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.
Mike
Friday 22nd of October 2021
I am not an American,I'm European, the tipping situation in the US is crazy. Nobody talks about the employers, it is they who cause the ridiculous situation by not paying their employee's, in Europe we have a minimum wage, if you are working you are entitled to this at the very least no matter what your job, tipping is something extra for the waitress or waiter if you feel they deserve it, we get paid to do a job, tips should have nothing to do with it . It is the employers who are the cheapskates. I was recently in the US, got a taxi from the airport and yes he expected a tip, got out of the taxi and the doorman took my bags and put them inside the door,5 yards, his hand came out, another took my case to reception another 5 yards, a hand came out, after check-in a bellhop took the bags to my room and again the hand shot out. I had just checked into the hotel, that was 4 tips before I got to my room, do you not think that this is ridiculous ? we all do a job and get paid for doing so, if someone wants to give a tip then that's up to the generosity of the customer, not to some guy or gal cursing you and calling you a cheapskate, save that for the real cheapskate your employer. I always tip but that should be for me to decide and dependant on the service I receive. So in the future blame those responsible, The Government for allowing exploitation and your boss for being a cheapskate.
Kelly Hatfield
Monday 20th of September 2021
I defiantly think tipping is out of control. What used to be thought of as an extra amount solely to the wait person for exceptional service is now thought of as mandatory contribution to their pay. Tip jars are popping up everywhere even at cash registers. Should every person get a tip because they did a great job? No! How about do a great job and get to keep doing it? I think we should ban all tipping. Tipping began because sit in restaurant wait staff made far far below minimum wage. At one time it was around 2.50 per hour plus tips. SO you defiantly hustled and did a smashing job and service to get your tips. NOW... they want to auto add your tip for you, have you tip before the service occurs( think delivery ) ask for tips for everything and everyone. Its so far removed for the original reasoning, that now it should be just called "donations" or "charity" because its no longer earned. Think! "DO you want to give some money away?" I sure dont!
eab
Sunday 15th of August 2021
tipping is out of control but we really need to suck it up and tip people who rely on them for their wages. If tipping goes away, restaurants will simply add the 22% or more to their prices. I AM, however, sick of tip jars EVERYWHERE. This trend is truly out of control. I think we need to think before we throw tips into every jar we see because employees might not be relying on the tips for their pay and we are just encouraging the practice to continue. It's also manipulative. People feel shamed if they don't throw a couple of bucks into the jar.
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.