Jonathan Gold and I will never be friends.

Here's a tip: be good to your mother. Illustration: Sturt Krygsman

The savvy food critic who writes for the LA Weekly is an avowed and unapologetic tipper.

His recent column, Top Ten Tips for Tipping is not only hard to say, the subject itself is completely indigestible. “The idea that a tip is optional, or variable, is a useful fiction, even when the soup goes tumbling into your lap,” Gold writes.

Gold then lists 10 possible and sometimes nightmarish scenarios, where despite an alarming lack of service, diners are expected to cough up a 20 per cent tip.

Granted, Gold writes as an American for Americans in America, where tipping has long been part of the establishment.  But it’s comforting to note that even THEY argue about tipping.

For good reason.  According to this piece in the New York Post, around October last year an 18-20 per cent tip became mandatory at many of New York’s more upmarket bars. Order a bottle of wine for $35 and you could expect to see an extra $7 added to the bill.

Six months on, the practice has spread. Now even the most humble of the Big Apple’s restaurants are permitted to add 20 per cent to the bill, so long as the policy is clearly stated on the menu.

Not surprisingly many diners are finding this hard to swallow.  For a start, 20 per cent is a ten per cent more than Americans were used to forking out in tips, even five years ago. A fact that will sting just that bit more when they find out why.

Gulliver, The Economist’s business traveller’s blog says it’s the humble and unknowing tourist that should take the blame:

“Foreign drinkers who don’t understand America’s tipping culture and leave without paying extra for service… bars are forcing customers to pay rather more than they might expect.”

No need for us to feel guilty about it though; British travellers recently nominated “tipping anxiety” as their number one travel bugbear. But we don’t get off entirely scot free - there are some excellent lessons to be learned here.

Firstly tipping is inefficient because it doesn’t guarantee a service boost. It’s also very quick to rise once it’s secured a place in the social fabric.

Lydia Slater, a British blogger for The Independent, has already noticed a creeping effect with everyone from the girl who washes your hair at the hairdressers to the guy who delivers a pizza expecting a bit extra.

All excellent reasons to hold true to our reputation as the world’s stingiest tippers. McCrindle Researchers found that just eight per cent of us tip on a regular basis and at the first sign of economic downturn, it’s one of the first things out the door.

Wages play a big part in this discussion. The average Aussie waitperson earns between $15-$20 per hour; while in America it’s more like $US8.

The Australian mindset is based on service. If it’s good then the person deserves a tip as a reward. It’s not an automatic reflex, or worse, an imposed extra fee.

Taxis are a good example. If the driver knows where to take you, doesn’t ask too many questions and takes the shortest route, then you don’t think twice about throwing him an extra couple of dollars on your way out the door. If his cab stinks like kebabs and he drives like a blind man, he gets nothing.

For the sake of an affordable lifestyle, let’s hope we stay that way.

96 comments

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    • Nathan says:

      06:08am | 24/08/11

      After currently living in Toronto for the last 2yrs the whole tipping thing infuriates me. I do tip what is expected cause it is the culture and hell the staff get paid badly. Even in Sydney i did tip maybe not as much as i do now but if the service was good i have no problem with it. My problem lies in that it is expected and since that is the case you get treated accordingly. The level of service is generally poor cause they know they will get it either way.

      I had an altercation after having to wait 11mins(yes i timed) waiting for a bill, the server knew we where waiting and carried on talking to her friends beside us telling us a story. I tipped a small amount and was told off by the server. I asked why should i tip when everyone is waiting for you to finish your conversation. Obviously didn’t go down well and my Canadian girlfriend was mortified but why should have to tip if you get treated like crap?

    • Unionist says:

      07:01am | 24/08/11

      Because in Canada you idiot waiter staff PAY TAXES on tips and if you dont tip you asshole they have to still pay the taxes on a tip you fail to give. This is how it works since you have been in Canada for 2 years and never bother to find out. The Canadian tax dept looks at the total of the funds that have gone through the til that day. It is spit by the number of waiter staff then a 8 percent levy is applied to the 15% tip you shold have given and the Canadian tax dept thinks you have gained. THAT’S WHY YOU TIP IN CANADA becuase the poor waiter staff pay taxes on their tips and if you dont pay they still have to pay taxes…. now you might know why they get angry when you fail to tip.

    • acotrel says:

      07:05am | 24/08/11

      Nathan, when the waitress told you off for being mean, you should have reached into your pocket, and found the smallest denomination coin, handed it to her and said ‘OK now ?’  Or you could do what one of my mates used to get up to.  He’d go to a restaurant and have a meal with one of his old teaching cronies, then jump up and run outside leaving the other guy to deal with the waitress.

    • toms says:

      07:50am | 24/08/11

      in reply to unionist. bad luck ! get the government to change the ridiculous tax system rather than ask people to subsidise a clearly illogical inefficient system

      I mean take a look at what you are saying - the tax department taxes you on the assumption of a 15% tip regardless of whether you get it or not - seems to me they need better unionists in canada.

    • redvixen says:

      08:20am | 24/08/11

      @ Unionist - Isn’t that even more reason that the wait staff should treat you like you matter?

    • Tubesteak says:

      08:57am | 24/08/11

      I think I’ve just seen a new entrant for dumbest things in the world: a tax on tips you may or may not have paid.

      What a ridiculously moronic concept.

      I’m not exactly Mr Pink when it comes to tipping but I only do it when I think the service warrants it.

    • Anubis says:

      09:32am | 24/08/11

      Don’t say this too loudly. Our current Government needs all the new taxes they can get. If they hear about this you could pretty much guarantee it will be in one of their next Policy (Brain Fart) Announcements.

    • Ed says:

      10:08am | 24/08/11

      It’s for the birds… good service should not cost extra. Especially not in Australia where it is factored into the cost of your meal

      If you won’t do your job well if you don’t get tips, the get another job.
      If you can’t get another job, don’t suck so much.

      America is a different story as they pay their waiters less than what you can live on.

    • Michael N says:

      12:22pm | 24/08/11

      @ Unionist. That is the most ridiculous reasoning I have ever heard. We should reward a bad performance because otherwise the person who performed badly will be punished? Wow. Is that written down in your union’s policy documents because I would love to be able to cite that? Anyway, best of luck in your continued conquest to drive efficiency from the workforce. Asshole.

    • Brian says:

      02:08pm | 24/08/11

      Strange, the website of the Canada Revenue Agency makes absolutely no mention of this, Unionist. It would also be inherently unfair, as the tips are unlikely to be evenly spread. What it DOES say is that when the tips are all given to the employer and then distributed to the waitstaff evenly, the EMPLOYER reports them, and they are then taxed. If the payment never goes to the employer for distribution, it simply says that you are to add it to Line 104 of the return.

      Methinks you are either trolling (and assuming that Australians don’t know Canadian law and aren’t willing to look it up) or woefully misinformed about the Canadian tax law yourself. It is possible that they use 15% as a guideline check internally (much the same as claiming $5000 of laundry expenses here will get you into trouble…).

      Another option has just appeared, though. A secondary google search has revealed that the province of Quebec (not, it should be mentioned, the federal government of Canada) taxes with the assumption of 8% tips. It’s also the only province which requires that employees report their tips earnings to their employer.

    • Aitch B says:

      02:27pm | 24/08/11

      @Unionist

      Way to win friends, mate!!

      I don’t see anything in Nathan’s post that warrants the vitriol that you came up with!

    • acotrel says:

      06:27am | 24/08/11

      The other day I had dinner with friends at a Chinese restaurant in Benalla.  The nice Chinese lady tried very hard to charge me corkage, when the only wine my wife and I had drunk was bought from her establishment.  I have one very strict policy with the businesses in our town - if they ‘make every post a winning post’ - I WALK AWAY and never go back!

    • Barney says:

      07:02am | 24/08/11

      You showed them!

    • jf says:

      07:24am | 24/08/11

      Maybe the nice Chinese lady knew of your policy.

    • TomZ says:

      12:59pm | 24/08/11

      ... a bloody long walk back to Qld from Benalla?

    • Tippy Canu says:

      04:19pm | 24/08/11

      The cat population dropped dramatically in Benalla from a healthy 70,000 to just 8 in the few years since that restaurant opened,5 of the remaining cats are union members therefore feral

    • acotrel says:

      06:57am | 24/08/11

      If a job pays $15 per hour in Australia, that is what it is worth in the US.  Why should we go on a guilt trip and make up the shortfall because some opportunist is exploiting his sta ff.  The reality is that some employers would have their staff working for subsistence, if they could get away with it.  Fortunately in Australia, we only ever had a little bit of slavery, and most employers recognise their responsibilities.  Their expectations are obviously different to those in the US?  I only ever tip at one restaurant in our town - simply because it’s the best, and I wan’t to keep it that way.  It is precious to me, I take my beautiful wife there when she returns from Melbourne after looking after her aging parents, and it’s a lovely experience! The food is excellent, the servine, wine and coffee are superb, and the price is the same as the local flash pub. It is a quality, value for money , establishment.

    • Gregg says:

      07:56am | 24/08/11

      @acotrel
      ” If a job pays $15 per hour in Australia, that is what it is worth in the US.”
      That is just so stupid Acca for the total cost structure of life in the US is different, ie. you pay a lot more for many things here and the yanks are lucky if they get two weeks annual leave.
      What do you think wages are like in Asia and that is why most manufactured goods are imported.

    • marley says:

      09:07am | 24/08/11

      Well the problem with your theory, Acotrel, is that the level of service one gets in most establishments here is not in fact worth $15/hr.  And it certainly isn’t worth penalty rates.

    • toms says:

      09:35am | 24/08/11

      @marley

      the surprising thing is that the service isnt worth $15/hr - I just don’t get it as most people are willing to tip as long as they get good service.

      if you bust your a** to provide really good service and lets say work a 3 hour shift 7-10pm you get $45 straight up and if you work in a quiet place where in that shift you only wait on 6 tables that spend $100 but your service is so good they leave a 10% tip, you’re looking at picking up $105 (most of it tax free) for 3 hours work.

      thats good money in my opinion and without much more effort than getting a lousy $45 for providing lousy service.

      the question is why (particularly in australia) are wait staff (un)happy to get the $45 and not trying hard to get the $105?

    • acotrel says:

      05:40am | 25/08/11

      @Marley
      Some of us eat at decent restaurants, and avoid Macca’s !

    • marley says:

      07:36am | 25/08/11

      @acotrel - haven’t been in a Maccas in years.  When the wait staff in your average restaurant bring your main before you’ve finished your starter;  when they lean across the table to pour your wine rather than go around it;  when they don’t know the menu or the wine list;  when you give them your order and they reply “no worries”;  when they come back with the plates and have to ask who ordered what;  when they stand and chat over in a corner while you sit surrounded by dirty dishes; and when they take 15 minutes to bring the bill - do I think that service is worth $15 an hour?  No, I damn well don’t.  But that’s what you get.

      Oddly enough, given what it is, Maccas provides better service than a lot of places   At least its fast and you get a smile.  And they quite often call you sir.

    • Tilly says:

      10:56am | 25/08/11

      I work in hospitality and I can tell you right now that there are many, many places that pay less than minimum wage, cash in hand.  It’s pretty terrible, but in most cases the people that take the work don’t have a choice, or don’t know their rights.

      I’m a fence sitter on this issue.  As a waitress, I expect good service wherever I go, and will not tip if the service has been poor.  Saying that, many people don’t really understand how hard it is to be a waitress sometimes.  Yes, everyone takes crap no matter what industry they’re in, but most of the time you have to deal with people who can see it’s very, very busy, and that the waitresses are run off their feet, but still expect impeccable service. 

      @Toms, my guess is that wait staff who work for the $45 don’t want to go to an establishment that pays the $105 because the work conditions would be far harder.  I went for a job at a really highly regarded place and they wanted everything I had to give.  At least in the cheaper places, they respect that most of the time you’re just a uni student doing the work to get by.

    • Mahhrat says:

      07:05am | 24/08/11

      Funny you should mention taxis and tipping.  Did you know that in many areas, Wheelchair Accessible Taxis are awarded $10 for each wheelchair passenger they pick up?

      Guess how many drivers ever see any of that $10?  In my area, of the four operators I know of, one of them pays their drivers $5, the other three keep it for themselves.

      If I ever go to a U.S. restaurant, I would ask the person looking after me if I can tip them directly - I’ve got a nasty feeling a lot of these gratituities go to the business owners and not the waiting staff.  Of course, I would ask to ensure they don’t get in trouble for “not collecting the tips”.

      That said, they tip by rote in the U.S, we tip for good service here.  You can smoke inside in many places in the U.S, you can’t smoke inside nearly as much here.  You follow the culture of the country you’re in.

    • marley says:

      09:19am | 24/08/11

      @Mahrat - not sure about the smoking thing in the US these days.  I think it very much depends which state you’re in.  I know that the last time I was in Washington (the state, not the city) smoking seemed to be banned in just about all indoor venues.  I expect in Texas, though, it’d probably be encouraged!

    • bella starkey says:

      09:43am | 24/08/11

      Smoking bans have been in place in the US for far longer than here. Except in Vegas, you can smoke in a shopping centre in Vegas. Despite this, they really haven’t got the outdoor heating thing worked out there.

    • Tom says:

      10:51am | 24/08/11

      bella, the outdoor heating doesn’t exist as much there because in many places it is just too cold to sit outside in winter - i.e. all of the north east.

      And I agree with Mahhrat - if you are confused, just ask discreetly. 99% of the time the waitstaff will be reasonable and explain to you a reasonable tip if they can see that you are making the effort to not commit a social faux pas.

    • SimpleSimon says:

      02:44pm | 24/08/11

      @marley - lol you would think that of Texas! The number of pickup trucks down here is unbelievable! But they aren’t allowed to smoke inside either. I imagine there were a few riots when that “right” was taken away from them!!

      We tip here, but it’s really a confusing system. Well, maybe not so much confusing as “backwards”. That said, there are quite a lot of things about the US money system that could be vastly improved.

    • bella starkey says:

      02:48pm | 24/08/11

      @Tom

      I know! hence the urgent need for outdoor heating.

    • Fiddler says:

      07:26am | 24/08/11

      with the outrageous prices you pay in many Sydney restaurants for a big plate with a small meal designed to look like a creation by Frank Lloyd-Wright, underpaid staff is the owners fault

    • Joan says:

      08:03am | 24/08/11

      Yes, its all in now- serve a miniscule lonely piece of meat circled by a creative sauce on a big white platter, and charge extra for chips, greens, and veg. - all served by profoundly stiff -board, ye old fashioned butler style   waiter.

    • Gratuitous Adviser says:

      07:29am | 24/08/11

      The one great thing about Australia is that we have maintained the wage levels of our people in service industries at a more reasonable level than the likes of the US, Canada and the UK, in that order therefore making tipping voluntary, as it should be.  The Japanese do it the best where in their culture tipping is considered equivalent to begging and is a great loss of face if received.

    • JS says:

      08:39am | 24/08/11

      I agree with the Japanese. can’t stand it when hotel porters leave your bags then stand there begging like a dog for a bone. I just think “do you have no pride?” i tip them because its expected, but find the whole thing degrading for all concerned.

    • Mick says:

      02:11pm | 24/08/11

      Hotel porters, lol. Easy money for them. I’ve taken my luggage to and from the airport, it’s been (sometimes) thousands of km’s across the world, and some porter wants a tip for carrying it the last 50m of the trip taking 5 mins tops.

    • Lisa Heaven says:

      07:35am | 24/08/11

      With the promise of the best dining experience you’ll ever have, I ventured into a prominent restaurant in Toowoomba several months ago.  The buffet presented to patrons was far from mouth watering as portrayed on the TV advertisement I ahd seen.  Needless to say that having witnessed other patrons leanng over the giant chocolate fondue as excess luke warm chocolate escaped their mouth and dribbled back into the fondue was a good indication that I would not be leaving a tip nor will I ever return.

    • Joan says:

      08:17am | 24/08/11

      Something about the buffet that brings out the pig in some. Like pigs at a trough they pile gigatinic mounds of food onto to their plates, scurrying backward and forward for refills- their tables piled with plates of empty oyster shells, prawn shells,  crab shells, half finished portions. I`m sure waiters feel quite disgusted cleaning up grand mess left after the buffet lot.  They deserve the tip just for the cleanup.

    • Gregg says:

      08:07am | 24/08/11

      Your heading says it all Lucy.

      You really wonder where the yanks developed this mentality from, especially when there is great strength in some of their Unions, the Auto workers for instance and perhaps they put cars ahead of paying to eat out.

      The wage of the people in the US is not so relevant in comparison to Australia for cost structures are greatly different and though theor auto workers may do well, their vehicles are very cheap compared to here.
      So they have something of an internal imbalance amidst all their other problems.
      And then you have the monstrosity of executives and their many assistants levels salaries for doing SFA, so there are many who can no doubt afford to tip generously.

      Not that I’ll likely be dining out state side too soon but if a restaurant had a mandatory tip, I’d be looking elsewhere and resorting to Maccas if I had to.
      That said, it is not unknown for me to tip for good service.

    • SimpleSimon says:

      02:47pm | 24/08/11

      When you pay a bill in America it is presented thusly:
      Due $100.00
      Tip $_________
      Total $_________

      So you fill in the Tip section with as much as you want to tip, and the total section with the combination of the Due and Tip figures and that amount gets deducted from your card (or you give them cash, whatevs).

    • Ben C says:

      03:32pm | 24/08/11

      @ SimpleSimon

      A lot of restaurants these days have that same layout on their EFTPOS receipts - I always fill out $0 in the tip section, and pay the tip in cash.

    • Daniel D says:

      08:22am | 24/08/11

      I think the Japanese have it right. There seems to be a culture of disrespect when it comes to the service of food. It allows people to act “above” others, and the culture of complaining about food turns people in to knobs. Sure if you are paying for food/service it should be right but some people just take it too far. Oooh, you won’t come back because of some minor matter? What a shame.

      It goes both ways though, people’s holier than thou attitude builds a healthy disrespect for the customer to the point that sometimes you feel are inconveniencing the waitstaff by asking for a bread roll.

    • Jane2 says:

      01:43pm | 24/08/11

      When I worked in hospitality the one comment I hated the most was “The customer is always right” as it almost always came out of the mouth of someone who was trying to get something for nothing.

      It may sound judgemental but why should a missing bread roll by compensated with a free meal which is what most of the time people were after. If the food was wrong or delivered too slowly then I would go to the ends of my ability to make it up to a customer but when customer expectations where out of alignment with the short fall…In the case of a missing bread roll I would give them a bread basket which I, and my managers, believed was more than fair compensation.

      Is that bad service or fair service?

    • Ben C says:

      03:36pm | 24/08/11

      @ Jane2

      I’ve had that happen to me at my parents’ shop - the customer takes a look at the menu, doesn’t like what they see and try to customise the menu to their own tastes. When we say that we only do what’s on the menu, or that it will cost extra, they’ll turn and say, “But I’m the customer here, the customer’s always right.” I tell them where the door is.

    • Anna C says:

      08:57am | 24/08/11

      I won’t tip a waiter in a restaurant unless I receive unbelievably good service; needless to say it doesn’t happen very often in Sydney. Unlike in the US we pay pretty decent wages to waiters and I don’t see why I should be expected to subsidise their wages even more. If waiters expect to be paid higher wages then it can come out of the restaurant’s profits and not my wallet thank you very much.

    • Traveller says:

      09:21am | 24/08/11

      20% is nit an increase of 10% but an increase of 100%

    • AdamC says:

      09:22am | 24/08/11

      Australians’ aversion to tipping comes, I think, from our nation’s paradise-for-the-working-man founding mission. After all, why should working people like waiters and bartenders rely on gratuities from happy customers to receive a fair wage? On the contrary, the Aussie mindset asserts, the proprietor should pay his staff fairly and work the cost into transparent prices for food and beverages.

      That is a perfectly fine argument, but so is the American one. Sure, as Lucy says, tipping doesn’t guarantee good service, but it certainly encourages better service. Most of all, it discourages bad service. As a result, when travelling in America recently, I found the service levels in most places - even very modest ones - to be vastly superior to the Australian equivalent.

      The other thing to remember is that happy diners and drinkers are much more generous payers than the grasping entrepreneurs and corporations which own the restaurants and bars. So good waiters enjoy good incomes in the US. By contrast, in Australia, even the better staff are paid quite poorly.

    • Brian says:

      02:24pm | 24/08/11

      The thing is, tipping only encourages better service when it isn’t customary and expected regardless of the service level, which has happened now (it’s even on the menu, for example). And if it’s pooled and then split, which is now the norm, it no longer encourages an individual to go the extra yard, knowing that their tip is going to be split with the lazy kid in the back on his phone - so it’s not just the good waiters enjoying the good incomes any more.

      I have no problem with tipping for excellent service (or even good service). I do have a problem with the assumption that I’m going to do so every time, regardless of how happy I am.

    • Ren says:

      09:28am | 24/08/11

      I couldnt agree more. I tip when I get good service.

      I come from the Gold Coast so you might imagine, I dont have to tip very much. You go into a restaurant and you get greeted with “you right?”

      I did however tip for first time in ages at the Steakhouse in Robina. I actually got a waiter that knew what he was talking about and gave good service. I was shocked.

    • Al says:

      09:31am | 24/08/11

      Sorry, but I don’t care if the staff are paid ‘crap wages’ or are taxed on tips they might get under the countries laws.
      If they don’t provide decent service (i.e. Timely provision of food, clean establishment, good service etc) then no tip.
      If they want to earn the tip they need to provide the service.
      If they are taxed as per Canada then they should know that they need to provide the service so the don’t pay too much tax, thats THEIR problem, not mine.
      Any buisness that tries to place a mandatory tip on my bill, I simply refuse to pay it simply because they attempted to take away my own choice.

    • ibast says:

      09:44am | 24/08/11

      I don’t mind paying a small tip at a restaurant but the proliferation to other areas worries me. Tip jars on bars make me cranky for example.

      I’ve been to the US a few times and the tipping system is confusingly inconsistent.  The amount and expectation varies depending on the industry and the situation.

      For example I had a buffet breakfast as part of a hotel package deal.  I figured out after a couple of days the guy who showed me where to sit each morning was expecting a tip.  All he did was show me to a table I could have found myself.

      On the other hand if you go to a diner for breakfast you are not expected to tip, despite the fact you get more service there.

      Perhaps the compulsory tip is best to break Americans of this bad habit.  If it just becomes part of the bill, they will no longer feel compelled to tip and the cultural cycle get broken.

      I just hope Australians don’t develop this bad habit.  Tip for good service at restaurants only please.

    • Hominy says:

      09:46am | 24/08/11

      When I’m in America I tip 10 percent unless the service is crap.
      If the service is really crap, I’ll leave a nickel or dime just so they know what I thought of their service and didn’t forget

    • Mike says:

      10:49am | 24/08/11

      I’ve heard that a lot of places in the States are starting to expect 20% now. A mate of mine (American) was telling me how he went on a fishing trip, and afterward overheard the staff complain that he tipped too low (I think he tipped well over 10%, maybe even close to 20%) and one of them actually said to tell him (my mate) if they thought it was too low. That’s going overboard (no pun intended). I didn’t even know you would tip for a fishing trip!

    • redvixen says:

      01:29pm | 24/08/11

      @ Mike - In the US all forms of hospitality and service are “supposed” to be tipped.  This includes tour guides.  On my last trip to the US I also found out that they tip their hairdressers!

    • Jane2 says:

      01:58pm | 24/08/11

      @Redvixen, I always find the “tipping the tour guide” interesting because if you are even crap at maths it doesnt take much to work out a busload of tourists each tipping even just 10% of the tour cost equals a LOT of money. Some tours recommend $10per day per person, that is still $430 per day on top of base salary for simply doing their job.

    • marley says:

      04:35pm | 24/08/11

      @Jane2 - took a tour recently in Aus - 2 weeks in the back of beyond.  The driver/guide did a running commentary all the way, hoicked our luggage to and from the bus, and organized a land and air search when one of our number got lost.  You’re damn right we gave him a tip!!

    • Jane2 says:

      09:51am | 24/08/11

      My pet peeve with the whole “but they are paid less” arguement is why would someone work in hospitality for $8ph when even the lowest factory hand gets paid $12ph unless they know full well that they can earn more than enough from tips to cover the short fall.

      After all they would have to be serving up the worst service in history (or work in the quietest restuarant) not to earn $4 which would probably equate to serving one person.

      I know some staff here in Australia that earn more than $4ph in tips and this is in a society where tipping is not the norm or expected.

    • Jason Todd says:

      08:13am | 25/08/11

      It’s a risk vs reward thing. Sure, the factory job gives you a solid (albeit) low wage, but hospitality offers you the opportunity of, in a good week, earning two or three times as much. The flip side is that in a bad week, you may earn half as much, but for some the gamble is worth the downside.

      As for the other reasons people take hospitality jobs; they are the same as they are here; Good flexible hours if you are studying. Abundant opportunities (businesses are everywhere), high turnover (always a job going), transferrable skills (if you bartend or serve in one place, you can bartend or serve anywhere) and generally low skill requirements for entry level positions.

      I have a few American friends who worked in hospitality in various roles and places in the states. I’m not sure about the $8 cited in the article, but anecdotally from them, the wages paid by the business could be as low as $2 or $3 an hour, most of which is consumed in tax. One of my mates showed me some of his old pay slips, and I was shocked to see that none of them showed more than $5 for 30+ hour weeks.

      After hearing my friends horror stories, when I was in the states, I tended to tip 20%-25% for bar/restaurant stuff. 15% on one or two occasions where I felt the service was not up to scratch.

      At home, I tend to only significantly tip food delivery drivers and taxis. Pizza delivery I always tip, regardless of delivery speed, because I did the job myself when I was younger and know what it was like.

    • James says:

      10:24am | 24/08/11

      “Taxis are a good example. If the driver knows where to take you, doesn’t ask too many questions and takes the shortest route, then you don’t think twice about throwing him an extra couple of dollars on your way out the door. If his cab stinks like kebabs and he drives like a blind man, he gets nothing.”

      I don’t ever tip cabbies. A 10% ‘service’ charge is automatically added to your fare regardless of the service or kebab smell. When did cabbies start mandatory service charging?

    • S.L says:

      12:49pm | 24/08/11

      @ James. You don’t think twice about throwing a cabbie a few extra dollars for good service then in the next breath you declare you never tip cabbies?
      The 10% service charge on a fare is only added if you use a card and it’s automatically added onto the fare when he uses the eftpos machine, the driver has no say in it. The recipient of the 10% is Cabcharge by the way not the driver.
      Oh hang on! I bet your next door neighbours, wifes, best friends brother in law drove a cab part time 20 years ago so that qualifies you to know exactly what they get up too!

    • Brian says:

      03:24pm | 24/08/11

      S.L. - the first part of James’ post was a direct quote, and not his words.

    • GlendaSings says:

      05:19pm | 24/08/11

      James - the service charge is not for the driver, it’s for the company. Drivers get 50% of the takings, and while sometimes you might look at it and think “That trip cost me $40, he must be raking it in”, in reality the driver might finish your fare then wait half an hour or more during quieter times for his next job. Sometimes that next job is a $10 trip around the corner, then it’s wait in the queue for another 40 minutes.

      I used to be married to a taxi driver, and I can tell you that work very long shifts and are NOT making a mint out of it.

    • Babe in the Woods says:

      10:37am | 24/08/11

      I have long found advance tipping works well.  In my job, I have to take clients for drinks or meals on a regular basis. There are a few select places I go to and know most of the staff.  I normally give the person who will be looking after us about fifty bucks in advance, plus another fifty for the kitchen.  After that my clients are treated like royalty.  OK, I know a lot of people might not agree.  But to me it is a great system, my clients have a wonderful night, and I more often than not walk away with a signed contract.  When I am out with just my partner, we have no problem tipping if the service is efficient and friendly (without being familiar) and the food is right.

    • Mike says:

      10:44am | 24/08/11

      I’ve always thought a restaurant or other establishment should sort it out for themselves. If that means charging a dollar or two more per dish and a bit more for a drink etc in order to pay their staff a fair wage, then that’s what they should do. The service quality of their staff is something they should take a direct interest in, and shouldn’t be up to me to “reward” someone simply for doing their job. I want to pay what the bill says at the bottom, the rest doesn’t concern me.

      Worst is when compulsive tippers (eg Yanks) go to foreign countries and bring their tipping culture with them, eg to Asia. Soon everyone expects a tip if you’re a foreigner and the locals (other than those receiving the tips) wouldn’t welcome it if it started to become expected of them as well, I’d imagine.

    • iansand says:

      10:59am | 24/08/11

      When in Rome…

      I have been abused by a taxi driver (before I discovered that they will break a big bill so you can tip).  I have watched waiters almost come to blows over a perception that one is intruding on the other’s territory.

      I have even heard that, for certain high tipping environment, waiters pay the owner to work there.

    • RachE says:

      03:24pm | 24/08/11

      ‘High tipping environment’ ... more likely to be strippers paying the club owner to work there than waiters!

    • Shane From Melbourne says:

      11:34am | 24/08/11

      Meh, the Norwegian Cruise Lines just add it to your bill at a rate of $10 a day. No fuss, no drama. P&O Cruises had the same deal, but I think they they got rid of it for all inclusive fare. I’ll have to check when I go.

    • Al says:

      11:44am | 24/08/11

      And if they don’t provide decent service etc. do you have the option to not pay it?
      If not then it is NOT a tip, it is an enforced additional charge.
      I also suspect that the company takes a chunk out of that $10 a day and the staff see only a minor %.

    • Al says:

      11:46am | 24/08/11

      Also, where is the option to reward for outstanding service if it is just added to your bill?
      Can you choose to pay a specific employee of the company an additional tip?
      I doubt it. (Don’t these lines refuse cash on ship and force people to use a card?)

    • Jane2 says:

      02:11pm | 24/08/11

      I talked to my room attendant on one of the cruises and found out that the compulsary 10% isnt divided evenly. The English speaking front of house staff get a larger percentage than teh hard working cleaners/cooks etc. Why am I not surprised *sigh*

    • Ben says:

      12:31pm | 24/08/11

      I would only tip if service is incredible; otherwise its an excuse for employers to lower wages.  And places that ask for “tips” get nothing

    • marley says:

      12:54pm | 24/08/11

      As they say, “when in Rome.”  In Australia, hospitality workers are quite well paid, particularly given the level of service often on offer. No tipping required.  In North America, hospitality workers are paid substantially less, and it is expected that good service will be rewarded by the recipient of that service.  That may or may not be right, but your refusing to tip is not going to change the business practices of several million bar and restaurant owners.  And in Europe, of course, service charges are added automatically to the bill irrespective of service levels.  You don’t have a choice.

    • Jane says:

      03:51pm | 24/08/11

      Marley,

      Actually even though the service charge is added automatically in Europe it doesn’t mean you HAVE to pay it. You can request it taken off, you don’t have to give a reason, but it really helps if you do. ie. poor food, service, hair in the soup etc. Be prepared for a argument though…but they will eventually take it off, as it can’t legally be enforced and they know it. I’ve had a few arguments over this one, in Spain, UK, and Poland.

      What I really didn’t get was the notion of tipping your hairdresser ! I’d been going to the same salon for years in London before someone told me - obviously the guys had realised I was clueless and never gave me grief about it (maybe a small addition to bill may have happened without my noticing ?)

      And I have to say that even though the tipping culture hasn’t made it to Australia too badly yet, I’m happy to tip in some places, only because most aussie waiting staff are actually pleasant, makes a bloody change from some of the rude buggers in Europe/UK. I almost wanted to tip the girl in Coles the first time I went shopping here again, she actually asked if I was having a good day instead of grunting at me (Tesco’s take note).

    • Union St says:

      04:25pm | 24/08/11

      This whole argument could be solved if the Punch consulted Craig Thompson,an economic adviser,surely he knows the fee for good service

    • A Dose of Reality says:

      01:05pm | 24/08/11

      There is a basic difference, that the article could address much more clearly.

      Tipping is not best described as American ‘Culture’.  It is far better described as an element in that country’s industrial relations system (the customer pays the worker rather than the employer).

      It is the result of a lack of a basic wage.  People ‘tip’ the waiter because they know (in the US) that the waiter is virtually unpaid.

      This differs dramatically from Australia, where an employer is compelled to pay workers.

      Even the phrase ‘minimum wage’ is a misnomer here (used to introduce a scale that - when and only when compared to the US - would appear adequate).  A subtle misrepresentation of a term not used here until ‘workchoices’. 

      What we understand as a ‘minimum wage’ differs greatly to those who rely on tips in the US to survive.

      Comparing the 2 countries with respect to ‘tipping’ is literally using passionfruit to compare orange to apples.

    • SimpleSimon says:

      02:52pm | 24/08/11

      I don’t think that’s entirely the point. I mean, what you say is correct, but that doesn’t change the fact that it’s a broken system. Tipping is virtually mandatory in the US, for almost everything. Yes, people tip the waiter because they know the waiter is underpaid, but employers continue to underpay the waiters because they know people will tip. As a result, tips are brought in to a component of the actual bill paying process at the end of your meal. It is fundamentally flawed. Employees should not have to rely on handouts from customers to survive because their employer won’t pay them a reasonable wage.

    • marley says:

      03:40pm | 24/08/11

      @Dose of reality:  With respect, I very much disagree with your take on this, and Simple’s as well.  The US and Canada, where I come from, most certainly do have minimum wages:  they are lower than here, true, but they exist nonetheless.  It is most unfair to say that there is no “basic wage” or that American and Canadian employers do not pay their employees.

      The key difference, from what I can see, is that the minimum wage here is based on the concept of a living wage, whereas there it is based on the concept that jobs requiring low skill levels should be paid in line with the value of the work, not the needs of the employee. Since many minimum wage jobs are entry level or part time jobs, a case can certainly be made for this perspective. 

      As for the employer rather than the customer paying - in North America the customer pays through tips;  in Europe he pays through service charges.  It would seem to me that Australia is the exception, not the US. 

      And I would point out that while waiters in NA may indeed be on the minimum wage, they do have the option of working harder and providing better service in order to get tips;  other minimum wage workers (cleaners, day care workers, nurses aids, etc) do not.  They live on those minimum wages alone.

      What is the ideal system?  Frankly, I don’t know.  Generally, I’m not impressed with service standards here, so maybe a tip would be an incentive.  On the other hand, service standards are generally pretty good in Europe, where tipping is not the standard either. 

      I just do not accept that the issue is quite as you have painted.

    • A Dose of Reality says:

      12:15pm | 25/08/11

      Marley,

      Semantics.  I read “virtually unpaid” to mean the same thing as you put as “minimum wage”.  To my mind $10 per hour is virtually unpaid.

      Naturally this is as I come from an Australian perspective - and by the way I did not put the US as the “exception”, I pouted to the fact that to talk of the US tipping ‘system’ in a manner that compares it to the Australian practice (non-practice) is misleading.

      As I said;
      “Comparing the 2 countries with respect to ‘tipping’ is literally using passionfruit to compare orange to apples.”

      SimpleSimon;
      You have pretty much put forward the emotional aspect of what I put down.

      You would be even more (rightly) horrified as to what entrenched the use of the ‘minimum wage’ - and it’s true role in the shaping of the US.

    • Steve says:

      01:11pm | 24/08/11

      @Al   +1 from me.
      Once you make tipping mandatory or built-in, it ceases to become a gratuity, which is what a tip is. No option to either leave a tip or not leave one makes it no longer a tip…

    • nikki heat says:

      01:17pm | 24/08/11

      never tip anyone and always tip rubbish into the bin.
      never tip at TAB !

    • Ellis Wyatt says:

      02:31pm | 24/08/11

      Many US States also have a sales tax that is added to restaurant bills.  Are patrons expected pay a tip on the tax exclusive or the tax inclusive price of the meal (i.e. am I meant to pay a 20% tip for being taxed as well)?

    • bella starkey says:

      03:37pm | 24/08/11

      Depending on where you are you double the sales tax amount for the tip.

      It’s the easiest way of doing it.

    • Utopia Boy says:

      03:26pm | 24/08/11

      Service Good = Tip.
      Service Bad = No Tip.
      “All prices subject to X% service charge” = Absolutely No Tip.
      And I wait for the look on their faces too. You wanna turn your nose up at me, or grit your teeth while you say “thank you,” I’ll gladly tell you why there is no tip.
      And I couldn’t give a shit which country I am in.

    • marley says:

      03:42pm | 24/08/11

      I can think of a few countries where, if you try to pull that, you will indeed give a shit - or go very, very hungry and thirsty.

    • Utopia Boy says:

      03:40pm | 25/08/11

      I’ve never had an issue marley, but I don’t consider a brief explanation, or a discussion with a restaurant manager an issue.
      After all, I’ve already eaten, and there’s no way tipping can be “enforced.”

      I am referring to restaurants.

    • Lilly says:

      03:37pm | 24/08/11

      As someone who was a waitress for nearly 5 years in Australia tips are great but not expected. What is always better than a tip though, is a nice customer. Someone who treats you like a human being not a slave. Sure it’s the service industry but your wait staff do ot deserve to be treated like crap just because they clean up after you.

      I fainted one night at work, during service, after doing 10 hours straight, I was carrying a tray of drinks at the time. I ended up on the floor, the drinks ended up in a customers lap. Despite my apologies as I struggled to get up off the floor that customer proceeded to scream yell abuse at me. My boss ended up paying them cash and giving them their entire tables meals for free. I have been shoved, spat on, been yelled at for picking up snotty tissues with a napkin and countless other things. All I ever wanted was a nice night at work serving nice normal people, no tips just a bit of respect for the fact I am a PERSON!

    • Al says:

      09:07am | 25/08/11

      Lilly, I thought you would have realised by now.
      The majority of people are self serving a$$holes who don’t care that you are overworked, they just want everything their way (and many myths persist that they CAN have it).
      I am not saying that your wrong to want ‘a nice night at work serving nice normal people, no tips just a bit of respect’ that is very reasonable, unfortunately the majority of people are not reasonable OR understanding.
      I HATE dealing with the general public tongue laugh and will happily admit it. Unfortunately my work recently transfered me to a front line customer service position despite my objections, too bad for them as I know I won’t do a good job. As long as it is adequate I am content (i.e. I can’t be fired).

    • Jason Todd says:

      09:22am | 25/08/11

      Lilly, I couldn’t agree more. I worked hospitality in Australia all through uni, and I can categorically say I would rather a nice, respectful and friendly customer who never tips over a pompous, arrogant and demanding jackass who tips 25%.

    • TheRealDave says:

      04:07pm | 24/08/11

      I don’t think I have ever tipped once in my life for ‘service’. Your employer pays you to do a job…..why the hell do you ‘require’ extra money to do it properly? Screw that shit. I’ve told Pizza delivery people to ‘keep the change’ - but only becuae I didn’t want the shrapnel…..but if it was a dollar more I would. Don’t like it? Tough. You should have paid better attention at school. You’re a student now? So? We all started off with shit wages doing shit jobs - get over it. You are doing a menial job that requires the ability to breathe and be able to get a couple of meals correctly from the kitchen to the table and then take the dishes away. Apparently kids do it every day at home….mine even do it…sometimes…..If you don’t like the wages - quit, and find a better paying job! I’m not paying you for fucking job satisfaction! Nor do I ‘owe’ you a living. Now STFU and get my steak you whiner! Plenty of other people around that would happily fill your boots.

    • AFR says:

      05:04pm | 24/08/11

      Is that you, Mr Pink?

    • Jason Todd says:

      09:27am | 25/08/11

      ‘You are doing a menial job that requires the ability to breathe and be able to get a couple of meals correctly from the kitchen to the table and then take the dishes away’

      You’ve never worked in hospitality, have you TheRealDave?

      Well done for tipping on Pizza Delivery though. When I worked in Pizza Delivery, rate was $3.74 a delivery. Not paid for petrol. No deliveries, no coin. Believe me when I tell you that tips kept me alive in that job, even if it was ‘keeping the change’

    • Robert S McCormick says:

      05:20pm | 24/08/11

      Some years ago in the USA a waitress, or should I say “Waiterperson"explained how the tipping bit came into being.
      She said some scam artist wanting to make a heap of dosh decided to auction off areas of dining rooms in hotels. This is how it worked:
      It was a sort of Reverse Auction. Waiterperson A put in a bid as to what they wanted the Hotel to pay them per hour, say, $5 per hour. Waiterperson B siad they would take the job for $4.50ph. Hotel accepts Waiterperson B’s bid. She/he then relies on diners to give them enough in tips which they hope will bring their weekly pay up to, say, $25 per hour. Daily pay rate now sits at $29.50 per hour which, they hope is on-going 5,6 or 7 days per week. The US Internal Revenue Service (= our Australian Tax Office), has obviously never come across any Australian workers, who, bless’em will avoid as much tax as possible, for they seemingly trust these Waiterpersons to be 100% honest when it comes to the tips they receive (Novelty, huh? - it would never in a million years work here would it?)
      In more civilised countries such as Australia, where Waiting Staff get a set hourly wage many times the $4.50 the poor yanks get, tipping is not required but people who get especially good Service can, if they wish, give one.
      Unless one is extremely well heeled these days tipping is out of the question for the food is so damned expensive & the wines, which you & I can pick up in any bottle shop for between $12 & $15, is charged as if the bottle is Waterford Crystal & the contents literally liquid Gold or Rubies with diamond chips suspended in it!
      TheRealDave, when it comes to your remarks about the employer paying people to do a job. You are, of course, right, so what are we going to do about those parasites of parasites our Federal, State & Territory politicians? They get paid huge sums, plus all sorts of perks & then expect us to support them for the rest of their pathetic lives after we have sacked them!
      They also get, along with all sorts of Public Servants, including the Army, Air Force, Navy & all those members of the Judiciary, special Awards such a the Australia Day, Betty’s Birthday, New year Honors in recognition of their work. Work they are paid ,& paid extremely well, to do in the first place.

    • TheRealDave says:

      09:10pm | 24/08/11

      Members of th ADF are recognized ontop of the remuneration and recognition over and above that of wait staff mainly because, and I’m guessing here, no waiter has yet had both their legs blown off by an IED bringing your steak to your table. Should that start occurring I will tip my hate to your point wink

      But I will agree to the amount of snouts in the trough when it comes to the perks of Politicians and Government employees of all levels.

      Lastly, ANYONE can get a nice shiny OAM or other gong, they aren’t restricted to ADF members and Pollies.

    • Mugz says:

      06:22am | 25/08/11

      I currently work in a kitchen in Canada, and I ALWAYS tip.  As many people have pointed out the wages for serving staff are low and probably not enough to really survive on.  What no-one has mentioned is that servers are expected to tip out to other staff who don’t get to receive tips.  That means the restaurant will take about 6% extra off every bill and distribute that among the staff who don’t get to receive a tip (bar staff, the hostess and kitchen staff like me).  The amount the restaurant takes varies from place to place, depending on how busy/big place is.
      The system may be broken, as some people have suggested, but I find that the level of service over here is generally much better than what you can expect back home in Australia.  I have never had a server who deserved to pay for my meal, which is what happens if they don’t get a tip at all.  The restaurant will still take the money.
      I don’t understand why people wouldn’t tip when they are travelling (which many Australians seem to think is OK).  You are a guest in someone elses country and guess what?  Some things are different than they are at home, where they haven’t had the benefit of a political party that is so closely affiliated with the unions, which is why Australian wages are so much more reasonable.

    • Al says:

      09:12am | 25/08/11

      Well in this case the staff should know that they need to provide decent service.
      If they don’t, no tip. Thats just how tipping works.
      It isn’t a payment for showing up to work, it is a payment for providing decent servcie and product.
      If you don’t want to provide decent service then get a different job (say a labourer or other unskilled work) which isn’t relying on tipping to make up your wage.
      Don’t try to ‘guilt’ me into it either, that never works on me (if anything I am more likely to not leave a tip.)

    • Moneybags McGee says:

      10:01am | 25/08/11

      The most annoying/bizarre tips have to be beggars who wait outside places like McDonalds in the States and open doors for you.

      I had a guy open the door for me, I thought he was being friendly then he held out his hand for a tip.

      Likewise worldwide I don’t like the bathroom attendants who stand there and want a tip to give you handsoap and a paper towel that I could get myself. It’s also kinda awkward they watch you pee.

      That’s the overseas culture though I suppose. The worst is in Australia where you have backpackers who expect tipping here just because they’re used to it in their country. Guess what mate, you’re paid well now that you’re over here so I won’t be tipping you as if you were paid minimal wage!

    • Krystal says:

      03:40pm | 25/08/11

      just came back from 21 days in canada and US, tipped twice only!!! why - because that’s the only time I was treated as a valued customer. yeah, they gave me drity looks, but that’s their problem. also, for those of you trying to justify 15%-20% tip for a horrible service just because they dont get paid well, this is something they have to work out with their unions, not their customers

    • NESLIHAN KUROSAWA says:

      07:36pm | 25/08/11

      Hi Lucy,

      So true but!!  In some parts of the World people employed in the hospitality industry get paid the minimum wages which tend to be so small that they tend to rely solely on the tips they receive for extra bit o money!!  Lets all try to remember that some of these people may strike us as very greedy , rude, & arrogant, however I truly believe that it has become a way of life for them just the same!!

      Most certainly in places like the USA with a population of roughly 320 million, things are a little different & difficult to say the least!!  Most people are fighting over jobs, not many would be interested in Australia.  That is life, however I do agree on you with this particular issue.  I truly have no tolerance, when it comes to no true understanding of service as well as a hint arrogance.  Just like anything else in life “what you do for a living does not determine who you truly are”!!

      Lets also not forget that “the customer is always right, as long as we all tip well”??  May be so!!  Some people in hospitality are doing it very tough around the World,  just because truly that there no other alternatives job wise!!  Best regards to your editors.

 

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