How Much to Tip?

Survey data via Synovate InFact. Click to enlarge.

Tipping is a contentious issue as I have discovered through many conversations with my restaurant friends — I’m a closet, okay not so closet, foodie that dines out more often than not.

In Canada and the US, tipping is a bit of a minefield of cultural subtlety where a massive disconnect exists between the server/waiter and the customer/patron. A survey by Synovate shows some of the data for tipping custom in North America, which should give you an idea of where you stand.

To illustrate I have distilled the expectations of each down to a bit of a generalization to make a point. I don’t have to numbers to back this up, but I am happy to hear from you if you don’t think this is an accurate insight.

• Server
  “This job is more difficult than you think and I run my ass off all night for you. It’s physically exhausting, and mentally straining. I have to share my tip with the kitchen, the bar staff, and the hosts/hostesses based on my total sales — whether you tip me or not. If you don’t tip, I am paying them out of my own pocket which hardly seems fair. I feel entitled to at least a 15% tip on the total bill because that is what I feel is customary. Most people only tip 10% though. There are a lot of cheap people out there. On top of that, so many customers sit around chatting after they eat without paying their bill. All I want to do is go home.”

• Customer / Restaurant-goer
  “I work hard for my money and these servers have it pretty easy. I hear stories of how much money servers make, and it’s crazy. I went to university for four years and nobody tips me! And seriously, what kind of job can you show up expecting to leave early? I’ll sit here as long as I feel like and the restaurant is open. After all, I am spending my hard earned money here. I am entitled to that. When it comes to tipping I feel like 15% is for good service, 10% for average service and 20% for exceptional service. Getting a tip is a privilege, not a right, and there is no law saying I have to tip. With that said, most of the time I will tip 15% on the sub-total.”

It’s true there is a disconnect. On the serving side it is difficult and good service should be rewarded, but many customers do not provide that reward. Particularly on large bills customers will stop tipping on percentage, and just factor in amount that sounds like a lot of money. For example, with great service a $400 bill would merit a 20% tip of $80 to the server. A customer may think otherwise. They might think $40 would be totally acceptable. After all, that is a lot of money for an hour or two of work. It’s like adding an extra $10 or $20 to somebody’s hourly wage. That is significant.

I have heard many of my server friends complain about people tipping 10% over and over again, but I honestly think that is a miscommunication. Most servers will argue that tipping should be on the total bill including tax and tip, after all they have to pay out the kitchen and other staff a share of their tips, known as a “tip-out.” Most customers would argue that they should tip on the subtotal because really the tax is not a part of the restaurant’s earnings. Why would you tip on the government’s share?

This is where a major disconnect between server and customer lies. That discrepancy between tipping on the total or subtotal can often lead to the 5% difference. So maybe a server is complaining about someone who left a 10% tip on the total, but the customer thought they were leaving an adequate tip of 15% on the subtotal.

There really should be some school for this! Ultimately, and unfortunately for the serving staff, the customer is ultimately paying their wages, and tips, like it or not, are a luxury — not an entitlement. I think the system of tipping is inherently flawed and leaves to many uncertainties. In North America we should adopt a system more like Asia or Europe where serving staff are paid a reasonable wage and the price of the food is adjusted accordingly. At the end of the day it is really the restaurant owner that wins from the current system of tipping, not the restaurant staff.

With that said, in Canada and the USA tipping exists, and how much to tip can be a bit of a quagmire, so when in doubt, here is my rule of thumb:

• If you are a regular customer in a restaurant and want to be respectful and continue to get great service, tip 20% on the total bill.
• If you have good service 20% either way is a generous but good amount
• For average service tip 15% either way (total or subtotal) and that is also okay
• If you receive absolutely amazing service don’t be afraid to tip 25% or 30%, but keep in mind this is like a standing ovation for the restaurant

What do you think? I’d love to know whether you agree or disagree!

Further Reading

Synovate: Who do you tip?
Man’s Guide to Tipping
Basic Tipping at Get Rich Slowly
How much do Vancouverites tip?
CNN: How much to tip?