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Tipping Philosophy  

Are you a generous tipper or do you give the minimum tip possible? Do you tip extra for good service or not at all for bad service? Well, everyone has their own tipping philosophy and it does vary by where you live, your background and expectations. Mrs Micah's, Finance for a Freelance life had a recent post on Dining Out Frugally Without Stiffing On the Tip, where she talks about tipping etiquette and her philosophy behind this is :

Beyond the basic 20%, I think that when you’re ordering something particularly cheap, you should tip based on the average price (if possible)....they’re still putting in the same effort as they would with something more expensive. No matter how you handle eating out, just remember to plan for a 20% tip. If you can’t afford it, then you can’t afford to eat there. Pick someplace cheaper or get fast food instead.

My tipping philosophy is a bit different
. Most likely this is due to the fact I have lived a large part of my life outside America and am more use to different cultural norms. By far America is the most generous nation when it comes to tipping. The standard here is 15%, with 20% the norm in New York and other large metro areas. While I respect standard tipping norms I do not like to tip for bad or rude service, no matter what.

I am not against tipping, in fact after being here for a few years now I have found that the service you receive at American establishments is generally much better than you would receive in Europe, Australia or anywhere else in the world. Given the US minimum wage is so low compared to the cost of living (especially in bigger cities), tipping definitely has its place. However, giving a standard tip for any kind of service seems a bit strange. Would employers pay the same bonus or salaries for poor performers as compared to their top performers. I think not. My belief is that tipping should be based a sliding scale relative to the service you receive. Here is my tipping philosophy:

1. Where a service is provided that meets expectations I will tip around 15% to the total bill amount.

2. If the service is excellent and above the norm, I will tip closer to 20% of the total bill.

3. If the service is really bad, yet they still expect a tip, my tip will be $0. That's right - I will not tip for bad or well below par service. If this is automatically added to the bill I will ask them to remove it because of the poor service.

What are your thoughts on tipping? Am I being to harsh on tipping for bad service?



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9 comments

  • Zazzu  
    May 18, 2008 11:51 AM

    My tipping philosophy follows yours almost exactly. For really good service, I tend to tip 25-30% (rather than your 20).

    Yes, zero tip for bad service. Well, maybe a penny just to show that I didn't forget to tip - I just decided not to.

  • nick  
    May 18, 2008 5:29 PM

    When you tip a waiter you are also tipping the cooking and kitchen staff. So you think of them when tipping and not just the waiter. If the food was decent you should leave a tip as that is the primary reason you are going to the resturant.

    Nicholas

  • Andy  
    May 19, 2008 9:28 AM

    Zazzu - Thanks for the comment. I like that 1 penny idea and may start doing that myself. Definetly sends a strong message.


    Nick - Good point. However I think the waiting staffs are the front of the resturant, so they represent all who work in it. Mind you the service would have to be really really bad for me to leave a $0 tip (I have only done it once).

  • Rachel @ Master Your Card  
    May 20, 2008 3:38 AM

    I generally tip 10% for average service, nothing for poor service and a bit poor for oustanding service. I guess being from teh UK we are not known for tipping!

  • Andy  
    May 22, 2008 12:12 PM

    Thanks for the comment Rachel - being for Australia my self I think we are like minded when it comes to tipping. Though I have changed my habits since moving here a few years ago to think of 15% as the average.

    Cheers,
    Andy.

  • Bitsy Pieces  
    May 30, 2008 6:49 PM

    Two points:

    1. Most restaurants do not pay servers minimum wage. Because they earn tips, they are paid less--somewhere in the ballpark of $2.50/hour. So if you think servers deserve a tip because minimum wage in this country is so low... it's actually much lower for restaurant servers.

    2. Not every restaurant requires servers to split tips with kitchen staff and bus staff.

  • Andy  
    June 4, 2008 12:55 PM

    Thanks for the comment Bitsy. Somme good points there which I will factor into my tipping consideration.

  • Anonymous  
    July 21, 2008 4:53 PM

    10-Percent Tip Teaches Waitress Valuable Lesson
    CONCORD, NH—After receiving "subpar" service and experiencing an unusually long wait for his $4.75 lunch at a local Beefside Family Restaurant Monday, customer Gus O'Connor opted to give waitress Carla Hyams a reduced 10 percent tip in an attempt to communicate his dissatisfaction and raise awareness of the areas in which he felt her performance was lacking.

    Hyams, 49, who has been serving tables at the popular eatery for 13 years, expressed enthusiastic gratitude for the "immense personal growth" the gesture will afford her, adding that, in the long run, the experience will make her a better waitress.

    "Maybe I was a little short with him when I told him to 'hold on a sec,' but in the future, I'll do my best to ensure a situation like that never, ever happens again," said Hyams, who put O'Connor's order slip in as the understaffed cooks dealt with a large, complicated meal for a busload of senior-citizen tourists. "It's days like this that I thank God I get paid less than minimum wage and can rely on a built-in economic incentive to keep me motivated during those 16-hour double shifts."

    "If he hadn’t withheld that 50 cents, I'd make these mistakes over and over for the rest of my career," said the 49-year-old server.

    "By giving her less than the universally agreed-upon minimum, I sent a clear, unmistakable yet constructive message," said O'Connor, who claimed that he hoped the smaller tip would be a "wake-up call" for Hyams. "I was just trying to help push Carla along the path to achieving her full potential as an employee."

    O'Connor said his overall goal was not only to receive better service, but to help Hyams become a role model for her two teenage children, Tyler and Michael.

    "I know as well as anyone how hard it is for a single mother with a limited income to raise kids on her own," he said. "But this way they learn the value of money and the satisfaction of a job well done."

    from satircal faux-newspaper The Onion - http://www.theonion.com/content/node/54297

  • Anonymous  
    July 21, 2008 4:59 PM

    as an American, I would like to say that it is embarassing to eat with someone who feels that a server can take their orders, bring them food and drinks, and then doesn't tip. it reflects poorly on oneself in that one keeps such rude, shameful, uncouth company. that penny thing is abominable.

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