Don't Forget to Tip
December 29, 2008
The Phoenix Business Journal reports that servers and bartenders have seen their tips dwindle thanks to the broader economic downturn:
A fascinating implication of the current economic situation is that servers and bartenders are among very few occupations in America where nominal wages actually adjust to the equilibrium level in the economy. Other jobs have wages set by contracts or social norms (employers are highly reluctant to frequently adjust wages, especially downward). Theoretically, inflation should equilibrate real wages by decreasing the purchasing power of an hour's work. Few employees seem to understand this concept, and thus perceive an increase in their wage, even merely at the pace of inflation, as a "raise". Servers and bartenders, on the other hand, watch their nominal wages fluctuate up and down on a regular basis.
Another interesting conundrum is one I have faced quite a bit recently. There are some restaurants I am psychologically reluctant to visit because, knowing that other tables will be ordering wine and expensive dishes, and knowing that I will be ordering cheaper drinks and food and probably leaving a smaller tip, I feel guilty before I even walk through the front door. In tough economic times, servers would theoretically be better off serving me than having an empty table in their section, but like those interviewed in the Phoenix Business Journal article, they might counter-factually assume that they could have had a high roller at the table instead of me, and probably be unhappy about the size of the tip I leave.
Having never worked in the food service (or bar) industry, I can only comment as a customer and an outside observer; but if anyone with experience would like to chime in with a comment, all the better!
Robyn Brand is feeling the economic pinch. So are Nicole Rademacher and Ryan Gwizdala. But they aren’t in the depressed real estate, mortgage lending or auto industries. Brand and Gwizdala are bartenders in Phoenix, and Rademacher is a waitress in Glendale. They all are seeing less bar and restaurant business — and more frugal tips.I think tipping is a very interesting phenomenon in America. Over the summer I blogged about the economics of tipping, and how tips should be calculated in a casual dining experience.
A fascinating implication of the current economic situation is that servers and bartenders are among very few occupations in America where nominal wages actually adjust to the equilibrium level in the economy. Other jobs have wages set by contracts or social norms (employers are highly reluctant to frequently adjust wages, especially downward). Theoretically, inflation should equilibrate real wages by decreasing the purchasing power of an hour's work. Few employees seem to understand this concept, and thus perceive an increase in their wage, even merely at the pace of inflation, as a "raise". Servers and bartenders, on the other hand, watch their nominal wages fluctuate up and down on a regular basis.
Another interesting conundrum is one I have faced quite a bit recently. There are some restaurants I am psychologically reluctant to visit because, knowing that other tables will be ordering wine and expensive dishes, and knowing that I will be ordering cheaper drinks and food and probably leaving a smaller tip, I feel guilty before I even walk through the front door. In tough economic times, servers would theoretically be better off serving me than having an empty table in their section, but like those interviewed in the Phoenix Business Journal article, they might counter-factually assume that they could have had a high roller at the table instead of me, and probably be unhappy about the size of the tip I leave.
Having never worked in the food service (or bar) industry, I can only comment as a customer and an outside observer; but if anyone with experience would like to chime in with a comment, all the better!
from my personal experience as a customer, and from friends' experience as servers/bartenders, if you're friendly, and leave a decent (i.e. 15%) tip, than i think they would rather have you as a customer, as opposed to the jerk with a bad attitude (the kind who makes them run to the kitchen every time they see the server, or worse, snaps their fingers at them) for the same percentage.
Well the key questions are still the same as they were before the crunch:
"What You Are Paying For?" and "What is Proper Behavior?" as you said yourself in your referenced note.
I'd tried to answer the same questions too, back here, but I think you've got the same main points covered - ideally we should be paying the waiter according to value added service, not just a fixed percentage of food cost.
Basically, it seems "wrong" that they get more tip for a minute's work conning you into paying for a single expensive bottle of wine rather than an hour's work helping you to choose a wide selection of cheaper main dishes. Also waiters in plush restaurants earn so much more in tips for exactly the same work compared to cheaper restaurants just because the food is more expensive.
Maybe we should tip something proportional to time spent serving you, but that's definitely not ideal either.
I just tip well all the time (unless I really get bad service, which isn't that common) and assume that'll help more than anything else. I do think a diner alone is probably less work than a table full of people (though it's not proportional, unfortunately).
Another option in some places is eating at the bar.