Sunday, July 10, 2011

Why The Tip System Doesn't Work

   
     There are many reasons why tipping doesn't work.  In NJ, as is the case with many states, there is something called the tip to credit minimum wage.  What that means is that servers get paid just $2.13 an hour by their employer.  The rest is to come from their tips.  So the fact that you think the server is expecting a tip regardless of the level of service they provide is not just your opinion - it's actually been written into the labor law!  That's just one problem with tipping.
     The larger problem with tipping and the main reason why it doesn't work is that 15% is no longer a socially acceptable standard for tipping.  It has become the floor.  A 15% tip is looked down upon by today's servers.  So the server, in his or her mind, is working on commission.  Just sell more and bring the check up, because they're tied to a percentage of the total.  This takes the relationship with the customer out of the equation.  Customer service becomes secondary as staff is taught to upsell from house vodka to Grey Goose. 
     This reality turns customers into "tables".  The goal of the server is to turn tables, not to give great service.  Get them in and get them out.  Because the floor has been established at 15%, there is very little reward in shooting for a great tip vs. expending minimum energy and collecting the minimum tip.  Imagine if the server actually believed that bad service might result (consistently) in a 0 or 5% tip.  This might, in fact, create the incentive necessary to inspire great service.
     None of this is contradicted by the fact that there are individuals out there who continue to give great service.  There are many reasons why this will always exist.  Some people have a genuine pride in what they do and others truly possess a service mentality and derive genuine satisfaction from pleasing others.  This does not apply to the masses.  What I'm talking about here is the systemic flaw that presently exists with the tipping paradigm here in the United States.
     So, what to do about it?  Get rid of the tip.  Who is going to be the first full-service restaurant company to break from the pack and get rid of the tip?  Could there be a better time?  With real unemployment at over 16%, the time is ripe for a company to seize this opportunity.  No Tip.  A 15-20% discount on every check.  What, you ask, about the service?  Would we all say that this present system is somehow guaranteeing great service?  I think that great servers give great service.  The servers that are chasing the cash will go elsewhere.  It will give this pioneer among companies the opportunity to cultivate its own group of servers and begin to shift the culture of service.
     Think anyone will bite?

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