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.

Become a member to join the conversation. Or sign in if you're already a member.
  1. Tommy De Seno Contributor

    Misthiocracy:

    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.

    Or does he?

    • #31
    • April 16, 2015, at 2:55 PM PDT
    • Like
  2. Spin Inactive
    SpinJoined in the first year of Ricochet Ricochet Charter Member

    That’s easy for you to say. You have giraffe Ricochet pajamas. They’re cool. Look, if it’s no big deal, do you mind switching with me?

    • #32
    • April 16, 2015, at 3:50 PM PDT
    • Like
  3. Pilli Inactive

    We were just out of college (early 70’s) and several of us would go out for a beer night during the week a couple of times a month. We went to a little place on the outskirts of town that was usually slow mid-week and had the advantage of $1.00 drafts. We made 2 piles of money on the table and each of us would place a ten dollar bill in each pile. We then explained the rules to the bartender.

    1. When pile A was gone, pile B was his.
    2. We were not to have an empty mug. Keep ’em coming. Don’t make us ask.
    3. Each refill (resupply?) was to come in a new FROSTY mug…no mug recycling allowed.
    4. Keep an eye on us but don’t hover.

    The first night, he let us run out and we had to signal for another round. When he came with our next beers, pile B was gone. He had a quizzical look. We explained the rules again, he acknowledged, and his pile was put back out.

    From that night on, we always had a good time, never had to explain the rules again, and got great service without fail. The bartender got a 100% tip on a pretty slow night. A true win–win. BTW, his pile often came to $80, a much higher value in 1972.

    Casey’s “Third Rock” clip reminded me of our beer nights. I had forgotten all about them.

    • #33
    • April 16, 2015, at 3:54 PM PDT
    • Like
  4. kelsurprise, drama queen Member
    kelsurprise, drama queenJoined in the first year of Ricochet Ricochet Charter Member

    By the time I was thirty, I’d worked in just about every “service industry” job imaginable and the only time I ever expected tips from customers was when I was waitressing – – because that’s the only job in which I agreed up front to take a pay cut, with the understanding that I just might be able to make that money back and then some. The implicit bargain with customers, as I understood it, was:

    -I make next to nothing per hour,
    -so my employer can hire a LOT of us without having to hike prices,
    -thus, by sitting down at my table and asking me to bring you things, you’re signaling your willingness to pay a little premium for that service – – the bare minimum for same and a bit extra, if you’re so inclined, should I really go above and beyond.

    Which is why I don’t understand (yes, starting with the awful name) this “Dirt Candy” story. The servers are making $15 an hour – – which is what protestors are currently telling us is a “living wage” – – so if the owner tacks on a 20% “fee” on top of that then they’re not so much eliminating tipping as making it compulsory. And since the additional compensation to staff still comes from the customer, then the “they’re my employees, I should be the one to pay them” statement rings awfully hollow.

    Unless, the customer can have that 20% fee waived in the case of egregiously awful service, with the employer making up the difference – which would at least make a little more sense to me.

    Oh, and by the way, I don’t care what they make an hour, I do always tip the chambermaid – – because I’ve been the chambermaid – – and “chambermaid” is an awfully genteel descriptive for the kind of crime scenes I was subjected to, that horrible summer.

    • #34
    • April 16, 2015, at 4:04 PM PDT
    • Like
  5. EThompson Inactive

    Do you have a unified theory of tipping?

    Yes; my husband and I dine out 5 nights a week because neither of us have the patience to cook but we’re very cognizant of fat and carbs. We frequent 5 restaurants on a regular basis, redesign the menu (no sauce, dressing, grilled not fried, etc.) and tip 25% for the effort.

    Even our favorite Chinese take-out knows to steam the green beans.

    • #35
    • April 16, 2015, at 5:07 PM PDT
    • Like
  6. Caryn Thatcher
    CarynJoined in the first year of Ricochet Ricochet Charter Member

    I agree with the others who have pointed out the flaws in the dirty place’s method. It just made the tip compulsory and at a higher rate than the usual 15% floor. The second guy had a better idea in spreading the cost around (which is what we say will happen if the minimum wage goes up…)

    There are just a handful of restaurants that I frequent with either my husband or a couple of friends. As a consequence, we are pretty well known and well treated when we dine out. When the service is exemplary, as it often is where we are known (especially since we have become friendly with the owners), I tip generously. Since we’re known, we mostly have a cycle of good service and generous tips and a nice outing.

    One thing that bothers me is that percentage tipping gives an advantage to waitstaff at overpriced venues. The waitress at the falafel joint who brings and refills beverages, dresses the salads, and provides follow-up (and extra napkins) after delivering the meal is getting her tip based on a meal of $10 or $12. She will generally get a tip in the 30% range or higher, just because I can’t imagine leaving less than $3 for her effort and even feel guilty at that. Then there’s the upscale place with wine, etc, and the tab is $80 or $100. The server there will deliver beverages, refill water, dress the salad, and provide follow-up. Did the second server provide service 5 or 8 times more valuable than did the waitress at the first place? I really don’t think so. If the food and ambiance are worth more, they’re paid for with that tab of $80-100. It is very infrequent that I’ll tip more than 15% at those places. Twenty percent is only for very, VERY good service.

    An aside: at a steak restaurant with a woman friend, we received what might be the worst service ever. Eventually the waiter vanished and we had to grab another and ask for management. They were quite apologetic and gave my friend (I was out of town) a VIP card for free desserts or something at subsequent visits. When I got the check (I was treating), there was a line saying “service not included,” presumably hinting for a tip. I wrote “No kidding!” and paid only the stated price. I must admit it gave me great pleasure to have the opening and get to step through it!

    • #36
    • April 16, 2015, at 6:12 PM PDT
    • Like
  7. EThompson Inactive

    When I got the check (I was treating), there was a line saying “service not included,” presumably hinting for a tip. I wrote “No kidding!” and paid only the stated price. 

    Impressively bold move! We both agree on the advantages of frequenting the same restaurants. :)

    • #37
    • April 16, 2015, at 6:22 PM PDT
    • Like
  8. Lash LaRoche Inactive

    EThompson:Impressively bold move! We both agree on the advantages of frequenting the same restaurants. :)

    Rico chix rule. That is all.

    • #38
    • April 16, 2015, at 6:25 PM PDT
    • Like
  9. Belt Member

    My preference would be no tipping, but it’s the custom, so I tip in the 15-20% range. I also tip in the upper end of that range locally, where I’m known – As someone once told me, it’s better to be known as a generous tipper than as a skinflint. But I only tip at a sit-down establishment, where I’m being waited upon.

    My parents are in their mid-seventies. They think a dollar per person should be about right for the waiter. When I take them out, I usually discretely chuck in some more bills to make up for the decades if I’m not paying for the meal outright. They aren’t quite depression era, but this is a pretty conservative area with loads of tight-fisted Hollanders. Fortunately, the cost of living is relatively low, so it works out.

    • #39
    • April 16, 2015, at 6:55 PM PDT
    • Like
  10. EThompson Inactive

    Belt:My preference would be no tipping …

    I suggest you join a country club where the wait staff and the valet parkers are on salary and not tipped, but members certainly pay for this in annual dues.

    • #40
    • April 16, 2015, at 7:58 PM PDT
    • Like
  11. Kay of MT Member

    Back in 1963, I worked for a time at “Hody’s” on the NW corner at Hollywood & Vine Streets, in Hollywood. I just tried to look it up and it doesn’t seem to be there anymore. However, I made nearly $75 a shift in tips, sometimes more. I was going to Santa Monica City College, and paying child care. That was an excellent income in those days. Does anybody remember that restaurant?

    • #41
    • April 16, 2015, at 9:21 PM PDT
    • Like
  12. Profile Photo Member

    I often want to tip the cleaning people at hotels, but the problem for me is I have no idea what amount is appropriate to put down.

    • #42
    • April 16, 2015, at 11:06 PM PDT
    • Like
  13. Gazpacho Grande' Coolidge

    I feel somewhat validated that Troy took my Mr. Pink reference from the other thread and ran with it today.

    I’d go above 20% for that level of service.

    • #43
    • April 17, 2015, at 3:21 AM PDT
    • Like
  14. kelsurprise, drama queen Member
    kelsurprise, drama queenJoined in the first year of Ricochet Ricochet Charter Member

    Guy Incognito:I often want to tip the cleaning people at hotels, but the problem for me is I have no idea what amount is appropriate to put down.

    If it’s a budget motel (which is the sort of place in which I once worked and am most likely to stay), believe me, tips are so rare there that a couple/three bucks for one night will be a pleasant surprise for housekeeping.

    When I had an extended stay out of town for work, once, in a mid-range hotel, I asked housekeeping to please only come once a week, and tipped them $5 a visit.

    And as with all tipping situations, I’d tack on more depending on circumstance – – was I kind of high maintenance ? Did I get memorably exceptional service? Or, as was the case with my poor sister once – did my sick child wake during the night and cause the kind of carnage best handled by a Hazmat team and a professional exorcist? In that case, I would definitely up the ante.

    • #44
    • April 17, 2015, at 4:00 AM PDT
    • Like
  15. Misthiocracy got drunk and Member
    Misthiocracy got drunk andJoined in the first year of Ricochet Ricochet Charter Member

    Bryan G. Stephens:I tip, and I tip at 20% because I choose too, not because society tells me too.

    That’s merely false consciousness giving you the illusion of choice against the oppression of the hegemony.

    • #45
    • April 17, 2015, at 6:45 AM PDT
    • Like
  16. Emerson Member

    Misthiocracy: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.

    Socialist.

    -E

    • #46
    • April 17, 2015, at 6:53 AM PDT
    • Like
  17. Mr. Dart Inactive

    Kay of MT:Back in 1963, I worked for a time at “Hody’s” on the NW corner at Hollywood & Vine Streets, in Hollywood. I just tried to look it up and it doesn’t seem to be there anymore. However, I made nearly $75 a shift in tips, sometimes more. I was going to Santa Monica City College, and paying child care. That was an excellent income in those days. Does anybody remember that restaurant?

    I know the building that was Hody’s. It was beige & brown with a curved front corner when I last saw it. I don’t remember it as Hody’s though. That building has been gone for a few years now. The space is a parking lot for the Pantages I think.

    I used to love going west a few blocks from there and eating at Musso & Frank’s when I worked up at 1750 Vine St.

    That tip amount in ’63 is about $500-600 a day here. Excellent!

    • #47
    • April 17, 2015, at 6:57 AM PDT
    • Like
  18. Emerson Member

    Troy Senik, Ed.:

    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.

    Something that is missing in this analysis is whether or not people should vary their tips when they eat out. Like most things in life, I suspect that most restaurant service is fairly consistent and so most people tip consistently. The point of tipping is not to critique every little thing about the wait staff or kitchen, but to reward (or punish) exceptional service, which by definition happens rarely.

    Consider normal distribution. Almost 70% of the curve falls within a single standard deviation, and all but 0.3% falls within 3 standard deviations. Assuming that restaurant service fits a normal distribution curve and that people will tip the same within a standard deviation, then tipping won’t matter for a huge majority of diners and waiters. Indeed, I suspect most market interactions are like this. Nevertheless, it’s nice to have a way of responding to those rare times when it really was extremely good or terribly bad service.

    -E

    • #48
    • April 17, 2015, at 7:11 AM PDT
    • Like
  19. Kay of MT Member

    One of the things I did in ’63 was tip my bus boy, which wasn’t common in those days. Between the two of us my tables had superb service, dirty dishes were gone at once, water, coffee, and bread replenished immediately. Most of the other wait staff didn’t make nearly as much as I did. Most of our customers were tourists, but I tried to make their visit to Hody’s in Hollywood a treat. And yes, the building did have a curved side facing the corner.

    • #49
    • April 17, 2015, at 7:38 AM PDT
    • Like
  20. Mr. Dart Inactive

    Kay of MT:One of the things I did in ’63 was tip my bus boy, which wasn’t common in those days. Between the two of us my tables had superb service, dirty dishes were gone at once, water, coffee, and bread replenished immediately. Most of the other wait staff didn’t make nearly as much as I did. Most of our customers were tourists, but I tried to make their visit to Hody’s in Hollywood a treat. And yes, the building did have a curved side facing the corner.

    My dear wife worked as a waitress and bartender in her teens and early 20’s and they always “tipped out” which meant taking care of the bus boys and bar backs too. That was in the late ’70’s/ early ’80’s so I don’t know what the practice is today.

    • #50
    • April 17, 2015, at 9:42 AM PDT
    • Like
  21. Qoumidan Coolidge

    I would go out of my way and pay more to go to a tipless restaurant. I do to tip occasionally on certain services where it is completely voluntary but otherwise it is nothing more than a lie that allows a place to advertise a lower price than they charge.

    • #51
    • April 17, 2015, at 9:47 AM PDT
    • Like
  22. Manny Member

    Tipping is giving from the heart, are closely akin to it. I think it helps create a more charitable society. I would not like a shift to salary. And I’m pretty sure that most people who live on tips make out better than a salary.

    The way I tip is figure 20% and back off a tad and round off up if I’m paying cash and to an even dollar amount if it’s on the credit card. Just easy to do that in my head. I have found that the older I have become, the larger my tips.

    • #52
    • April 17, 2015, at 10:07 AM PDT
    • Like
  23. Randy Weivoda Moderator
    Randy WeivodaJoined in the first year of Ricochet Ricochet Charter Member

    I like the concept of tipping for someone who has gone above and beyond what is reasonably expected of them. Let’s say for instance that you go to pick up some bulky merchandise and instead of bringing a cargo van or a trailer, you show up in a mini-pickup with no tailgate. You didn’t bring any rope or straps and you wouldn’t know what to do with them anyway. So the guy at the store has to spend 10 minutes tying the load down for you, maybe lying on his back in the snow looking for something to tie onto. This is tip-worthy in my opinion, but drivers of inadequate vehicles unanimously disagree.

    • #53
    • April 17, 2015, at 11:10 AM PDT
    • Like
  24. thelonious Member

    Tipping is the great hidden cost to dining. I hardly ever figure that the real cost of a $20 entree is really a 24 dollars. People often say restaurants should pay their servers better and eliminate tipping but it would obviously show up in the costs on the menu. It’s really a brilliant way of deferring costs and is a great psychological ploy restaurants use to make you think you’re not paying as much for your meal until the bill comes due.

    • #54
    • April 17, 2015, at 1:26 PM PDT
    • Like
  25. Man With the Axe Member

    Question: Do you tip on the pre-tax or after tax amount?

    • #55
    • April 17, 2015, at 1:47 PM PDT
    • Like
  26. Jennifer Johnson Inactive

    I always tip about 20%, regardless of the service. I’ve heard enough tip horror stories to know that I don’t ever want to be the object of one. Plus I figure that if the service is bad, maybe the person is just having a bad day: their mother died or their dog is in the hospital, etc.

    I keep track of everything in Mint, and I just checked to see how much I spent on dining out over the past 12 months. It was about $1300, and not all of that was sit-down restaurants. So the 20% is not a lot of money in that total. Maybe that’s why I don’t feel strongly about not tipping–I don’t eat out enough to make it a dent in my budget.

    • #56
    • April 17, 2015, at 3:11 PM PDT
    • Like
  27. Herbert defender of the Realm,… Inactive

    Don’t know if it’s been discussed? What do y’all tip on buffets? I’m usually around 10 percent.

    • #57
    • April 17, 2015, at 4:08 PM PDT
    • Like
  28. Charlotte Member
    CharlotteJoined in the first year of Ricochet Ricochet Charter Member

    I am a generous 20-25% tipper at restaurants (especially at breakfast and/or at cheap places) but I just hate it. I’d gladly pay more for every item on the menu to eliminate the practice.

    • #58
    • April 17, 2015, at 4:55 PM PDT
    • Like

Comments are closed because this post is more than six months old. Please write a new post if you would like to continue this conversation.