Growing up, I rarely was in a situation to tip, but these days, living near Palo Alto, i've noticed something interesting: out of the places I go to eat or get coffee, a few are small independent businesses owned by locals. At the ones where I was getting consistently good service, I started tipping 20%+. Within a few weeks of this, I was surprised to notice that they began discounting my food and drinks without ment…
I think a very common tip increasing strategy used by people serving food is to give discounts. If I'm selling you something for $10 and you'd normally tip $1 and I give it to you for $8, you are much more inclined to tip me $2-3, because you'd still pay the same or less and received "special" service. This of course may be unethical for the employee, depending on store policy. My best friend falls for it every time,…
The owners a couple years ago put a lock down on all the free coffee going out of the place but encouraged the employees to give discounts to their friends.
It actually works out quite well, as the place can't afford to really pay any type of decent wage. The owners recognized that many people (myself included) would simply stop going to said shop everyday if coffee went from free to 1.65 or 1 to 1.65. I would still go sometimes, but it's not like they are going to see an immediate 65% increase on that revenue if people stop giving away the coffee.
At the same time, it allows the workers to get a couple extra bucks an hour and allows them to retain a number of really good employees while paying a wage <$10 an hour.