Alpha Consumer

Tipping, Part 2: Answers for Readers

January 22, 2008 RSS Feed Print

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My conversation on tipping with protocol consultant Judith Bowman generated so many questions from readers that I asked Bowman to tackle the subject again. Readers wanted to know what to do when they traveled, why they had to pay a 20 percent tip on meals that were already too expensive, and what to say when they weren't thanked properly for providing a tip. (Not surprisingly, the short answer to that last one is "nothing.")

I also received a plea from a reader who works in a large, family-owned restaurant in Delaware. She says most customers tip only 10 percent, which places a strain on the wait staff, who typically earn only around $2.35 an hour before tips, which are also shared with busboys. She wanted to remind others of the importance of tipping—and tipping well.

Here are Bowman's responses to readers' questions:

Why should tipping rates keep going up? As the price of items increases, so do the tips. Why should I have to pay an additional 5 to 10 percent today, when prices are already higher?
I agree with this conceptually. However, the cost of living has gone up for people in the service industry, too. If you want to "play," be prepared to "pay," especially for exceptional service and personalized attention. Particularly when traveling, wait staff and service personnel are our only friends. They are the individuals who can help ensure a positive, memorable travel experience—or not. Whenever in doubt, always tip up, regardless of where you are, unless you know this gesture would be considered offensive in that culture.

How should you respond when someone does not thank you for their tip?
Any service professional who does not say "thank you" for their gratuity is doing themselves a disservice. However, your saying anything derogatory or inflammatory would be counterproductive. Rather, I would tuck this information away and, should you decide to return to this establishment, ask for a different server.

What are the guidelines for tipping in Europe and Asia?
Europe: When it comes to tipping, Europeans are not as generous as Americans. In Europe, 10 to 15 percent is a good tip, and 5 to 10 percent is the norm. However, service staff in many countries appreciate, if not expect, some sort of acknowledgement of thanks in the monetary form. Always check the bottom [of the menu to see] if the service charge is included.

Asia: Asia has many different cultures, and tipping varies. Tipping too much or too little can be offensive, so be sure to research your country in advance. Some examples include:

Thailand: Generally, the more westernized establishments expect a gratuity, while lower-end restaurants do not. Some higher-end places will add a 10 percent service charge to the bill.
Hong Kong: Tipping is absolutely obligatory in this money-oriented metropolis. Even restrooms in hotels have tip dishes. In restaurants, a 10 percent service charge is often added, but this usually goes to the owner, not the wait staff. If service is good, add another 10 percent.
South Korea: Tipping has not traditionally been part of this culture, although now a 10 percent tip at higher-end restaurants is appropriate. Taxi drivers do not expect a tip.
Beijing: In the past, tipping in Beijing was taboo as this was considered insulting to the culture of hospitality. Instead, visitors were told to bring small gifts, such as bookmarkers or key chains for taxi drivers and hotel staff. Today, Beijing is quickly becoming westernized, and not receiving a tip, particularly for the younger staff, will be insulting. Around 10 percent is appropriate.
Singapore: The government actually banned tipping at Changi Airport and discourages it elsewhere. Hotel staff are the one exception and should be tipped around $1 for baggage service.

How much should you tip skycaps or porters at airports and doormen at hotels?
The skycap at the airport typically gets $2 to $3 per bag. If you are running late and they are of particular assistance, then add $1 to $2 per bag. A flat $20 goes a long way in saying "thank you." When in doubt, always tip up. As for doormen at hotels, tip anywhere from $2 to $5. Always tip up, and you are sure to be remembered among all employees, as they do talk.

What are the rules for tipping postal workers? I thought they were not allowed to receive cash tips.
Postal workers cannot receive any more than $20 in cash, which is an appropriate tip during the holidays.

What about cab drivers?
Generally speaking, cab drivers receive 18 to 20 percent of the fare. Should they have a bad attitude, are rude, or have a dirty cab, I would tip 10 percent or nothing at all. However, if this is the case, I would absolutely tell them why.

And the hairstylist?
Hairstylists should receive an 18 to 20 percent tip unless they are the owner, in which case, they should not accept tips.

——

• Check out this week's Carnival of Personal Finance for some budgeting and saving tips.

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Even in states where servers make minimum wage, say, $8/hr. as in CA, it's important to realize that that's the same wage as the guy cleaning the bathrooms or washing the dishes makes -- nothing against those people, but they're obviously not skilled and would rarely have any idea how to serve guests as a professional server would. The difference in pay (and skill level) is made up for by tips, and consumers who are not willing to tip at least 15% for decent service should consider how they would feel if the dishwasher came out and tried to explain them the menu, take and serve their order, and was the one entrusted with providing you the service to enable you to enjoy the meal that's costing you $90 for two -- and I'm only talking about a moderately priced restaurant here.
Like it or not, restaurants pay servers what they pay them -- not much -- and no amount of wishing it was different will change that. Servers and bartenders work primarily for tips, and in more expensive areas (CA, a lot of the East Coast, etc.) no one can survive on $8 or $10 or even $12 an hour. These people who are servers are there at their jobs because of the tips. Without that 15-20 percent, establishments would never be able to keep *any* semblance of qualified staff.
The argument that establishments should pay servers more doesn't change anything. They won't, but even if they did, they'd pass it along in higher menu prices. Europeans pay it as well with the mandatory service charge. Consumers will always pay for service one way or the other -- with the unique exception of consumers (American or foreign visitors) in America who simply refuse to tip or tip poorly. And in the end, such cheapskates will, once servers learn to recognize them, shoot themselves in the foot because of the deliberate poor service they'll receive that always eventually goes to those who seem to demand it but are not willing to pay for it.
To reiterate, though, servers will not work as servers if they are not paid commensurately. Whether their pay is collected through higher menu prices and/or service charges and then redistributed back to the servers or they're paid directly by customers through tipping, the customer will always be the one who pays for service. It's just handled differently in different places. And in the US, in about 99% of places, unless there's a large-party gratuity added to the check, it's done through tipping.
Admittedly, I didn't mince words here....but this is the real bottom line. I've been in hospitality management for 15 years after 19 years as a bartender and sometimes food server. I can say with absolute certainty that anyone who does not accept my point of view is simply not seeing things for what they really are....and trust me on this -- it's that way *everywhere* in the US where there are servers and bartenders who are working for tips.

zapatos espinados of CA 8:42AM August 13, 2008

As someone who spent 15-20 years in the Service Industry, I believe tipping is not only advised but very much needed. Many people in the Restuaraunt Business, Taxi's, Hair Stylists, Nail Salons, Dry Cleaners and the list goes on and on... These people need as much money as the next individual and sometimes more! Alot of kids in College, single Mothers, people forced to work at a lower wage than the CEO's and Business Managers also need as much money to survive. With the continuous climb of Healthcare in America, and Gasoline, Food, Heating & Cooling costs, etc...) how is one to expect to live and pay back school loans, credit card bills, doctor bills, get a mortgage on a house, raise children, pay for daycare and the list goes on and on again! I do believe an education can help immensely but some people also need to pay for their own schooling and babysitters, rent and other incidentals. Maybe we should look at how money hungry and greedy our society has become!

of CT 9:03PM March 13, 2008

People keep on saying that it is bad that the food industry does not pay the workers more, however that is how it is in the States. This does not mean that you should not tip. If you tip under 15% and there was not something so bad to speak to the manager you are just cheap. If you do not want to tip don't go. 20% is the tip I use and have since I was under 18. If someone that only has about $25 for a week can do it so can everyone else.

of 2:14PM January 24, 2008