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I hate the idea of tipping. I tip generously. Both of these statements are simultaneously true. The vast majority of the countries in the world (that I've visi
by wenc 6y ago
I hate the idea of tipping. I tip generously. Both of these statements are simultaneously true.
The vast majority of the countries in the world (that I've visited) do not believe in percentage based tipping as we do in North America [1]. A tip either involves rounding up to the nearest unit of currency, or takes the form of a small service fee added to the bill.
In North America, we've arrived at a situation where waitstaff actually prefer a tipped environment (due to high upside potential, especially where alcohol is served) and are also beholden to the tip (due to huge downside potential i.e. laws that mandate a lowered minimum wage for tipped workers).
Getting rid of tipping by instituting a living wage can sometimes result in lower upside, so many workers end up being against a fixed livable wage. The calculation is that stochastic/high upsides (at bars, large groups) is preferable to stable but middling upside (i.e. living wage).
On the other hand, the laws of supply and demand still apply. Without high food prices and corresponding demand at those prices, a restaurant can't sustain an untipped staff. So getting rid of tipping is a gamble and not many restaurants, especially low end ones, are able to swing it. Restaurants that are looking to get rid of tips are banking on the fact that the demand will remain the same at higher sticker prices (which in theory, should be true since the effective prices have not changed -- culturally a 15-20% tip is almost mandatory) but psychologically this often isn't the case -- unless you have a sign at the door that says (no tips required).
It's a little bit like Uber/Lyft. The economics doesn't actually work out, but there's something propping it up. In the restaurant world, it's tipping. Getting rid of it is like getting rid of VC money for gig companies. There's a tightrope you have to walk to balance the books.
[1] https://en.wikipedia.org/wiki/Gratuity https://en.wikipedia.org/wiki/Gratuity
- untog 6y ago> I hate the idea of tipping. I tip generously. Both of these statements are simultaneously true. I strongly agree with this. Particularly in the US, where tipped workers are allowed to be paid less than minimum wage on the assumption they will be tipped. So yeah, I’ll tip. But what a damn stupid system.
- swimfar 6y agoIn addition, the amount a waiter is tipped is also often influenced by their race, sex, and physical appearance.
- 9nGQluzmnq3M 6y agoThe thing I don't understand that mandatory fixed service charges (in lieu of tips) are already standard for large groups in many if not most US restaurants, because negotiating tips and who pays what in this situation is even more complex. Why is it so hard to just extend this existing, well accepted practice to smaller tables?
- wenc 6y agoI think it's cultural. Minnesota is doing it though. https://www.minnesotamonthly.com/food-drink/new-restaurant-service-fees-and-tipping/ https://www.minnesotamonthly.com/food-drink/new-restaurant-s... The other issue is US consumers get confused and don't know what to do. The difference between a tip, a surcharge, and a service fee is so subtle that it's a mess to keep up with. https://laist.com/2019/08/26/restaurant_surcharge_tip_los_angeles.php https://laist.com/2019/08/26/restaurant_surcharge_tip_los_an... I think for this to work, it needs to be established as a new widespread social norm. Otherwise the confusion actually increases the friction of dining out (well pre-covid), and restaurants lose. It takes brave restaurants to risk being a casualty of confusion. A good number of restaurants might need to be sacrificed.
- silicon2401 6y agoI also hate tipping, and as a result, I just do takeout. No tips expected, no tips given, no problem.