Tipping Practices in American Restaurants: An Overview
In the United States, tipping is a common practice in many restaurants, especially full-service establishments. However, the practice of tipping varies greatly across different types of restaurants and business models. This article delves into the tipping culture, guidelines, and employee compensation in American restaurants.
Full-Service Restaurants and Tipping
Most full-service restaurants in the United States encourage tipping, typically around 15-20 percent of the bill. This practice is seen as a way to reward good service, expressing gratitude, and supporting the staff financially. Service staff at full-service restaurants often rely on tips to supplement their income, as the base salary for servers is lower.
Fast Casual and Fast Food Restaurants: No-Tip Culture
Fast casual and fast food restaurants generally do not expect tips, although some may have small tip jars at the counter. The expectation of tipping is much lower in these establishments, as the service is often faster and less personalized. However, it is still appreciated if a customer decides to tip.
Fine Dining: A Mandatory Tip Culture
In high-end restaurants, tipping is standard, and some may include a service charge in the bill. However, in these establishments, the service is typically more personalized and of a higher quality, justifying the higher tip.
Cafés and Coffee Shops: Appreciated but Not Mandatory
In cafes and coffee shops, tipping is appreciated but not mandatory. Customers often leave small amounts for exceptional service. However, these establishments usually operate with a built-in service charge that covers the service staff's compensation.
Tipping Policies and Guidelines
Some restaurants have specific tipping policies. For instance, all sit-down restaurants with waitstaff not only allow but encourage tipping, with guidelines such as 10 percent for bad service, 15-20 percent for standard service, and 25 percent for exceptional service.
Restaurants without waitstaff, including food trucks and takeout places, also allow tipping, but the percentage is typically lower, often by 5 percent.
Employee Compensation and the No-Tipping Culture
Whether or not employees can accept tips is often decided by the management of the individual restaurant. In restaurants that do not allow tipping, the management is responsible for paying their staff the full minimum wage, as tips are excluded from the overall compensation. This can be challenging, as tips vary widely and may not always bring the staff's wages above the minimum hourly rate. Restaurants must keep track of their employees' tip income and deduct an appropriate amount of taxes from their regular pay.
In places where tipping is allowed, service staff can receive a lower base salary, which is supplemented by tips. However, if the tips do not meet the required minimum wage, the employer must ensure that the employee's total compensation meets the legal minimum wage.
Controversies in Tipping Policies
Tipping has become a major controversy in the U.S., particularly with the shift from no-tipping to allowing tips, as exemplified by the fast food chain Starbucks. For many years, Starbucks did not allow its baristas to keep their tips, instead adding them to the restaurant's revenue. However, courts ruled that even though Starbucks paid the full non-tip minimum wage, the tips should go to the baristas. This ruling led to significant changes in tipping policies within the industry.
The controversy escalated further when Starbucks added tipping as an automatic feature on credit card payments. This move has been met with mixed reactions, with some customers resenting the added process while others appreciate the convenience. Dutch Brothers, one of Starbucks's largest competitors, has been using this method for years, further highlighting the evolving tipping practices in the U.S. restaurant industry.
It's important to note that even in places where tipping is officially not allowed, some employees or store managers may choose to accept tips, adding to the complexity of the tipping landscape.
Overall, the tipping culture in American restaurants is diverse, and while tipping is common and often expected, it is not universally required. The practice varies widely based on the type of restaurant, service model, and local regulations.