When tipping becomes a shakedown

The situation I'm mainly referring to is when you order coffee or a sandwich and when you pay, they flip the iPad around and stare at you while you choose between 18%, 20% and 25%.  Not long ago, these were non-tip situations.  Furthermore the food is much more expensive now, so the tip is real money.

E.g. my local deli just a few years ago was $25 for two sandwiches an no expectation of tip.  Now its $40 and they want another $8 when the teenager flips the thing around.  From $25 to $48 overnight, I think we can all stop pretending this stuff is no big deal.

Questions:

  1. What do you actually do when this happens?

  2. If you're tipping, how much of it is because they've put you on the spot like that?

  3. Any sense that this is hurting the business?  I can think of a few places I will go less often, or not at all, because I don't want to deal with this.

 
Dr. Rahma Dikhinmahas

The situation I'm mainly referring to is when you order coffee or a sandwich and when you pay, they flip the iPad around and stare at you while you choose between 18%, 20% and 25%.  Not long ago, these were non-tip situations.  Furthermore the food is much more expensive now, so the tip is real money.

In fairness, the cost of the food going up isn't the fault of the employee serving you, and the fact that you're subsidizing the owners profits by allowing them to underpay their employees (in lieu of tips) also complicates things.

I input whatever I think is appropriate.  I agree there is some social engineering/shaming going on by only having those tip options, but it's not like you are forced to tip.  If the people in front of me are being served for 5 minutes and all I want is a drip coffee, I'm not going to tip - the people sucking up all the time and energy of the staff for their absurd order should do that.  If I walk up and the coffee place next to my office starts prepping my drink before I open my mouth, I'll give a buck or two, because that service is the point of tipping.

 

Questions:

  1. What do you actually do when this happens?

Tip whatever I feel is appropriate given the situation.

  1. If you're tipping, how much of it is because they've put you on the spot like that?

Very little.

  1. Any sense that this is hurting the business?  I can think of a few places I will go less often, or not at all, because I don't want to deal with this.

Not for me, or not usually, but I think it's perfectly reasonable to vote with your wallet if you think the decisions ownership is making when it comes to their policies are causing you to be unhappy or uncomfortable patronizing that business.

 
Controversial
NoEquityResearch

Once again Oz, one of the biggest libs on WSO, is not a great tipper of low-wage employees. Who would have guessed...

I guess when a conservative indicates a reluctance to tip for take out, it is okay but not when a liberal makes similar point.  Your kind of comment reflects an unprovoked personal attack, which is the kind of crap WSO is trying to eliminate from this site.  The main purpose of your comment is to antagonize another person on this site.  Tipping has nothing to do with having liberal or conservative views.  

 
NoEquityResearch

Once again Oz, one of the biggest libs on WSO, is not a great tipper of low-wage employees. Who would have guessed...

Once again, your balanced view is on display, even in a topic about tipping.

 

Tipping at the register only bugs me if I tip someone and they don't say thank you. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

What's with you and shilling for Princeton in literally every comment / thread. Princeton is objectively the worst out of HYPSM and is the least desirable by far. Just look at the cross admit rates (via Parchment); it literally loses every cross admit battle

  • Harvard vs Princeton: 77% choose Harvard
  • Stanford vs Princeton: 70% choose Stanford
  • Yale vs Princeton: 60% choose Yale 
  • MIT vs Princeton: 55% choose MIT (although the margin of error on this is high)

Is Princeton even a target for most banks? I know Princeton has zero presence at certain EBs like Moelis... Also, since Princeton is the second smallest ivy, tons of people in southern states or the midwest haven't ever heard of Princeton. They always know the other schools (especially Harvard and MIT) though.

Princeton is a fine school but stop acting like it's the best school in the nation lol. It's closer to Penn/Columbia/Chicago than it is to Harvard/Stanford/MIT

 

One of the best parts of moving to Europe was escaping the tipping culture in the US. I’ve worked in the restaurant industry before and got paid primarily in tips — I get it — but the way expectations have ballooned makes things incredibly uncomfortable for the customer. The social engineering is also very blatant. I’ve seen tip options (in taxi’s) that start at 20% but also offer 30% and 50%. WHAT? There is a reason they don’t have a 10% or 15% button — because they want to anchor high and make you work harder if you want to leave less. The actual pricing of items on the menu (and in retail stores) is equally obnoxious. You decided to price my sandwich at $19.99 instead of $20.00 and you didn’t include the tax, which is easily calculable? The rest of the world doesn’t seem to have this problem…

When I go into a restaurant in Italy, I know exactly what everything costs. Pizza? 10,00 EUR even … and the final bill will match the menu every single time. No trickery — just the price. The obvious exception is tourist areas where they are trying to extract tips out of US tourists — but that’s not the case in the majority of the country.

In terms of your questions:

1. I usually leave a tip if I think the person is doing their job well — and my bar is pretty high. Jimmy John’s is fantastic — by the time I finish my order the first guy on the sandwich line has been listening in and is already making it. Doesn’t matter if I’m the only person in line, I’m getting my sub fast. I’ll also leave a tip if I’m a regular and they acknowledge me.

2. I’ve definitely left countless tips because I’ve been put on the spot. I’m better about it now though and prefer to reward/tip non-pushy sales tactics.

3. I think it hurts businesses a bit, but overall it is a win for them. While I definitely go to pushy-places less frequently, the practice is so widespread that few businesses really stick out for using this tactic.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 
Most Helpful

Unless I'm sitting down and being served, I don't tip. Takeout orders = no tip. Just like it's not the cashier's fault that food prices are up, it's not our fault that their employers don't pay them enough...

 
Choosa

Unless I'm sitting down and being served, I don't tip. Takeout orders = no tip. Just like it's not the cashier's fault that food prices are up, it's not our fault that their employers don't pay them enough.

My favorite takeout orders are when they have that little takeout order stand and you just grab it and go. No need to stop at the register. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 
Choosa

Unless I'm sitting down and being served, I don't tip. Takeout orders = no tip. Just like it's not the cashier's fault that food prices are up, it's not our fault that their employers don't pay them enough.

I agree that tipping for take out makes no sense.  At that point, I might as well go to my local super market and pick up dinner.   The person handing me the food in a bag is not providing much of a service. The employer should be the one paying the workers a little extra.  

 

I'm a regular at this one burger joint and my dad and I go there every week. I would always tip like $20 on a $20 bill or something for good service from my favorite server or $15 to a regular server. The floor manager has been hooking us up with comped drinks or entrees or even a free meal one time. We always get amazing service and they are always happy to see us. Worth it. The food is very fairly priced as well.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

I used to cave every time to the tune of 15-20% when it wasn’t warranted, but it has gotten so ridiculous where you see 25-30-35% for like a $4 coffee that I now get a lot of joy out of taking the extra time to click into the no tip while they sit there watching me. Typically would always give a $1 or the change for coffee/takeout/ice cream but now I never give anything because it’s so ridiculous.

 

I'm a pretty good tipper and rarely tip below 25% at a restaurant and even I dislike this stuff. 

It's not that I think no tip is deserved but rather the starting point of these tips is ridiculous such as 18%, 20% and 25% noted above. I'm not sure why I should get this flipped on me when picking up food. You're basically asking me to tip the same amount as someone who waited a table??  A 5% tip for pickup sure, but 15% come on now.

 

I think people forget a tip should not be guaranteed. I tip at restaurants no matter what, but if the service is horrible, I might do a dollar or two. Example is if they waiter doesn’t come back to the table or forgets a side until the very end of my meal. One guy never visited after dropping our entrees off and I had to find another server to get me a refill on my water.

I never tip at fast food or say a mall food court. I actually laugh sometimes when a cashier takes my order then flips the thing around and waits for a tip.

 

I paid my way through college waiting tables and bartending, and I despise the iPad flip-tip. It actually dilutes the concept of tipping and hurts professions where tips comprise a majority of worker wages. Back then, I made ~$2.00 / hour before tips, but $20-30 / hour with tips. I lived with the inherent risk of that incentive model knowing that it would average out in my favor if I was good at my job.

Being compelled to tip for places like takeout or QSR makes no sense because the workers aren't performing table service and are often already making at least minimum wage, so they're in-effect double dipping. The real culprits are the POS system providers that sell the tip function as part of their solution suite as a way for companies to pay employees less.

 

I don’t know about you, but part of the appeal of taking a walk for a coffee or sandwich is the relaxation.  And that gets ruined if I’m anxious about being “that guy” when I see the same cashier/staff every time I go. 

 

Dude, you should not give a fuck. I confidently hit “no tip” without batting an eye, and turn the iPad around with a smile. Who the fuck is going to tell you something? Better yet, what the fuck are they going to do? Just about everyone is annoyed with this BS and is probably my thinking the exact same way you’re thinking. I’m not going to tip you for making my sandwich or coffee, much like you wouldn’t tip a McDonald’s worker for making you a burger. That’s baked in the price I paid for the coffee/ sandwich. Btw referring to fast food/ coffee places etc , not a restaurant with wait staff 

 

I never tip screens. It's borderline bullying if the cashier or other customers are staring at me, giving me the eye, or some other BS. The way to respond to bullying is not to make a scene but to remain steadfast in a silent yet powerful way. Typically, if I see them trying to pressure me into things, I just give them back a cold blank stare.

Hospitality means that service workers be nice to customers, not the other way around.

If I were you, I'd stick to traditional or more upscale places that won't pull this crap on you. They'll earn that tip through really good service.

 

Glad you brought this up, I replied to a thread on this a couple of weeks ago. I think it definitely needs attention as I believe it's going to shift down a bad tipping path. 

1. When this happens, it depends on: What mood I'm in, What my checking account looks like (shut up), Whether it's a chain or not, Age of the employee, The mood of the worker (smiling, polite, attractive, and appreciative = small tip | weird, gross, emotionless, and mean = no tip)

2. 100% put on the spot, there were literally people behind me in every situation witnessing my every move.

3. I don't care if it's hurting the business. I hardly go anywhere now and make everything at home. There were even places where I had sentimental feelings with growing up but dropped them due to this broke-boy movement. I actually love making sandwiches in the oven at home now. I smile and laugh now thinking "F**king stupid drone b**tch can suck my f***ing d**k for that amount." 

 

I felt this pressure for the longest time and recently stopped caring. At bars I tip a dollar per drink (I tip 0 at clubs) Unless I'm dining in I tip 0. This applies to cafes too. Not succumbing to the barista pressure of tipping at a cafe that charges me 6 dollars for fking coffee. Taxis I give 10%, Ubers I don't tip anything. 

I'm in a building with so many doormen, so I tip the ones that helped me the most. Don't make enough money to hand out a tip to everyone. Was baffled after reading an article somewhere about tipping the UPS person. Lol If you give me a printer from the federal reserve I will tip every single person I see, but until that happens, I can only tip as much as I can afford. I've sadly stopped going out as much for coffee cause 6 dollars for a cup of coffee every day adds up. 

Off topic: Anyone else notice how much Uncle Sam takes from our paycheck? Then if you want to buy a place you need to pay taxes on the property as well. Firms are then quick to say "be patient your time will come you'll get a promotion wage increase one day" and then wonder why we job hunt every 2 years. This whole environment is nuts. 

 
Incoming cfa level 1 charterholder

I felt this pressure for the longest time and recently stopped caring. At bars I tip a dollar per drink (I tip 0 at clubs)

So at a bar if you have 10 drinks for $10 each, the bill is $100 and you tip 10%? At clubs you have 5 drinks for $20 each which is $100 and you tip $0? Sounds like you have issues. That's just harsh bro. You need to tip like a civilized man. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

I think bar tipping is tricky because it is so nuisanced for the situation. Unfortunately, some people have taken the old $1 per drink rule too far (by the way, note that this is a very old rule of thumb which has not been inflation-adjusted. As one of the older farts on WSO, I remember this as a rule of thumb going back 20 years ago).

Here's my take on a number of situations. Slow day at the bar and you are just ordering beers> Sure, you can still get away with $1 per drink at a minimum.

Bartender makes you a craft cocktail involving several steps.....yeah you should be paying 30%....you're a complete asshole to put a single dollar down.

Crowded bar where the bartender gets to you in some sort of reasonable timeframe, not even fast but reasonable....$3 per beer is fine.

Also, some other variations of this. I'm stopping by my regular bar for only one or two beers. I'm tipping the bartender 100% for coming over to have a talk and say hi even though he knows I won't be there for more than a beer or two.

Like I said, very nuisanced for bartipping in my opinion.

 

I went to shake shack today. Cashier was great and really nice. Total was around $130 (group of 7). I accidentally pulled my card out too quickly as it asked for a tip and I stuck it in then pulled out as he said I had to select a tip before paying. We had to restart the process over. Had to hit tip then no tip THEN put my card in.

 
Arroz con Pollo

I went to shake shack today. Cashier was great and really nice. Total was around $130 (group of 7). I accidentally pulled my card out too quickly as it asked for a tip and I stuck it in then pulled out as he said I had to select a tip before paying. We had to restart the process over. Had to hit tip then no tip THEN put my card in.

I've never had a bad meal at Shake Shack. That's cool they are in GA now too. I've only been to the one in UES NYC and also in Glendale, CA.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

It has become insane. I hate to say it but I don’t tip on takeout orders or just getting a coffee or something like that. Sometimes I actually do depending on my wallet at the time and how I’m feeling. Tipping in the US should be based on service provided and if Im not being personally served at the table, why tip? 

 

Waterfalldown

It has become insane. I hate to say it but I don't tip on takeout orders or just getting a coffee or something like that. Sometimes I actually do depending on my wallet at the time and how I'm feeling. Tipping in the US should be based on service provided and if Im not being personally served at the table, why tip? 

This register tipping phenomenon is a result of five things:

- The advent of modern Point of Sale (POS) devices

- The feature of having a tip option in the software

- The move by the company to choose a POS device with this register tip feature

- The drive for management to pay employees more money without having it come out of their pocket

- The option for very generous customers to give money to support the restaurant/establishment/cashier

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 
Isaiah_53_5 💎🙌💎🙌💎
Waterfalldown

It has become insane. I hate to say it but I don't tip on takeout orders or just getting a coffee or something like that. Sometimes I actually do depending on my wallet at the time and how I'm feeling. Tipping in the US should be based on service provided and if Im not being personally served at the table, why tip? 

I think this register tipping phenomenon is a result of five things:

- The advent of modern Point of Sale (POS) devices

- The feature of having a tip option in the software

- The move by the company to choose a POS device with this register tip feature

- The drive for management to pay employees more money without having it come out of their pocket

- The option for very generous customers to give money to support the restaurant/establishment/cashier

This.  It's entirely because of all the modern POS software.  Toast, Square, Revel Systems, etc.  All of these have easy tipping features that are probably on by default and businesses don't bother to turn it off.  No one is expecting you to tip for everything.  It's all in your head.  Just use common sense.  If you buy a drip coffee or a muffin from behind a display at a cafe, you really think a 20% tip is appropriate?

Tipping for petty things outside of service at restaurants, barbershops, etc is nonsensical and it's entitlement that should not be encouraged. 

 

Dude you think that’s bad? During covid, I went to a boba shop and it was one of those “stand in line and order” places, so pretty much no actual service going on. 
 

Yet when it was my turn to order, the server wouldn’t let me touch the iPad (or any of the other customers) maybe because of health concerns. I finished ordering on their little iPad thing (verbally), and then they asked me how much I want to tip. 
 

Usually I don’t give any tip for these types of places because there’s no service. But who the hell is going to say 0% straight to the worker’s face? So I’m pretty sure I said like 20%. Ridiculous. 

 

That really sucks.  Especially since the message from Covid was essentially that takeout customers should tip extra and more often to keep these businesses afloat; only to find out later that they all got a bunch of PPP money and never paid it back.

 

It’s one thing to tip after a meal at a sit down restaurant as one can accurately evaluate the value of the service/food quality/experience. However, if I’m being asked for a tip on something that I can’t judge because I’m paying before I eat/drink, then no.

An example of this is at Starbucks, when you put your card in the reader and they ask you to tip. Despite being a global brand known for quality control and consistency, I could go to multiple different Starbucks’ in my hometown and get a different quality and taste despite ordering the same drink. Doesn’t make any sense tipping if you could be getting a mystery quality of peppermint mocha every time.

 

I got bubble tea today with a friend, where I ordered via the QR code on the table and paid at the front myself - the server simply brought us the bubble tea.

When I went to pay the server swung the iPad towards me and I declined to tip the 15, 20, 25% tipping options.

The server looks at me with disgust and had the audacity to ask if he could have done anything better and said that he didn’t get a tip.

Array
 

Some of you are cheap asses. This topic amazes me every time it comes around. How much are you all making? We sit here and read about people 3 years out of school still getting 6 digit bonuses in a year where we should be lucky to still have jobs. Only to be "uncomfortable" when presented with a tip screen for someone living on less than the taxes on your first year bonus. This is rich. When everyone used cash the change and tips were dropped into the jar/cup. Now with point of sale systems and credit cards being used for $6 coffee people have stopped tipping. People don't even think about it. If spending 8 extra dollars on top of 40 is too much for you, pack your lunch and ride your bike to the office. That $8 is nothing at our level but to the server/counter help it is their survival. 

 

Doesn’t sound logical to me.  In one breath you’re lucky to have a job, and in the next breath you’re talking like you’re this rich benefactor who’s supposed to step up and take care of those who aren’t so well off.  Those aren’t really consistent thoughts.

You are in fact lucky to have a job.  Maybe equity research is more stable, but for most folks here, your job can be gone tomorrow and your next job won’t be as good if that happens.   Many people on this thread *made* mid-six figures last year, but they would never say they *make* that much. Most will make less this year and next, and some will get zeroes and pink slips.  

Furthermore many people here want to build their savings to buy their freedom later on . . freedom to start their own business or leave the workforce early or whatever.  It would be foolish for those people to talk about their wealth in terms of their current salary.  

But sure . . if your boomer parents are already well off, and you want to work for the man your whole life, then by all means talk about how you’re rich because you “make” X amount.  It’s true for some people.

 

You either have the money to go out and eat or you don't. Complaining about throwing a few dollars to someone who is much worse off than you is cheap. If you are buying 2 sandwiches for $40 but don't have tip money there is a problem. You shouldn't be buying $20 sandwiches.  Maybe go to Subway or the cart on the street outside of the office. The entitlement of people who are highly paid who are moaning about a few dollars at a service worker is pathetic. The nurses, teachers, and retail workers in my life all have no problem tipping.No entitlement here. No rich boomer parents.  Just common sense and empathy for those around me who have not been as fortunate. 

 

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