How Much You Should Tip and When You Should Tip in Today's Changing Service Sector Economy
Even though technology and industry changes have altered the service sector, tipping should still be based upon quality of service
Tipping is second nature for some people and a source of instant anxiety for others. It is becoming more complicated now that many businesses where tipping was not common are adding tip options. You may also be presented with a tipping prompt on a display at the register while the employee watches. So when is it customary to tip and when should you simply pay and leave?
Tipping is an American tradition
In the United States, tipping has long been customary, and more businesses are offering the option to tip. This is not always the case elsewhere. Some countries do not practice tipping at all, and in certain places, tipping can even be seen as offensive. The important takeaway is to research customs before you travel. Do not assume that what is acceptable in the U.S. will be acceptable everywhere.
In the U.S., tips usually range from 10 to 20 percent. In the U.K., it is often 5 to 15 percent. In Australia, where service workers may earn around $20 USD per hour, tipping is generally not expected. In Japan and China, tipping is unnecessary and may be viewed as rude. Always check local practices before you travel.
Tipping can be confusing
Even if you regularly tip and feel confident about it, you may not always know exactly how much to tip, whether to tip before or after service, or whether to tip at all. These decisions depend on the location, the type of service, and other factors. For example, tipping a restaurant server is routine, but many people ignore the tip jar on a counter.
Tipping as a cultural obligation
In many cases, tipping has shifted from being a reward for good service to being viewed as an obligation. When deciding whether to tip, focus on the quality and promptness of the service rather than feeling pressured by custom. Poor service should be reflected in the tip amount.
Tip wage versus minimum wage
Many people know the standard minimum wage but are unaware of the minimum cash wage or “tip wage.” Some tipped workers are paid as little as $2.13 per hour nationwide, with tips making up the rest. If the worker’s combined tips and base pay do not meet the regular minimum wage, the employer must make up the difference. While this protects the worker’s income, it can encourage employers to replace staff more easily.
Sit-down restaurants
At sit-down restaurants where you receive table service, tipping is standard. Unless the experience is terrible, tip at least 10 percent, and consider 20 percent for exceptional service. Waitstaff often depend on tips for most of their income.
Buffet restaurants
Buffets are different. If staff refill drinks and clear plates, tipping is still appropriate, though usually at a lower rate. Ten percent or one dollar per person is common.
Restaurant carry-out
Carry-out orders usually do not require a tip, but there are exceptions. At a sit-down restaurant, the employee handling your order may be a tipped worker, so consider leaving up to 10 percent. For standard fast-food pickup, a tip is less common.
Delivery services
Most deliveries deserve a tip, though company policies vary. Check for guidance when ordering through an app. Ten percent or a few dollars is standard. You can also ask the delivery person what is customary. Delivery drivers may earn hourly wages inside the store but depend on tips when making deliveries, covering costs such as fuel and vehicle wear.
Pizza delivery
For pizza, tip at least $2 to $4 depending on distance. Delivery fees often do not go fully to drivers. For large or difficult orders, tip more, especially in bad weather or challenging conditions.
Valet parking
Tip the valet when your car is returned. Two to five dollars is standard, and you may choose to tip both the person who parks and the one who retrieves your vehicle.
Hair and salon services
For haircuts, styling, manicures, massages, and similar services, tipping 15 to 20 percent is standard. If multiple people work on you, tip each individually. Consistent, generous tipping often leads to better service in the future.
Hotel housekeeping
Only about a third of Americans tip hotel housekeeping, but it is generally expected. Two to three dollars per night is standard, five dollars or more at luxury hotels. Leave the tip in a clearly marked place daily since different staff may clean your room each day. Even if you do not tip every day, consider tipping when the room needs extra attention.
Bartenders
One dollar per drink is standard, two dollars for complex drinks. Water generally does not require more than a dollar. Bartenders often make less than minimum wage and rely heavily on tips.
Concierge
Tip the concierge only when they provide something valuable you could not easily get yourself. Ten to twenty dollars is typical for special arrangements or difficult-to-get reservations.
Taxi and ride share services
Tip 10 to 15 percent based on trip length and service quality. If the driver takes an unnecessarily long route or drives recklessly, reduce or eliminate the tip. The same applies to ride share services like Uber and Lyft, where you can also leave feedback.
Counter tip jars
Tip jars are common at coffee shops and other casual counters. If your order required extra effort, leave something, even loose change. If it was quick and simple, tipping is optional. Some jars exist because tipping is customary, while others are simply an attempt to increase staff pay.
Pressure from counter pads
Many businesses now use touch screens that prompt for a tip before completing your payment. If you feel uncomfortable tipping before seeing the service, choose the smallest amount or ask about leaving a cash tip afterward. Remember that counter service workers often earn minimum wage or more, unlike full-service waitstaff who rely on tips. At coffee shops, a small tip is polite for made-to-order drinks, but if the service is minimal, there is no obligation. If your requests require extra effort, tipping is more appropriate.