Sunday, August 20, 2006

How much you should tip and how often

According to one report, restaurant goers in the US leave $16 billion ($26 billion according to another) by way of tips annually, so if all services where gratuity is expected were to be added up, the figure could be much bigger.
No wonder the service industry there has a fair amount of legislation in place to protect the rights of those for whom the tip is intended.
Restaurant owners cannot pocket any of the tip left for the waiter, and the unlucky boss of a Massachusetts restaurant who did could end up paying $2.5 million in damages. On the popular blog www.waiterrant.com, the blogger warns that this is illegal in most US states.
The main problem, though, is when an establishment includes a service charge as part of the bill. The service charge is a fixed tip and at (sometimes) 10 or (usually) 15 per cent, should take care of the gratuity you're supposed to leave. So, unless you've received exceptional service, you are not obliged to tip extra.
The other thing to note is that if you're dining in a large group, it's sometimes better to calculate the tip on the basis of the number of staff serving you rather than as a percentage of the bill. Say a party of 12 has a booking, and requires four waiters for service. At the end of the party, instead of calculating a percentage of the bill as gratuity, it's better to leave behind a generous tip for each waiter. Unfair? Yeah, well, you've got more money than they ever will.
Are you obliged to pay when the service has been dismal? Apparently, yes. After all, when the service charge is inbuilt into the bill, you have no choice. A tip should be treated similarly. If the service is bad, why should the kitchen staff be penalised for their colleagues, or vice versa. But you can show your resentment by leaving a sparser tip than usual. These days it isn't about tipping just waiters and bellboys. Tips are expected for almost all services - from bartenders to parking valets, from the barber to the spa attendant, and from luxury cabs to the boy who delivers your grocery.
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1 Comments:

At 9:24 am, Anonymous Anonymous said...

Wow! That's a ton of restaurant capital! $16 billion?! REALLY?! I never would have dreamed it was that much!!

 

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