Contributor Post Created with Sketch. Tipping: The Mr. Pink Solution?

 

PinkThere’s a famous scene in Quentin Tarantino’s film Reservoir Dogs — and it’s so far out of compliance with Ricochet’s Code of Conduct that I’ll have to just point you here, with a warning for delicate sensibilities, if you want to see it — in which Steve Buscemi’s Mr. Pink refuses, on principle, to chip in for the tip at the end of a group meal. The original dialogue is so heavily spiced with trademark Tarantino scatology that it can’t be reproduced here, but here’s the argument with the saltiness elided:

I don’t tip because society says I have to. If they really put forth the effort, I’ll give ’em something extra. But this tipping automatically is for the birds. As far as I’m concerned, they’re just doing their job.

When confronted with the argument that servers are making minimum wage:

I used to work minimum wage, and when I did I wasn’t lucky enough to have a job that society deemed tip-worthy…Working at McDonald’s [is a hard job too], but you don’t feel the need to tip them. They’re serving you food, but society says “Don’t tip these guys over here, but tip these guys.” That’s [BS].

Further:

I’m very sorry the government taxes their tips. That’s [screwed] up. That ain’t my fault. It would appear that waitresses are one of the many groups the government [works over] on a regular basis. Show me a paper that says the government shouldn’t do that, I’ll sign it. I’ll vote for it. But what I won’t do is play ball.

With Reservoir Dogs now nearly 25 years behind us (note: we are all much, much older than we think), it seems that society may be starting to move ever-so-slightly in Mr. Pink’s direction. From Maura Judkis in the Washington Post:

On a busy Friday night in New York’s East Village, the friendly and efficient servers at Dirt Candy took home zero dollars in tips, but they considered it a good night. When you’re a server on salary — rather than relying on often-mercurial guests for your financial livelihood — every night is a good night.

The vegetarian restaurant is one of a handful of eateries across the country that are experimenting with a new model of compensating employees, with varying results. When Dirt Candy reopened in a larger space last month, chef-owner Amanda Cohen announced she was eliminating the line to write in a tip on her checks. Instead, a 20 percent “administrative fee” is tacked onto every bill and goes toward employee salaries, for both servers and cooks. The starting salary at Dirt Candy is $15 an hour, nearly twice the minimum wage in New York ($8.75), and three times the minimum wage for food service employees ($5) who get tips.

First thought: Dirt Candy is perhaps the worst name ever conceived for a restaurant. Second thought: this is kind of interesting, not least because the consequences are so complex. Indeed, Judkis does a very thorough job of chronicling all the implications (it’s noteworthy that the most thoroughgoing analysis of economic incentives in the Post is happening in the food section).

First, there’s the concern that, by doing away with tips, you’re essentially eliminating a form of performance pay:

“Everybody works for me,” said Cohen. “I should be the one to pay them.”

It sounds so simple. But for her, the attempt to change tipping culture isn’t just an economic issue; it’s also an emotional one.

“The idea that if you get bad service, you get to punish the server — that’s awful,” said Cohen. “All the negative comments have been, ‘But what if the service is bad?’ And my response is: ‘Then complain, say something to the manager, let the restaurant take care of it.’ Not, ‘I’m going to decide how much I’m going to pay you for your job.’ Nobody works that way except servers.”

There is, of course, an unaddressed cognate here: you may be removing the customer’s ability to use tips in a punitive fashion, but you’re also removing their ability to use them as a reward.

From Judkis:

But if tips are to reward good service, shouldn’t we tip at the beginning of the meal? When you tip at the end, and you know you’ll never see that waiter again, why do it at all?

The logic of this one escapes me. The reward comes at the end because that’s the best way to induce the server to be attentive throughout the meal. Why remove that incentive up front?

Here’s an interesting angle I hadn’t heard before. The relative consistency of tip levels actually works to undermine the performance incentives:

Guests might think their tip reflects the service, but [Cornell Professor Michael] Lynn’s studies have found that most diners tip the same percentage, whether it’s 15 or 25 percent, every time they eat out. Therefore, studies have found, the best way a server can guarantee a night of good tips isn’t to provide the most personalized, meticulous service to a small number of tables and hope for a big tip from each; it’s to turn as many tables as possible, even if it leads to slightly worse service for everyone.

Another argument against tipping: it fails to differentiate between the various parties who are responsible for the quality of your dining experience:

When you stiff waiters for bad service, you might be penalizing them for something that’s not their fault, such as a backed-up kitchen. And you might be stiffing the rest of the staff, too: Many restaurants pool tips, and servers give a share of their tips to busboys and bartenders, and sometimes even the dishwasher and hosts. At corporate restaurants that electronically track and report tips for tax purposes, employees may be taxed on the full amount of the night’s tips, even though they have to distribute a portion of them to other staff members. Some restaurants also take credit card transaction fees out of their employees’ tips.

Here’s the thing about ditching tips, however: if you’re going to put your servers on salary, you have to make up that money from somewhere. And that puts the early adopters at a competitive disadvantage in terms of consumer psychology:

Sometime this spring, Bill Perry will quit his job as a librarian for a nonprofit organization to open the Public Option, a neighborhood restaurant and brewpub coming to 16th Street and Rhode Island Avenue NE this summer. He will start servers’ salaries at $15 an hour — more than the city’s $9.50 minimum wage and five times its tipped minimum wage (what servers can be paid if their pay-plus-tips meets or exceeds the standard minimum wage) of $2.77. Tips will be strongly discouraged. Any money left behind by guests will be donated to a charity of the staff’s choosing.

“The idea is to get away from shifting compensation to the consumer,” said Perry. “What I’m hoping to do with tipping, and more broadly with this whole experiment, is to participate — in a very small way, of course — in the evolution of the market economy.”

Rather than tack a service charge or administrative fee onto the bill, Perry said, he will price his drinks and dishes about 15 to 20 percent higher but will still keep them in the range of similar restaurants in the area. Diners “probably won’t save much, but they certainly won’t pay any more,” he says.

According to Lynn’s research, that’s not necessarily how the public will see it. “Basically, consumers judge restaurant expensiveness on menu prices and don’t take into account tips or service charges,” said Lynn, “So if you eliminate tipping and replace it with service-inclusive menu pricing, you’re going to be perceived as more expensive.”

All of which is to say it’s really, really complicated.

I’ve always found tipping a bit of an eccentric and inconvenient practice. That said, I’m cognizant of the fact that attempts to rationalize such deeply ingrained practices are often more trouble than they’re worth.

What about you, Ricochet? Strong feelings on this? Do you have a unified theory of tipping? Would those of you who work or have worked in jobs that are tip-dependent being in favor of doing away with the practice? Fill us in in the comments.

There are 58 comments.

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  1. The (apathetic) King Prawn Inactive

    The service received at table is (or can be) very personal. Tipping is responding in kind. I had a waiter once who was so spectacular he earned a 50% tip. His service was worth at least half the price of the food, which wasn’t bad either. He may have technically worked for the restaurant, but during that space of time he was my employee, and I paid him appropriately.

    • #1
    • April 16, 2015, at 1:14 PM PDT
    • 1 like
  2. Valiuth Member
    Valiuth Joined in the first year of Ricochet Ricochet Charter Member

    What we really have to work towards is getting rid of waiters all together. Who wants to interact with a stranger just to get a meal. Ideally one would walk into a restaurant sit at a table, and place in orders into a computer. If you want a refill push a button and a robot comes and gives you an new drink. Why should one expect a distracted human being trying to cater to 12 other tables to be able to keep track of you. Robots are the key, and self service is the way.

    • #2
    • April 16, 2015, at 1:19 PM PDT
    • Like
  3. EJHill Podcaster
    EJHill Joined in the first year of Ricochet Ricochet Charter Member

    I tried tipping the waitress…. she got back up and decked me!

    • #3
    • April 16, 2015, at 1:28 PM PDT
    • Like
  4. Jon Gabriel, Ed. King

    I must commend you on your editing of Tarantino dialogue to be Ricochet CoC-compliant. For your next labor, please clean the Augean Stables.

    When I was younger, my tips varied widely with the service, but now I usually tip 20% regardless of the service. Exceptionally good service will get 25%, especially when the waitstaff is good with our kids. (Waitresses who quietly offer dessert options to my wife and I so that our already sugar-rushing kids don’t hear it? 30%.)

    I have dropped to 10% for dreadful service and 0% for 2-3 of abysmal performances (the owner was lucky I didn’t raze the restaurant and salt the earth).

    • #4
    • April 16, 2015, at 1:32 PM PDT
    • Like
  5. Mendel Member
    Mendel Joined in the first year of Ricochet Ricochet Charter Member

    I find tipping in general to be a mysterious practice, but there are two elements which really baffle me:

    – Isn’t it amazing how faithfully people tip when they could get away without doing so? Any tourist on vacation has about a 0% chance of ever encountering a particular waiter/waitress again. They could thus leave no tip and never experience any repercussions, yet waitstaff in vacation areas often earn very generous tips.

    – Why do we tip some people and not others? I somewhat understand tipping for personalized, variable services like waitstaff or taxi drivers. But why do we tip the chambermaid at a hotel, when there is a very standardized level of service that person is expected to maintain? Or a bartender or barista for filling up a beverage in a manner which should be completely standardized? And why don’t we tip the cashier at the grocery store – after all, an efficient cashier can save me 10 minutes of waiting around, which is worth much more than any value added by a Starbuck’s barista.

    • #5
    • April 16, 2015, at 1:35 PM PDT
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  6. Jim Kearney Contributor

    I like the flexibility of tipping, so customers can with more than mere words express enthusiastic approval, satisfaction, or when necessary disapproval of the job a waiter does. Accountability improves the business environment for both business and customer.

    Tips should indeed be outside the purview of the IRS and state taxing authorities. Tips should be recognized as gifts, and not taxed if under $10,000 per year to an individual.

    Over ten grand per year, someone’s crossed the line between waitress and mistress.

    • #6
    • April 16, 2015, at 1:38 PM PDT
    • 1 like
  7. Bartholomew Xerxes Ogilvie, Jr. Coolidge

    The excellent Freakonomics podcast did an episode some years back that examined the phenomenon of tipping. It’s been a while, so I no longer remember the details, but I came away from it feeling pretty much confirmed in my belief that tipping (as it exists in this country) is broken.

    It seems to me that the point of tipping should be to recognize and reward exceptional service that goes beyond merely doing one’s job. The idea of obligatory tipping annoys me and seems like a perversion of the original purpose.

    • #7
    • April 16, 2015, at 1:39 PM PDT
    • Like
  8. The (apathetic) King Prawn Inactive

    Jim Kearney

    Tips should be recognized as gifts, and not taxed if under $10,000 per year to an individual.

    Over ten grand per year, someone’s crossed the line between waitress and mistress.

    And that, folks, is how you win Ricochet for the day!

    • #8
    • April 16, 2015, at 1:42 PM PDT
    • 1 like
  9. Frozen Chosen Inactive

    Did you hear about the Rabbi who didn’t charge for circumcisions?

    He only took tips.

    • #9
    • April 16, 2015, at 1:43 PM PDT
    • Like
  10. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Clearly, Mr. Pink rarely dines at the same restaurant twice.

    • #10
    • April 16, 2015, at 1:44 PM PDT
    • Like
  11. Frozen Chosen Inactive

    Valiuth:What we really have to work towards is getting rid of waiters all together. Who wants to interact with a stranger just to get a meal. Ideally one would walk into a restaurant sit at a table, and place in orders into a computer. If you want a refill push a button and a robot comes and gives you an new drink. Why should one expect a distracted human being trying to cater to 12 other tables to be able to keep track of you. Robots are the key, and self service is the way.

    Head to Applebees, where you can now place your order and pay on a tablet they provide.

    • #11
    • April 16, 2015, at 1:45 PM PDT
    • 1 like
  12. Herbert defender of the Realm,… Inactive

    I stiffed someone yesterday on a tip, I am low maintenance, about all I need is my glass of water refilled (this didn’t happen yesterday, I eventually had to ask another server for a refill). I’m pretty generally a 20 percent tipper, but I do tend tip small checks larger (sometimes 300- 400 percent if I’m just drinking a coke and it is kept full), and larger checks in the 15-20 percent range.

    • #12
    • April 16, 2015, at 1:48 PM PDT
    • 1 like
  13. Mendel Member
    Mendel Joined in the first year of Ricochet Ricochet Charter Member

    Jim Kearney:I like the flexibility of tipping, so customers can with more than mere words express enthusiastic approval, satisfaction, or when necessary disapproval of the job a waiter does. Accountability improves the business environment for both business and customer.

    Of course, there is more than one way of holding someone accountable. For instance, if I refuse to patronize an establishment which gave me bad service in the past, I am also holding them accountable, albeit perhaps less directly.

    I have found that the establishments without tips tend to provide a more homogeneous experience – the waitstaff is likely to be equally good regardless of who one’s particular waiter is. This makes sense, as business without tips are likely to have a manager paying closer attention to each clerk’s/waiter’s behavior.

    Perhaps that also means that the customer gets outstanding service less frequently. Personally, that’s something I’m fine with: when I go out to eat/drink, I want reasonably fast responses and a friendly demeanor, not some stranger pretending to be my best friend and/or romantically interested in me for the sake of a few dollars.

    • #13
    • April 16, 2015, at 1:53 PM PDT
    • 2 likes
  14. Mendel Member
    Mendel Joined in the first year of Ricochet Ricochet Charter Member

    And to ask the obvious question: about 25 years ago, 15% was standard for good service. Now 25% has become fairly widely established for good service.

    Has the quality of service in restaurants really improved 167% in the last 25 years? If so, I must have missed it.

    • #14
    • April 16, 2015, at 1:55 PM PDT
    • 1 like
  15. Commodore BTC Inactive

    language warning

    • #15
    • April 16, 2015, at 1:55 PM PDT
    • Like
  16. Jim Chase Member
    Jim Chase Joined in the first year of Ricochet Ricochet Charter Member

    My philosophy has varied over time. I usually have a floor, or a minimum percentage that I will tip, roughly in the 20% range. Going above that is an entirely arbitrary action that depends greatly on the overall experience, not just how good a job someone did.

    For example, the folks at Circa in Thompson’s Station Sunday night got a very generous tip from me on top of the enforced gratuity applied to our bill. Would that have been true if it had been just me and my wife, instead of a delightful wrap to the Nashville meetup? Don’t know that it would, but the fact that the whole evening was great certainly contributed to my decision to plus it up.

    But the method is almost as important. I’m not a big cash carrier. If I can’t tip on a credit card (which I don’t think you can do at a fast food joint), I’m not going to have cash to drop in a tip jar sitting on the counter.

    • #16
    • April 16, 2015, at 2:02 PM PDT
    • 1 like
  17. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Twenty-five per cent?!?!

    Man. I have never tipped more than 15% (well, not sober anyways).

    No wonder American waitstaff think Canuckistanis are cheap.

    “What’s the difference between a Canadian and a canoe? A canoe tips.”

    On the other hand, I’ve never tipped less than 15% either.

    • #17
    • April 16, 2015, at 2:10 PM PDT
    • 1 like
  18. Casey Inactive

    https://www.youtube.com/watch?v=84x7fBTfMqc

    • #18
    • April 16, 2015, at 2:10 PM PDT
    • 2 likes
  19. Hammer, The Member

    Yes. I hate tipping. I don’t hate the act of tipping; I hate the expectation of tipping. I would certainly prefer the non-tipping method – and, quite frankly, if a waitress provides consistently bad service, perhaps she should be fired? I don’t see any really good reason to not run a restaurant like all other businesses.

    • #19
    • April 16, 2015, at 2:15 PM PDT
    • Like
  20. Hammer, The Member

    also… I think Reservoir Dogs could have been a much, much better movie if they had given it a happy ending. I guess I’m just a sucker for happy endings, but I don’t really feel like investing 2 hours in a show where everyone dies. That’s why I never enjoyed Shakespeare.

    • #20
    • April 16, 2015, at 2:16 PM PDT
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  21. Tommy De Seno Contributor

    The flaw in Mr. Pink’s thinking is that wait staff don’t earn minimum wage. The tips are relied upon to get them there.

    From the gov:

    What is the minimum wage for workers who receive tips?

    An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

    • #21
    • April 16, 2015, at 2:19 PM PDT
    • Like
  22. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Mendel:- Why do we tip some people and not others? I somewhat understand tipping for personalized, variable services like waitstaff or taxi drivers. But why do we tip the chambermaid at a hotel, when there is a very standardized level of service that person is expected to maintain? Or a bartender or barista for filling up a beverage in a manner which should be completely standardized? And why don’t we tip the cashier at the grocery store – after all, an efficient cashier can save me 10 minutes of waiting around, which is worth much more than any value added by a Starbuck’s barista.

    The chambermaid can, potentially, cause you harm that you don’t even notice.

    What’s weird is that we don’t tip chambermaids at the beginning of the trip rather than at the end, like protection money.

    • #22
    • April 16, 2015, at 2:21 PM PDT
    • Like
  23. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Tommy De Seno:The flaw in Mr. Pink’s thinking is that wait staff don’t earn minimum wage. The tips are relied upon to get them there.

    From the gov:

    What is the minimum wage for workers who receive tips?

    An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

    Ah, but you forget, Resevoir Dogs takes place in an alternate reality where Hitler was assassinated in a theatre. Who knows how that event could have altered California’s minimum wage laws?

    ;-)

    • #23
    • April 16, 2015, at 2:23 PM PDT
    • 1 like
  24. Mendel Member
    Mendel Joined in the first year of Ricochet Ricochet Charter Member

    Misthiocracy:

    Mendel:

    The chambermaid can, potentially, cause you harm that you don’t even notice.

    Right, but so can the guy making my burger at McDonald’s, or the person who stocks the lettuce at the grocery store, or….about 10 other people a day whom we don’t tip.

    • #24
    • April 16, 2015, at 2:30 PM PDT
    • Like
  25. Man With the Axe Member

    There are certain ethnic groups who are infamous for not tipping. I have heard this from every single person with whom I have discussed the subject who has wait staff or pizza delivery experience, including three of my own children. Even servers of their own ethnicity hate it when they see their co-ethnics seated at their stations, because they know almost to a certainty that they will get stiffed. Pizza delivery drivers make no special effort to deliver to members of such group(s) in a timely fashion. Then, these same customers will often complain about inattentive service. For these people mandatory service fees added to the bill will have the counter-intuitive consequence of improving the service they get.

    For everyone else, voluntary tipping does improve service. Maybe not for you, personally, in any particular instance, but overall. I make this assertion based on the evidence of my experience in countries where tipping is not customary. Service tends to be noticeably worse. Not terrible, just a bit worse.

    • #25
    • April 16, 2015, at 2:39 PM PDT
    • 1 like
  26. Ben Sears Member

    Adding 20% to my bill and calling it an “administrative fee” is not eliminating tipping. It’s making it mandatory, only now the proceeds get split between the waiters and the cooks and indirectly, the owner who no longer has to pay the waiter or cook from money brought in through the sale of menu items.

    As a former waiter and restaurant manager I can tell you that Dirt Candy (I actually warmed to the name as I typed it) is going to have a hell of a time keeping good servers if all she pays is $15 an hour. That’s $75 for a standard five hour shift. Good waiters can average $150 – $200 in tips alone at dinner. Why would anyone with ability or talent accept half (or less) the value of their labor? The end result will likely be bad service with a 20% mark up.

    • #26
    • April 16, 2015, at 2:44 PM PDT
    • 1 like
  27. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Ryan M:Yes. I hate tipping. I don’t hate the act of tipping; I hate the expectation of tipping.

    You know what grinds my gears? Bartenders that expect to get a tip with every drink. Maybe I prefer to tip at the end of the night, as a reward for consistent service!

    But, oh no, instead they refuse to serve me unless I drop a buck with each and every beer. That’s WAY more than 15%!!!

    • #27
    • April 16, 2015, at 2:47 PM PDT
    • Like
  28. Misthiocracy got drunk and Member
    Misthiocracy got drunk and Joined in the first year of Ricochet Ricochet Charter Member

    Mendel:

    Misthiocracy:

    Mendel:

    The chambermaid can, potentially, cause you harm that you don’t even notice.

    Right, but so can the guy making my burger at McDonald’s, or the person who stocks the lettuce at the grocery store, or….about 10 other people a day whom we don’t tip.

    The guy making my burger at McDonald’s doesn’t have a key to the room where I sleep.

    • #28
    • April 16, 2015, at 2:49 PM PDT
    • 1 like
  29. Bryan G. Stephens Thatcher
    Bryan G. Stephens Joined in the first year of Ricochet Ricochet Charter Member

    I tip, and I tip at 20% because I choose too, not because society tells me too. Some place that makes me carry my check to the register, they get less, because I do more work.

    Don’t tip at Subway. Making a sub in front of me is no more hard than a big mac where I cannot see it. I tip a guy for carrying my bags (which I avoid at hotels), I tip the curb side guy for taking my bags at the curb. I don’t tip the hotel cleaning staff, as usually, I don’t have them come clean while I am there. I sleep on the same sheets a week at a time at home, and use the same towels at home, I don’t need my room cleaned at the hotel for a three night stay.

    • #29
    • April 16, 2015, at 2:54 PM PDT
    • 1 like
  30. Doug Kimball Thatcher

    My mother was a waitress at a local diner-like chain in Boston, Brighams. She’d spend hours every evening counting out and rolling her tips, coins she deposited in her passbook savings account the next day on the way to work. As the chain was shrinking, when they closed her restaurant, she was always recruited to work at another nearby location. She came with clientele who followed her. She worked at four separate restaurants, a Brighams employee for more than thirty years. It’s probably a record. When she died, my father found a roll of 5000 one dollar bills in her nightstand drawer.

    I always tip and I’m always generous

    • #30
    • April 16, 2015, at 2:55 PM PDT
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