In Los Angeles, a class-action suit was filed on June 20th by former servers of a trendy Italian restaurant called Jon & VInny’s. The suit alleges that servers were denied tips because of confusion about the restaurant’s mandatory 18% “service fee.” “After The [LA] Times published an article by Food staff reporter Cindy Carcamo detailing the lawsuit, more than 100 readers responded to a call-out weighing in on tipping and service fees that are becoming commonplace at L.A. restaurants.” 1.
It seems no one is happy about the extra costs associated with going out to eat.
Tipping has traditionally been a way of rewarding good service, but some people feel that it has become something more like a tax. It wasn’t long ago that the amount of a tip was supposed to reflect the level of service provided. Now if you go into a hair salon or a spa, you might see a “recommended tip” amount posted. At many restaurants, 20% is automatically added to your bill if you have over a certain number in your party.
According to Wikipedia,
The practice of tipping began in Tudor England. In medieval times, tipping was a master-serf custom wherein a servant would receive extra money for having performed superbly well.
…The practice was imported from Europe to America in the 1850s and 1860s by Americans who wanted to seem aristocratic. However, until the early 20th century, Americans viewed tipping as inconsistent with the values of an egalitarian, democratic society, as the origins of tipping were premised upon noblesse oblige, which promoted tipping as a means to establish social status to inferiors.
Not long ago in the U.S., a standard tip at a restaurant was 15%, more or less depending on the service. Now the common expectation is 20%, and customers often feel pressured to leave that even if the service is subpar. The phenomenon is labeled tipflation.
Along with tipflation, more businesses are encouraging tipping even outside of the traditional service industry settings, like when getting an oil change or shopping for clothes.
The pandemic provided an opportunity for businesses to experiment with different kinds of additional charges. When the U.S. was coming out from under all the lockdowns and covid restrictions, some restaurants added a “service charge”. The idea was that it allowed the back-of-the-house staff to get the benefit of “tipping.” The service industry was impacted dramatically by the pandemic, and most customers were glad to support them in the early days. Some businesses however, have kept the service charge, and you are expected to tip as well.
Many people feel that these businesses are simply masking the true price of their service. It’s the same annoyance people have with flying now. Buy a ticket from LA to Boston for $279. Oh, but if you want as much legroom as you used to get ten years ago, that’ll be an additional $49. If you want to check a bag, that’ll be an extra $50. If you want to bring a carry-on, that’ll be $39 more. By the time you pay tax and pay all the fees, your $279 looks more like $500!
The tipping issue has become all the more important because an inflation rate of nearly 7% has made everything that much more expensive. To then add a tip that is larger because the bill is larger has some people crying foul.
“Among the 2,400 people who took part in a new survey from Bankrate, two-thirds said they have at least one negative opinion of tipping, with 30% saying they believe tipping culture has gotten “out of control” in recent years.
The survey also broke down how often people tip specific categories of workers. Servers in restaurants still claimed the top spot with 65% of participants saying they “always tip” waiters, with 18% and 12% saying they tip most of the time or sometimes, respectively. Home service workers “always” receive tips the least often, with just 10% of people saying they always tip plumbers or electricians, among others.” 2.
There are many who would prefer that “service charges” and mandatory tips be included in the price of the goods or services sold. Businesses will have to navigate carefully to see if that is really true or not.
1. www.finance.yahoo.com
2. https://www.businessinsider.com/
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