Alpha Consumer

Should You Tip Less in a Recession?

By Kimberly Palmer

Posted: December 16, 2008

I spoke with NPR's Neal Conan today on Talk of the Nation about whether it's okay to cut back on tips during the current recession. Callers who work in the service industry let us know that their tips are down a lot this year. (There were some exceptions -- a couple servers at high-end restaurants said their tips have actually gone up.) One Chinese food delivery man said he barely got $20 in tips from over $400 worth of deliveries.

Passions flared on both sides. I received an E-mail from one consumer who said he didn't think anyone should tip over 15 percent.

What do you think? Is it okay to cut tips when your own budget is squeezed? I tend to think that if you can't afford to tip, then you shouldn't go out to the restaurant.

You'll never understand until you work as a server

I'm a college graduate and actor who took a job as a server for flexibility. I can trade shifts to go to auditions and I can leave with money in my pocket. Of course I can get another job, I also work as a teacher for the arts, I have many skills, but serving is not a “last resort job”. Servers in California earn minimum+ tips. I took the job knowing that I would not have to live on minimum wage. My employers are expecting their patrons to tip, or else they would raise their prices and pay us higher hourly and no tip. There is also the option to work as a server for a catering company where one can earn $12-$20 an hour. Your tips will depend on which restaurant and which neighborhood. Sadly there is a cultural divide. Some folks will fight over the bill to pay for the whole family, order coffee and dessert for grandma when she’s totally full, then tip $5 and whisper “that’s just for you, don’t share with the busboy”.

If you can't afford to tip, then maybe you should not get the $2.99 coke, or skip the $2.50 avocado, or eat at home. I didn’t add the tip line to your bill, its standard. Feel free to leave a crappy tip, I’ll remember you, and you can expect crappy service next time. I always heard folks say "waitressing is a very hard job". Never believed until I worked as a waitress. Anyone can relay your order and offer suggestions with a smile, but people treat us like sh**. They think they are renting a slave for 45 minutes. They think we are miserable idiots and drones. Customer service pays at least $12 an hour in California, and that’s part of what we do as servers. We are people with rent and Sallie Mae to pay too ya know. If you hate tipping so much try Mc Donald’s or Hometown buffet. Buss your own table, get you own refill, scream at the cook in broken spanglish yourself. I personally love eating out, so when I serve I try and make it a pleasurable experience for my patrons. I know it’s expensive, so I only go out about 4 times a month, and when I do, I tip well. I even tip when things go wrong. I know that things happen that are out of the server’s control, but if they try to recover and keep me informed, I won’t punish them by taking food out of their kid’s mouth. If a server is rude or completely unhelpful and my food is bad, I leave an average tip and I don’t go back to that restaurant. If I get a bad tip myself and I know I’ve made some mistakes, I’m expecting it. But if I know I really tried to make a guest feel welcomed, I was funny, I was attentive and I was knowledgeable, they loved the food and I still get a bad tip, I assume the person is a cheapskate and I tell all the other servers so next time they won’t try so hard when they see you.

Janae of CA @ Nov 01, 2009 22:26:01 PM

Actually...

Shawn - the IRS taxes servers based on 15% of all the food/drink they sell. If your bill is $100, the government expects that the waiter made $15 from you as a tip, and taxes him or her accordingly. Additionally, the busboy and service bartenders all rely on the waiter to tip them out at the end of the night in order to make money. Sure, maybe the system could be better, but it's not up to the waiters and waitresses to change it.

I don't expect you to understand this but it's not exactly easy for some people (college students, people who can't afford higher education) to find jobs these days. Sometimes waiting tables is the best they can do. If you really care about them making a living wage, either lobby for that on your own time or just pay a goddam decent tip. Don't force them to get fired because they want more money from the establishment. Not tipping them because you think they should find a better job is ridiculous and cheap - you should really be ashamed of yourself.

David of NY @ Oct 03, 2009 14:55:45 PM

tipping has got so out of hand

since when is it the responsibility of the patron to make up for the poor wages some jobs pay, you know what the hourly wage is when you take a job, if not your a moron. Why should i have to tip for anything below excelent service? i dont tip unless something above and beyond happens. all that but its not the waiters fault the cook took too long to prep the food... I tip based on the overall experiance not just what the wiater does. an average job gets no tip... if you want the security of better wages come on get a REAL job... i have known many people who are wiaters and the law is that if tips dont bring the hourly wage to min wage the buisness must bring the wage up to min wage. I have never heard of a waiter who does not get at least min wage, it just doesn't happen. and most/all of tip jobs are not reported to IRS as income SO ITS TAX FREE. why should an unskilled job be making more that a skilled laborer does they shouldn't its plain and simple. if you have a problem with your pay go to the management and demand better pay then you know where you stand they either give you the raise you wanted or you have to again decide if the wage they offer is worth you working there. they are not holding a gun to your head and forcing you to keep working there... its your choice and you have to live with the outcome. if every job was a "tip" job then things would be different but who decided some jobs are worthy of a tip and some are not...

shawn of OK @ Jan 03, 2009 18:34:41 PM

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.


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