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Ellen Stephenson

Laura Pettay

ENG 112

16 Feb. 2022

How A Few Cents Make A Change in the Service Industry

Restaurants across America work hard to ensure their customers are satisfied, happy, and

healthy. Why? In return their gratuity drives the personality of servers, and also gives an

accurate response to the service they provide. Having this feedback allows servers to understand

their quality of service, and if there needs to be a strive to provide greater service than before.

This cycle of tipping is what keeps customers in the door, and servers delivering premier service.

In the argument of whether tipping in the service industry should be replaced with higher wages

and benefits, tipping should be kept in the industry as it drives the behavior of workers as well as

allowing customers to stay in control of their dining experience.

Tipping creates an incentive for the workers to have good behavior and quality service. In

a journal article published by M. Lynn named “Restaurant Tipping and Service Quality: A

Tenuous Relationship,” she stated that “the studies taken together found that, indeed, tips

increased with the perceived quality of service,” (16) statistically supporting the argument of

tipping. With working in the restaurant industry myself, I know how tipping drives servers to

perform better for the next table that walks in or if they are thrown off and perform worse than

before. When having a better performance with the table as a server, this builds a relationship

with the customer, making them comfortable and welcomed. This may cause them to tip their

server better and buy more items on the menu. This can be supported by Katherine S. a journal

author who states “as the server and the customer build a relationship the tip increases” in her
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journal Foodservice Experience and Tipping Behavior: Further Evidence of Wage-Inequality

Between Tipped and Non-Tipped Workers. Not only do the customers thank their server with a

gratuity tip, but they also get to control how much they tip for the service and food quality they

received. Many costumers like this option, as it leaves the simple thought that “The customer is

always right” and they are able to give a review of their experience. O. Azar, who works at The

Guilford Glazer School of Business and Management, releases an editorial on The Economics of

Tipping, and states that “Respondents reported a high sensitivity of their tips to service quality,

suggesting that they want to be able to control what they pay for the service.” Even though the

customer is dining at the restaurant and being waited on, the customer is the one enjoying the

meal and experience, and ultimately running the business of the restaurant. If they want to thank

their server for the experience, it should be personalized and not mandated across all restaurants.

Tipping thus benefits the servers financially and the customers' gratification.

Tipping allows costumers to feel in control of their gratuity. When some days are busier

than others, some servers may start to lack their natural charm and shine, and therefore may be

lazier on their orders or service time towards a table. This may cause the table to be unsatisfied,

and therefore leave a low-percentage tip. 2 hours later, service has started to slow down, and

there are only 3 tables occupied by customers. The same server who was overwhelmed and

working hard has now been able to relax and regroup from the rush hour. They may serve their

current tables with a more pleasant tone and are more attentive to their customers. These

customers now have left a higher percentage on their check than the customers 2 hours earlier

due to the change in environment. This is why tipping is important for the customers to gain

control of what service they are receiving. Kelly Fitzpatrick, a chef at a catering company in

Brooklyn, also states that “tips provide accurate performance feedback to the server” which is an
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accurate statement for workers. Because they receive immediate feedback, many believe that “is

an essential part aspect of employee retention and happiness” (Fitzpatrick). Monetary gratuity

not only drives the service quality of the workers, but also gives them happiness from performing

well. Having a happy server will spill over into happy customers which will spill into a happy

tip. The cycle tipping creates is fundamental in a restaurant in order to keep business and a

welcoming atmosphere.

Some may say that raising wages and benefits will allow workers to live a more

comfortable lifestyle. Steven A. Shaw, a founder of eGullet and author or Asian Dining Rules,

stated that “tipping disrupts rather than encourages healthy workplace incentives” which is a

good perspective to look at, because it encourages workers to put on their charm and politeness

to make their customers welcomed and to enjoy their dining experience, which is why tipping

shouldn’t be viewed as an ‘unhealthy’ issue. Customers are happy and workers are happy. In an

article published by Evan Anderson focusing on Higher Wages Better Benefits North Texas

Restaurants Seeking Workers, looked at a restaurant in Texas, and that their managers decided to

“invest in our team rather than to our profits” indicating that they will no longer accept tipping

and instead will receive $300 per week bonus added to standard unemployment insurance, and

the potential funding from American Rescue Plan Act, which its goal is to support workers

reentering the job market and their families. While this is a great solution to no tipping, it still

does not allow customers to control their gratuity to the service quality they received. Also,

having a standard bonus issued for ever server/worker will cause a decrease in their drive of

excellence service, which will then affect the customers and atmosphere of the restaurant.

Although tipping may be seen as ‘unhealthy’, ultimately it creates a positive atmosphere and

workplace for the restaurant.

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From working in the service industry, I understand the needs of tipping. Servers look

happier after each check they close, which causes them to have better relations with future

customers. Replacing this with higher wages and benefits takes away this reward system that

creates an engaging and pleasurable environment. Tipping may create unhealthy drives, but in

reality it gives the customer the choice of thanking their server based on their service, and not

just a generalized percentage. It is a more personal way of thanking their server, but also telling

them if they need to interact more with their customers, which is why tipping should be kept in

the service industry.

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Works Cited

Anderson, Evan. “Higher Wages, Better Benefits: North Texas Restaurants Seeking

Workers.” NBC 5 Dallas-Fort Worth, NBC 5 Dallas-Fort Worth, 14 May 2021,

https://www.nbcdfw.com/news/coronavirus/higher-wages-better-benefits-north-texas-restaurants-

seeking-workers/2632465/.

Azar, O. H. (n.d.). The economics of Tipping - American Economic Association.

Retrieved February 22, 2022, from https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.34.2.215

Fisher, Katherine S. " Foodservice Experience and Tipping Behavior: Further Evidence

of Wage-Inequality Between Tipped and Non-Tipped Workers." Inquiries Journal/Student Pulse

7.12 (2015). <http://www.inquiriesjournal.com/a?id=1316>

Fisher, Katherine S. “How Much Should I Tip? Restaurant Tipping Behavior as a Result

of Prior Foodservice Experience.” Inquiries Journal, Inquiries Journal, 1 Oct. 2014,

http://www.inquiriesjournal.com/articles/922/how-much-should-i-tip-restaurant-tipping-behavior

-as-a-result-of-prior-foodservice-experience.

Fitzpatrick, Kelly “To Tip or Not to Tip.” The New York Times, The New York Times,

https://www.nytimes.com/roomfordebate/2013/06/23/to-tip-or-not-to-tip/cash-incentives-motivat

e-workers.

Lynn, M. “Restaurant Tipping and Service Quality a Tenuous Relationship.” The Cornell

Hotel and Restaurant Administration Quarterly, vol. 42, no. 1, 1 Feb. 2001, pp. 14–20.,

doi:10.1016/s0010-8804(01)90006-0.

Shaw, Steven A. “To Tip or Not to Tip.” The New York Times, The New York Times,

https://www.nytimes.com/roomfordebate/2013/06/23/to-tip-or-not-to-tip/tipping-is-not-capitalis

m.