The Tipping Point

Ah, the ol’ act of tipping. Figuring out how much to give, and is it deserved? Take the bills, leave the change? Straight up 18%-er? Relate to Mr. Pink (Reservoir Dogs) who only tips if his coffee gets filled six times? Perhaps Larry David, whose ongoing friction with tipping through eight seasons of “Curb Your Enthusiasm,” is your spirit animal. For such a common practice in our society, tipping can be a cluster-cuss of confusion where the norms are subjective instead of universal.

Let’s take it from the tip-top: Showing one’s gratitude for service has not always been customary in the States. Just after the Civil War, wealthy Americans traveling abroad witnessed Europeans tipping. These well-off folks returned to the US with a flashy new way to show off their elitism.

As this new practice seeped into American taverns and places of dining, the custom was not entirely well-received. Many believed that it went against American ideals of jettisoning a class-driven society. They feared it could define a subservient class dependent on those of higher socioeconomic status. Since the 1890s tipping has been debated, fought, defended and recently abolished in some places in the US. Tipping in America is just as controversial a topic as ever, and lips are a’flapping.

Tips are the main draw into service jobs. They are crucial for server’s subsistence, considering the minimum cash wage for restaurant servers in Rhode Island is $2.89 an hour – a wage that has gone unchanged for roughly two decades (Earlier this year, annual increases in the tipped minimum wage in RI from 2016 through 2019 was proposed).
That means that for anyone working in a tip-based profession, tips are a crucial component of their basic income. You can’t expect to make a living wage without them. Big tips might make for a good night, bad tips for less exciting night. But without tips, a modern tip-based professional can’t afford to do his or her job.

With roughly 16 years of experience in the restaurant industry under her belt, Debralee Iacobucci explained that working in this biz is just like any other career. “Knowledge is power, and cash is king,” Iacobucci pointed out. “The more a server becomes knowledgeable about their product and refines their selling capability, the more easily they can make money. Tips are a server’s livelihood. The experience a guest could have enjoying their meal being guided by the best of the best is a far different experience than with someone who just takes orders.”

If tips were to be abolished, would there be an increase in IDGAF attitudes from those who serve lattes, martinis and steak tartare? Taking away the incentive to earn more could result in apathy if the minimum wage for servers is not raised. If it were, however, servers would have a more stable income and it could add formality to a job that is sometimes perceived as servile.

In European countries where tips are automatically built-in, and where it’s uncommon to supplement them (ironic, given  that the practice was imported from Europe in the first place), ask some global travelers and you’ll get plenty of anecdotal evidence that service does, in fact, suffer. Or that American standards of service are higher than many parts of the world.

The future of tipping is unclear. A few US restaurants have done away with the practice in exchange for a base salary. It’s easy to play devil’s advocate here and counter any argument placed on the table. Relying on tips as a major source of income can be a big gamble. On the other hand, they give the opportunity for more cash to float toward the server, and ideally enable better servers to draw greater rewards.

Restaurateur, founder of Shake Shack, and CEO of Union Square Hospitality Group, Danny Meyer, recently abolished tipping at his 13 establishments in NYC. He raised menu prices and pays his servers a base salary, with benefits, to close the pay gap between front of house and back of house employees.

This idea of a disconnect between front and back of house employees is echoed by Alex Wallace, a server/line worker who has worked in the industry for five years at spots including Café Zog, Julians, Abyssinia and Olga’s Cup and Saucer, where he currently works in the back of the house.

“Certain businesses should tip out their back of house employees,” Wallace said. “The busier it is in the front, the busier it is in the back. The servers get the benefit of tips, but the back of house workers will always get paid the same.”

In some locales, there are complex tipping-out rules procedures at the end of a shift that distribute tips between back of the house, bartenders, wait staff and hosts/hostesses. Everyone’s part of the team.

But sometimes, it’s not. one anonymous server explained, “It’s not always fair to reduce a tip if something went wrong in the kitchen. That’s not really a server’s fault. If they don’t handle it graciously, that’s different; but a lot of times mistakes or slow-downs are coming from the kitchen, not the person who’s relying on your tip.”

Then there’s the advent of digital tipping. At many local restaurants, touch screens are now the method of paying – and tipping. Faced with a screen instead of a person, will tippers continue to honor traditional tipping norms?

As a Starbucks barista who earns tips, I can say that the launch of the app correlated with a decrease in tips earned per hour. Is this because of the less personal interaction? Are customers less inclined to tip when when the recipient can’t see the screen or how much they are choosing? Or is this just a temporary blip while customers adapt to using, and tipping with, the app? The available information seems to favor the last explanation.

Gary Robichaud, manager of the Starbucks in Wayland Square, informed me that when tipping on the app was first introduced the store averaged about $35 – $40 a week in mobile tips. Robichaud further explained that mobile tipping has been on the rise more recently, jumping from roughly $60 to $80 a week during the last half of October, about a 33% increase. But even as the digital tipping increases, it is not yet reaching the same levels as cash tipping. In the case of baristas, it might just be that the “loose change” approach yields more fruit than a strictly calculated percentage.

Tipping a barista is not obligatory, but other restaurants, especially chains, are adopting  tabletop tablet models. Guests can order appetizers, rounds of drinks, desserts and pay their bill all void of any human interactions. Chili’s, Red Robin, UNO Pizzeria and Olive Garden are a few restaurants that have implemented this practice (using software called Ziosk). Wishing to remain anonymous, one manager from a local Chili’s franchise explained that average tips have increased from 17% to 21% since the introduction of the Ziosk. This increase may be due to a number of factors; one that stands out is that when paying on the tablet, the tip prompt is a sliding scale that is automatically set to 20% (which Iacobucci stated is the recommended percentage), so unless customers are paying attention and decide to move that scale the tip will be 20%.

When Meyer’s NYC decision to switch to salaries sent a ripple through the industry, a few other restaurants, bars and cafes began to follow suit, or at least contemplate it. The butterfly effect has yet to be fully realized, however, and at this point the scales could tip either way.

But for now, it’s important to remember that tips are no longer just “To Insure Promptness.” They’re an important part of the economic equation that’s helping to build Rhode Island’s reputation as a culinary powerhouse.

how much to tip

Barista
Round off your change. If you made a large purchase, $1 plus change. If you pay-by-app, whatever button your thumb finds.
Bartender
$1/drink (or 15% of total bill). Not a bad idea to tip as you go.
Delivery person (including pizza)
10%, $2 minimum
Host/hostess
$5-$25 for special efforts
Takeout
No tip. That’s part of why you came to get it.
server
15%-18% is the current norm, 20-25% for exceptional service or if you want to make new friends. For poor service, 10%, if you’re sure it’s the waitperson’s fault. Add 5% to the above in fine dining establishments (or if you’re on a date).
Bellman/Porter
$1 bag.
Hotel Housekeeper
Yes, this is still customary: $2 to $5 per night, paid daily.
Parking Valet
Pay the tip when you get your car back without visible damage. Some people tip when they turn over the keys too, but that’s unusual. Internet and real world consensus is $2-$5. Presumably based on how fancy the place you’re not parking is.
Cab driver
10%, $2-$5 minimum
Porter/skycap
$1 per bag. $2 for heavy items, or if porter brings luggage to counter.
Manicurist
15%
Massage therapist
10-15%
Coat checker
$1 per coat, Unless you’re on a date and want to show off.