Restaurants
Tipping is customary in restaurants offering traditional table service. The amount of a tip is ultimately at the discretion of the patron.
In buffet-style restaurants where the waiter brings only beverages, 10% is customary for good service.
amount There is only limited data available on documented tip data, however based on two audits, the average was in the range of 13.57 to 16%.
A case study hosted on Iowa State University's statistics course provided data for a suburban restaurant surveyed early 1990s.
sample size = 244
mean persons per table: 2.57
mean tip: $3.00
mean bill: $19.78
Mean tip rate: 16.1%, standard deviation 6.1%
Page 7 reports two outliers with a 41% and 71% tip rate on $7.25 and $9.60 bill respectively. Based on histogram shown on page 8, the median tip rate is about 15% with approximate 95% CI of 6 to 26%.
Based on an IRS audit of FIOR D'ITALIA in San Francisco, CA, it showed that for FY1991 and FY1992 actual tip amount was found to be 14.4 and 14.29% respectively.
In a 2003 audit conducted in a research report under advise of Ron Worsham at Brigham Young University, it was found that the data collected from sample restaurants had an average tip percentage which ranged from 13.57 to 14.69% between 1999-2002. Many restaurants now collect all of the cash and credit card tips so they can be taxed accordingly and portioned out into a tip-share system with bussers and food runners.
When a server has not adequately addressed issues a customer has with service, the patron may choose to speak with management to have the problems corrected before considering reducing the tip.
In certain situations, the restaurant may impose a compulsory gratuity on the customers' bill, called an "autograt."Disclosure of compulsory gratuity is required by law in some places, such as in State of Florida This is most frequently applied to large parties, such as six or more. There have been incidents where refusal to pay this charge have led to theft allegations A standard predetermined percent, often ~18%, is sometimes labeled as a "service charge". In less frequent cases, an autograt may be placed on every customer's bill. Reputable restaurants post their policy on a sign or the menu, or require servers to inform their patrons of such charges before they order. This charge can be verified by the customer on the bill to avoid tipping in addition to the service charge. Regardless of whether it is labeled a "service charge," it is taxable income.
Legal cases have established that customers have a right to negotiate, alter, or refuse automatic service charges, even if the policy is written on the menu. A customer may choose to include an extra tip for the server over and above the service charge, or, if service is poor, to negotiate an alternate service charge with management.
Many traditional restaurants offer carry-out ("pick-up", "take-out", or "curbside") service, and standards for tipping for such services vary. Tipping is not customary for non-table services.
Tipping at fast food restaurants and coffeehouses that do not offer table service is not necessary, despite the common proliferation of tip jars, which are considered inappropriate by some.
Read more about this topic: Tip (gratuity), Tipping in North America, United States
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