Professional Corporate Tipping tips
Corporate Tips by Burleson Consulting
When I was a
student of social psychology I remembered numerous studies of tipping behavior
and it remains a fascinating topic. Let?s start by examining restaurant
Restaurant Tipping for corporate executives
The expected tip varies by several variables, the country
of origin of the tipper, the number of diner?s in the group, the income of the
tipper and the total amount of the check.
Tipping and group size
In a study titled ?Cheaper by the Bunch?, social
psychologist Dick Harris demonstrated that the overall percentage of a tip
declines according to the size of the group. The larger the dining group,
the lower the overall tip percentage.
Tipping and bill amount
The amount of a tip also varies by the size of the check,
and it?s not uncommon to see an average American spending 25% on a $20 breakfast
tab, down to 10% for a lavish $400 dinner with a $150 bottle of wine. Many
diners rationalize that it?s the same amount of effort to open a $40 bottle of
wine as a $400 bottle, and tip on the cheaper side.
Tipping and Income
There is also a correlation between a diner?s income and
tipping behavior. As expected, poor people tend to tip less, but it?s also
interesting that the super-rich tend to be low tippers. Rockefeller was known
for handing-out shiny new dimes and Bill Gates is reported to be a cheap tipper.
Professor Steve Cerutti states in his book ?Words of the
day? that the word ?tips? is an acronym for ?To Insure Prompt Service?, but I
doubt that this is truly the origin of the phrase.
Nobody can deny that there are social differences in
tipping behavior, and much of this difference in tipping behavior relates to the
perceived salary of the servant.
No Tipping ? In areas of Southeast Asia, waiters
will come running out of a restaurant behind you to return your tip back
because it is never customary to tip. In countries such as Italy and China,
tipping is not expected.
Ten Percent ? In Great Britain and South
America, a ten percent is customary and tips are associated with exceptional
service. Up until about 1970, ten percent was also the standard for the USA
restaurants, but the American Restaurant Association has been pushing this
up to an obscene 18% by 2007.
Fifteen Percent ? This ?standard? was codified
in many corporate guidelines.
Eighteen Percent ? This ridiculous amount
started in New York City in the 1990?s when an 18% tip was automatically
added to the bill for parties of four or more diners.
Tipping on Cruise Ships
Every cruise line has different standards for tipping and
many of these are set according to the clientele of the cruisers:
No Tipping ? Holland America does not encourage
tipping, perfect since many of their clientele are European (where tipping
is not customary) and old folks on a limited income.
Tip Shakedown ? Norwegian Cruise Lines had a tipping
ceremony designed to embarrass low-tippers whereby the passengers must
personally present their server an envelope containing the tip.
Suggested tip ? Cruise lines such as Celebrity and
Carnival have an envelope-based method, but their tip suggestions are very
reasonable averaging only $10 per day total ($3-$4/day for the stateroom
steward, and $3 per day for the waiter).
Many servants on cruise ships size-up their arriving
passengers, and one veteran waitress told us that they shun Europeans because
they are notoriously bad tippers (not because they are cheap, but because they
assume that the servant staff has an adequate salary, just like in Europe).
lady we met said that she was only paid $100 per week and they could not survive
without tips. Our stateroom attendant said that they earned only about $50 per
week and also relied on tips for their survival.