Changing the rules of tipping

“Tipping is not a town in China — please be generous for good service”

This sign was perched on the cash register at Daly’s Dandelion, on New York’s Third Avenue, when I was a J1 student waiter. A funny slogan, but the intent was unmistakable — don’t ‘stiff’ your waiter. At Daly’s — across the street from Bloomingdale’s and owned by Skitch Henderson, band leader on The Johnny Carson Show — waiters worked for $1.25 an hour, with gratuities expected and essential.

Tipping is as old as America, but is threatened by new trends in the restaurant industry. Two months ago, a Manhattan restaurant outlawed tipping on its premises. Raising its prices across the menu, Sushi Yasuda appended a note to credit card slips: “Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore, gratuities are not accepted.” It joins a list of other eateries across the US — Atera, Chef’s Table, Chez Panisse, Per Se and the French Laundry — that have deemed the age-old practice unpalatable.

This is a blow to Irish summer students living the ‘American dream’, but it’s also a bigger issue. Peter Wells, New York Times restaurant critic, is unequivocal: “It’s time for all of us who go out to eat to think twice about our habits. Tipping doesn’t work, and it doesn’t feel very good any more, either.”

Underpinning the anti-tipping movement is the tale of Jay Porter and his Linkery restaurant in San Diego, who last year added a service charge of 18% to bills — and refused any payment beyond it. “We made this change because we wanted to distribute the tip revenue to our cooks, as well as our servers, making our pay more equitable,” he said.

“When we switched from tipping to a service charge, our food improved, probably because our cooks were being paid more and didn’t feel taken for granted. In turn, business improved, and within a couple of months, our server team was making more money than it had under the tipped system. The quality of our service also improved, principally because eliminating tips makes it easier to provide good service.”

Many date tipping to Tudor England in the 17th century, when it was expected that overnight guests to private homes would provide gratuities, known as vails, to the host’s servants. The practice caught on in London taverns and coffee houses.

Now, the Trip Advisor site informs visitors to Ireland “there is not a strong tipping culture, but many locals and visitors tend to tip for certain services, in particular restaurants, taxis and personal services. If you want to tip and are in doubt about how much, think 10%.” Gratuities are taxable here.

Where the tips are routed through the employer, PAYE/PRSI must be applied to the amount paid. If tips are received directly from patrons, employees must declare them in their annual return of income.

Irish restaurants are united on what works best over here. “If the service is good, people would generally be inclined to tip,” said Jim McCarthy of The Chart House in Dingle. “We get a good cross section of Europeans, Americans and Irish here, and all of them will usually tip. It varies, but most tips would be around 10%, and we divide it up between the kitchen staff and the servers,” he said. “We are a small, family-run business and tipping is not a priority. What we are about is good food and good service — if tips come out of that, all the better.”

At Rolf’s Restaurant, in Baltimore, customers tip if the experience was memorable. “The tip is a reflection of the service and the quality of the whole evening out,” said Stephen Curran. “I don’t think that people would like the idea of an automatic service charge put in place of a gratuity. Comparing restaurants in New York and San Francisco with Ireland’s tourism industry is impossible.

We operate differently here and tipping is certainly not expected in the first place. Our clientele is from all over the world, and the Irish are pretty much the best tippers of all,” he said. Guests at the Cliff House Hotel in Ardmore are also international, and follow the same pattern. “The Americans would probably be the more frequent tippers, but guests will often inquire if there is a service charge,” said Adrian Bartels. “Tips are usually a reflection of how the service has been, and it doesn’t depend too much on where guests are from. The normal tip would be around 10%.”

Tips have reduced in the recession. “The average tip now would be 10%, whereas, four years ago, it would have been, perhaps, 15%,” said Conor Byrne, of Byrne’s Restaurant in Ennistymon. “Our clientele here would be 80% Irish, and the rest a mixture of nationalities. Without a doubt, the Irish are the best tippers, well up there with Americans. We have talked about the possibility of adding a charge at various times, but we always agree it is better to leave this to the customer’s discretion,” he said.

“We divide tips amongst all the staff here, front of house and back.” Zack Gallagher, chef and founder of irishfoodguide.ie, said: “In all of the kitchens that I ran over the years, I’ve always insisted that the kitchen staff received an equal share of the tips, It is quite amazing how some restaurants will employ waiting staff with no experience and pay them a better rate than some poor third- or fourth-year commis chef who has also been to college for two years.”

Donald trumped them all with a $10,000 tip

*Greg Rubar was serving two of his regulars at D’Amico’s Italian Market Cafe, in Houston, when they handed him 50 $100 bills after lunch. “Take this and buy yourself a car,” they said. Greg’s car had been washed away in a thunderstorm a month previous. Greg tried to return the $5,000, but they insisted he buy a car. He did.

*When Donald Trump finished his $82 dinner at The Buffalo Club, in Santa Monica, he asked the waiter what was the biggest tip he’d ever received. The server replied that the Hollywood producer, Jerry Bruckheimer, once left him $500 on a $1000 tab. “You’re very good at your job,” said ‘The Donald’, and left him a $10,000 tip.

*While filming Public Enemies in 2008, Johnny Depp was a frequent visitor to Gibson’s Steak House in Aurora, Illinois. One night, the star and his buddies stayed until 3am. They added a $4,000 tip for the late service. “He is a very soft-spoken guy who is very charming and sweet,” said waiter, Mohammed Sekhani.

*Policeman Robert Cunningham was a regular at Sal’s Pizzeria, in New York, where Phyllis Penzo worked six nights a week for 24 years. One day, while settling his tab, he asked Phyllis if she’d take a half share in a lottery ticket, instead of a tip.

She agreed and helped him choose the numbers. They won $6m two days later, and split it. Their story became a film, It Could Happen To You, starring Nicholas Cage and Bridget Fonda.