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Tipping in New Zealand Restaurants
Abstract
Tipping has not been common practice in New Zealand, and was formerly actively discouraged. The influence of international travelers, particularly from the United States, seems to have contributed to the custom's becoming more prevalent. At the time of this study, tipping in New Zealand remained a voluntary extra payment given for genuinely superior service. Few table servers counted on tips and sincerely appreciated receiving them. An increase in tipping is not without consequences, however. The service relationships involving managers, servers, and customers are altered by the expectation of tips. In addition, dividing tip pools sometimes causes friction among workers.
... In a country where tipping was not practiced, it was seen as something that would have a negative impact on society and therefore information was promoted to tourists that tipping was not a New Zealand custom and not necessary. There has only been one piece of research completed on the subject from a New Zealand perspective (Casey, 2001). The point could be made that New ...
... Their reasons varied, but generally they felt that such a system would threaten the teamwork culture that the managers had built up. This outcome supports work done by Casey (2001), which also showed that the service staff would not like to see an American tipping system here. The following responses relate to the team approach to running a restaurant, where staff can cover for other staff and pickup where service maybe lacking. ...
... re other waiters become reliant on those waiters with a good work ethic and then share in the tips without pulling their weight. The waiters work for what they get paid. (Rest. 07) The research shows that managers have definite views on whether or not to pool tips; however, the majority pool tips because they want everyone to share in the gratuity. Casey (2001) noted in her research that service employees expressed a level of dissatisfaction with the way tips were managed. They wanted transparency about how tips were managed, and that managers needed to communicate tipping policies to staff. The results of this dissertation showed that all managers had clear policies on how they managed tips a ...
The practice of tipping in restaurants or the addition of service charges onto the bill at the end of the dining experience is the norm in many countries throughout the world. It is not normal to tip in New Zealand, however the practice has gained some acceptance, especially in Auckland’s fine-dining restaurants. This study applies a qualitative methodology to understand how the practice of tipping is managed in fine-dining restaurants. Ten restaurant owners/managers were interviewed about the phenomena of tipping and its application to their organisations. The sample was selected from 20 top, fine-dining restaurants. Excluded from the sample were hotel restaurants, as they are part of organisations that have multiple income streams. All managers spoken to said they their restaurants were dependant on their own organisation’s reputation for their business success. The findings from this research show that there are four influences on the impact of tips on an operation: teamwork, staff loyalty, good service, and restaurant organisation. Furthermore, the research suggests that tipping by New Zealanders sometimes relates to the quality of the dining experience that the customer receives. The managers emphasised the importance of good service and made every endeavour to run their operation in a professional manner providing an overall dining experience that met or exceeded customers’ expectations. This research has produced both theoretical and managerial implications. From a theoretical perspective, customers appear to tip for good service, a finding which differs from studies completed outside of New Zealand. Customers in New Zealand are willing to give a gratuity to the waiters, not because the service staff members are underpaid, but because they feel that they had a value for money experience. There are two viewpoints from a managerial perspective about tipping. Firstly, staff development and training, although often viewed as wasteful because of high staff turnover, is essential for maintaining a successful business. Tipping assisted in the retention of experienced personnel, giving longevity and continuity of service standards that are lacking in other parts of the industry. Secondly, managers should measure customer satisfaction by transparent criteria, such as customer feedback appraisals, rather than just using tips as a measurement. The key informants believed that customers tipped for good service and therefore structured their restaurant operations to deliver top service.
... Diğer taraftan, birçok ulusal kültür, bahşiş verme geleneğine katılırken, verilen miktar ve bahşiş verme şekilleri ülkeler arasında büyük farklılıklar göstermektedir (Lynn ve Starbuck, 2014). Sosyal bir norm olan (Azar, 2007) bahşiş, çoğu ülkede yerleşik bir davranışken, aynı zamanda kültürel olarak da spesifiktir (Casey, 2001). Bahşiş esas olarak müşterinin, sağlanan hizmet kalitesini fiziksel olarak izleyebildiği işlerde mevcutsa, bahşişin ekonomik verimliliği artırdığı varsayılabilir. ...
... Müşterilerin davranışsal niyetlerinden biri olan bahşiş, memnuniyetin ve tekrarlanan ziyaretlerin önemli bir göstergesi olarak kabul edilir (Lynn ve Sturman, 2010). Bahşiş kültürü birçok ülkede yaygın olmasına rağmen, Japon kültürü gibi bazı kültürlerin bu davranışı reddettiği de bilinmektedir (Casey, 2001). Aynı zamanda bahşiş, küresel bir görüngü ve bir tür sosyo-kültürel davranış haline de gelmiştir (Abraham, 2014). ...
Bu araştırmanın amacı turist rehberliği mesleğine ilişkin görüşlerin içerik analizi yoluyla değerlendirilmesidir. Belirlenen amaç doğrultusunda “Ekşi Sözlük” incelenmiş ve yorum yapanların turist rehberliği mesleği ile ilgili bilgi düzeyleri ve mesleğe ilişkin görüşleri tespit edilmeye çalışılmıştır. Literatür incelendiğinde, turist rehberliği mesleğine ilişkin böyle bir araştırmanın eksik olması araştırmanın önemini ortaya koymakta ve literatürde önemli bir boşluğu doldurmaktadır. Bu araştırmada nitel araştırma yöntemlerinden yararlanılmıştır. Araştırma deseni olarak fenomenolojik desen (betimleyici fenomenoloji) belirlenmiştir. Yapılan araştırmada, veri toplama aracı olarak doküman inceleme tekniği kullanılmıştır. Bahsi geçen katılımcı sözlük tarzındaki ağ sayfasında toplam 95 yorum tespit edilmiş ve analize tabi tutulmuştur. Veri analiz stratejisi olarak içerik analizinden yararlanılmış ve verilerin görselleştirilmesi için “MAXQDA 20” yazılım programı kullanılmıştır. Verilerin işlenmesi tümdengelimsel ve tümevarımsal yöntemlerin bir arada kullanılması ile gerçekleştirilmiştir. Araştırmada öncelikle kapalı kod sisteminden yararlanılmış olup, alanyazın doğrultusunda temalar ve alt temalar belirlenmiş ve sonrasında sahadan gelen veriler ışığında açık kod sistemiyle temalar ve alt temalar yeniden ele alınmıştır. Araştırma sonucunda, dört ana tema ve on iki alt tema belirlenmiştir. Bu temalar arasında en fazla görüşün “zor bir meslek olması,” “sevilen ve tavsiye edilen bir meslek olması” ve “sevilmeyen ve ön yargı oluşturan bir meslek olması” alt temalarına ait olduğu tespit edilmiştir. Bu doğrultuda turist rehberliği mesleğine yönelik birtakım görüş ve öneriler sunulmuştur.
The aim of this research is to evaluate the opinions about the tourist guiding profession through content analysis. In line with the stated aim, “Ekşi Dictionary” was examined and it was tried to determine the knowledge levels of the commenters about the tourist guiding profession and their opinions about the profession. When the literature is examined, the lack of such a research regarding the tourist guiding profession reveals the importance of the research and fills an important gap in the literature. Qualitative research methods were used in this research. The phenomenological pattern (descriptive phenomenology) was determined as the research pattern. In the research, the document review technique was used as a data collection tool. A total of 95 comments were determined and analyzed on the mentioned participant dictionary-style web page. Content analysis was utilized as a data analysis strategy and the “MAXQDA 20” software program was used to visualize the data. The processing of the data was carried out by using deductive and inductive methods together. Firstly, closed code system was used in the research, themes and sub-themes were determined in line with the literature, and then themes and sub-themes were re-examined with the open code system in the light of the data coming from the field. As a result of the research, four main themes and twelve sub-themes were determined. It was determined that the most opinions among these themes belonged to the sub-themes of “being a difficult profession,” “being a profession that is loved and recommended” and “being a profession that is unloved and biased.” In this direction, a number of opinions and suggestions are presented for the tourist guiding profession.
... The culture of tipping is widely spread in many countries. It has become a global phenomenon and a form of socio-cultural behavior at the same time (Abraham, 2014), while some cultures such as the Japanese culture refuses this behavior (Casey, 2001). The great economic impact of the tips on a large number of workers in different sectors, including the restaurant sector, and the dependence of many workers with low salaries on tips makes it interesting to explore this research field. ...
... Lynn et al., (1993) define tipping as an additional amount of money that is provided by clients to employees in order to compensate for services rendered, a form of social behavior that is influenced by values and customs. Casey (2001) proposes that money exchanged between a customer and a service provider is not subject to a particular law. Lynn (2015) points out that tipping is a deliberate voluntary act of clients directed at employees as gifts in exchange for the services provided to them. ...
Jordan is considered as a peaceful and stable destination in the Middle East region. Restaurants are considered the backbone of the hospitality business in Jordan. They contribute to (40 %) of tourism employment in 2018. This article aims to discuss the factors affecting tipping intentions. A convenient sample of 624 clients was selected from restaurants in Irbid governorate, which is considered as the second-largest populated city in Jordan. The questionnaires were distributed and collected from the respondents in all 35 fine-dining restaurants working in Irbid, in order to explore the factors affecting the customers' behaviors towards tipping intentions. According to the results of this study, about 20% of the variation in the tipping intentions is attributed to service quality, food quality, restaurant environment, emotional motivations, and social motivations. Food quality has a larger effect in explaining the variation in tipping intentions as compared to the rest of the investigated factors. There was no difference between males and females towards their tipping intentions. Older frequent clients have more tipping intentions than other groups in the study community. The study recommended conducting similar surveys on other restaurant types in different governorates in Jordan as well as in neighboring countries to understand the tipping behavior of restaurant clients in different contexts.
... The culture of tipping is widely spread in many countries. It has become a global phenomenon and a form of socio-cultural behavior at the same time (Abraham, 2014), while some cultures such as the Japanese culture refuses this behavior (Casey, 2001). The great economic impact of the tips on a large number of workers in different sectors, including the restaurant sector, and the dependence of many workers with low salaries on tips makes it interesting to explore this research field. ...
... Lynn et al., (1993) define tipping as an additional amount of money that is provided by clients to employees in order to compensate for services rendered, a form of social behavior that is influenced by values and customs. Casey (2001) proposes that money exchanged between a customer and a service provider is not subject to a particular law. Lynn (2015) points out that tipping is a deliberate voluntary act of clients directed at employees as gifts in exchange for the services provided to them. ...
Jordan is considered as a peaceful and stable destination in the Middle East region. Restaurants are considered the backbone of the hospitality business in Jordan. They contribute to (40 %) of tourism employment in 2018. This article aims to discuss the factors affecting tipping intentions. A convenient sample of 624 clients was selected from restaurants in Irbid governorate, which is considered as the second-largest populated city in Jordan. The questionnaires were distributed and collected from the respondents in all 35 fine-dining restaurants working in Irbid, in order to explore the factors affecting the customers’ behaviors towards tipping intentions. According to the results of this study, about 20% of the variation in the tipping intentions is attributed to service quality, food quality, restaurant environment, emotional motivations, and social motivations. Food quality has a larger effect in explaining the variation in tipping intentions as compared to the rest of the investigated factors. There was no difference between males and females towards their tipping intentions. Older frequent clients have more tipping intentions than other groups in the study community. The study recommended conducting similar surveys on other restaurant types in different governorates in Jordan as well as in neighboring countries to understand the tipping behavior of restaurant clients in different contexts.
... Because tips are a voluntary expense that customers are free to avoid, tipping is a unique behavior that many economists consider "irrational" or "mysterious" (Lynn, 2015). Furthermore, tipping behavior and practice vary between cultures and countries (Van Baaren, 2005) as well as different races (Lynn, 2004), and tourists carry these views with them when traveling abroad (Casey, 2001). According to restaurant servers, foreign guests are low tippers (McCall & Lynn, 2009). ...
... However, the tipping percentage is arguably low: 5.30%. Both Casey (2001) and Shrestha (2010) explain that foreign tourists tip less than domestic customers because of the tipping norms in their home countries.When asked whether they were aware of the social tipping norm and if the social norm was the reason they left a gratuity, half of the respondents stated that they tipped because of the quality of food and/or service. The remaining half admitted to leaving a gratuity because of this American social norm. ...
Tipping Practices of Chinese Tourists in U.S. Restaurants: An Exploratory Study
Patrick C. Lee, D.B.A; Ben Dewald, Ed.D
Abstract
Tipping behavior and practice vary between cultures and countries. Restaurant tipping is considered as a social norm in the U.S.A. Restaurant patrons, especially foreign tourists, experience social pressure to add a gratuity to the restaurant bill while dining in the U.S.A. Survey was adopted in this study to examine the tipping practices and reasons of tipping of mainland Chinese tourists. Tourists from mainland China who visit America are aware of the tipping practices at local restaurants, although tipping is not a custom when dining in China. Mainland Chinese tourists tip because of the social norms as well as the service/food, but the tipping percentage is far less than the expected fifteen to twenty percent. Service is one of the factors that affect tip size. The total restaurant bill is another tipping predictor. The food and restaurant, menu price, and peer influence affect the tips as well. Practical implications are recommended.
Full Text: PDF DOI: 10.15640/jthm.v4n2a2
... taxis and restaurants in the USA). Yet expectations that consumers tip seem to be extending to additional service industries (Azar, 2004) and to more nations (Casey, 2001). Indeed, the value of tipping in the USA accounts for an estimated USA $27 billion in restaurants alone (Azar, 2004) with employees deriving more than half their income from tips (Azar, 2007b). ...
... These occurrences entwine deeply with the racist and sexism norms of the time combined with the individualistic and masculine needs of frontiersmen and capitalists who wanted to show off their success (Wilk, 2015). Casey (2001) also argues that much of the recent growth in tipping behavior around the world is being propagated by the spread of USA culture. Therefore, accounting for tipping in the USA matters and is unsurprising that they are unique in their configuration of antecedent conditions. ...
Unique from prior research that deconstructs culture into separate attributes and reports on the symmetric “net effect” of each, the current study identifies holistic configurations of culture that account for the prevalence of tipping behaviors across tourism industries. Consistent with the theory that distinct holistic cultures predict tipping and non-tipping behaviors, the findings identify configurations of cultural attributes (e.g. “masculine benevolence”, “feminine benevolence”, and “achieving individualist”) in combination with national religiosity and economic well-being that account for the majority of nations with high prevalence of tipping—as well as configurations (e.g. “collective individualist”) that account for nations with low prevalence of tipping. These configurations provide tourism operators, regulators, service providers and tourists with insight about the drivers of tipping expectations at the national level and therefore enable better management of the tourism experience. The paper also demonstrates the usefulness of a complexity theory approach to explore complex phenomena by revealing holistic configurations of antecedent conditions; identifying multiple configurations that explain the same outcome; demonstrating that configurations for high and low prevalence are asymmetric, and; demonstrating that antecedent conditions operate in opposite ways depending on other ingredients in a configuration.
... Tipping was a topic of conversation during and after scheduled work hours focusing on customers' tipping behavior, commonly held beliefs and how their experiences differ. The second theme was factors affecting tipping, noting that servers believe tips are a function of their performance and the customer's willingness to tip Category Studies Server's preference for and opinions on tipping systems Casey (2001), Lin and Namasivayam (2011), Namasivayam and Upneja (2007), Roe (2011) Server's ability to predict tip amounts Barkan and Israeli (2004), Dombrowski, Namasivayam, and Bartlett (2007) Techniques to increase tip amounts The tipped restaurant employee perspective (or not). The third theme was beliefs about customers and focused on who servers felt were good or bad tippers. ...
Purpose
This research aimed to fill several gaps in the tipping literature which has overlooked the server's perspective in identifying and understanding variables that influence a tip amount and therefore where they concentrate their efforts during the service encounter. Furthermore, the extant literature has theorized how or why certain variables influence the tip amount, but these studies fail to capture insight from server's which would supplement the theory and provide a more in-depth understanding of the mechanisms at play.
Design/methodology/approach
This study adopts a grounded theory approach using semi-structured one-on-one interviews with tipped restaurant employees who were identified and selected using snowball sampling. Content analysis is employed to code and categorize the data.
Findings
The content analysis revealed five categories where servers focus their time and effort to earn tips: service quality, connection, personal factors, expertise and food quality. The server's personality was identified as a variable the tipping literature has largely ignored as a determinant of the tip amount. Server's shift their style of service for groups of eight or more people, and for regular customers, who must dine in the restaurant at least once per week. Lastly, despite the many drawbacks associated with working for tips, servers would not want to replace it with any other method of compensation.
Originality/value
This is the first qualitative study focused on understanding the server's role in the service exchange relationship since McCarty et al. (1990) study. The results provide new insights on the often-studied variables from the tipping literature.
... From the two dimensions of service component, professional component shows the most influenced predictor that prominence by customers for leaving tip to service staff (p = .000). It can be said that customers are less likely to choose personal attributes and this finding supported Casey (2001) in which rewarding service staff is to show an appreciation of the service received. Street interview conducted by Ineson and Martin (1999) found that respondents are more likely to leave a tip when they received better service. ...
This study investigates the factors influencing tipping practice in Kuala Lumpur 5-star hotels. Experienced customers of five star rated hotels were targeted in this investigation by focusing on two sub-dimensions of service component which are personal and professional dimensions. Service charges and good and service tax has been added in most premises bills raises question on why people tip. This study reports upon a study of 400 hotel customers. Using survey data, results indicated that professional aspect play the important role in tipping practice. The findings showed that the culture of tipping do exist in Malaysia especially in the city of Kuala Lumpur and this study contributes to the expansions of literature on tipping practice.
... Tipping has become conventional in the hospitality and tourism industry even though the practice occurs in other service sectors. Tipping is defined as gratuitous payment for services (Koku, 2005) which is not lawfully obligatory by the agreement for the purchase of the service (Casey, 2001). Current global estimates of the monetary value of tips received by workers are not available; however, according to Lynn and McCall (2016), US customers alone leave about $14bn of gratuity annually. ...
Purpose
The purpose of this paper is to examine the relationship between perceived dependence on tips and vulnerability to sexual harassment (SH) among hotel employees in Accra Metropolis, Ghana.
Design/methodology/approach
Within a cross-sectional research design, 583 employees from 55 hotels completed self-administered questionnaires. Descriptive statistics, χ² test of independence, Kruskal–Wallis test were used to analyse collected data.
Findings
Results of the study reveal that dependence on tips is related to SH vulnerability of food and beverage staff. Furthermore, dependence on tips engenders a perception of SH climate. Compared to guests and co-workers, supervisors were least identified as perpetrators of SH in hotel workspaces. Guests were responsible for unwanted sexual attention, whereas co-workers pose the greatest risk for gender harassment.
Practical implications
Hotel management should invest in the publication of educational materials such as leaflets and posters indicating unacceptability of inappropriate sexual behaviours.
Originality/value
This paper is one of the pioneers to have assessed the relationship between dependence on tips and perceived climate for SH as well as vulnerability to SH in a hotel context.
... Türk Dil Kurumunun hazırlamış olduğu Güncel Türkçe Sözlük'te bahşiş, "yapılan bir hizmete ödenen ücretten ayrı olarak fazladan verilen para, kahve parası" olarak tanımlanmaktadır (www.tdk.gov.tr). Bahşiş, müşteriler tarafından kendilerine hizmet edenlere verilen "mükâfat" niteliğinde (Lynn & Starbuck, 2015), verilmesi için yasal bir zorunluluk olmayan (Casey, 2001) paradır. Bahşiş, gönüllü olarak verilmesi nedeniyle eşsiz bir ekonomik olgudur (Azar, 2004). ...
... Previous studies have also found that restaurant customers tip more for better service, even when controlling for potential confounds and reverse causal effects (Lynn and McCall, 2000). Casey (2001) claimed that the main reason for tipping in New Zealand, is to appreciate the service. Additionally, Lynn and Graves (1996) indicated that tipping is related to customers' evaluations of service and the dining experience, but these relationships are weak. ...
... It has turned out to be ordinary practices that clients especially in service industry regularly give an amount of money beyond the contracted prices of those services known as tipping for appreciation to the workers who have served them (Zahari, Rashdi, Radzi and Othman, 2011;Casey, 2001;Lynn, 2000;Lynn and McCall, 2000;Ineson and Martin, 1999). Star (1988) states "…among service workers commonly receiving tips are barbers, bartenders, cab drivers, casino croupiers, concierges, deliverymen, doormen, exotic dancers, golf caddies, hotel maids, masseuses, parking valets, pool attendants, porters, restaurant musicians, washroom attendants, waiters, shoeshiners, and tour guides". ...
Tipping is an important and prominent phenomenon in the Egyptian society especially in restaurants. Despite its importance, the phenomenon of tipping did not receive sufficient attention from researchers in the field of hospitality in Egypt. Therefore, the main objectives of this study were; (1) to determine the different tipping motivators/dimensions for tipping reported in previous researches in the context of the hospitality industry worldwide, (2) to indicate the importance of these motivators/dimensions in the Egyptian hospitality context through a field study conducted on Egyptian restaurants' customers, (3) to understand the relationship among the different motivators/dimensions of tipping, and (4) to investigate the difference in perceiving the importance of these motivators/dimensions among different demographic groups of customers. To achieve the objectives, this study used a quantitative and qualitative data collection approach through reviewing the literature and distributing online questionnaires that were developed based on reliable and validated scales developed by previous researchers. The population of the study included restaurant customers in Egypt. Due to the large population size, it was difficult to use random sampling techniques. Therefore, convenience sample was used and accordingly 663 questionnaires were collected from which 651 were valid for data analysis. Results of the study indicated that rewarding service quality recorded the highest importance among other motivators/dimensions when it comes to explain Egyptian customers' tipping motivations followed by the quality of food and beverages, seeking better service in future visits, assisting service employees, gaining social approval, following social norms and the desire to impress others. Additionally, results indicated that rewarding service quality, gaining social approval, and the desire to impress others are more important tipping motivators/dimensions for male rather than for female customers. On the other hand, helping service employees, seeking better future service, following social norms and quality of food and beverages are more important tipping motivators/dimensions for female rather than for male customers. Finally, results supported the existence of a significant and positive relationship between all the tipping motivators/dimensions. In addition, limitations, future research directions and implications for restaurants' managers were presented in this study.
... This closely resembles the idea that the institution of tipping serves as a buyer monitoring device, whereby it exists because the customer, rather than the manager, has the comparative advantage in monitoring the server (Jacob and Page, 1980). Customers, servers, and managers all seem to agree that service quality is an important determinant of tip size (Adelman (1985); McCarty et al. (1990); Harris (1995); Speer (1997); Callan and Tyson (2000); Casey (2001)). As well, several authors have empirically examined the tip-service relationship, using a variety of methods. ...
Using a combination of theoretical, empirical, and experimental analysis, I address both why and how much people tip in restaurants. I also examine a policy issue related to the June 2002 Supreme Court ruling in United States v. Fior d'Italia. I find that the theories of both reciprocity and let-down aversion help to explain why people tip in restaurants, and that tip size falls with table size. Sex differences in tipping exist, but only in the experimental data. Finally, my analysis lends credence to the Supreme Court's ruling in United States v. Fior d'Italia.
... Tipping has various implications for business strategy in certain industries (e.g., the restaurant industry). Casey (2001) argues that tipping has important consequences for the relationships among managers, front-line service workers and customers, as well as for relations among co-workers. In addition, she suggests that tipping may influence employee commitment, teamwork and motivation, and she argues that while tipping allows reduced labor costs, it may undermine the relationship between managers and staff because the customer becomes the one who provides monetary rewards and feedback to the servers. ...
Tipping is an important economic phenomenon, involving about $47Â billion a year in the US food industry alone, and trillions of dollars across different occupations and countries over the years. Moreover, tipping is a major source of income for millions of workers. This article discusses the implications of tipping for business strategy in the relevant industries. For example, firms can choose to impose a compulsory service charge in lieu of tipping - what are the advantages and disadvantages of doing so? How does tipping change the profit-maximizing level of investing in screening job applicants, training workers, monitoring them, and providing performance-based incentives by the firm? Can industries such as the music industry use tips (i.e., prices being voluntary and determined by the customers) as an alternative business model?
... Managerial implications studies discuss how tipping can affect the management of businesses in which workers are tipped (mostly restaurants) and often attempt to provide advice to managers of such businesses. Casey (2001), for example, argues that tipping has important consequences for the relationships among managers, front-line service workers, and customers, and for relations among co-workers. She also suggests that tipping may influence employee commitment, teamwork, and motivation, and claims that while tipping allows low labor costs, it may undermine the relationship between managers and staff because the customer becomes the one who provides monetary compensation and feedback to the servers. ...
Tipping is a significant economic activity (tips in the US food industry alone amount to about $42 billion annually) that was claimed to improve service quality and increase economic efficiency, because it gives incentives to provide excellent service, and therefore allows to avoid costly monitoring of workers. The article suggests that this common wisdom might be wrong. A simple model shows formally that tips can improve service only if they are sensitive enough to service quality. Empirical evidence suggests that tips are hardly affected by service quality. Nevertheless, rankings of service quality by customers are very high; the co-existence of these two findings is denoted "the tipping – service puzzle,” and several possible explanations for it are offered.
... What people say they will do in a given situation is often different from what they actually do (Freedman, 1969). The latter also helps to cast doubt on Adelman (1985), McCarty et al. (1990), Harris (1995), Speer (1997), Rogelberg et al. (1999), Ineson and Martin (1999), Callan and Tyson (2000), Dewald (2001b), and Casey (2001). Third, in my survey analysis, I rely on the customers' evaluation of service, not the servers', like in Lynn and Latane (1984), Lynn and Graves (1996), and Lynn and Simons (2000), or outside observers', like in May (1980). ...
This dissertation examines aspects of both the consumer (the give) and server (the take) sides of restaurant tipping. On the consumer side, I address both why, and how much, people tip On the server side, I use survey data collected from several restaurants to address the issue of labor market discrimination based on beauty. Specifically, do more attractive servers earn higher tips than less attractive servers? I argue that a tipping data set offers several advantages over data sets used in previous studies of the beauty wage gap. This dissertation was funded by a National Science Foundation Dissertation Enhancement Grant (NSF # 427347). iii Acknowledgements I want to first thank my advisors, Catherine Eckel and Mark Stegeman, for their guidance throughout the entire dissertation process. Catherine introduced me to the field of experimental economics and was always available to listen to my numerous, and sometimes naive, ideas. She also gave me the initial push that I needed to write my first paper. Although it may not be apparent from reading my dissertation, Mark helped me to become more competent in economic theory. He was also always available to discuss my ideas, even at two oclock in the morning sometimes, never shutting his mind to anything I threw his way. I thank the members of my committee, Hans Haller, Anya McGuirk, and Aris Spanos, for their remarks and suggestions. I also want to thank Barbara Barker, Sherry Williams, and Mike Cutlip, for their administrative support. Finally, to all of the numerous friends that I have made at Virginia Tech throughout the years, thank you for making my stay in Blacksburg an enjoyable one. This dissertation is dedicated to my parents, John and Sarah Parrett, for their l...
Tipping is not customary for the general public in many countries and this subject has impaired both tourism professionals and consumers. Numerous researches have indicated that customers tip because of the level of appreciation they have received. However, the reasons customers tip change over time. A study of service providers in Taiwan about why tourists tip was conducted. The aim of the study was to examine the factors that may influence tour participants to tip tour leaders when participating in a guided package tour. The qualitative approach -first Internet discussions, followed by semi-structured interviews with travel agencies and tour leaders - was adopted for data collection. This study identified five factors - social pressure, selfish economic behaviour, perceived equity, service performance, and company's tipping policies - as key influences on tour participants' tipping propensity. Among them, travel agencies' tipping policies, selfish economic consideration, and social pressure have the greatest likelihood in making tourists tip. This study contributes to the considerable literature on tipping and can assist travel agencies in Taiwan to draw up appropriate tipping policies. It is expected that this research will also offer a tipping framework for further exploration.
Authors have called for concerted scholarship on how service workers strategically express agency in their work. This article furthers our knowledge of service workers' experiences by analyzing qualitative data derived from in-depth interviews in which restaurant servers discussed how they experience the labor process of serving. We delineate the various ways servers exercise control in an otherwise constraining and emotionally demanding field. We find that servers experience considerable “interactive control” in their dealing with customers by employing techniques strategically to manipulate patrons' dining experiences. Much of servers' behavior is an adaptation to their dependency on patrons' tips. Thus, we advance Rosenthal's (200454.
Rosenthal , Patrice . 2004. Management Control as an Employee Resource: The Case of Front-line Service Workers. Journal of Management Studies, 41(4): 601–622. View all references) conception of management control as an employee resource rather than a constraint by locating servers' opportunity to express agency within the context of the institution of tipping.
In a previous article I argued that tipping facilitates tax evasion, hurts employees' financial security in the long run, and is a form of negative externality imposed by wealthy people on the rest of society. In this Article I try to understand the reasons for the greater popularity of the norm in the U.S. compared to other countries, suggesting it may be related to the U.S. cultural preference for linking redistribution with work requirements, relatively high income inequality and consumerism. To that end, I further develop the negative externality argument suggested in the previous article by looking at trends in income inequality in the U.S. and by interpreting the global distribution of the norm through the prism of my inequality/negative externality argument. I then look at the tax treatment of tips in various countries in search of a pattern that supports the differences in social norms.
Considering the increasing proportion of US workers who depend on gratuities for a substantial amount of their income, it is not surprising that a growing body of literature across a variety of disciplines examines the phenomenon of tipping. Only recently, however, have scholars begun to study variation in tipping behaviours across social groups. The bulk of this research focuses on tipping disparities between white and black restaurant patrons in the USA. Two dominant explanations for such disparities have been posited: one locates the source of race-based tipping disparities in the discriminatory behaviour of restaurant servers; the other framework argues that disparities emerge as a result of African-Americans' lack of familiarity with societal norms for tipping. In this paper, we outline and critique the above frameworks and offer an alternative yet complementary framework that explains race-based tipping differentials in terms of server/customer interactions within the broader labour process of restaurant serving. We argue that black–white variation in tipping behaviours persist as a result of utilitarian processes in which service providers attempt to minimize economic uncertainty and occupational powerlessness by withholding subtle forms of service from patrons whom they view to be unpredictable tippers and thus undesirable patrons. It is suggested that this labour process approach extends the scope of analysis of previously posited explanations for the black–white tipping differential to include other social groups that are also thought to be below-average tippers. We conclude by offering several hypotheses and avenues for future research on disparities in tipping behaviours that derive from the labour process approach we present.
Examines monetary rewards in businesses that combine technical and functional aspects of service. Focusing on the restaurant industry, develops a framework that explains tipping as a reward for the two service dimensions. The technical elements of service are rewarded by dollar tip and the functional elements of service are rewarded by percent tip. An overlap between technical and functional elements results in a conflict between dollar tip and percent tip and, it is suggested, result in a magnitude effect. The framework was tested empirically in a sample of restaurants. The findings indicated that customers' evaluation of the service interaction can be summarized by four main components. Multiple regressions provide initial support to the framework, tying the technical elements to dollar tip and functional elements to percent tip.
This study intends to fill a gap in the literature and explores customers' tipping behaviors in the Chinese foodservice industry. The main focus of this study is to test a model that examines the influences of "food quality", "service quality", "conformity", "universalism", "reputation", "likelihood of return" and "overall meal satisfaction" on tip size. A survey was conducted with 611 restaurant patrons in three selected Chinese restaurants in Hong Kong. The findings of this study reveal that five of these seven factors were found to be good predictors of overall satisfaction except "universalism". However, the overall impact of these seven factors on tip amount was small. Implications of the findings were discussed and directions for future studies were included.
Cultural bias, or grid–group theory, was developed by Mary Douglas in the 1980s to explain individual behavior within a particular society. In this paper, grid–group theory is adapted to show how it may be used in a tourism context. The advantages of this approach are that the same typology can be used for both hosts and guests, not only in general terms, but also for given types of behavior. Grid–group theory shows how the same individual may exhibit different behavioral patterns in different situations. The example used to illustrate this approach is tipping. The literature on tipping provides mixed and conflicting results. By using grid–group theory, it is possible to explain why these mixed results may occur.
Pri prodaji gostinskih storitev je prodajno osebje eno najpomembnejših dejavnikov uspeha. Tako v prispevku avtor raziskuje kako storitev, ki jo izvajajo kuharji in natakarji, vpliva na zadovoljstvo gostov in posledično na napitnino. Za raziskavo je predvsem zanimiv odnos med zaposlenim (natakarjem/natakarico) in gostom. Sama napitnina ni odraz enega samega dogodka, ampak je splet več aktivnosti, ki jih morajo zaposleni obvladati, če si želijo povečati svoje prihodke iz napitnin. Obstaja namreč določena stopnja korelacije med zadovoljnim gostom in dobičkom, kot tudi med zadovoljnim gostom in napitnino. Kadar je gost zadovoljen, se to pozna tudi v dobičku lokala. Prav tako izkušnje kažejo, da zadovoljen gost nagradi natakarja z napitnino. Čeprav le-ta ni obvezen element storitve je avtor v raziskavi ugotovil, da tudi v Slovenji gosti namenijo del denarja za zaposlene v obliki napitnin. Njena višina se spreminja odvisno od tega ali so gostje najbolj zadovoljni z lokalom na splošno, s hrano ali z osebjem. Le ta je predstavljala, glede na vzorec štirih menz in štirih restavracij, 2,97% od bruto realizacije lokala. To pa lahko predstavlja glede na plače v gostinstvu dodatno spodbudo za zaposlene. Vendar pa se tu pojavlja dilema: Ali v primeru napitnine lahko govorimo o variabilnem delu nagrajevanja? Ali pa je to zgolj neevidentiran dodatek k plači, za katerega vodje ne vedo prave višine?
The present article contains research aimed at determining how different forms of waiter behaviour effect tipping. Although in most countries tipping is not a compulsory element of service, it is important to employees in catering industry. This is the reason why it is important for waiters to learn the techniques to enhance their own tips. The research also showed that in Slovenia, like in other countries, satisfied guests devote some money to the employees in form of tips. It revealed that in restaurants and taverns guests devote an average of 2,97% of the bill to the employees. The research further evidenced some differences between Slovenian and Italian guests – the latter being more generous.
This study explores a world of pretence and glamour, uncovering and explaining the causes of workplace problems and dubious practices lying behind the cheerful facade of commercial hospitality. Such an exploration necessarily extends into unethical, unsafe and unfair practices, eight of which are selected for detailed analysis. These are: working in smoke, sexual harassment, constructive dismissal, staffing levels, training, illegal alcohol service, poor food hygiene, and theft. Some of these problems or practices are deliberately destructive (and are therefore considered as ethical issues), some can cause harm (so are health and safety issues), and some concern the way staff are managed (and are therefore labour issues). The persistent focus however, is the avoidable harm and wrongdoing that can occur where groups of people are controlled by a few. Several themes are explored, in particular the causes of poor ethical standards and management's influence on these standards. The hypotheses address the behaviour of hospitality workers generally, but managers in particular, as they are ultimately responsible for workplace conduct, and are therefore best placed to make change. Ethical standards are investigated by measuring the actual and perceived incidence, tolerance and management acceptance of problems according to individuals' demographic attributes. The combination of quantitative and qualitative data enables a thorough and scientific analysis of practices in a domain well known for persistent social problems, with the specific intention of identifying causes, and therefore solutions. The following hypotheses are examined: H1) Unethical behaviour is common in hospitality; H2) Management is aware of unethical behaviour in hospitality; H3) Management actively or passively supports unethical behaviour in hospitality, and H4) Management's support is a cause of unethical behaviour. Although unethical practices are found to be common, many managers are unaware of this, while some are significant causes of sexual harassment, constructive dismissals and poor standards of training. Observations include the influence of codes of ethics on undesirable behaviours such as sexual harassment, the influence of social consensus on workplace behaviour, and the profound unhappiness of many hospitality employees. The causes of workplace problems and unethical behaviour are found to be low pay and poor training. A principle of reciprocated loyalty is proposed, based on the relationships identified between employer commitment and employee behaviour, and informed by mechanism theory, which states that for every action there is an equal and opposite reaction. This is the first major analysis of workplace issues in New Zealand hospitality, and offers solutions to problems such as theft, sexual harassment and understaffing, that significantly undermine the industry's credibility and potential for success.
Uniquely combining employment relations and the hospitality and tourism fields, this book draws on recently published sources to give readers a comprehensive and internationally comparative perspective on the subject area. It boldly extends the traditional analysis of employment relations by integrating new topics such as the role of customers and the implication of gender at work, into the discussion. It also explores issues of continuity and change in a specific service sector, examining the industry by workplace size and sub-sector. This timely book is one of the first of its kind to consider contemporary issues such as skills shortages, labour turnover and training, as well as changes in employment protection law in different areas of the hospitality industry. This book is an invaluable resource for anyone studying hospitality and tourism, industrial relations and human resource management. It is illustrated with numerous case studies, and includes material from fifty countries, across all continents, ensuring a fully international view is presented.
Tipping is a widespread custom in which service patrons give voluntary payments of money to the workers who have served them. This study found that tipping is more prevalent in countries the greater the value their citizens place on status/prestige. This finding suggests that tipping functions (in part) as a status display for consumers. Hospitality managers should keep this and other functions of tipping in mind when considering whether or not to permit tipping of their employees.
Some guests consider obligatory tips to be a pain, but is a mandatory service charge really any better?
The potential impact on food-service employees who do not properly report their tips is significant in terms of penalties and interest imposed by the IRS. Likewise, employers may be subject to additional taxes and interest for their failure to pay the proper amount of taxes. Despite the potential for costly penalties, the following study found that a large percentage of food-service employees either do not understand or do not adhere to IRS tip-reporting requirements.
The question for research is: what effect does job autonomy have on the sense of vulnerability expressed by those working for tips rather than for contracted wages? Vulnerability, the dependent variable, is a measure of the worker's perception of risk attached to working under such an arrangement. Autonomy, the independent variable, evaluates organizational conditions which permit or limit control over one's work. It is measured by restaurant procedures of surveillance and discipline. Sixty-one waitresses employed as the dining room staff of a stratified sample of 8 restaurants provided the data to test the relationship between autonomy and occupational vulnerability. A positive association was found between procedures of autonomy and the restaurant worker's expression of vulnerability. Study findings suggest that the less control restaurant management allows the waitress over the execution of her work, the more vulnerable and less satisfied she is with the tipping/wage arrangement. In addition, study findings suggest that autonomy is as critical a variable for women in their work as it has been reported to be in studies of the male labor force.
An investigation of tipping behavior at a large midwestern restaurant reveals that suchfactors as group size, method of payment, and the attractiveness of the waitress have agreater influence on the amount of a tip than the quality of service does
This paper comments on the absence of any commonly agreed theoretical framework about hospitality management. A tentative proposition is made for a model which identifies the inter-dependent and inter-related elements of hospitality management which might be used as a basis for management teaching and development as well as for research.