Tuesday, January 31, 2012

Who invented the TIP SYSTEM?

This is something I really care about, so let me make my point clear: I've been living here for a while, but I still hate the idea of leaving 15% minimum tips at the restaurant. I don't get it!.. Well, I actually get it but I hate it.

But waitresses and waiters are paid less than the minimum, something like 5 bucks an hour. That's why you should leave 15% tips.

What kind of reasoning is that? How about the guy who sewed the t-shirt I'm wearing. Was it paid enough? Wasn't he? In any case I don't leave tips. Do you know what I do? I go some place else to buy the same t-shirt, where I spend more because they are paying him enough.


Yes, but then if you pay them the same, you are not rewarding the best waiters, so potentially waiters have no incentive to work hard.

Again, false. Two reason: first of all in a normal restaurant it is SUPER EASY to monitor the waiters working there, so if someone is not doing his job the owner knows it and doesn't give him bonus or stuff like that. Second of all: if that objection were true, why the hell you are charged a fixed amount of tips if you're in a table of 5+ people? Isn't that distorting the waiter's incentives? Let's be serious.

Ok, you're right, but then what'd you change?

A couple of things for the restaurant owner, first of all pay the waiters enough. I can't believe that if I pay $6 in a restaurant a beer that costs $2 in the nearby grocery store, you can't pay the waiters. Second:  don't let the tips be proportional to the check. This is a misleading rule, because people would tend to eat less expensive dishes, so you're practically losing profits. Also, I don't think the quality of the service depends heavily on the cost of dishes (to my understanding it is equally difficult to bring an hamburger or a lobster).

That's all for now but I could go on forever.

Someday I'll probably open a restaurant with no tips, that'd be revolutionary. Nymag would love it.

Cheers,

Enrico.

PS: I know this might be bothering for many readers, because a very large amount of foreign immigrants in New York do rely on tips. But as you read this would not change their income, only distribute it better.

1 comment:

  1. I thought I was the only one always arguing with people about tips. I'm from Spain, live here...I always hated the tip system for the same reasons you explain here very well.
    It is a trick of the owners to save their employee' salary into their pockets. It is not the waiters fault, they have to adapt to what it is offered to them (less than minimum wage), and rely on the restaurant client's money, who pay for their meals AND for part of the waiter's salary. It is ridiculous and it makes me sooo upset!
    One time the waiter came out of the restaurant to find me when I was leaving, and told me that I had forgotten to leave the tip.
    I don't have anything against giving a VOLUNTARY reward if one feels like it.... but why do I have to be obliged to pay an extra 10 or 15% for my meal!
    This does not happen in Europe, in fact, if you try to leave a tip they will say "no thanks". Guess what, they don't need the client's money, because their employers pay them their full legal salary.
    Good idea about opening a restaurant without tips. I also believe it would be revolutionary. And you would actually make money. Everyone would be happy: Waiters, clients and owners.

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