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Think Your Way to Wealth

Smart Financial Choices for Building Wealth

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Tipping- Developing a Tipping Policy You Are Comfortable With

by RC on November 19, 2008

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The subject of tipping always seems to bring up lots of different view points on who should get tips, how much, and what people think of tipping in general.

Ask 5 or 10 random people, and you will likely get a range of answers from “I don’t tip more than 10% because I am against the tipping system” to a “big” tipper who might tip “25% min. on a restaurant meal” and tip everyone else under the sun a few buck here and there.

Waiters and waitresses work hard, and at least in my state they are paid below minimum wage as their base salary. Therefore to me, not tipping in a restaurant is not an option. My wife waited tables for several years, so I know that wait staff work hard, and getting stiffed on a tip does not send a message to the restaurant, it only hurts your wait person.

But with the proliferation of tips jars on just about any counter that has space to fit one in a retail establishment, it boggles my brain when I get to the checkout counter and have to think “Should I tip this person? How much?” Sometimes I will throw my change in there, sometimes a dollar, but frequently I do not. I started thinking about my tipping habits, and this is what I generally follow, although not always down to the penny.

Sit down restaurant- In a sit down restaurant, I generally tip right about 20% as my baseline. I may adjust it slightly downward, or slightly upward, if the service is either poor or above average, respectively. I try not to take problems that could be the kitchen’s fault into account though, like taking longer than I think it should or part of my order being overcooked, for example. But if the server does not come by and check my drink, etc. I may round down slightly, but it is always at least 15%.

Casual Dining- Basically the same rules apply here-If I sit down and am waited on- even if it is at a counter in a diner-type place or a bar, I tip according to the rules above.

Take Out-While some may disagree, I usually tip when picking up take out, usually $1 to $2. Part of this may be because I frequent the same places, but I also feel like they took a little extra time to package up my order, throw in condiments, and napkins, etc.

Delivery- I pretty much only order pizza for delivery, and I usually tip around $3, maybe give or take the change. But over the last year or two, I know many pizza delivery places have started adding a $1 (or maybe even more) delivery fee onto every pizza. I have not reduced the amount I tip because of this, however.

Fast Food/Retail- Coffee shops, sandwich places (like Subway, Starbucks, etc.)- I don’t feel obligated to tip at places like this, although I occasionally will put a little money in a tip jar if I feel like I’m getting really good service. I don’t tip at McDonald’s, so why should I tip at Starbucks or Subway?

Buffets- While your waitperson does not actually bring you your food, they still may frequently visit your table, clearing off plates, refilling your drink, etc. I usually tip about 15% here.

Haircuts and other services- I get your usual generic man’s haircut, usually at a place like Super cuts or the like, which is about $12 I think now. I usually tip about $3, bringing my total up to $15.

How much do you tip in restaurants? Do you tip in retail establishments, like a coffee shop? What about haircuts and other services? Do you have a tipping policy in general?

Photo by Marcin Wichary

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Tagged as: retail, tipping, tipping for haircuts, tipping habits, tipping policy, tipping waitstaff

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December 3, 2008 at 8:35 am
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December 3, 2008 at 12:08 pm

{ 2 comments… read them below or add one }

PT November 20, 2008 at 7:19 am

Solid policies, RC. Here’s mine (I’m slightly cheaper than you):

Rest – at least 20%
Haircut – $2 or $3
Retail – $0
Bar – $1 a drink…most of the time
Delivery…I’m too cheap to do this…I pick it up
Take out…$0 or $1
Buffet – $1 max
Hotel Bags – $1 bag…although I try and take them myself usually
Cab – $0 or $1

I feel sorry for the folks who depend on tips. I used to serve and know how it is…so I tip more at restaurants than anywhere else. They really bust their butt for you.

RC November 21, 2008 at 7:18 am

@PT- Looks like we are about the same- Glad I am not too far off!

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