PDT 2/2 : Why has tipping increased?

[Ray Zee]

when i grew up the standard for excellent service was 10%. less for less service. some time ago wait staff pushed for 15%. and soon that became the norm and now its like 20% if you fall for the speal.

prices have risen the fastest in the food industry and the percent tip in dollars has outpaced inflation without the need to give a higher percent of the bill. i dont be gruge anyone for wanting more that human nature. in higher end places the wait staff make more than the managers.

i believe that the current generation have less value on money(good) and feel fine about bettering others (good)

[El Diablo]

dean,

"Diablo, I'd be interested to see how the wages of servers v. the mean wage has altered since you were in college. I'd guess that servers wages have risen less in real terms that the general increase in wealth. This would be my explanation."

That's a big part of what I'm wondering here.

If we look at the following factors:

Restaurant sales
Server fixed wage
Server tip

What is (Server fixed wage)/(Restaurant sales) now vs. 20 years ago?

What is (Server fixed wage + Server tip)/(Restaurant sales) now vs. 20 years ago?

I'm curious if the overall labor cost for restaurants has stayed at the same percentage, of if the restaurants have reduced labor cost as a percentage of expenses by keeping the second number constant, taking advantage of the increase in tips to pay their employees less.

[El Diablo]

Pyro,

"I'd always understood the traditional amount-to-tip-on as the meal itself"

Yes. People used to talk about "tax + tip" being a certain combined percentage applied to sale. Now most people talk about tip on top of the amount of the bill, which includes tax.

I think that's due to two things - laziness in math and some good work by the tip-receiving community in always talking about it like that, resulting in a couple extra percent coming their way.

[AdamBragar]

[ QUOTE ]
dean,

"Diablo, I'd be interested to see how the wages of servers v. the mean wage has altered since you were in college. I'd guess that servers wages have risen less in real terms that the general increase in wealth. This would be my explanation."

That's a big part of what I'm wondering here.

If we look at the following factors:

Restaurant sales
Server fixed wage
Server tip

What is (Server fixed wage)/(Restaurant sales) now vs. 20 years ago?

What is (Server fixed wage + Server tip)/(Restaurant sales) now vs. 20 years ago?

I'm curious if the overall labor cost for restaurants has stayed at the same percentage, of if the restaurants have reduced labor cost as a percentage of expenses by keeping the second number constant, taking advantage of the increase in tips to pay their employees less.

[/ QUOTE ]

I think this study would be interesting, but wouldn't really explain why tips have increased over time. I don't think the general population considers servers wages in their tip calculations.

I'd guess the main explanation for increased tips is the increase in credit card usage. People find it psychologically easier to tip money when writing a number down on paper rather then shelling out the cash. I'd even guess my tips are lower when I pay by cash rather then by credit card, and it's completely unintentional.

[KJS]

I think it is very simple: people came to the conclusion that, regardless of percentage, less than a buck is inexcusable, a buck is not really that great and a couple bucks is better. It is a small leap from there to 'what can 2 bucks get you nowadays: not much', so I'll leave 3 or 5. Pretty soon you are routinely tipping in the 20+% range on your low and mid-priced meals in order to leave something you view as substantial and it becomes your standard, even when you are dining at higher end places.

When you could actually buy a beer or something for a buck or 2, that tip seemed OK. When those prices went up, those tips seemed lame.

KJS

[Henry17]

[ QUOTE ]
If we look at the following factors:

Restaurant sales

[/ QUOTE ]

What I'd be interested in is the percentage of expensive restaurants compared to 20 years ago. I'm 34 so I don't know if it is because I'm getting older and thus am exposed to pricer establishments more often or if they are simply more common.

I think bottle service is a good example. Until 6-7 years ago I had never heard of bottle service. Until 2-3 years ago it was something that was only offered in major cities. Now it seems like any half decent club is pawning off $40 bottles of vodka for $250-350.

If people are spending more then it means they will probably be inclined to tip more as well. Eventually the higher tip percentage starts to spread from the more expensive establishments to the rest.

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The increased use of credit might also have been a factor. I hate credit but I believe it is probably easier to over tip with credit than cash.

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Frequency of going out has increased over the last few decades. I go out a lot so I tip much better than average. While I wouldn't say I'm friends with the staff you do get a relationship of some kind with them if you see them a few times a month.

[Henry17]

Also at least in Canada I think the removal of $1 and $2 bills has led to higher tipping. Nobody wants a pocket full of change so much easier to leave behind coins than bills.

[iron81]

I think that this is merely because the ballerness of El D and his friends has increased over the years. They have more money to throw around, they eat in nicer restaurants and so their tipping level has increased. I'm sure there are plenty of stingy tippers still out there.

I doubt that Diablo has his finger on the pulse of the actual staff as to what they expect from their customers. The "expected" tip is calculated from 1. His friends and 2. 2+2. His friends like to keep up appearances and cheap 2+2ers don't like to be flamed.

[El Diablo]

iron,

"I doubt that Diablo has his finger on the pulse of the actual staff as to what they expect from their customers."

I doubt iron has any f'ing clue about anything.

First off: Also, if you don't agree with the premise of this question, DON'T RESPOND IN THIS THREAD, thanks.

Secondly, I have extensive experience in the bar/restaurant industry and am friends w/ tons of servers/bartenders. Tipping has increased, both in terms of amount and expectation.

Finally, I don't f'ing care about the fact that plenty of stingy tippers still exist. I mean, there are still virgins in their late 20s. That doesn't change the fact that about 50% of kids in high school are having sex.

[limon]

tips have gone up becuase people go out so much more often and you dont want to be known as a stiff or you wont get a table. regulars tip more than randoms and as people go out more you get more regulars than randoms. supply and demand increases the tips at in demand places and the tide raises all ships.