters, CNBC and more.
Lance is the founder of Money Manifesto. He started writing about money and helping people solve their financial problems in 2012. You can read more about him and find links to his other work and media mentions here.
Geraldine
Friday 9th of July 2021
I think the tipping is way out of control . Too many places ate putting out tip jars . Expecting a tip for doing your job is ridiculous . In restaurants the prices of meal have kept pace with price increases . So servers that are given 10% of meal price have been given a raise over the years. The servers themselves should not be dictating to customers how much the percentage should be. I would not think of not leaving a tip at all but what I do is 10% of meal price on pre tax cost of meal If the amount of 10% and change I do usuly round up to ne t dollar.Just because they want higher percentage does not mean it should happen. There are a lot of things I want too . Wanting something to happen does not mean it will happen.If they want more more money then go back to school and get a higher paying job. I do not go to a restaurant very often so whatever I do or don't do dies not affect that much.So they can keep putting out the word that they expect higher and higher percentage but the customer makes his or her own decision .If their income was so low they would get another job.At the rate that they are going where does it stop ? At some point of time will they expect half of meal price,or will you eventually be expect to pay the meal price twice - first to restaurant then meal price again to the server.Taking an order then plopping your plate of food down on table then finally come back to ask about desert then plopping down desert, and having to flag down someone for drink refill is the norm . So keep demanding higher percentage but I will give what I feel is the the correct amt to tip.
Anna
Monday 21st of June 2021
Wholeheartedly agree. More is expected for less. When I was a waitress about 25 years ago, 20% was reserved for the finest dining, with wine services, etc. And those recommended tips on iPads make us deer in headlights. Stop, think, and don't be strong armed into insane tipping expectations. Glad I am the only one feeling this way.
Jason
Wednesday 24th of March 2021
Whats absurd is that every person that gets hourly gets a cost of living raise annualy, and servers have never had a raise. 15% is what they tipped in the 80's. So you think its ok to pay someone hourly wages from the 80's? No you don't tipping 20% is just getting with the times. People are sad any more that they couldnt go out to eat and still think 15% is correct. The hard work is a service that a person is doing to get paid. It is so easy juat tip what your suppose to. Wow what a concept. Do you give your mechanic less after ge fuxes your car? Its a service. Bottom line people are shady any more and servers are tired of it.
Hussl Banks
Wednesday 20th of January 2021
Don't let the server sob stories of "not making a wage" fool you. I worked in the industry for 15 years in High school and after college. I never saw a check from my employer but I was making $65,000 every year working 25-30 hours/week. I averaged $50 an hour and didn't have to claim it on taxes especially if customers tipped in cash. I personally didn't do this next part, but one of my coworkers did. He claimed to be making low income when he was, in fact, making at least $50K/yr and was receiving government assistance. At the end of the day, servers don't want to be paid hourly because it would be a huge cut to their pay. It's an entitled industry and it's unfortunate because I was making way more than the people I was serving. Take a look at Initiative 77, no server wants to be paid $15/hr by their employer. But they will never tell you the real reason why.
indianadave4
Sunday 6th of December 2020
The restaurant owners should be paying their employees a descent wage. Owners and stock holders are becoming greedy, especially if they are a large national chain. Ultimately the customer is paying and TIPPING is a cheap way the restaurant owner puts the pressure on the customer. This practice generates an uncomfortable relationship between the server and the customer. There are a few chain restaurants I refuse to go to anymore. The owners will say their prices will go up if they have to pay the servers a livable wage. Well, for the customer we're already paying that higher cost. Why not stop trying to hide this practice and remove the comfortable relationship tipping generates between the server and the customer. I feel bad for the server and religiously pay 15%. Inflation is making it more and more difficult to pay a huge tip. If I found a restaurant that paid a good wage and eliminated tipping I would visit that facility often. In the end: Employers, pay your employees (servers, waitresses and/or waiters) a reasonable wage.