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Is tipping getting out of control? Many consumers say yes

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Re: Is tipping getting out of control? Many consumers say yes

#11

Post by jackson1442 »

exabrial wrote: post #2

Yes. If you business wants to collect a "tip" up front, before services rendered, it's not a tip (Doordash, Instacart, etc). If 100% of the proceeds don't get straight to the employees, but some end up in the pocket of the business, it's not a tip. This last one is going to be to hear, but if you pay your employees below mimimum wage and allow for tips to make up the difference, well..... Always tip, in cash, direct…

delivery services just need to rename it to a "bid" because that's really what it is.

Re: Is tipping getting out of control? Many consumers say yes

#12

Post by notch656c »

adam_arthur wrote: post #6

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

I noticed the expected tipping percentage go up after most customers started tipping in credit.

Tipped workers had to up their game because they can no longer do tax evasion with everything on the record. Back in the days where most paid their restaurant with cash, tips were more like 15%. The move from 15 to more like 20 to 25% almost perfectly corresponds with the amount needed to make the same earnings after tax.

Re: Is tipping getting out of control? Many consumers say yes

#13

Post by tptacek »

adam_arthur wrote: post #6

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

No, tipping is in general a system that shifts some of the employer's costs to customers explicitly, rather than hiding them in prices and wages. It's an idiosyncratic system, but not an irrational one: wages and prices are stickier than tip levels.

Re: Is tipping getting out of control? Many consumers say yes

#14

Post by barbazoo »

tptacek wrote: post #13
adam_arthur wrote: post #6

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

No, tipping is in general a system that shifts some of the employer's costs to customers explicitly, rather than hiding them in prices and wages. It's an idiosyncratic system, but not an irrational one: wages and prices are stickier than tip levels.

Not explicit at all if it's optional though is it?

Re: Is tipping getting out of control? Many consumers say yes

#15

Post by ninethirty »

adam_arthur wrote: post #6

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

Not only that, but then they want to donate to some charity. Roundup for charity? (sometimes they don't even bother to tell you what charity it is) Roundup, Red-Nose day, etc. etc.

Re: Is tipping getting out of control? Many consumers say yes

#16

Post by barbazoo »

notch656c wrote: post #12
adam_arthur wrote: post #6

Given that even retail stores have added tipping prompts to their checkouts, I'd say yes. Plus many restaurants with placeholder tip icons that start at 25%+ You also don't know what the tip is really going towards in many cases. In the classic restaurant/waitstaff case you can reasonably expect it to go to the workers, in the random knick knack or general goods stores ??? Tipping in general is a system to transfer w…

I noticed the expected tipping percentage go up after most customers started tipping in credit. Tipped workers had to up their game because they can no longer do tax evasion with everything on the record. Back in the days where most paid their restaurant with cash, tips were more like 15%. The move from 15 to more like 20 to 25% almost perfectly corresponds with the amount needed to make the same earnings after tax.

Do workers usually get a say in what those tip levels should be? I can't imagine that being the case.

Re: Is tipping getting out of control? Many consumers say yes

#17

Post by tptacek »

plantwallshoe wrote: post #8

I’ve implemented a personal policy to make it easier for myself and reduce bias: Full waiter experience (seated, handed menu, food brought to table, plate cleared) gets 20%. If the level of service is less than that, the percentage starts to go down proportionally. Counter service is flat-rate $1 per person served. This is the same every time regardless of quality of service (unless something truly malicious happens,…

If the level of service declines below "full waiter experience", likely so too do the prices.

Re: Is tipping getting out of control? Many consumers say yes

#18

Post by tptacek »

barbazoo wrote: post #14
tptacek wrote: post #13

Earlier quoted context omitted.

No, tipping is in general a system that shifts some of the employer's costs to customers explicitly, rather than hiding them in prices and wages. It's an idiosyncratic system, but not an irrational one: wages and prices are stickier than tip levels.

Not explicit at all if it's optional though is it?

I don't see what optionality has to do with anything.

Re: Is tipping getting out of control? Many consumers say yes

#19

Post by pirate787 »

exabrial wrote: post #2

Yes. If you business wants to collect a "tip" up front, before services rendered, it's not a tip (Doordash, Instacart, etc). If 100% of the proceeds don't get straight to the employees, but some end up in the pocket of the business, it's not a tip. This last one is going to be to hear, but if you pay your employees below mimimum wage and allow for tips to make up the difference, well..... Always tip, in cash, direct…

I worry if I don't tip, they will vandalize my food. It's a hostage situation. I limit my use of the services because of it.

Re: Is tipping getting out of control? Many consumers say yes

#20

Post by cactusplant7374 »

exabrial wrote: post #2

Yes. If you business wants to collect a "tip" up front, before services rendered, it's not a tip (Doordash, Instacart, etc). If 100% of the proceeds don't get straight to the employees, but some end up in the pocket of the business, it's not a tip. This last one is going to be to hear, but if you pay your employees below mimimum wage and allow for tips to make up the difference, well..... Always tip, in cash, direct…

I tip up front with Uber Eats and Rappi because it usually means I get my order faster. But I have reduced tipping recently because I can see other orders are taking priority over mine.
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