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  #71  
Old 12-01-2007, 06:01 PM
JaredL JaredL is offline
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Default Re: PDT 2/2 : Why has tipping increased?

Question I just thought of, that may or may not be relevant.

Is this happening elsewhere?

In Europe, where tipping isn't nearly as common, is it significantly more common than 10 years ago? Are people tipping more than just the leftover change these days?
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  #72  
Old 12-01-2007, 06:01 PM
El Diablo El Diablo is offline
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Default Re: PDT 2/2 : Why has tipping increased?

All,

Jared asked me to elaborate. Among other things.

a) there is not a fixed service fee in america
b) customers do not know how much dishwashers get paid
c) customers do not give a [censored] about ratio of waiter:dishwasher pay
d) minimum wage has increased at rate far below rate of restaurant price increase
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  #73  
Old 12-01-2007, 07:26 PM
AdamBragar AdamBragar is offline
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Default Re: PDT 2/2 : Why has tipping increased?

[ 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.
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  #74  
Old 12-01-2007, 07:29 PM
AdamBragar AdamBragar is offline
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Default Re: PDT 2/2 : Why has tipping increased?

The people who really get the shaft are bartenders who have not really seen a tip increase over the years, as many people still consider the normal tip for a drink to be 1 dollar. Prices rise for drinks, but people don't usually calculate percentages when paying by cash. Tips for drinks aren't going to gradually increase, as people aren't going to start giving a $1.25 drink for a tip, and the next logical jump will be an accepted $2 per drink tip for cash purchases.
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  #75  
Old 12-01-2007, 08:40 PM
El Diablo El Diablo is offline
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Default Re: PDT 2/2 : Why has tipping increased?

Adam,

Bartenders definitely don't get the shaft.

1) $1/drink is often greater than 20% for cheaper drinks like beer.

2) People at high-end bars often tip more than $1 per drink for top-shelf cocktails.

3) People often tip 15-20% when paying by credit card, which often ends up being more than $1/drink.
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