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-   -   Tipping for large group meals (https://www.flyertalk.com/forum/usa/1954701-tipping-large-group-meals.html)

Often1 Feb 5, 2019 7:34 pm

This is why many restaurants add an 18-20% tip to the bill for parties exceeding a given size, usually 4 or 6. That is noted on the menu and thus agreed to in advance.

It ends all of the handwringing about large tips. This tip just looked large, but I wonder how much OP would have flinched about a $18 tip had he been alone and spent $90 on the meal rather than $750 for 8 of those meals.

fotographer Feb 5, 2019 10:40 pm

I generally tip on what would be considered good service
regardless of where I happen to be dining
but on the same note I am so tired of the restaurant having us make up pay for their employees
It is not my responsibility to make sure your staff is payed what they should be
And of course the worst is when they don’t provide decent service but still expect a big tip
Op you did just fine

davie355 Feb 5, 2019 10:44 pm


Originally Posted by fotographer (Post 30744597)
I generally tip on what would be considered good service
regardless of where I happen to be dining
but on the same note I am so tired of the restaurant having us make up pay for their employees
It is not my responsibility to make sure your staff is payed what they should be
And of course the worst is when they don’t provide decent service but still expect a big tip
Op you did just fine

+1.

At the end of the day the tip is optional.

nrunning24 Feb 5, 2019 10:47 pm


Originally Posted by hipquest (Post 30742165)
Another thing to keep in mind is restaurants deduct income tax from that server's check based on a percentage of the total bill amounts. In nicer restaurants I've seen that percentage be 15% or higher because that's the normal range of overall tips. If that server works in a restaurant that taxes above 13.3% she potentially had to pay taxes on money she didn't actually earn.

Really??? This is the thing that annoys me most about the service industry in the US. Why shouldn't these people pay income tax??? Do i get to tell my employer that he needs to give me 20% more because of taxes NO!!

I've even been in places in LA where they say don't tip on your credit card bill because then we have to report it. Well i guess no tip for you then.

Tip what you feel they deserve don't let them guilt trip you for more.

davie355 Feb 5, 2019 10:54 pm


Originally Posted by nrunning24 (Post 30744613)
Really??? This is the thing that annoys me most about the service industry in the US. Why shouldn't these people pay income tax??? Do i get to tell my employer that he needs to give me 20% more because of taxes NO!!

Any reasonable employer will indeed pay you more if you're moving to an office where the tax rates are higher.

As for why restaurant servers "shouldn't" pay income tax, it is a political belief held by many.

jah718 Feb 6, 2019 2:17 am


Originally Posted by pa3lsvt (Post 30742272)
My wife just switched to days and her restaurant is attached to a hotel. They bumped her hourly from $2.85 to $6.00 because the comp'ed breakfast crowd tends to skip tipping. Personally, I leave $5 or 15-20% (whichever is higher) of the actual meal retail price for any free meal that I have served at a hotel (eg. Hilton Garden Inn).

Coming from a country where we actually pay servers and where tipping is more of a recognition of good service, it seems absolutely insane to me that someone living in a developed country like the US, could be paid only $2.85 an hour or even the $6 an hour when she won't get tips. So effectively what people do is subsidize the restaurant industry while the restaurant owners pay slave - like wages.

Also, tipping for an included breakfast in a hotel is insane. I really don't understand how the tipping culture has got to where it is in the US.

JimInOhio Feb 6, 2019 7:36 am


Originally Posted by jah718 (Post 30745034)
Coming from a country where we actually pay servers and where tipping is more of a recognition of good service, it seems absolutely insane to me that someone living in a developed country like the US, could be paid only $2.85 an hour or even the $6 an hour when she won't get tips. So effectively what people do is subsidize the restaurant industry while the restaurant owners pay slave - like wages.

Also, tipping for an included breakfast in a hotel is insane. I really don't understand how the tipping culture has got to where it is in the US.

I think you may have misread that post. Moving to "days" doesn't mean a server won't be receiving tips... just that they will be less in total. Also, not all breakfasts are "comped" and many people still do tip opposite the value for comped meals. More important, it's the size of the dining bills that really distinguish "days" from "nights".

MSPeconomist Feb 6, 2019 7:58 am

I would disagree that 20% is the norm in the USA. This may be common in a few places such as NYC (OP didn't mention where the meal occurred) or when the person paying (usually with OPM) thinks that this impresses others and there might be tipping "suggestions" (either travel/etiquette advice or those automatic calculators), but it's far from universal.

IMO in most places, the benchmark would be 15% of the bill BEFORE TAXES for adequate service in most full service restaurants. I'd tip a bit more for better service, but not go to 20% unless it had been very cordial and professional outstanding service in a more formal or luxurious restaurant.

I suspect the OP reported on the check including tax, so the tip might actually have been 15% or higher.

I'm also surprised that restaurant policy didn't just add whatever they consider to be the standard tip (often kindly rounded up to make it worse, or even miscalculated in their favor) for a party of this size, of course hoping that customers don't notice and will actually tip twice.

fassy Feb 6, 2019 8:28 am

Northern Californa, Silicon Valley. Indeed I always tip based on the the check including tax. So, before tax... then I'm well inline with the expectations. Is the tip is calculated before tax universal across the states or regional different as well?

Seems I have much more to learn than I thought about US tipping culture.

fassy Feb 6, 2019 8:36 am


Originally Posted by MSPeconomist (Post 30745787)
I'm also surprised that restaurant policy didn't just add whatever they consider to be the standard tip (often kindly rounded up to make it worse, or even miscalculated in their favor) for a party of this size, of course hoping that customers don't notice and will actually tip twice.

Oh, dear! You were right. Just took a closer look at the check. THEY ADDED THE GRATUITY. Subtotal 560, Tax 60, 18% Gratuity 101... but on the CC receipt the option to add a tip. Which of course is the only place I looked at not the detailed check. Now I feel very stupid... well... more than one lesson learned and a happy waitress for that evening ;)

JimInOhio Feb 6, 2019 8:54 am


Originally Posted by MSPeconomist (Post 30745787)
I would disagree that 20% is the norm in the USA. This may be common in a few places such as NYC (OP didn't mention where the meal occurred) or when the person paying (usually with OPM) thinks that this impresses others and there might be tipping "suggestions" (either travel/etiquette advice or those automatic calculators), but it's far from universal.

IMO in most places, the benchmark would be 15% of the bill BEFORE TAXES for adequate service in most full service restaurants. I'd tip a bit more for better service, but not go to 20% unless it had been very cordial and professional outstanding service in a more formal or luxurious restaurant.

I suspect the OP reported on the check including tax, so the tip might actually have been 15% or higher.

I'm also surprised that restaurant policy didn't just add whatever they consider to be the standard tip (often kindly rounded up to make it worse, or even miscalculated in their favor) for a party of this size, of course hoping that customers don't notice and will actually tip twice.

I typically tip 20%.

tmiw Feb 6, 2019 6:06 pm


Originally Posted by nrunning24 (Post 30744613)
I've even been in places in LA where they say don't tip on your credit card bill because then we have to report it. Well i guess no tip for you then.

I wouldn't be surprised if the CC fees are also a significant reason for that, not to mention horrible POS systems. Because of those reasons, some/most restaurants here tend to impose restrictions on splitting checks, etc.


Originally Posted by MoreMilesPlease (Post 30743693)
One reason we have cheap food in restaurants is the fact that restaurants are not required to pay minimum wage. It is true that servers are paid below minimum wage. The employer takes taxes out based on minimum wage for hours worked. It is up to the server to claim any cash tips they receive and not accounted for in their paid wages ( yeah that happens 100% of the time).

California and a few other states don't have a lower minimum wage for restaurant workers. Of course, minimum wage here is still not really enough to live on, but that's another topic.

davie355 Feb 6, 2019 6:14 pm


Originally Posted by tmiw (Post 30748203)
California and a few other states don't have a lower minimum wage for restaurant workers. Of course, minimum wage here is still not really enough to live on, but that's another topic.

No state has a lower effective minimum wage for restaurant workers. Most states allow the employer to pay $2/hr instead of $8/hr, but if the employee falls short of $8/hr after tips, then the employer must make up the difference.

All that is really of no concern to any US restaurant diner. We just add 15-20% in that tip line.

tmiw Feb 6, 2019 6:32 pm


Originally Posted by davie355 (Post 30748223)
No state has a lower effective minimum wage for restaurant workers. Most states allow the employer to pay $2/hr instead of $8/hr, but if the employee falls short of $8/hr after tips, then the employer must make up the difference.

All that is really of no concern to any US restaurant diner. We just add 15-20% in that tip line.

Yep. The point is more that it's not necessarily that lower number that makes tipping a thing but lower wages in general (plus other cultural factors).

Tanic Feb 6, 2019 11:19 pm


Originally Posted by MSPeconomist (Post 30745787)
IMO in most places, the benchmark would be 15% of the bill BEFORE TAXES for adequate service in most full service restaurants. I'd tip a bit more for better service, but not go to 20% unless it had been very cordial and professional outstanding service in a more formal or luxurious restaurant.

I see more and more "recommended tips" printed on receipts, and in many instances these are opaquely calculated on the after tax amount. I don't like that practice, it seems dishonest. Many of the "recommended tips" begin at 18% after tax and go to 25%. If you want to leave 15% you need to know math.

I was given a tablet to sign at a restaurant this week and the tip had been pre-set to 22%. I wonder how many customers just hit the OK button without noticing.


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