How Do You Feel About Mandatory Gratuity at Restaurants?
Posted by Cap in Even More Ramblings |
I don’t usually eat out (since I have no friends to eat with — haha), but when I do eat out, I generally try to be a fair tipper. Although there were plenty of times where I’ll ponder about how 15% became the standard gratuity amount, I usually just leave the 15% unless there was terrible service (and of course, more than 15% if the service was excellent).
The fact of the matter is, in the United States, many wait staffs rely on tips as their main income source — despite the fact that many people feels that a “minimum” tip standard has shifted the responsibility of paying wages from restaurant employers to customers. Depending on your region, culture, and background, you may find tipping to be a ridiculous notion or a fair custom.
Most restaurants will have a mandatory “gratuity” charge for a large party (6 or more etc.), and certain restaurants will have straight-up forced gratuity (eesh). On one hand, I can understand that dealing with a large party can certainly be bitch work; after all, you’re tending to more demands and needs — but on the other hand, its hardly considered gratuity when its mandatory (maybe all restaurants should just label them clearly as a large-party service charge instead of a gratuity charge).
To add more spices to the mix, a couple in Bethlema, PA, was recently arrested by the police because they refused to pay the mandatory tip for their party of six. Now before you think the two are complete cheapskate, apparently the party had to wait an hour for their table, and received next-to-nothing services during dinner. Some people might think its a bit trivial for the couple to get all huffed-up about a 18% gratuity that totaled $16, but I’m on the camp that thinks the restaurant owner is being silly to call the police over a $16 tip.
What do you think? Much ado about nothing? Are mandatory gratuity an abomination? Or are they a necessary component to ensure waiting staffs gets their due pay for their services?
photo credit: Vidiot.
33 Comments to “How Do You Feel About Mandatory Gratuity at Restaurants?”
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November 20th, 2009 at 10:36 pm
To make a tip mandatory is like making a tax. A tip should always be an option. Without out the option where is the incentive for the waiter to give good service? Why not just raise the prices a bit, pay the waiter more, and tell customers they don’t have to tip?
November 21st, 2009 at 12:21 am
If the waitstaff are truly depending on the tips for wages (which I think is just wrong), I’d rather see the food prices increased as such, and then have the staff be paid better. Then, if someone truly earns it, then I can leave a tip as just that… something extra. I can’t stand that a ‘tip’ is considered mandatory.
There’s many (most?) other countries that don’t tip. In fact, they may be likely to refuse it if offered. THAT is the way it should be. Silly American ’standards’. *sigh*
November 21st, 2009 at 7:42 am
I have been in enough large parties where not everyone contributed enough even for their meal, much less a tip. Whether you agree with tipping or not, it is part of the culture. (Though I learned recently that the server at my local salad bar place — where people might leave $1 or $2 for the staff — makes over $10/hour between salary and tips, so I don’t think anyone who is a reasonably decent server is not making money.)
I don’t have big issue with added gratuity on large parties, but 6 isn’t large. And if you’re going to force gratuity, you’d better force your staff to have excellent service, whether the establishment is busy or not.
And in the case of those arrested – that’s ridiculous.
November 22nd, 2009 at 7:43 am
I don’t mind leaving a tip, it’s part of my culture I guess. In fact for a low cost meal I sometimes leave more than 15%.
I agree 6 is not a large party – no way should the gratuity be mandatory at this level. I don’t object for larger groups like 8 or more people.
In the case of poor service, often the restaurant owner has some responsibility. Have they not hired enough staff either on the floor or in the kitchen? Are they hiring incompetent staff or not training them properly?
When they arrest people for not paying for poor service, they have no doubt lost six customers plus friends and family of these customers. Not a great way to grow your business!
There was a great article recently in New York times about proper waitstaff behavior.
November 22nd, 2009 at 3:29 pm
Servers are one thing, but why do I feel like I’m being cheap if I don’t tip the lady that cuts my hair?
November 22nd, 2009 at 6:15 pm
Why is there a 15% standard? I’ve had awesome service during breakfast and horrible service for dinner. Sticking with the standard, the one at breakfast would get screwed since breakfast is usually a cheaper meal.
Why do waiters and waitresses usually only make about $2.50 per hour base pay? Tips aren’t guaranteed and some people are just plain CHEAP. They should at least be making “minimum wage” as thier base and the tip as in incentive not an expectation. Why should the resaurant owners legally be able to underpay thier staff?
November 22nd, 2009 at 8:51 pm
As a professional Bartender I can answer a few of your questions. A standard gratuity is usually only added to parties of 8 or more… not 6. 6 is very unusual. Customers have the right to raise or lower that amount based on service. I suspect there are some facts being omitted from that PA story because it is perfectly legal and acceptable to have an “auto grat” lowered for poor service. Servers are only paid about 3 bucks an hour because of the fact that they should provide you with good service for their tip. If servers were paid more hourly and food prices were raised and you do away with tipping, you take away the incentive for servers to provide you with good service. I work in an upscale environment where nearly every server and bartender earn an average of 20% gratuity a night because we are professionals serving high quality food and are very good at helping people have a great meal and a great night out!
November 22nd, 2009 at 9:17 pm
If they want to make it mandatory then it is not tipping, it is a surcharge. I wonder if it is legal. I tip based on the service, food, and atmosphere. If I have someone that takes my order, brings my food and I never see them again until I get my check -thats 10%, if the food is cold or bad and they haven’t come back to check on me that’s 5% and then if the whole thing is a waste I talk to the manager. On the other hand if everything is excellent I have been known to tip 20%. They should either raise thier prices or make sure the establishment serves well so they can earn their tips.
November 23rd, 2009 at 12:14 pm
I hate mandatory tipping, even if it is for a party of 8+. I think for large parties, they should call it a surcharge or “incidentals” or something. I’ve tipped 30-35% for really good service, and as low as 5% for lousy service. To me that signals my satisfaction with the establishment. I don’t HAVE to give you more money to make up for the fact that your boss is a stingy jerk who pays you less than $5 an hour.
November 23rd, 2009 at 4:40 pm
Most every one here is right on the mark, gratuity or tipping should be an option, and is based on the service received. I might add that I am a part-time employee in a food service establishment, and have worked in plenty of others over the years.
Last summer one day I was having my midday meal in a place I had been several times, taking advantage of their all you can eat pizza and salad bar. Drinks were extra and I was having iced tea. Not once did the server for my table come to even offer me a drink refill, and there were times when I saw him sitting down. I wrote on the back of my receipt, “I am not tipping because not once was I offered a refill on my tea.” When paying the bill I let them know I had written a note for them on the back. No one tried to argue with me at all.
November 24th, 2009 at 10:12 pm
I feel good about it actually. It’s easier, and saves me time from calculation. I always tip. It’s the American way!
We should probably tip more for them calculating the tip for us! lol
November 29th, 2009 at 2:37 pm
“Mandatory gratuity” is an oxymoron….like “jumbo shrimp”. It would amount to a price increase or taxas others have pointed out.
Tipping is my form of personalized charity. Take a good look at the wait staff, and you will find single parents trying to keep things together, students working their way thru school, and others just working hard to keep a roof over their heads. I believe in rewarding hard work and good service, so I tend to be a generous tipper even if the service is just “average”. I would still reward these people, even in a “no tipping” enviornment.
December 1st, 2009 at 12:26 pm
Mandatory gratuity is absolutely ridiculous, the gratuity should be voluntarily. Good service recieves generous tip. Bad service recieves small tip. I sometime have left 50% of the total bill for a good service at a inexpensive restaurant.
December 1st, 2009 at 8:17 pm
“gratuity: something given without claim or demand.” It’s in the dictionary! A tip is a bonus for a good job, nothing more.
A large group is just guaranteed more customers; why are you punishing the people who want to give you more money? And making tips count as part of a wage is ridiculous — it ruins the entire point of the tip. “They did a good job; therefore they should get a bonus” not “they did a good job; therefore they should get paid the money they’re owed.” In addition, I don’t recall seeing a note that says “large parties will be charged a 15% gratuity fee” except on the bill. Therefore, I don’t think it’s legally binding that you should pay for something you neither consented to nor ordered. Otherwise, you may as well just throw some food I didn’t order or eat on my bill as well.
Here’s my tip (not pun intended, honest, haha): pay in cash. If possible just leave the money on the table beside the bill and leave. They can’t force you to pay the gratuity charge that way and you legally paid for the meal you purchased. You could also ask the waitress/waiter for exact change back. If my meal comes to $43.38 after the gratuity fee, I want exactly $6.62 back, including pennies. If you can be a jerk, then so can I.
Moreover, you’ll loose my business. Don’t expect me to ever come back again or recommend your restaurant to my friends.
IMPORTANT NOTE: I work a job where I earn tips. I am also very generous with tips. Anything less than 20% is rare (if you did a good job) and I’ve tipped over 100% before. I’m not a jerk, I just think think you should be rewarded for doing a good job, not rewarded just for showing up.
December 9th, 2009 at 6:15 am
Most restaraunt will post their gratuity policy on the bottom of the menu for large groups. If you don’t like it, don’t eat there. I waited tables for years and there are so many ways to do to make up for bad tips.
1.) Add one dollar to every credit card tip amount you receive. I did this for years and never heard a complaint. Who would actually call and complain about a dollar and then drive to the restaraunt for a dollar refund. This adds up over time!!!
2.) For large groups where the grat is included, who normally pays??? Grandpa, or someone else who is old and can’t see well and more than likely has a lot of money and doesn’t go over the tab with a magnifying glass….I couldn’t tell you how many times I grat’ed a table and the old man didnt know it and he tipped on top of that. It was awesome and occured probably once every two shifts. Happens in EVERY restaraunt out there.
3.) Most restaraunts have coupons that customer clip out of local newspapers or print off the internet. All a waiter has to do is find these coupons, and when a table pays with cash, use one, but don’t tell the customer. Ex. If you have a “buy one get one free” meal coupon(Lets say two 8 dollar meals, and bill comes to $17 after tax, a lot of tables would give you a $20 bill and tell you to keep the change. All I do now is bring the coupon I brought in to the manager, or whoever rings in coupons, and they take one meal off. I now have a $20 bill in my pocket for a $11 tab. The customer never knows. Again, if you do this once a shift, it adds up.
4.) Similar to above, but without a coupon. If a table pays in cash, just take off one of their meals as if they didn’t like the meal once they leave. Example…Customer has a $30 dollar tab, they leave $35 dollars on the table and get up and leave. I now take off one of their $10 meals, so I now have $35 dollars on a table for a tab of only $25 dollars. This can’t be done everyday, but works well when someone leaves a bad tip.
There are tons of tricks out there and am I stealing from the restaraunt…I SURE AM. But so do the restaraunt owners. Do you think they report their cash earnings? NOPE. Do you think they pay their Mexican cooks under the table? YEP. It’s a viscious cycle, and I love the lifestyle. Gives me plenty of time to travel, save for retirement, and live a good life for now. I can assure you that most waiters are CLEANING UP. And most of it is tax free. So you cheap skates leave whatever you “feel” is fair, and we will make up the difference, I promise.
December 9th, 2009 at 2:17 pm
Hahahaha!
I was almost in the same boat as the group that was arrested. Our group went out to dinner, and we had to wait 20 minutes to even get menus. Then another 30 minutes to place our order. Then another hour to actually get the food. We had a pleasent meal, but the wait staff was terrible and was serving us poorly because they knew they were getting 20% gratuity. Finally, we asked for the bill to be split–not an abnormal request. They didn’t know how to do this and made us do it ourselves by writing down what we each ordered.
When it came time to pay, we decided to not pay the full gratuity because the service was absolutely terrible. The manager told us she was calling the police; we called her bluff, but sure enough the police showed up in about 2 mintues.
We spoke with the police, and while they were sympathetic to us (one of the policemen said he’d eaten there before, and totally understands why we didn’t want to pay the full gratuity), they did say we legally had to pay. We paid to the cent, told all our friends, and of course, never went back.
As for mandatory gratuities in general, I think it degrades service. The server knows they’re getting a tip, so there’s no incentive to give better service. I know in France, all restaurants have gratuities built into the price of the item and almost everything is rounded to the nearest Euro. It makes it easy for change, but poorer service in general.
Tips shouldn’t be expected, the wage should cover that. Tips should be for good/excellent service that goes beyond what is expected.
December 13th, 2009 at 1:56 pm
I worked at a buffet style restaurant when I was in high school and every night the waiters entered in the amount of tips they earned. Yes, their base pay was $2.50 an hour, but if the tips did not make up the difference (to the then 5.15 an hour minimum wage)the employer would. That was in Kansas, but I am sure each state has similar laws, that is why there is a minimum wage. That is why I think tipping is passing the buck from the employer to the consumer. We don’t go by the 15% rule in our house, we go by the level of service received.
December 17th, 2009 at 11:27 pm
First, you don’t like mandatory tips then don’t eat there. Every restaurant I have been in that has them states it on the menu. It’s part and parcel of eating at that place with that many people.
Second, @matt, adding a dollar to every charge is stealing. So are some of your other schemes.
December 20th, 2009 at 8:06 pm
Having worked in the restaurant industry throughout college I know how much they depend on tips.
The places I worked at always had a mandatory tip for large groups simply because large groups tend to not tip. Everyone thinks everyone else left a tip and in the end… no tip.
I don’t think the tip should be mandatory on groups smaller than 6 though. I think it’s a bit of a slap in the face, especially if you got crappy service. It’s also a bit of an out for the restaurant and promotes bad service since the staff doesn’t have to work as hard to make money.
December 21st, 2009 at 10:12 am
As the wife of a full time restaurant employee I have a few things to add:
1. the reason most places add on a “mandatory gratuity” to parties of 8 or more is because, as a rule, people are cheap. At a lot of places a server might only have 3 tables in their station and a party of 8 or more might take up 2 tables and then large parties often sit at the tables longer while they chat, there for bringing down the number of tables that server gets in an evening. Then when they get the bill for 100-150 dollars people often don’t feel like leaving 15-20 dollars as a tip and will short change the server. People as a whole are really really cheap. not realizing that that server is making $4 per hour and just spent the past 2 hours taking care of them when they could have turned those 2 tables 2 times.
2. YOU SHOULD NOT TIP ON THE QUALITY OF FOOD!!! I hate hearing that people tip on the quality of the food… the server didn’t cook the food and should not be punished because something was over cooked/too salty/bad! you should be tipping the server based on their service, period. If you have a problem with the food talk to a manager and they can deal with the kitchen. IF the manager takes something off your bill please keep in mind that the server is not at fault and you should still tip them according to what your bill SHOULD have been before the comp. Also, the server doesn’t control how long you wait. Don’t take it out on them.
3. If the service is bad… leave less of a tip but talk to a manager so they can work with the server to improve their service otherwise no one knows that anything was wrong. The person above that leaves the note is a good idea too.
4. it is not uncommon for a server to get stiffed by patrons who are just too cheap and don’t care. But servers/bartenders have good memories and if they get stiffed for no reason when they provided excellent service they will remember those people and the next time those cheapskates won’t be given the time of day… why bother… they aren’t going to tip anyway.
5. Last but not least, in most medium to upscale restaurants a good tip for good service is 20%. 15 if it was ok, and less depending. at the end of the night a good server should be walking with 18-20% of their sales (minus what the server has to tip to the bar and bussers… they the server has to give part of their tip to the other employees who do work for them – such as the bar making their drinks and the busser clearing tables)
December 21st, 2009 at 7:52 pm
Heather you hit the nail on the head. I’ve been waiting tables for 3 years. I make good money because I do care about my tables even if its a big table because when they come back they will remember you. And dont get mad at the server everyone if they add the gratuity its manditory. And @matt, what you are doing is wrong! I just worked with someone that went to jail for doing that crap. Its shady and you will be caught. If you don’t like the tips you get maybe you should provide better service or get a better paying job.
December 22nd, 2009 at 2:16 pm
FYI – Tipped employees make a base hourly rate less than minimum wage however labor laws state that if the hourly rate plus tips does not equal minimum wage than the employer must pay the difference to get the employee to minimum wage. That being said I don’t know how many employers do that or if they simply alter the reported tips but that is a labor law issue not a tipping issue
December 29th, 2009 at 6:16 pm
Please…If you want a tip earn a tip. Food and beverage servers accept employment knowing their wage. Tips are EARNED. Mandatory tipping is force and forcing someone to give their”EARNINGS” to those whom do not earn their way is not acceptable. Serving people is a art and a pleasure and if it is done properly a tip is deserved and therefore earned.
December 31st, 2009 at 1:55 pm
I Dont Tip. If service is good then up to 15% I am cheap. I work in military $4000 a month. Decent money for a young guy. I Dont Tip Why ?
January 5th, 2010 at 10:15 pm
I can’t afford to go out much anymore. If my friends are meeting somewhere, I let them know I ‘ll be showing up late— then I’m just paying for one drink or one coffee plus tip. Usually I try to meet them at a bar AFTER dinner.
I’ve been in situations where one person orders a bottle or two of expensive wine- not thinking of those of us with limited income. We poor folk order soup or a salad. Then we all split the bill. To the advantage of those who ordered steak and lobster. Ouch.
In better days, I tipped 15 % for ordinary service, 20% for great service.
I completely understand the necessity of a service charge for large parties.
January 15th, 2010 at 1:32 am
The waiters/waitresses complaining about making $2.xx an hour are flat out LIARS..
Servers DO make the same minimum wage as everybody else. I don’t know why everybody says they can only ever make 2 something an hour and if they don’t get tipped they are hosed. Notice the last line where it states that the restaurant IS liable to cover the difference between minimum wage and tipped person wage.
From Department of Labor website (http://www.dol.gov/elaws/faq/esa/flsa/002.htm)
So why should consumers PAY THEIR SALARY?! stupid… I never tip… they make the same wage as the hard workers in McDonalds and Taco Bell, so that’s it.
If they get tipped enough to come out over the minimum wage, then the servers are all happy and bouncing around — Screw that… You’ll get nothing from me, but you’ll only see me once anyways, because I can cook my own damn food.
January 22nd, 2010 at 7:46 pm
@Festisio – it is true that restaurants have to pay a “minimum wage difference” to ensure servers are paid at least minimum wage. However, some restaurants punish their employees if they don’t meet the minimum wage requirement – assuming that they didn’t claim all of their tips. At my restaurant, you get written up if you didn’t meet minimum wage after tips, and fired after 3 write ups.
Also, you claim that you never tip. I sure hope you never go to the same restaurant twice. You are giving your servers a slap in the face and cheating out them and the whole service industry. Put it this way, if everybody were like you, menu prices would rise 15-20% in every tipped-service environment. You aren’t special nor should you feel that way. Your extremely unethical and disgraceful practices will catch up to you and anyone else who practices this trashy & tacky behavior.
@Anyone who tips less than 15% – Generally, no server deliberately wants to give their customers bad service. If you received bad service, the server either wasn’t trained properly or doesn’t have the mental capacity to do it correctly. Anything else that happens is out of the server’s control and you shouldn’t hold them accountable for it. If you waited too long for your menus, more than likely somebody was too busy doing something else of equal or higher importance. Servers wish they could satisfy their customers 100% of the time but they can only do their best. If your food wasn’t right, it’s not your server’s fault. Unless your server is blatantly trying to provide bad service or piss you off, they should be tipped at least 15%.
January 22nd, 2010 at 7:58 pm
mik said: “I Dont Tip. If service is good then up to 15% I am cheap. I work in military $4000 a month. Decent money for a young guy. I Dont Tip Why ?”
I hope you’re not living in the US, because if you are you should start tipping at least 15% unless you want everyone thinking that you’re a low-life piece of trash.
February 3rd, 2010 at 5:50 pm
I hardly tip either unless the service was exceptional.
The employer is responsible for the server’s pay not me.
Why are they special and deserve a tip?
February 10th, 2010 at 9:35 am
Yes,its true its up to the employer to pay the servers. The problem with that is if the server had cheap people all night long and made less then they should have then the employer will force them to claim what they didn’t make or fire them for bad service even though that server most likely gave fabulous service (your just cheap)The reason they will firer the server is because they don’t want to pay the difference and don’t have to as long as the server agrees that they will claim over what they actually made in order to keep their job in hopes for better people tomorrow… Not only does your tip pays your server that server pays the buss-er, bartender,and Uncle Sam out of the tip you left…. So if your bill was 85.00 and you are cheap and leave 5.00 dollars that server just lost money on you.If tipping 15 to 20 percent is so tough on you then there is always MCDONALDS it might be more on your level of dinning…..
February 11th, 2010 at 2:22 pm
I feel as though mandatory gratuity breaks with the tradition of “earning one’s wages”. What I mean by that is this:
How hard will an employee work if the otherwise hard-earned money is guaranteed? We should keep in mind that not everyone who works as a server will feel and act this way, but the possibility is still there. I regularly tip the accepted percentage of a standard meal and only refused to tip on one occasion.
April 25th, 2010 at 1:09 pm
My case/complaint is even worst. This afternoon, my family and I went to a Chinese restaurant to have lunch. We had a party of 5 (2 adults and 3 kids). It is a sit-down dim-sum restaurant. Howeve, with poor airconditioning and almost self-serviced. They billed me with a mandatory 15% gratuity on top of the bills. I then asked them to scatch it off and i will pay another amount of gratuity. They said if I do so, next time I have to order take-out instead. Now, I googled the law that the gratuity is kind of mandatory to a large group of 6 people not 5. Second of out, gratutity should be award to good service not poor or no service or self-serviced…..They didn’t void the bill as I paid by credit card. Instead I have to Amex to stop the transaction if they changed more than the cost….
July 5th, 2010 at 9:01 am
I dont understand what do we pay the waiter for? they only bring the food which is cooked in the kitchen by the cook. We do not tip the cook, who infact makes good food. So why do we have to tip the waiter?