My friend at Darwin’s Finance along with a real life friend provided the inspiration for today’s post. I’m sick of tipping.
Tipping is an ancient compensation mechanism that was initially designed to award good service. Some academics have even theorized that tips originated as a way to send the message that the server should have a drink at the customer’s expense. But since 95% of us (unscientific estimate) tip even for crappy service, the idea of the tip has transformed from a measly bonus into the livelihood of a server in a restaurant.
Tipping As A Percentage Of Sales Is Stupid
Of course in this environment we’re almost always thinking about food-service. My fiancé and I are fond of hitting up the Olive Garden for some soup, salad, and breadsticks. We get water to drink and the total bill is something like $15. Our server has to put in a decent amount of work bringing out more of our unlimited foods. He certainly wouldn’t work any harder had we each ordered steaks and a glass of wine, with a total bill closer to $50. Overall our server will put out the same basic unit of labor. However on the $15 bill I’d tip him $2.25, but on the $50 bill he gets $7.50. It’s ridiculous to tip someone as a percentage of sales. Instead, we should tip them on the amount of labor they put out, adjusting for quality of service. Tipping based on a percentage of sales rewards the server for upselling you on product (“any room for dessert?”), not for providing better service.
Tipping When Tipping Isn’t Due
One of my newest friends and I were at a local happy hour conversing about a long week we’d just finished. He went to purchase a Bud Light that was on special for $2.00. He went to the bar, where the bar tender spent all of 8 seconds preparing his beer (pulled out of cooler, removed lid). However my friend tipped her 50%. That is an additional dollar on top of the beer. I’m sorry bartender, but you did not just do a dollar’s worth of work. By the same token I recently watched a guy tip a barber $3 on a $17 haircut. Like me, he just got the clippers to the head and that was the end of it. $17 for this service is ridiculous enough, he only tipped because that was he was taught to do. Tipping should be earned, and in my opinion unless the person makes minimum wage or a server’s wage, they must make a compelling argument to deserve a tip at all. In other words, their service must blow me out of the water.
How Do We Fix This?
I hate government regulation, but the only way to fix this situation is to eliminate the minimum wage for servers, which is in the $2 and change range. Then restaurants would need to change the prices of their food to price in the additional expense of paying servers. Slowly but surely, we would stop tipping the servers altogether since they are being paid a legal wage. Not everyone would stop, and to be honest I might not, but this would be the only way to get the ball rolling on the end of tips.
Now I don’t hate rewarding good service. A good bartender or an excellent server does deserve an additional tip. For example I went to a local bar to have a drink a few weeks ago and catch a game that could only be seen on satellite. I ordered one beer and drank it during the 45 minutes I was there. The bartender kept offering me food that the servers screwed up or the cook or a picky customer sent back. I got myself a 12 piece boneless wings because the customer said they wanted mild, not spicy. Granted the wings didn’t taste very good, but they were free. So I tipped the bartender on the beer, and an estimated tip for the wings. Good service deserves a good tip.
But as I said before, I’m sick of tipping. Your basic server does nothing more difficult or demanding than a customer service representative, or the guy that helped you pick out a TV at Best Buy. You didn’t tip either of them did you? Even if the service was excellent. This is the only justification I really have to end tips. Either tip everyone, or tip no one. It’s easier just to tip no one.
Dear bartenders, servers, and anyone else that makes a dime on tips; I am not saying you don’t deserve appropriate compensation for your hard work. Most of you do deserve to make decent money for what you do, however I just feel the current structure of compensation for you is faulty. I may be sick of tipping, but don’t worry, I have been and unfortunately always will be, a good tipper.
Photo: derusha
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Yea, we are the only country to tip the way we do and it’s so much money and takes a lot more time. I understand the reasons, it helps insure better service hopefully, but annoying. I really liked being in Europe where tip was included and you paid what the exact final bill was, made things easier you know upfront what you are paying.