Friday, July 30th, 2010

Banned for Bad Tipping

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cash tip jar 129x171 custom Banned for Bad TippingWhen I caught this headline, “Banned for Bad Tipping” on CNN.com today, I just had to check it out since we do so much work for restaurants and the hospitality industry.

View the story here:

I’m not sure who is right here, but my gut says the customer.

Even if the owner is correct when he says that his customer is not a good tipper, she still paid her bill for the basic food and service she received.

Now, I consider myself a pretty good tipper, but more and more I’ve been working to get back to tipping based on the quality of service I receive. There are far too many people and businesses in my life (and I’m sure yours too) where they feel entitled to a reward for doing basic or even sub par work.

It’s got to stop.

I’m not sure where or when this entitlement gig got started, but my guess is that it started sometime about 35 years ago in kids sports – especially baseball – where “Tee-ballers” started to hit baseballs off of tees (instead of having the ball pitched to them) and everyone started to get trophies regardless of where their team finished.

Oh yeah, I’m blaming it all on Tee-ball!

In the hospitality business, you’re supposed to be “hospitable” it’s the basic greens fee part of the gig. Tipping is supposed to be based on what someone does over and above the call of duty.

I mean my hot food should be hot and my cold food should be cold. Servers are supposed to deliver my food to me in a reasonable time with no foreign objects in, on or around it right? I’m supposed to tip you for that? C’mon people.

I checked out Magellan’s Worldwide Tipping Guide to see where we American’s rank and right there, I  confirmed my suspicion that we American’s are one crazy bunch of people. We tip more than just about every country in the world, and I’ll bet you agree that for the most part your customer satisfaction level with the majority of business and people is average to below average!

acsi national graph customer satisfaction 300x180 Banned for Bad TippingThe interesting thing about my argument is that the majority of customer satisfaction scores in industries have statistically improved (see American Customer Satisfaction Index here).

Yeah, but my gut and head says that what people say and what people actually do and feel aren’t always coordinated. I believe most people have internalized their customer satisfaction expectations (read – lowered their bar) because for the most part, they’ve been let down so many times that they simply learn to accept and deal with sub par performance.

Here are a few of “Marketing Tips” for you today to help your Brand excel.

  1. Get away from assumptions and entitlements – cast them aside
  2. List your Brand’s basic greens fees of performance
  3. From that list, work up a few cool ideas to “surprise, delight and impress (read – WOW)” your customers> Make sure these ideas are ones that your core customer base considers valuable and are not offered by your competitors.
  4. Implement these new cool ideas.

Now – watch your tip jar explode!

P.S.: Years ago in a performance review session, one of my team members thought she should get a bonus (read tip) because, “I always come to work on time.” She was wrong to assume, but I was more wrong because I wasn’t clear in my expectations of performance training.  I never made that mistake again.  Big lesson.

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Comments

6 Responses to “Banned for Bad Tipping”
  1. jenn says:

    “In the hospitality business, you’re supposed to be “hospitable” it’s the basic greens fee part of the gig. Tipping is supposed to be based on what someone does over and above the call of duty.

    I mean my hot food should be hot and my cold food should be cold. Servers are supposed to deliver my food to me in a reasonable time with no foreign objects in, on or around it right? I’m supposed to tip you for that? C’mon people.”

    you are sadly misinformed.

    it is important to understand what a tip is. in many restaurants, servers are paid far below minimum hourly wage (in washington, dc, often $2.13/hour) with the understanding that tipping provides a living wage, with a percentage going to taxes, just as any office worker’s paycheck has taxes taken out. the difference is, servers and bartenders have to save their money on their own, and expect to pay in the thousands of dollars when it comes to tax time.

    a tip is not just a way to show appreciation for exemplary service. this is appreciated, and if the server does go above and beyond, please be certain to tip them accordingly – above and beyond the minimum 18-20%. if there IS something wrong with your food – a foreign object, for instance – take a moment to use your head. did you notice it when the plate was set in front of you? or did you not see it until you had begun to eat your dish? perhaps after cutting into something?

    the servers do not cook the food. their job is not simple – they provide a valuable customer service, and they take a lot of flack for it. if your order is demanding (substitutions or special orders, asking for condiments – one at a time – each time the server comes to the table, rather than all at once, etc.), you should tip accordingly. you are likely not the only table the server is taking care of, and no one table is more important than another.

    the job of a server is stressful, both mentally and physically. stiffing a server because you are displeased with something beyond their control is unacceptable. perhaps most importantly, servers are NOT psychic! if you need something, or are unhappy with something, do not suffer in silence. if a server asks you if your steak is cooked to your liking, or if there is anything else they can bring for you, if you want a side of mayo, ASK. time after time, i hear people who have never worked in the service industry making comments under their breath regarding something they want, or something they aren’t happy with. when the server comes to check, everything is “fine” – and then they leave a 5% tip “to send a message.” the only message you are sending is that you are a cheap jerk.

    the server does not cook the steak, and without a thermometer or a steak knife, they do not know if it is cooked to your liking until you cut into it. do not punish the server for a cooking error. if your steak is undercooked, it can easily be put back on the grill. if it is overcooked, a new one can be made for you. if you do not like your dish, you may order something else to have instead. this is basic customer service, and most restaurants will be more than happy to do whatever it takes to ensure you enjoy your meal. if you do not enjoy your meal – and do not say anything, but stiff the server – the cooks still get paid. they earn an hourly wage. if you do not tip your server at all, you are not only giving them zero dollars – you are taking money out of their bank account.

    for example, at some restaurants, you are seated by a host, whose job it is to keep track of the tables in each section and seat new parties accordingly. this ensures you do not have one server with 5 tables at the same time while 2 other servers only have one table each. the host likely earns minimum wage, or less. if you order an alcoholic or specialty beverage (e.g. milkshake, virgin frozen beverage), this is prepared by the bartender, who then sets it on a service bar for the server to bring to your table. the bartender likely makes $2.13/hr, and relies upon tips from the paying customers at the bar. finally, a busser has already cleaned your table from the prior party, may clear your plates as you finish them throughout the meal, and clears your dishes and cleans the table once you have left. they likely make minimum wage, or less. (some restaurants also have food runners, who ensure your food reaches your table in the least amount of time.)

    for a restaurant with the first 3 allied staff members (host, bartender, busser), the server likely tips out 3% of their sales – 1% for the host, 1% for the bartender, 1% for the busser. this is based on sales – not tips. this means that whether you tip 18% or 50%, the same must be tipped out.

    however, if your party of 4 has a check for $100, and you pay your bill but stiff the server because you found a hair in your salad – most likely thanks to the cook – this is what happens.

    the bill was $100. you pay $100, which the server in turn hands over to the restaurant to cover your bill.

    the server still owes $3 to tip out the host, bartender, and busser. this is a total of $103. the server now must pay that $3 out of his own pocket.

    there is a difference between exemplary service, good service, and bad service. exemplary service should be rewarded, either by additional tip or by asking to speak to the manager to convey your comments. (note: if you choose to speak with the manager for exemplary service, please ensure you still tip 18-20%. compliments are much appreciated, but unfortunately they do not pay the rent.) if you are at a restaurant that is clearly very busy, keep this in mind. if your food takes longer than expected, your server should keep you informed of the delay. this is good customer service. remember the server is not the one cooking your food; once they put your order in, until it is fully prepared, it is out of the server’s hands. do not punish the server for the grill cook getting backed up because 17 orders for steaks came in within 2 minutes of each other.

    servers are human. if you asked for a refill of coke, diet coke with lemon, iced tea no lemon, and a side of mustard, and you got your drinks but not the mustard – say something! especially if the server had his hands full and was unable to write down your multiple requests. a good server will apologize for the error and return immediately with your mustard. i am not making an unreasonable suggestion – just use your common sense and have a tiny bit of patience. (i’m not suggesting that you wait 20 minutes for a condiment; if 20 minutes passes and you have not seen your server, ask to see the manager.)

    if you are not receiving good service, do not punish the server with a poor tip and no explanation. ask to speak to a manager. fill out a customer comment card, or a survey if the restaurant is part of a chain with a website.

    everyone on the planet should work in a restaurant, at least once. even if it’s only for a few hours on one day. it is important to understand that when you tip your server, it is because they are providing you with a service you were unwilling to do yourself. think about the last time you prepard a multi-course meal. if you left the dishes on top of the stove and let everyone fight for them, your dinner party probably didn’t go well. if you brought everything to everyone individually – ensuring all drinks were full, making sure everyone’s different dietary restrictions (allergies, religious observances, preferences) were taken into account, cleaning spills, taking up plates as they were finished and replacing them with new dishes… you probably didn’t need to set a place setting for yourself, because you had no time to eat. by the time your dinner party ended, you were exhausted. this is what servers do, constantly, for strangers – and with a smile. there is often little to no time to breathe, since as soon as one party leaves, a new party is sat at the same table. and at the end of the day, there is a family to support, rent to pay, bills in the mailbox.

    use your head and common courtesy. and overall – just don’t be a jerk.

  2. Brian says:

    In the video they don’t even address her previous tipping at the restaurant. Without that information that tells me the restaurant was right about this woman and her poor tipping. I’ve heard where people don’t tip or leave small tips. Food service people work for below minimum wage. I understand bad service equals bad tip but this woman didn’t adress that in the video either.

  3. rob says:

    Who cares about the prior tipping. Lam should pay his staff better and raise his prices by 18% to cover the wages.

  4. James says:

    This is completely legal and she is just a cheap lady who does not understand the restaurant industry. Tips are how servers make money you idiot!
    It has nothing to do with the color of your skin. A restaurant is allowed to deny service for any reason as long it does not interfere with national origin, race, religion, color and some states protect classes such as sexual orientation and gender. This is also known as the Civil Rights Act, which Im sure half of the public doesn’t know about. The public is full of idiots!

  5. James says:

    I would like to see who they have previously banned from the restaurant for not tipping enough. If the previous band customers happen to be white, or female etc.. she has no arugment at all. If the previous banned customers are black and female then she MIGHT have a good case. I hope that she knows that monetary compensation is very very rarely ever used to solve something like this. The only compensation she COULD get would be to have the restaurant pay for the court costs (which it wil never reach that point) and sadly this restaurant was and will be hit hard loss of a customer base because of some cheap lady who obviously does not have an IQ higher than 15.
    This is exactly why I am becoming a hospitality lawyer. To stop people like this from trying to use the “minority” card all the time.

  6. I completely agree that many businesses, owners, and personnel in the hospitality industry have forgotten exactly what they should be doing – providing a service promptly and courteously. But, let’s push the Goden-ian wisdom aside. Tipping is neither an expectation or right, NOR is it for when “someone does over and above the call of duty”. Rather, the line falls between the two.

    Yes, servers make much less than minimum wage and must pay taxes on 15% of their sales. If you receive prompt, courteous service, it’s the proper thing to do to leave a tip.

    However, jenn is also sadly misinformed. If the server is slow, with no apology, mean or sarcastic, or does something flagrant, this is grounds for rescinding a tip altogether. A hair in the food? Probably the cook. Telling me “I’ll get to the dessert when I do”? Not acceptable.

    Don’t be a jerk applies to both the servers and the patrons of the restaurant. A recent example from my own experience:

    I was dining at Pepperwood Grill in the Pittsburgh area. While this was an overall bad dining experience, the server didn’t handle herself well at all. My dining partner (who is 22 and has an out-of-state license) presented his I.D. for a drink order (with dinner). After having to deny the I.D., which was the problem of the institution’s scanning device and manager, she could have been sincerely apologetic that she couldn’t serve him that evening because of a technical failure. However, she snapped at us when we politely questioned why the I.D. would not be taken – “It just didn’t work, okay?”

    My dining partner insisted on leaving a tip, albeit a small one – 10%. I highly disagree with this practice. I believe in leaving a fair (15%, higher if service was exceptional) tip or nothing at all. Nothing sends the message of “Why were you mean to your innocent diners?” like a 0 on the tip line.

    Like Brian said, we really have no idea what this woman’s tip history was. Regardless, there are thousands of bad tippers in the world. As much as I disagree with bad tipping in the face of at least good service (I’m assuming the woman got good service, because she kept coming back), this restaurant owner is ridiculous. I’ve never heard of “banning” someone from a restaurant for bad tipping, despite, as I said, the rampant practice of shorting or forgoing a tip.

    From a purely marketing and branding perspective, even if your servers lose a tip every time this woman comes in, isn’t that better than all the bad press he’s getting for this move?

    Additionally, filling seats (again, from the restaurant owner’s perspective, not the servers’) is also good from a brand image perspective. Crowded restaurants look more enticing – everyone’s doing it!

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