- Older generations tip maximum 15%, and decide what to tip based on service quality
- Millennials tip a flat 20%, regardless of service quality
- People who worked in the service industry will tip 30%, because they know what it's like.
But, yes, it's creeped up from 15% before tax to 18-20% on the total bill in general.
Someone didn't need to do anything and as far as I know, no individual decreed anything. (Although possibly guidebook and etiquette writes have helped contribute.)
It makes some sense with inflation and probably lack of increase in wait staff salaries. Restaurants often show recommended tips and even mandatory service adders for large groups. But, for the most part, it's probably been mostly organic.
Customer 1 (richy rich): $5 + $2 tip
Customer 2 (workin man): $5 + $1 tip
Customer 3 (poor man): $5 no tip
Total: $18
Menu: $6 burger
Customer 1 (richy rich): $6 + $1 tip
Total: $7
You've reduced your customer based on true affordability and perceived affordability. This doesn't consider the margin on selling a single burger but generally you need to push product rather than sell master pieces.
Because there are plenty of places that don't work with tips that do fine. Hell, some of our least expensive options operate in a tip-free environment. And no restaurant where tipping is expected is selling for the same price as fast food places in the first place. So it's not the scenario where you're looking at two options that seem equally priced, but one has the hidden tip tax on it. No, you're looking at two options where one is just more expensive and you have to tip.
And why are restaurants special in this regard? Why does no other sector have to operate on this model, where a customer has to directly pay a businesses employees? And why only in the U.S.? How did the rest of the world figure this one out but we can't seem to shake it?
Tipping is stupid and is anti-ethical to actual customer service as it pits staff against the customer and creates resentment in both directions.
Anyway I was speaking specifically on my own regions circumstances, we don't have fastfood within a 1hr round-trip. That 1hr adds up to a few bucks gas and time I don't have. There is no 2 options.
Workin man this week is poor man next week and then some weeks he's richy rich. Do you want to capture all forms of this guy?
None of this is rigorous of course but ya know we don't have a town full of 1 guy with a single budget. We have a town full of people with various and changing budgets, what kind of mechanism can be put into place to keep base finances workable in tight times while extracting more in good times?
Surely there must be a way because every other business seems to manage, and so do restaurants in 50%+ of the world.
Customer 1 (richy rich): $5 + no tip
Customer 2 (workin man): $5 + $2 tip
Customer 3 (poor man): $5 + $1 tip
The tip amount seems to depend more on empathy/demographics than the amount of money one has to spend.