Should You Tip Less in a Recession?

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How do restaurant OWNERS feel about Kimberly's advice.

I'm listening to Kimberly Palmer on Talk Of The Nation on KPCC right now. She is telling listeners that if they can't afford to tip then they really can't afford to eat out our go to a bar. So let's say that 10% of the clientele now visiting the local bar or restaurant are not tipping or are tipping less. And let's say they listened to Kimberly and simply stopped going to restaurants or bars because when they factored in tipping they couldn't afford it. How long would it be before the restaurant or bar owner had to fire one of the bartenders or servers because the restaurant or bar had a 10% drop in business?

Adreana of CA @ Dec 17, 2008 01:00:09 AM

Tipping is arbitrary but it's a part of how we do things nowadays. I think that if you can't tip because of the recession, you should eat out less.

jim of MD @ Dec 16, 2008 23:42:06 PM

Not an easy question

I don't skimp on tipping; if I use a service where tipping is customary then I tip the same as I usually do. On the other hand, would someone whose dependent on tips rather have people show up and get less of a tip or have them not show up at all, in which case they get nothing?

Scott of MN @ Dec 16, 2008 22:48:23 PM

The whole idea is bunk, we should follow Europe

Let the business owner price his product to include the cost of labor, rather than trying to make more off his product by foisting off the cost of labor on his customer. The whole system is set up to benefit the owners at the expense of labor and customers.

Philip of OR @ Dec 16, 2008 21:56:12 PM

On-duty delivery driver

I'm an independent contractor delivery driver. I serve twenty restaurants in a small to mediu sized city in New England. I'm in the middle of a slow shift right now so I'm reading some news.

I just turned down an order. According to my dispatcher a woman made a forty dollar order from a local deli; she bought sandwiches, chips, and sodas. She paid in advance on her credit card but did not leave a tip and said she wouldn't tip upon receipt either. She said the recession has made it so hard for her to meet ends that she simply can't afford to pay even another dollar or two.

I agree that who we choose to tip does seem arbitrary. This doesn't change the fact that most people in our society buy into the idea that you tip your server/delivery guy/bellhop for providing a service that you could, in most cases, provide for yourself. It's about paying for a luxury.

My point is this: I don't make much money so I don't order out/eat out with great regularity. It's cheaper to stay home and eat rice or spaghetti. I don't know what my customer's situation is, but I do know that forty dollars can buy a lot of groceries.

Gotta run, a six dollar tip (over 20%) awaits me!

J of VT @ Dec 16, 2008 20:44:58 PM

Tips

Delivery is probably one of the tough job in busy market. Riding bike or scooter is little risky. We should appreciate for this job. If we cannot respect other who does deliver than do not seek delivery services. Go to local grocery store and spend your time in cooking.

Santosh Thapa of NY @ Dec 16, 2008 19:28:49 PM

Arbitrary

How much do you tip when you go to the grocery store? Why do we tip some low-paid service workers who help us and not others? The whole concept is rather arbitrary. The idea that the Chinese food deliverer would let your food fall on the floor because you didn't pay him extra is, well, just ridiculous. Would the same be acceptable from someone bagging your groceries?

And yes, I have worked as a waiter. I provided good service regardless of the prospective tip. I would have been ashamed not to.

Pay people what they're worth, and raise your prices accordingly. Don't expect your customers to pick up the slack.

Charles Goodly of OR @ Dec 16, 2008 19:12:42 PM

Tips

I think every person in America should work in a restaurant at some point in their lives. It's a humbling experience, and we would all be better diners as a result. Tip less in a crappy economy? Absolutely not! If you can't afford to eat out AND tip, stay home.

DurangoSteve of CO @ Dec 16, 2008 18:46:09 PM

Tips

If we do not tip a decent amount, than why should we receive the same service. I personally feel that if people cannot afford to tip, then people should not utilize those types of services. Let's just say you were that Chinese delivery man; would you provide fast service the next time those people ordered if you received a bad tip? Probably not, you would let the food fall to the floor and not pick it up until you got to your destination. These types of services are provided as a convenience. If you want people to stay happy with those kind of jobs then make them happy! Tip the regular amount(s).

Arturo of FL @ Dec 16, 2008 18:16:54 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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