‘Erratic’ best describes restaurant tipping for servers post-pandemic

Inflation, guest expectations and a customer’s mood all play into how generous or stingy a tip will be. Good service may have nothing—or a lot—to do with it.

When restaurants were allowed to reopen after COVID-19 closures, most customers were so happy to be back, they shared their happiness by tipping more generously.

“There was lots of ‘we missed you’ and ‘thanks for being here,’ and guests gave better tips,” said Sadie, a server at an upscale hotel restaurant in California who prefers not to use her real name. “Now guests are more demanding, more entitled, less patient. And inflation is cutting into tips badly.”

Although the server experience varies by location, type of restaurant, customer attitude and cultural influences, several of the front-of-house team members we spoke to agreed that inflation has impacted tips. Restaurants have raised menu prices an average of 8% over the last year, and when the cost of an entree at a full-service spot goes above $40, that normal 20% tip can push the check close to triple digits with drinks and dessert.

Inflation can also benefit servers. The customer who sticks to the customary 20% calculation will leave a larger tip. But not all do. Inflation is taking a bite out of their wallets, too.

On the fast-casual front

Many full-service restaurants now use handhelds instead of a paper receipt to pay the bill at the end of service. The devices can be programmed with different tip levels; at Easy Bistro & Bar, the choices are 18%, 20% and 22%, with an option to leave a custom tip.

Fast casuals operate almost entirely on that system, using tablets, kiosks or terminals for payment with a line for tipping.

At Puro Gusto, an all-day Italian cafe in Washington, D.C., customers can place orders at in-store kiosks or through the cashier at the counter. In both cases, a screen pops up at checkout showing the default tip of 15% for orders $10 or more.

“You can slide it to make it higher or lower or type in a manual amount,” said Bryce Iapicca, director of operations for this first U.S. location of the 30-unit global chain. “If the order is less than $10, a ‘smart tip’ suggestion pops up instead.”

The menu includes pizza, panini, breakfast pastries, crafted coffee drinks and even cocktails, so most orders are above $10.

People are getting used to the prompts and some customers tip 15% to 20%, while others don’t tip at all, Iapicca said. “Front-of-house employees average 10% in tips for the week, and that’s remained pretty much constant since late 2021. Tips are pooled and employees get their share based on hours worked.”  

Surprisingly, self-ordering kiosk or tablet customers tend to tip higher than at the counter, Iapicca added.

Not so much at Harlem Shake, a fast-casual with two locations in New York City and an average check of $13-$15. The tablets and kiosks are programmed with tip options of 15%, 20%, No Tip or Cash Tip. While most customers leave 15% or cash, said Christian Rojas, a front-of-house team member, some don’t understand the tech.

“When a customer goes to sign for payment, it’s not always obvious to some where you’re supposed to leave the tip,” said Rojas. Team members have to offer assistance, similar to airline passengers who sometimes need help checking in at an airport kiosk.

Harlem Shake was using the tablets during the pandemic and people were tipping a little more at that time “to be courteous,” said Rojas. “But now things are back to normal,” as long as the customer knows how the system works.

Read the full article here: https://www.restaurantbusinessonline.com/workforce/erratic-best-describes-restaurant-tipping-servers-post-pandemic