Should You Tip Less in a Recession?

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10% is Enough

Years ago, a 10% tip was "standard." Restaurant and other prices have risen over the years, so 10% of these higher prices is still quite adequate, if you receive great service. What are the servers going to demand in 5 years - 30% ?

John is Nissan of IA @ Dec 22, 2008 17:18:20 PM

tip

Tipping is suppose to be optional not mandatory. A tip is for service above the norm I was once at work lunch we went at Chilis the service was very slow, orders were messed up slow refills etc. To this day one of the worst waitress i can remember. Yet my boss still tips 20% I asked why did you tip that high? His answer was I dont want to look like a jerk. So for complete lousy service the expectation is still to receive a tip. You will tip a guy brining your pizza but not the guy who works hard to install you brake pads and tires. Everyone thinks they deserve a tip I work in IT and have recovered users lost data that had vital information on it. Did I receive a tip? Nope dont expect one either when I go out of my way to help someone. I ordered a pizza today from Papa Johns Im being charged $1.75 for a delivery fee. I paid for my pizza and paid a fee on top of that to have it brought to me. Why should I have to pay another fee on top of the fee I already paid to the guy they employ and send out? Sorry not my poblem I paid the fee dont take a job that makes you use your own car next time. Tipping is not the common custom in Japan and it is almost never done at casual restaurants, as it is considered rude, implying that servers must be paid extra to ensure they do their job. In the US its the exact oppposite they wont do a good job unless you tip.

fp of IA @ Dec 19, 2008 15:01:00 PM

Ray Fisher

You are absolutely right: If you can't afford to tip appropriately, STAY HOME.

william of GA @ Dec 18, 2008 10:14:31 AM

Mr. Goodly of OR

You shouldn't tip at the grocery store. Those employees get AT LEAST minimum wage. Servers only get less than 1/3 of that. In my state, it's 2.13/hr. You don't think that food delivery person would let your food fall on the floor because you didn't tip (I DEFINITELY wouldn't do that, but SOME would)...you have another surprise coming your way. You can drop my cans of food on the floor, I'd send you back for another can, but the SERVER handles your hot food from the kitchen to your table or house. If they are coming to your house, there's no one in the car with them in between! No telling WHAT happens between the store and your.

You must not have been a server very long, since, if you were a server, you KNOW raising prices doesn't give a raise. You also know the argument as to why restaurants don't pay the servers: FOOD COST.

Sounds like you've been out of the business too long. You need to do time for about a year in the service industry.

Don't stiff me, don't underpay me. I'm a WELL TRAINED server in FINE DINING, I don't work at the Waffle House (they are underpaid, as well). Customers should TIP. If you can't afford to eat out and tip appropriately, go get a TV dinner.

William of GA @ Dec 18, 2008 10:11:25 AM

Tipping, in general...

I work in an upscale restaurant in Savannah, GA. I have noticed a DEFINITE 50% drop in my take-home pay compared to this time last year. I USED to have savings, but that has depleted. The argument that we should be lucky to get the clients we have and lucky to get the penance they are tipping is ludicrous. There are those entering these restaurants, sitting there for HOURS, taking up MY table when I could possibly turn it for someone else, tipping 10%.

Yes, the economy has had a toll on our business, but, I'd rather have those who come in, tip the way they should, than have some jerk come in and take up my time and training to have me make less than minimum wage by the end of the night. Now, last year, I made better than 120 a night 5 nights a week. This year, I am lucky to work 3 nights and take home 70. Average dinner for 2 in my restaurant? Lately, it's been about 100, but last year it was 140. Do the math: 2 tables tipping 30% last year at 140 is 56. Two at 100 is only 40. Then, we have to tip out bartenders and bussers at 3% of our sales. We only make 2.13 an hour, as well, and the "raise" we get is when the restaurant goes up on the prices on the menu, as opposed to the national minimum going up to 8. We end up PAYING taxes in the end. While minimum wage is going up, we have nothing to help offset our taxes or healthcare.

Benefits? get over it. None. Nada. Health costs are so high.

As for the European way, I would have no problem with that, in actuality. I had a friend who was a server and was paid 10-12 an hour, PERIOD. No tips. But, at the end of the year, anything written in as tips would be distributed to employees based on the hours they worked that year. That paid off, in the end.

This is a "catch-22" situation. I, personally, tip appropriately: the rule for mediocre service is 15%, and excellent service is 20%. Usually, excellent gets 25% from me. Anything less gets the attention of the manager, and depending on what the manager does is directly co-related to what I tip. The server WILL know if the service was mediocre. If I get attitude (which is NOT acceptable), they MIGHT get 10 percent.

Tipping is MANDATORY, as far as I'm concerned. Not necessarily to your mailman (salaried). But, those of us in the service industry DEPEND on that money. Those of you who are SALARIED, or even hourly for that matter KNOW what you are going to make at the end of the week. Salaried people: Your investments made YOUR loss in income, so don't punish me. Hourly, your hours have been cut, so spend appropriately. I understand EVERY aspect of it,since I have been on all three sides of this argument.

Just remember: you stiff a server at this time of the year, he or she will remember you and you may or may NOT get the service you got the last time you were in that establishment. Servers talk behind the scenes, and compare notes about clients.

I hope some of you understand this argument, and our conversation.

William of GA @ Dec 18, 2008 10:04:10 AM

any tip is better than no tip

not all customers use the delivery option. when one customer want extra ingredients, that customer will be charged for those extras. building the delivery option into the menu will put the cost on customers who does not use the option. if a customer can't afford to tip, it is better to pick up the order or cook at home. eatting out & delivery are options and convenience, not a requirement. it is ridiculous to compare a worker at the grocery store to the restaurant delivery person. a grocery store worker get paid by the hour to bag all customer's groceries while a delivery person rely on tips from those customers who utilize the delivery service for its convenience. think of buying goods online. most online stores charge at least $5 shipping & handling for $25 or less worth of goods, which is about 20% of an order.

hydps of IL @ Dec 17, 2008 22:59:47 PM

People depend on it

I have never seen tipping as an option. I don't know if everyone is aware of the fact that servers are paid under the minimum wage exclusively because it is expected that their tips will make up for the loss. It's a pretty messed up system, but it is what it is. I know that my poor waiter is making $2.50 an hour in his paycheck, so a 20% tip is the absolute minimum for me. I just understand that you need to pay people for their service.

If you think times are hard for you, try making two bucks and hour and getting change left on the table for you.

Tip your servers or stay home.

Jess of PA @ Dec 17, 2008 16:41:26 PM

Tipping

If you can afford to go out and eat, tipping the server should be included in your spending plans. Of course people here in Wisconsin rank third in poor tippers after Iowans and Nebraskans who don't leave anything at all regardless of how much they spend on a meal. I don't think a lot of people realize how poorly servers are paid and aren't aware that these people depend on tips for a living.

Bruce Paulson of @ Dec 17, 2008 10:50:50 AM

Tip, Period

I go the my nearby Starbucks every morning. They know what I want, make it right, are pleasant about it. So I tip to thank them and because they work for these tips.

Tipping seems to be a symbiotic relationship. You get what you pay for. And why not spread it around a little, regardless of time of year?

It's just a decent thing to do.

David Broadbent of MA @ Dec 17, 2008 10:26:39 AM

Tip What You Can!!!

Personally, I hate tips and would much rather have them built into the price of an item or service, but understand that this is not practical. People should tip as they can afford as each person is different and has different economic circumstances. Even without our current economic challenges, some people are etter or worse off than others. Tipping should be left to the individual without peer pressure not condemnation by the recipient. I have always maintained a standard 20% rate and simply do not visit establishments where tipping is prevalent if I cannot participate for any reason.

Ray Fisher of NM @ Dec 17, 2008 10:23:47 AM

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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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