If I was running a restaurant today, how would I handle all the issues surrounding tipping and tipping culture?
Three suggestions:
1. I would implement a required service charge of twelve percent. I would make it clear on the menu and on the receipt that this fee is one hundred percent paid to your server. Not all servers and not the management. I would make sure that it is clearly indicated that this amount is twelve percent. For parties of six or more, I would make this amount seventeen percent.
2. In order to offset the inevitable pushback for what is essentially a required tip, I would place a Rate Your Server section on the receipt right under the required itemized service charge. This would be a preprinted 1 through 10 scale that diners could quickly circle. If some amount of tip is required, diners will still want to way to express their view of the service.
3. Right under the Rate Your Server section I would include an Additional Tip blank line, leaving the amount entirely to the diner.
Different demographics tip differently. And some people do not tip at all. Well if the service is good, in my view, that is unacceptable. This would insure that the server makes at least twelve percent. If the diner is displeased with the service, they can give the server a low score.
Twelve percent is on the low end for tips. If it is to be required, I think that is where it needs to be. Not even at the old-fashioned fifteen percent level. No, I am not sure if people would actually add the Additional Tip. If we later need to raise the required percentage, or even pay staff more and raise prices, so be it. Something has to be done. But whatever it is, free service should not be an option for customers. And too many customers take advantage of the current system for free service.
The twelve percent will never be removed. This will be explained to diners in advance. Think of it as part of the cost of the meal. Is this ideal? Probably not. Will it anger some customers? Probably so. But there is no way to make everyone happy in modern tipping culture.
In a recent post on business responses to our modern deteriorating culture, I suggested prepayment for most services. I stand by that, and it would include the required service charges. Changes, add ons, and extra tips can be adjusted after the meal. Is this more hassle for the establishment? Absolutely. But modern eroding standards of behavior have made it necessary.
As I mentioned in that earlier piece, one of my goals is to limit discussion with people who can never be satisfied. For tipping, I want to create a fair and easy to understand system that is not really open to a lot of discussion. Post it on the door if you have to, but we are not going to sit here and argue about it.
Dine-and-dash culture, non-payment for unjustified complaints, and leaving little or no tip; these behaviors are getting out of hand. I have always believed that restaurants should take a firm line on bad customer behavior. Even at the risk of losing some customers. Even at the risk of some bad publicity. These customers end up costing you too much anyway. Do not allow them to cost you your entire business.
Good riddance.