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Tipped Off

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General fitness, health and nutrition
Published
10 August 2005
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12 August 2005
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aem
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  1. The NY Times today has a column by a food writer, Steven Shaw, about
    tipping. Thomas Keller has announced that he is abolishing tipping at
    his Per Se restaurant in NYC, replacing it with a European-style
    service charge.

    Shaw discusses the several topics that from time to time are discussed
    here but with the odd and unusual addition of facts.

    1. "Customers believe in tipping because they think it makes economic
    sense." However, dozens of studies by Cornell's School of Hotel
    Administration have concluded that there is at best a weak correlation
    between perceived quality of service and the amount tipped. Customers
    actually tip based on whether they "like" the server, something that is
    distinguishable from service.

    2. Tipping is an invitation to "upselling," since overall tips
    increase as the bill does.

    3. Tip pooling is becoming more and more common, which guts whatever
    effect tip anticipation might have had on your waiter.

    4. "Indeed, there appears to be little connection between tipping and
    good service."

    5. Keller apparently wants to break the cycle where servers view their
    jobs as transient and are willing to sacrifice longer term salary and
    benefits for the quicker reward of tips and owners prefer to avoid
    paying real wages to real employees. The idea is that longer term,
    loyal waiters will actually perform better and make customers happier.

    The full column is at NYTimes dot com, op-ed page, called "Tipped Off".

  2. aem said:

    his Per Se restaurant in NYC, replacing it with a European-style
    service charge.

    So, is this service charge going to become realistic wages
    for workers, and if yes, why call it a service charge? Why not just
    up the prices to accomplish the same thing? Sounds like more smoke
    and mirrors to me.

    nb

  3. aem said:

    The NY Times today has a column by a food writer, Steven Shaw, about
    tipping. Thomas Keller has announced that he is abolishing tipping at
    his Per Se restaurant in NYC, replacing it with a European-style
    service charge.

    Shaw discusses the several topics that from time to time are discussed
    here but with the odd and unusual addition of facts.

    1. "Customers believe in tipping because they think it makes economic
    sense." However, dozens of studies by Cornell's School of Hotel
    Administration have concluded that there is at best a weak correlation
    between perceived quality of service and the amount tipped. Customers
    actually tip based on whether they "like" the server, something that is
    distinguishable from service.

    2. Tipping is an invitation to "upselling," since overall tips
    increase as the bill does.

    3. Tip pooling is becoming more and more common, which guts whatever
    effect tip anticipation might have had on your waiter.

    4. "Indeed, there appears to be little connection between tipping and
    good service."

    5. Keller apparently wants to break the cycle where servers view their
    jobs as transient and are willing to sacrifice longer term salary and
    benefits for the quicker reward of tips and owners prefer to avoid
    paying real wages to real employees. The idea is that longer term,
    loyal waiters will actually perform better and make customers happier.

    The full column is at NYTimes dot com, op-ed page, called "Tipped Off".

    Methinks this article must assume all folks frequent an establishemnt
    but once... it definitely pays to tip, and well, at a restaurant one
    frequents often. Naturally if the experience is such that due to poor
    service you're never going to return then why bother to tip at all, I
    don't, the consumer votes with its pocketbook. There's no rule that
    says poor service deserves a tip anyway.

    Sheldon

  4. Sheldon said:

    Methinks this article must assume all folks frequent an establishemnt
    but once... it definitely pays to tip, and well, at a restaurant one
    frequents often. Naturally if the experience is such that due to poor
    service you're never going to return then why bother to tip at all, I
    don't, the consumer votes with its pocketbook. There's no rule that
    says poor service deserves a tip anyway.

    Methinks also that both the author and the restaurant owner missed the court
    case in which demanding addtional "service charges" in the guise of or in
    lieu of gratuities, and in the absence of additional services, was found to
    be bogus and therefore unenforceable.

  5. In article <[email hidden]>,
    "pennyaline" <[email hidden]>

    Quoted message said:
    Sheldon said:

    Methinks this article must assume all folks frequent an establishemnt
    but once... it definitely pays to tip, and well, at a restaurant one
    frequents often. Naturally if the experience is such that due to poor
    service you're never going to return then why bother to tip at all, I
    don't, the consumer votes with its pocketbook. There's no rule that
    says poor service deserves a tip anyway.

    Methinks also that both the author and the restaurant owner missed the court
    case in which demanding addtional "service charges" in the guise of or in
    lieu of gratuities, and in the absence of additional services, was found to
    be bogus and therefore unenforceable.

    What court case was that?

  6. "pennyaline" <[email hidden]> wrote
    in message news:[email hidden]...

    Quoted message said:
    Sheldon said:

    Methinks this article must assume all folks frequent an establishemnt
    but once... it definitely pays to tip, and well, at a restaurant one
    frequents often. Naturally if the experience is such that due to poor
    service you're never going to return then why bother to tip at all, I
    don't, the consumer votes with its pocketbook. There's no rule that
    says poor service deserves a tip anyway.

    Methinks also that both the author and the restaurant owner missed the
    court
    case in which demanding addtional "service charges" in the guise of or in
    lieu of gratuities, and in the absence of additional services, was found
    to
    be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the menu
    "A 12% service charge will be added for parties of 10 or more", or something
    in that vein. Regardless of what "the court case" said, this is not unusual.

  7. "Stan Horwitz" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:

    "pennyaline" <[email hidden]>
    wrote:

    Quoted message said:
    Quoted message said:

    Methinks also that both the author and the restaurant owner missed the
    court
    case in which demanding addtional "service charges" in the guise of or in
    lieu of gratuities, and in the absence of additional services, was found
    to
    be bogus and therefore unenforceable.

    What court case was that?

    I remember that one ... some guy refused to pay it and it was ruled that he
    didn't have to, by law. Was only a few years back.

    nancy

  8. "Nancy Young" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:


    "Stan Horwitz" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:

    "pennyaline" <[email hidden]>
    wrote:

    Quoted message said:
    Quoted message said:

    Methinks also that both the author and the restaurant owner missed the
    court
    case in which demanding addtional "service charges" in the guise of or
    in
    lieu of gratuities, and in the absence of additional services, was found
    to
    be bogus and therefore unenforceable.

    What court case was that?

    I remember that one ... some guy refused to pay it and it was ruled that
    he
    didn't have to, by law. Was only a few years back.

    nancy

    If he thinks "Waiters shouldn't do the job if restaurants can't pay a decent
    wage that doesn't require tips", then he also should not patronize
    restaurants. Otherwise, he's being hypocritical. If you think a business'
    practices are unfair, why contribute any money at all?

  9. "Doug Kanter" <[email hidden]> wrote

    Quoted message said:

    "Nancy Young" <[email hidden]> wrote in message

    Quoted message said:
    Quoted message said:

    I remember that one ... some guy refused to pay it and it was ruled that
    he
    didn't have to, by law. Was only a few years back.

    Quoted message said:

    If he thinks "Waiters shouldn't do the job if restaurants can't pay a
    decent wage that doesn't require tips", then he also should not patronize
    restaurants. Otherwise, he's being hypocritical. If you think a business'
    practices are unfair, why contribute any money at all?

    (laugh) Don't yell at me! I'm just saying what happened. I tip when
    I eat out!

    nancy

  10. Doug replied to pennyaline:

    Quoted message said:
    Quoted message said:

    Methinks also that both the author and the restaurant owner missed the
    court case in which demanding addtional "service charges" in the guise of
    or in lieu of gratuities, and in the absence of additional services, was
    found to be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the
    menu "A 12% service charge will be added for parties of 10 or more", or
    something in that vein. Regardless of what "the court case" said, this is
    not unusual.

    First, I have to chuckle at pennyaline's use of precise legal terminology.
    I don't know how many times Daniel Webster won in court by pointing at his
    opposition and thundering out a scathing "BOGUS!" :-)

    Doug, I think I know what she's talking about:

    www.gothamist.com/archives/2004/09/15/the_tipping_point.php

    "In a blow to restaurant owners and servers in particular, prosecutors
    upstate ruled that a diner could not be forced to pay a tip - even if the
    restaurant says it's mandatory."

    Of course, that's just ONE case in ONE municipal court. There's no
    requirement for rigid consistency between judicial venues in cases like
    that; a similar case could easily go the other way in some other city.

    Moreover, Thomas Keller may be well aware of that case, but he might have
    some reason to believe his service charge *will* be enforceable. The quoted
    portion doesn't say how the service charge is applied: It might differ
    significantly enough from customary tipping practices that the court would
    reasonably view it as an entirely different animal altogether. For example,
    if the service charge doesn't depend on the cost of the meal, but is a flat
    fee applied to each diner, then I can see some legitimacy to the claim that
    the service fee differs significantly from a tip. Maybe even if the flat fee
    were upped for parties requiring the services of a sommelier -- the
    restaurant is providing an additional service, so it applies an additional
    fee. But since I don't know what it meant by a "European-style service
    charge," that's conjecture on my part. Any of you Europeans want to chime in
    here and explain how service charges are applied in your part of the world?

    Bob

  11. "Nancy Young" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:


    "Doug Kanter" <[email hidden]> wrote

    Quoted message said:

    "Nancy Young" <[email hidden]> wrote in message

    Quoted message said:
    Quoted message said:

    I remember that one ... some guy refused to pay it and it was ruled that
    he
    didn't have to, by law. Was only a few years back.

    Quoted message said:

    If he thinks "Waiters shouldn't do the job if restaurants can't pay a
    decent wage that doesn't require tips", then he also should not patronize
    restaurants. Otherwise, he's being hypocritical. If you think a business'
    practices are unfair, why contribute any money at all?

    (laugh) Don't yell at me! I'm just saying what happened. I tip when
    I eat out!

    nancy

    I'm not yelling. I'm just pointing out how hypocritical it is for the guy
    who refused to pay the upcharge.

  12. "Bob" <virtualgoth@die_spammer.biz> wrote in message
    news:[email hidden]...

    Quoted message said:

    Doug replied to pennyaline:

    Quoted message said:
    Quoted message said:

    Methinks also that both the author and the restaurant owner missed the
    court case in which demanding addtional "service charges" in the guise
    of
    or in lieu of gratuities, and in the absence of additional services, was
    found to be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the
    menu "A 12% service charge will be added for parties of 10 or more", or
    something in that vein. Regardless of what "the court case" said, this is
    not unusual.

    First, I have to chuckle at pennyaline's use of precise legal terminology.
    I don't know how many times Daniel Webster won in court by pointing at his
    opposition and thundering out a scathing "BOGUS!" :-)

    Doug, I think I know what she's talking about:

    I wasn't saying it didn't happen - just that it seems odd. With little or no
    knowledge of the financials of a certain business, or the physical effort
    involved in running it, some people are willing to make value judgements,
    and complain about pricing structures. Ask that guy in the article if it's
    OK to charge money for installing windows, and he'd probably say "Of
    course". But, pay a labor charge for food delivery? Never.

    Then, there are people like the one on that web page who said this:
    "As for the primadonnas who wait tables for a day job, hey - time to grow
    up. Plenty of us creative types work a "real" job and still find time to do
    our thing."

    She has apparently never seen a truly professional waiter who made a
    difference in how pleasant the meal was. Admittedly, they're few and far
    between.

    Speaking of bad restaurant policies, I'd like to know who started the "guys"
    habit: "Hi....can I bring you guys something to drink?" Or, "How are you
    guys doing tonight?" This, spoken to a group consisting of 3 women and 1
    man. A friend of mine is rounding up financing for a restaurant. She says
    her #1 rule will be that if the word "guys" is uttered by a waiter/waitress,
    that person will be given the choice of dishwashing duty, or termination. I
    love it.

  13. Doug Kanter said:

    "pennyaline" <[email hidden]> wrote
    in message news:[email hidden]...

    Quoted message said:
    Sheldon said:

    Methinks this article must assume all folks frequent an establishemnt
    but once... it definitely pays to tip, and well, at a restaurant one
    frequents often. Naturally if the experience is such that due to poor
    service you're never going to return then why bother to tip at all, I
    don't, the consumer votes with its pocketbook. There's no rule that
    says poor service deserves a tip anyway.

    Methinks also that both the author and the restaurant owner missed the
    court
    case in which demanding addtional "service charges" in the guise of or in
    lieu of gratuities, and in the absence of additional services, was found
    to
    be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the menu
    "A 12% service charge will be added for parties of 10 or more", or something
    in that vein. Regardless of what "the court case" said, this is not unusual.

    Nothing odd. Doesn't matter what it says on a menu, a menu is not a
    legal instrument. Many restaurants post signs/notices saying "Not
    Responsible For Personal Property (per management)", but by law they
    are responsible, not only for your property but they're responsible for
    you bodily as well (regardless the presumptuousness of management), in
    NYC businesses are prohibited by law from posting such signs. A
    business is an "invitee", ergo they are responsible. Btw, a restaurant
    patron is not required to read a menu, in fact they are not required to
    know how to read. In order to enforce a 12% service charge the
    business must inform *verbally* _prior to_ taking an order, where upon
    with _acceptance_ a legal contract (verbal) is entered into... posting
    a private sign/notice (especially one contrary to law) hoping it will
    be read and comprehended does not a legal contract make. Even though
    the vast majority of patrons will note the sign and comply they are not
    legally required to, not in the US.

    Sheldon

  14. "Sheldon" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:


    Doug Kanter said:

    "pennyaline" <[email hidden]>
    wrote
    in message news:[email hidden]...

    Quoted message said:

    Sheldon wrote:
    > Methinks this article must assume all folks frequent an establishemnt
    > but once... it definitely pays to tip, and well, at a restaurant one
    > frequents often. Naturally if the experience is such that due to poor
    > service you're never going to return then why bother to tip at all, I
    > don't, the consumer votes with its pocketbook. There's no rule that
    > says poor service deserves a tip anyway.

    Methinks also that both the author and the restaurant owner missed the
    court
    case in which demanding addtional "service charges" in the guise of or
    in
    lieu of gratuities, and in the absence of additional services, was
    found
    to
    be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the
    menu
    "A 12% service charge will be added for parties of 10 or more", or
    something
    in that vein. Regardless of what "the court case" said, this is not
    unusual.

    Nothing odd. Doesn't matter what it says on a menu, a menu is not a
    legal instrument. Many restaurants post signs/notices saying "Not
    Responsible For Personal Property (per management)", but by law they
    are responsible, not only for your property but they're responsible for
    you bodily as well (regardless the presumptuousness of management), in
    NYC businesses are prohibited by law from posting such signs. A
    business is an "invitee", ergo they are responsible. Btw, a restaurant
    patron is not required to read a menu, in fact they are not required to
    know how to read. In order to enforce a 12% service charge the
    business must inform *verbally* _prior to_ taking an order, where upon
    with _acceptance_ a legal contract (verbal) is entered into... posting
    a private sign/notice (especially one contrary to law) hoping it will
    be read and comprehended does not a legal contract make. Even though
    the vast majority of patrons will note the sign and comply they are not
    legally required to, not in the US.

    Sheldon

    Interesting - not required to read. I wonder how someone claiming to be
    illiterate would explain how they chose an item off the menu, especially in
    a place where relatively uncommon dishes were served.

  15. In article <[email hidden]>,

    Doug Kanter said:


    Speaking of bad restaurant policies, I'd like to know who started the "guys"
    habit: "Hi....can I bring you guys something to drink?" Or, "How are you
    guys doing tonight?" This, spoken to a group consisting of 3 women and 1
    man. A friend of mine is rounding up financing for a restaurant. She says
    her #1 rule will be that if the word "guys" is uttered by a waiter/waitress,
    that person will be given the choice of dishwashing duty, or termination. I
    love it.

    English is a continually evolving language, but I know what you mean.

    What I want to know is if a few American restaurants tried to blaze a
    trail and do away with the practice of tipping wait staff, what would
    the reaction on the part of those restaurants' customers be? I suspect
    that most Americans are so entrenched into tipping for table service
    that they will object, even if they are told verbally and in written
    form not to tip their waitperson. I suspect that most Americans have the
    perception that tipping motivates improved service, even if that
    perception does not match reality and even if they leave a small tip. I
    suspect the tipping system will not fade from the American restaurant
    scene in my lifetime.

  16. "Stan Horwitz" <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:

    In article <[email hidden]>,

    Doug Kanter said:


    Speaking of bad restaurant policies, I'd like to know who started the
    "guys"
    habit: "Hi....can I bring you guys something to drink?" Or, "How are you
    guys doing tonight?" This, spoken to a group consisting of 3 women and 1
    man. A friend of mine is rounding up financing for a restaurant. She says
    her #1 rule will be that if the word "guys" is uttered by a
    waiter/waitress,
    that person will be given the choice of dishwashing duty, or termination.
    I
    love it.

    English is a continually evolving language, but I know what you mean.

    What I want to know is if a few American restaurants tried to blaze a
    trail and do away with the practice of tipping wait staff, what would
    the reaction on the part of those restaurants' customers be? I suspect
    that most Americans are so entrenched into tipping for table service
    that they will object, even if they are told verbally and in written
    form not to tip their waitperson. I suspect that most Americans have the
    perception that tipping motivates improved service, even if that
    perception does not match reality and even if they leave a small tip. I
    suspect the tipping system will not fade from the American restaurant
    scene in my lifetime.

    In a way, it might hurt the business if the restaurants had to increase
    salaries to make up for the absence of tips. Up go the prices, and now some
    place become unaffordable, at least in the eyes of some customers.

    What you said about motivation is true - I wish it worked. But
    unfortunately, many restaurants are run by people so young that they've
    never seen a truly skilled waiter at work. The result is that there's nobody
    to emulate. So, you end up with "Hi, guys, my name's Buffy and I'll be your
    waitress tonight".

    There's a place here (Dentico's, in Rochester NY) that's got a really
    outstanding waiter. For all intents and purposes, he's running his own
    business within the restaurant. You don't make reservations at Dentico's -
    you make them to eat with Andy, a retired Kodak chemist who grew up in Rome,
    paying for college by working in restaurants. The restaurant's nothing
    fancy - one of many "family Italian" places in this city. But, this waiter
    makes everything perfect, every time, no matter how you like to eat. He
    knows exactly how to work with the kitchen so that no matter what your
    "eating speed", everything arrives when it's supposed to. It's not unusual
    for customers to lean over to the next table and ask "Is this guy always
    this good???" He gets serious tips.

    He endeared himself to my ex and I when my son was about 7 years old. Andy
    asked what vegetable he wanted with dinner. My son, who was usually a good
    eater, said "No thanks". Andy says "It's against the rules to sell a dessert
    to a kid who doesn't have a vegetable. I could get into a lot of trouble".
    :-) He got my son to try escarole sauteed with garlic. He ended up ordering
    two servings of the stuff, and having no dessert. :-)

  17. Bob said:

    Doug replied to pennyaline:

    Quoted message said:
    I said:

    Methinks also that both the author and the restaurant owner missed the
    court case in which demanding addtional "service charges" in the guise


    of

    Quoted message said:
    Quoted message said:
    Quoted message said:

    or in lieu of gratuities, and in the absence of additional services,


    was

    Quoted message said:
    Quoted message said:
    Quoted message said:

    found to be bogus and therefore unenforceable.

    That sounds odd. There are plenty of restaurants where it'll say on the
    menu "A 12% service charge will be added for parties of 10 or more", or
    something in that vein. Regardless of what "the court case" said, this


    is

    Quoted message said:
    Quoted message said:

    not unusual.

    First, I have to chuckle at pennyaline's use of precise legal terminology.
    I don't know how many times Daniel Webster won in court by pointing at his
    opposition and thundering out a scathing "BOGUS!" :-)

    Ahem!! Scoff if you will. But would you ever have suspected that Daniel
    Webster was in fact one of my forebears??

    So, watch yourself 😉

    Quoted message said:

    Doug, I think I know what she's talking about:

    www.gothamist.com/archives/2004/09/15/the_tipping_point.php

    "In a blow to restaurant owners and servers in particular, prosecutors
    upstate ruled that a diner could not be forced to pay a tip - even if the
    restaurant says it's mandatory."

    Of course, that's just ONE case in ONE municipal court. There's no
    requirement for rigid consistency between judicial venues in cases like
    that; a similar case could easily go the other way in some other city.

    Moreover, Thomas Keller may be well aware of that case, but he might have
    some reason to believe his service charge *will* be enforceable. The


    quoted

    Quoted message said:

    portion doesn't say how the service charge is applied: It might differ
    significantly enough from customary tipping practices that the court would
    reasonably view it as an entirely different animal altogether. For


    example,

    Quoted message said:

    if the service charge doesn't depend on the cost of the meal, but is a


    flat

    Quoted message said:

    fee applied to each diner, then I can see some legitimacy to the claim


    that

    Quoted message said:

    the service fee differs significantly from a tip. Maybe even if the flat


    fee

    Quoted message said:

    were upped for parties requiring the services of a sommelier -- the
    restaurant is providing an additional service, so it applies an additional
    fee. But since I don't know what it meant by a "European-style service
    charge," that's conjecture on my part. Any of you Europeans want to chime


    in

    Quoted message said:

    here and explain how service charges are applied in your part of the


    world?

    Here's what I think: the "European-style service charge" is a load of [censored],
    something European restaurants charge American tourists because they know
    Americans will pay it as they pat themselves on the back in congratulations
    for having dined in a European restaurant... they'll even hold on to the
    credit card receipt to show to their friends at home: "And this down here at
    the bottom is the extra European restaurant charge!"

    If the restaurant employs a sommelier, it employs a sommelier to provide
    services to restaurant customers. If the person providing the service is
    already there to provide a service, then customers should not be charged
    extra for that service.

    It would be different if the restaurant had to go and seek out a sommelier
    for customers who are demanding one, to provide an extraordinary service.
    (In a case such as that, would it be inappropriate for the sommelier to bill
    the customers separately? 🙂 )

    <oh please, don't start!>

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