Starting with my first job in high-school, I spent years working for tips.
Serving coffee, waiting tables, and parking cars, I knew the majority of my daily pay
would technically be an “optional” gratuity.
It’s kind of weird when you stop to think about it.
Paying your phone bill or mechanic isn’t optional.
So why is it okay to choose how much your waitress or taxi driver makes that day?
It’s true.
My night could be made - or ruined - by the actions of a single customer.
Tipping customs are complicated and confusing.
What’s expected and acceptable varies by country, region, and industry type.
Sometimes a tip is truly something “a little extra”, and other times it’s how a worker pays their bills.
Here in the U.S. tipping a large amount is prevalent and expected.
But is that the case around the globe?
And how can you know when - and how much - you should tip when it’s not completely obvious?
The word “tip” suggests a tiny bit - something extra.
And in most countries outside of North America, that’s exactly what it is.
The most common tipping etiquette across the globe is to leave a little extra change if
you want to, though it’s certainly not expected.
In China a tip will often trigger a reaction of pleasant surprise.
In European countries like Italy, Greece, and France you’re expected to round your
bill up (a form of “keep the change”).
Receiving your bill in India, you’ll likely see that gratuity is included, though you
might tip up to 10% if not.
And in Japan if you want to let your sushi chef know you loved your meal
don't do it with a tip — you run the risk of seriously insulting them!
Here in the U.S., along with Mexico and Canada, a substantially larger “tip” is the primary
form of compensation for hundreds of professions.
By far, American tipping culture is the most expensive and pervasive out of any country
in the world, with over 3 million American workers in professions that rely on tips.
When I was a waiter, my hourly rate was a measly $2.13/hr before tips… a Federal minimum
that hasn’t changed in decades!
How did this happen?
Well, it can all be traced back to our country’s complicated history with class and race.
The original custom of tipping dates back to medieval times and is a remnant of the
relationship between wealthy lords and their indentured servants.
At the beginning, a tip was a tiny bit of extra money given to a serf for a job done
especially well.
By the mid-nineteenth century, the practice had largely died out, as many workers and
businesses refused tips because they were viewed as condescending or a form of bribery.
But then something happened that brought tipping back in a big way.
To explain it, let’s hear from Evelyn from the PBS digital series “Say It Loud”.
Yup!
We’re talking about slavery.
While the 13th amendment legally abolished it, that didn’t mean millions of newly freed
people instantly ascended into that deluxe apartment in the sky.
Their options for employment were very limited.
Those who didn’t work on farms as sharecroppers entered into the service industry, becoming
railroad porters, household servants, or…waiters in restaurants.
While most states frowned upon tipping—even making it illegal in some cases, when it came
to restaurants?
Especially in the South?!
Tipping was a loophole.
Free labor was the economic backbone of the region.
Why give it up now?!
By the late 1920s, those anti-tipping laws were overturned, and restaurants stopped paying
Black employees a wage, forcing them to supplement their income with tips.
It was no longer a nice bonus for excellent service - it was the only way people got paid.
And even though the fight for civil rights made steps to improve the lives of Black people
post Civil War, this particular practice stuck, extending to restaurant workers of all shades
- even in the North, turning our uncomfortable legacy of forced servitude into an industry standard.
To this day, the custom of tipping still contributes to all sorts of social problems.
Pieces by The Guardian, The New York Times, The Economist, and even Adam Ruins Everything
show how tipping in the U.S. contributes to racial profiling, sexual harassment, and worker poverty.
Strong arguments are made that businesses would profit more and customers would be happier
if tipping went the way of the horse & buggy.
But don’t pull a “Mr. Pink” and make a social statement by stiffing your waitress.
This puts the blame and responsibility squarely on the victim and won’t do anything but
hurt your cause and make you look cheap.
Love it or hate it, tips-as-wages are still a widely accepted norm in America.
You might think you’re a generous tipper.
Or maybe you think tipping should always be optional and it’s no biggie to stiff the
staff if you were unhappy with something.
But are there actually standard rules when it comes to tipping?
Turns out there are, and the Emily Post Institute offers an insight into one of the most confusing
etiquette norms in our society:
Let’s start with some basics.
Average to good service at restaurants, bars, hairdressers, cab drivers and spas comes with
an expectation of a 15-25% standard gratuity.
A tip of 10% in America is generally reflective of BAD service, and a tip of nothing really
isn’t acceptable for any reason.
If you’re that dissatisfied with the service, you should let the manager know the reason
ahead of time and your plan to leave a reduced tip.
From here it can get complicated.
What if you dine at a restaurant without a server?
Or the tip-line that’s started appearing at neighborhood markets?
What’s expected if you have a shuttle driver carry your luggage?
Here are some important exceptions to standard tipping rules in the U.S.
Tipping 10% is acceptable at a buffet restaurant.
Getting food delivered to your home or work?
10-15% is standard.
If there’s a tip-jar or other counter-service option to tip, there is no obligation, though
it’s advised to tip “occasionally” if you’re a regular or your barista or clerk
provides something a little extra.
A tip of $2-5 is expected for Bellhops, valet drivers, a doorman or shuttle driver who helps
you with your luggage.
Plan for 10-20% for a ride-share service like Uber or Lyft.
There are even special circumstances when a tip may be more optional than it seems.
Restaurant employees who handle take-out orders and bartenders at weddings tend to have a
higher hourly wage or rely on tips much less or not at all.
Point-of-sales apps more and more frequently have a line for tipping, and even a suggested
amount of 15-25%.
This has led to a phenomenon of “tip-creep”, where people have begun tipping for non-traditional
services out of fear or guilt of being cheap.
Sales Apps like Square have defaulted to prompting us for tips everywhere from ice-cream parlors
to farmers’ markets… even on girl scout cookies!
If you’re confused or worried about a tip-prompt on one of these apps, you’re not alone.
I tend to give 10% if I’m not sure what the etiquette is, but then I’ll research
it afterwards by checking the company’s website, or asking friends I know who work
in the industry.
And I know it might seem awkward, but you can always just ask the person helping you
then and there.
When I worked for tips, I would’ve preferred that to getting stiffed.
Most importantly, if an appropriate tip might bust your budget, it’s worth pausing to
re-think your needs.
Enjoying luxury services like dinners out, salons, and high-end massages, it’s on you
to factor in a gratuity for those who served you.
If you can afford these discretionary purchases, it’s worth integrating regular tipping into
your relationship with service professionals.
And now that you’ve watched this video, you can’t claim you didn’t know any better!
And that’s our two cents.
Thanks to Evelyn for contributing to this episode, check out her show Say it Loud on
Youtube, the link is in the description.
Thanks to our patrons for keeping Two Cents financially healthy.
Click the link in the description if you'd like to support us on Patreon.
Are there still tipping situations that you’re confused about or do you work in one of these
industries and can share some insights?
Let’s talk about it in the comments.