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AUTHOR: R Quinn on 11/21/2024

Personally I have no problem with tipping servers and others for that matter. I just tipped two delivery men $20 each when they delivered a piece of furniture. I tip at Starbucks and usually when I see a tip jar on the counter. My point of view is these workers need the money more than I do and I can afford it. Maybe I’m helping a kid through college or just with family bills. They are working after all and I remember what it was like trying to earn money as a kid.

Here is another point of view posted on social media media. 

“This whole you’re obligated to tip when you go out to eat thing is wild to me because you still deserve to be able to go out and have a nice meal even if you are not able to tip.”

The “deserve” part caught my eye. I never thought of eating out as being deserved, especially if you are not able tip – eat less so you can tip fairly. 

When I go out to eat with friends, there is always haggling over the tip. If they give me the bill I add 20% and divide by the number paying – simple, done deal.  Not anymore. 20% is too much, make it 18% even 15%. I’m so embarrassed I usually slip an extra few bucks to the server as we leave. 

Then there is the good service argument. Rarely will poor service, controllable by the server, cause me to lower my tip. In fact, I can’t recall such incident. I’m guessing most of what we don’t like, even a delay in eating – certainly the quality of food – is not controlled by the server. 

Think back to your own job. Are there bad days, screwup days, non-productive days? Do you get paid less on those days? Generally no, certainly not if you are salaried. 

Many people feel it is the restaurant’s responsibility to pay servers and a “living wage” no less. Where I live that’s $23.00 an hour for a single person. Add one child and it is $39.80 = $82,784 per year. For tipped employees, New Jersey allows a lower minimum wage of $5.26 per hour, provided that the total hourly earnings—including tips—meet or exceed the standard NJ minimum wage of $15.13 per hour

Most states provide for servers in a similar way. In California servers must be paid the state minimum wage of $16.00 without credit for tips. 

The federal law is similar; the base minimum is $2.13, but if tips don’t bring pay up to the regular minimum of $7.25, the employer must make up the difference. In effect, servers have the same federal and in most cases state minimum wage as all workers. 

A 2024 study found when it comes to sit-down restaurants, 71% of women and only 63% of men always tip. 35% of Gen Zers always tip when dining in, compared to 56% of millennials, 78% of Gen Xers and 86% of baby boomers. I found these percentages shocking. 

I’m older than baby boomers, I always tip. Are those differences telling us something – perhaps about respect for others? 

The simple solution would appear to be no tipping and increase prices and/or add a service charge. In Europe many restaurants will add a service charge to the bill to cover table service. Tipping is usually 5% to 10%, if done.

There would have to be hefty menu price increases to account for variations in meals served while servers are still being paid by the hour. A fixed cost versus highly variable revenue from food consumption is quite different from other types of businesses. Full service restaurants have a profit margin of 2-6%. Apple has a profit margin of about 25%

I see an analogy with health care. Bury the cost in taxes and premiums so I can view it as “free.” So what if my burger is now $15.00?  I’d rather tip.

I have my own tip. Be friendly, fair and generous with anyone providing you with a personal service – even if they are just doing their job. 

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