Whats with the whole 'tipping' thing in america?

Question

Why is it on TV, americans tip money at resturants, for pizza delivery and even taxis?
Here in Australia, no mater what job it is, you get paid by your boss and tips dont exist. So, can somebody explain why america has tipping?

Answer 1

What a great question. Well done.

Here's my opinion. Tipping in the states is just a way for employees to be paid a bit exrta without the owner of the business having to cough up, thus sustaining the general business economy. Tips are taxed in the states therefore they form part of your total wage. What it means is that if you slack off, you're not going to make as much money.

Personally, I think tipping in the states is a ridiculous concept. Do you tip at MacDonalds, KFC, or any other fast food joint? No. Why not? I don't know, it would seem that those people work as hard if not harder than your average waiter/barman. It's just some stupid fad that went too far. What I hate is the fact that if you're on holiday in the states and you don't tip, you get treated like you're some kind of mass murderer, stealing the food from their children's mouths.

Answer 2

I looked this up in wikipedia --- although there is a detailed list of what sorts of services are customarily tipped for, there is not an explanation of WHY we tip in the first place, as opposed to other countries. My guess would be that it has something to do with the notion of the American Dream that if you work hard enough, you get what you deserve, and that people might pay you more than someone else because you do said task better. If this answer is good enough, I'll take a tip .. ! ;)

Answer 3

The problem with tipping is that the customer subsidises the wage of a employee without the employer having to do it. If you go out for a meal and the meal cost $100 and you tip $20 obviously the meal cost you $120. All the employer has to do is increase costs to cover the increase in wages and the end result is the same without the customer having to tip or feel pressured to tip.

Answer 4

I'm not sure why it started but it is the system now that those types of jobs, especially waiters/waitresses and bartenders make a lower minimum wage then the rest of the state they work in and rely on tips. Don't know why...they already have a difficult job dealing with the public and running around like crazy to make people happy....I think they should make at least the minimum wage and even more for all their hard work.....

Answer 5

Tipping is a multi-billion-dollar phenomenon that challenges the traditional assumption of selfish economic agents who have no feelings and do not care about social norms. This article reviews the early history of tipping and offers an economic analysis of different aspects of tipping. Using the historical evidence, it then addresses two major questions about tipping: why do people tip? And does tipping improve service quality? The reasons for tipping changed over the years, but conforming to social norms and avoiding embarrassment were generally the main reasons. Tipping seems to improve service quality; the extent of the improvement varies across occupations.

Answer 6

It is supposed to be to insure good customer service. Now it is expected, and some jobs like waiting tables only pay $2 an hour, because the company's expect them to get tips to make up the difference. So they depend on those tips. it is customary to leave 20% of the bill. You leave more if you got great service.

Answer 7

because we like good service and we reward it, thats why when you eat at a restaurant in most other countries (from experience) if you have a bad experience thats just tough, but in the states they make sure you're always taken care of, its a little annoying if you're the waiter having to hear all the complaints, but its better for the consumer. I live in Switzerland now and I can't stop complaining about the service in cafés and restaurants, they get paid the same if they bring your coffee in 20 minutes as they do if they bring it in 3 so why bother if its busy?

Answer 8

It's a way to say "thank you". If someone is particularly friendly and helpful, even though they are waiting tables and their feet probably hurt, it is nice to leave something for them. If they are surly and rude and make the meal unpleasant I don't leave as much. I still leave something, unless the person has been a real jerk, because they may not get paid a lot by their boss.

Answer 9

It encourages workers to better serve their customers. If restaurant workers, gas station attendants, and the like were just paid a flat wage they'd just do their jobs half-arsed. Unfortunately though it gives their employers an excuse to start them at the lowest legal salary, and to skimp on health benefits.

Answer 10

Because it's customary and they are intentionally underpaid.
So tip 10 percent for sloppy service, 15 for decent, 20 for excellent and 33 at Hooters.