Restaurant Extortion
As we all know by now, the experience of foreign and especially European visitors to America to spectate at the World Cup matches has overwhelmingly been favorable as witnessed by the many numerous testimonials on all social network platforms. Unusual American customs have been mostly positive for visitors, from serving sizes, to ice in drinks; free refills etc.
The one custom that shocks visitors is that of tipping at restaurants. As documented in a previous post, the culture of tipping is wildly out of control in the United States. Tipping has always been a part of American culture and has been consummated by a small gratuity for a small service rendered…mainly out of politeness rather than an obligation.
Suddenly, every person seems to be entitled to or expecting some kind of additional payment for any service rendered. Doormen, bellhops, bathroom attendants; the kid who cleans your golf clubs, all perform their jobs with the expectation of a little extra cash for their ‘service’. These amounts tend to be nominal if annoying and thus far, tip inflation hasn’t been an issue there. In the case of dancers, well you get what you pay for; they can’t really be considered tips.
The most contentious area of out of control tipping is in restaurants. Everyone knows that tipping is not in fact discretionary, it is an expected payment after the total restaurant tab. Recently, I’ve personally noted that the minimum amount offered on the payment machine starts at 20% and goes to 25 and then 30%. The experience of foreign tourists has brought this issue to light once more. It’s not tip inflation, it’s tip extortion.
Of course, there will be those that protest that workers receive the majority of their pay in tips since their rack wages are very low; some claim as low as $2.50 per hour. I don’t know in what backwater in the US pays a minimum wage of $2.50 per hour. If that is truly the case, the restaurant shouldn’t be in business. If the wages are that low, then presumably a meal would cost less than $5, in which case a higher gratuity may be reasonable.
But in most big cities, wages are substantially higher. In Chicago and New York city for example, the minimum wage is $17 per hour. In Los Angeles and Washington DC, over $18 per hour, and similarly in all the big metropolitan areas of the US. Georgia and Wyoming have the lowest minimum wages at just over 7 dollars an hour. Predictably, one will find the most expensive dining experiences in the bigger cities where a typical, not lavish meal, will easily run over $100 for two people. Add a few drinks and the bill will easily be $200. So a mandatory 20% gratuity will add 20 or 40 dollars to a bill…just to have someone bring food to your table. Which is almost acceptable…almost…if the amount of the tip didn’t depend of the amount of the food. Dine with a family of four or more and you’ll have to ask for their installment plan.
No one can honestly explain how pouring a $100 bottle of wine merits more of a tip than a $30 bottle of wine. As noted in a previous post, this makes as much sense as tipping on the value of the car parked by a valet.
Wait staff who work at restaurants charging $100 for a bottle of wine and $50 main dishes are not paying their workers $2.50 an hour. That urban myth is absurd. Restaurants that cannot factor in appropriate wages for staff have a flawed business model. To gouge customers based on the value of food served as an expected mandatory gratuity is a scam that needs to end. If there is to be an extra service charge to dine at a restaurant, then state so clearly or charge a flat fee per head. Leave the tipping to the discretion of the customer as it should always be. This is one area where the Europeans have it right.