Tipping: A Restaurant Controversy
June 9, 2017When it comes to tipping or no-tipping policies in restaurants, there are strong feelings on both sides.
While many restaurants have implemented no tipping policies, others are strong proponents for tipping. Still others aren’t sure which policy is right for their restaurant.
Restaurateurs like Andrew Hoffman want to phase out tipping from restaurants, referring to it as an unhealthy practice. Other stakeholders in the industry, like Kenneth White, are unopposed to the practice of tipping, asserting that it has become part of the dining culture. With the raging controversy on this subject, looking at the pros and cons of tipping will help provide some answers.
Let’s start with the pros. The strongest argument for allowing tipping in a restaurant is the excellent treatment provided to customers, with the tip serving as an incentive. This idea is strongly rooted in the American culture, as most diners see tips as part of the system. In fact, tipping is an age-long practice that dates back to the 18th century.
Employees in such restaurants typically accept lower wages, with the expectation that they will make up for it with the tips they will received. This provides a strong incentive for employees to provide excellent service in the hopes that appreciative customers will be generous with their tips. In the end, the staff can earn far above the minimum wage, while helping create an experience that keeps your customers coming back.
As a restaurant manager, you can also benefit from the tip because many customers make calculate the tip they will give based on a certain percentage of their bill. This motivates servers to upsell the menu in the expectation of a bigger tip. In this way, they are boosting your profits and increasing their own income at the same time.
However, there are limitations to allowing tips in your restaurants, which you must consider from the outset. Tipping can affect the staff retention rate of your restaurant due to the unstable income of the staff. They will be relying on tips which may or may not come. This can push out staff who want a more stable source of livelihood.
Even though tips often boost morale, they can sometimes have the opposite effect. When a server tries hard to please a difficult customer who is impossible to satisfy or who just doesn’t believe in tipping, or when customers choose not to tip because of things completely out of the server’s control (like a mix-up in the kitchen, for example), servers can become frustrated and less motivated.
There are also many different opinions about how tips should be split amongst the different restaurant staff, and this can become a source of resentment if some of your employees feel the tip splitting strategy is not fair. All of these factors can contribute to less motivated, less cheerful staff who will leave sooner and who won’t provide top service to your customers.
As a restaurateur, you are at the liberty of determining the policy in place in your restaurant. Weigh the options and decide which is important to your business growth and sustainability.
Why Your Restaurant Needs an App
We know, you’re a restaurant owner, not a developer or programmer. Let other people worry about apps, you just want to run your restaurant! The truth is if you want to have a successful establishment, you have to take advantage of the technology that brings people in....
Choosing the Right Sink for Your Restaurant
There are many, many pieces of kitchen equipment that are vital but often taken for granted. The kitchen sink is one of them. This workhorse of the back of the house handles a lot of jobs. Sinks give you running water as well as a place to wash either food or dishes....
Restaurant Supplies You Need to Add Delivery
Delivery services are becoming more and more popular, and that’s generally good news for restaurants. The ability to order online and receive food in the comfort of home drives up sales and that’s good for revenue. And when these sales don’t require additional tables,...
Should You Add a Salad Bar to Your Restaurant?
New Year’s is a prime time for resolutions – and one of the most common is to eat healthier and lose weight. In fact, for 2018 45% of Americans said they wanted to lose weight or get in shape for the new year. The new year might have you eyeing new options for your...
How to Overcome the Seasonal Rollercoaster
Are you tired of having huge swings in your business throughout the year? Do you wish you could just have consistent, easy-to-predict income? If so, it’s time for you to get off of the seasonal rollercoaster. You might think there’s nothing you can do to overcome the...
The Restaurant Supplies and Strategies You Need in 2019
Are you ready for the new year? If you’re like many restaurant owners, you’re thinking about how to get through the holiday rush – both in your restaurant and in your own life. However, you can’t overlook planning for the future. It’s vital to make sure you have the...
2018 Cooking Equipment Holiday Gift Guide
Do you know someone who loves to cook? Or are you looking for a new, special piece of cooking equipment for yourself? Whether you’re interested in home cooking or you run a restaurant, you can benefit from these gift ideas. These great cooking items will thrill...
Accommodating the Keto Diet at Your Restaurant
The keto diet – a low-carb, high-fat combination – has been gaining a lot of traction in the last couple of years. As a restaurant, it’s vital that you are able to accommodate your diners’ needs. More than that, having popular options on the menu can help bring people...
Restaurant Supplies You Need to Prepare for a Power Outage
It happens to all of us. You’re going on, doing just fine, and suddenly…Dark. The power is out. And of course, you have no idea how long it will last. Fortunately, you have the restaurant supplies and process in place to weather the storm without losing your...
Considerations when Converting a Food Truck to a Restaurant
Your food truck has been successful, and you have a loyal following. So loyal, in fact, that you struggle to serve them all each day. Customers have started to ask you when you’re going to open a restaurant. It started as a teasing suggestion, but it’s become more...
How to Incorporate Curbside Service in Your Restaurant
Are you looking for creative ways to grow your business without also growing your expenses? Are you interested in strategies that can start making a difference today, not just a year from now? If so, then
Tips for Great Plating & Why it Matters
You may have heard that we “eat with our eyes” before we physically eat food. That’s why pictures are so important – on menus, in cookbooks, online, and more. It isn’t just a gimmick – the truth is that the way food looks and smells actually changes our experience of...
Be Proactive: Assess and Address Risks in Your Restaurant
As a restaurant owner or manager, you have a lot on your mind. You want employees to show up on time and ready to give great service. You want your food to be well-stocked, high quality, and ready to use. You need cooks to be attentive and customers to be clear in...
How to Reduce Noise From Restaurant Equipment and More
Having a popular restaurant is wonderful. You have a lot of guests, tables turn over quickly, and you and your employees make a lot of good money every night. However, sometimes popular spots can get low ratings for a simple reason – they’re too loud! It’s not an...
Foodservice Equipment Gone Wrong: When the POS Crashes
The point of sale (POS) system that you have helps you keep your restaurant running smoothly. It helps you track inventory, sales, and revenue. It allows your staff to create checks, swipe cards, and keep tables turning. The POS is a lifesaver – until it isn’t. Maybe...