The Evolution of Tipping: How it Changed from 15 to 20%

For many years, tipping was not a common practice in casual dining establishments like Waffle House or Jack Robinson's. However, times have changed, and tipping has become a standard practice, with the customary tips transitioning from 15% to 20%. This article explores the reasons behind this change and whether it is justified.

A Historical Perspective on Tipping

Along time ago, tipping was rarely practiced in establishments that used tablecloths. Initially, tipping was a small amount, such as 5% if there was a tablecloth, or 10% if the tablecloth was made of linen. If the checks were on a tablecloth with familiar clients, a 15% tip was customary as a sign of goodwill. Linen tablecloths were associated with a higher price point, reflecting the cost of laundering, which was paid by the establishment to the mafia. In these cases, a 20% tip was reserved for those considered "made men" and knew they were being remembered, whereas others needed to tip around 10% to stay in good standing.

The Shift in Tipping Standards

Over the years, tipping standards evolved. Today, 15% is generally accepted as the standard for good service, and 20% or more is expected for exceptional service. Tipping less than 10% is usually seen as inadequate, particularly at sit-down establishments where servers rely heavily on tips to supplement their modest hourly wages and the lack of benefits. The increase from 10 to 15 to 20% was driven by the need for servers to earn more to keep up with rising living costs.

The Changing Economic Landscape

Decades ago, a 10% tip was common, but even then, it was a considerable amount. For example, in the 1960s and 1970s, a $10 bill left with a 10% tip would have been a buck, which was a significant sum in those days. Fast forward to the present, the tipping standard has gradually shifted to a more comfortable 15%, and in many cases, 20% is expected. It's a quiet shift, often influenced by word-of-mouth rather than formal regulations.

The Impact on Restaurant Staff

Restaurants rely on tips to make up the difference between the lower hourly wage and the reliance on benefits. Many staff members work without a clear understanding of their full compensation, which can impact their performance and service quality. Servers earn a base wage, often around $2.13 per hour (as of 2023), and rely on tips to make ends meet.

The Debate Continues

Whether the tipping system should remain a standard has been a topic of ongoing debate. Some argue that it is more equitable to replace tips with a higher base wage. Others believe that tips provide motivation for servers to excel, as they are directly affected by their service quality. Despite the debate, the tipping system remains a significant aspect of the restaurant industry in the United States.

Conclusion

The transition from a 15% tipping standard to a 20% standard reflects the changing economic landscape and the evolving expectations of customers. While tipping is a traditional practice, its efficacy and fairness continue to be questioned. Restaurants and customers alike must consider the implications of this practice and perhaps explore alternative methods to ensure fair compensation for the hard work and dedication provided by restaurant staff.