Tipping is not mandatory in the USA; it is a social etiquette that restaurant servers or other service providers expect you to follow. While you may think you are a good tipper, you would be surprised to learn that some of your tipping habits may be inappropriate. Check out the list.
Tipping Only at Sit-Down Restaurants
It is a false notion that you need to tip only when sitting and having a meal in a restaurant. Tipping applies to other services, too. A survey shows that Americans leave a tip for services such as haircuts, food delivery, buying drinks at a bar or beverages at a coffee shop, taxi/rideshare, and fast-casual restaurants.
Assuming 15% as the Average Tip
According to a survey, 57% of U.S. adults would prefer to tip 15% or less at a sit-down restaurant, and some people didn’t mind leaving a tip in the 18-20% range. Money experts advise a 20% tip for standard-tipped workers and more than 20% for superior customer service.
The minimum cash wage for tipped employees has stagnated at $2.13 for decades without accounting for rising inflation and cost of living. Hence, the average tip of 15% could be lower.
Tipping Same in All States
A senior economist, Sylvia Allegretto, recommends referring to the state’s minimum and subminimum wage tracker for tipping. Every state in the U.S. can set its minimum wage criteria, which could be lower or higher than other states.
If a state doesn’t offer any subminimum wage, your lack of generosity in tipping could be perceived as impolite.
Tipping 0% for Bad Service
51% of Americans answered in a poll that they would leave zero tips for lousy service. Understandably, you don’t want to tip out of guilt or social norms for food or service you didn’t enjoy.
However, American etiquette expert Lizzie Post opines that not tipping is never the way to go – you must leave a tip no matter what. She also says unhappy customers can speak to the managerial staff about their poor experience instead of withholding the tip.
Not Making Tax Calculations
Tips can be taxable income for the staff. They effectively get less when you pay the tip on the pretax amount of the food or service bill. Hence, you should always factor in the tax percentage on the tip.
If you want to leave the tip on the pretax amount, ensure it is respectable. Cortney Norris, an expert on tipping habits, advises tipping at least 18% of the pretax bill for wait staff at sit-down restaurants.
Tipping in Coins
There is no rule against tipping in coins as long as it is a couple of dollars. However, the server or service provider may not like to accept coins for three reasons. First, loose change is a casual way of disregarding their efforts. Second, keeping a count of coins, carrying them around, or exchanging them for cash is a hassle. Third, it is difficult for the tip receivers to pay for their expenses using coins.
Tipping in paper bills is more appropriate.
Gifting as a Tip
A gift is good if there is a gifting occasion or you want to extend a heartfelt gesture. Could you not make it a tip, though? Tipping is a financial transaction for the service you get and should be paid for in cash.
Giving Coupons/Vouchers as a Tip
When you tip, it has to be cash, a card swipe, or other payment mechanism. Placing a Target or Walmart store coupon or a free entry voucher to a museum on the bill isn’t acceptable tipping etiquette.
Will the person who receives the tip be able to redeem the coupons or vouchers before the expiry date? Would it help them pay their bills?
Not Tipping Due to Lack of Affordability
If you eat in a restaurant or get a haircut at a salon, you are unlikely to be running too low on money. However, it is advisable to budget for some tips when you avail of a service.
Money experts suggest tipping a little more or less based on your financial situation to show appreciation. It is the thought that counts the most.
Not Tipping for Free Service
When you visit a restaurant, bar, or coffee shop, receiving a complimentary snack, drink, dessert, or birthday cake feels great. Some hotels also provide concierge or travel guide services free of charge.
While it is unnecessary to tip these people because you didn’t ask for the free stuff, it would be considerate for you to tip some amount.
Using a Card for Tipping When You Have Cash
If you are not carrying cash, it is acceptable to tip using your debit or credit card. However, cash tipping is the best way to express appreciation for the excellent food or service.
Colton Trowbridge, a longtime server, says that cash tips provide immediate evidence and gratification of earning money. Moreover, cash can be taken home every night instead of waiting a week or two for the paycheck.
Tipping More Than Necessary
You can pay more than 20-25% in tip when you are extremely happy or satisfied with a service. It is entirely discretionary. However, overtipping is as rude a gesture as undertipping.
When you tip more than the etiquette requires, it could give a wrong signal to the recipients. They may start expecting big tips whenever they serve you or think you have made a mistake. It may also create a feeling of inequality among other servers.