The Importance Of Tipping

1166 Words 5 Pages
One customer well taken care of could be more valuable than $10,000 worth of advertising (Rohn). In general, if a restaurant employee serves a family with great service every time they visit, the family would want to visit often and the particular restaurant will earn a customer for life. However, to develop this bond between customers its important to provide great service. In fact, when employees provide great service, then customers return their favor by giving them a great amount of tip. Although, bestowing tips to employees should not be mandatory because of the heavy gratuity charge. Tipping in the United States should alter because it has become a major concern for customers/employees due to minimum wages, expensive food rates and inequality …show more content…
The income of workers is substantially low and its really hard for the employees to run their living with what they receive by working. According to the Chicago Tribune, the minimum wage in Illinois, for employees who don’t receive tips is $8.25/hour. There are also people who work the same number of hours and receive tips (employees eligible are servers, busses and bartenders). In Illinois, a business pays the employees as low as $4.95/hour and the rest of the minimum wage is received through tip credit. The government assumes that the customers will pay the rest of the amount of wages in tips. Most of the time, customers do not tip the employees and the employees get an income way less than the minimum wage. These people who work as much as a middle class man does, cannot run his living with an income less than a Sirloin Burger at McDonald’s. There should be no minimum wage, making it easier for the employees to earn and the customers to interact with the employee. According to the National Employment Law Project, the government should raise the tipped wage to 70 per cent of the full minimum wage. If the minimum wage increases, the customers won’t have to tip the employees. Customers wouldn 't be concerned about bringing handy cash to tip the employees at any restaurant. The employees would not have to live on tips because the income they …show more content…
According to the National Restaurant Association, food prices continue to increase, jumping more than 5 percent in 2014 and nearly 25 percent during the last five years. Wholesale food is getting expensive and the cost of food at restaurants is increasing as well. A major shift in food prices can alter a worker’s wage. Due to the expensive rates at restaurants, people do not want to eat there. Therefore, when customers won’t come, there might not be any tips for the workers to receive. Alongside, if the restaurant works with the tip credit government policy and there is customer shortage, the workers might receive a pay much lesser than a minimum wage. People want to eat at cheap restaurants; however, they do not want to tip at those restaurants. If customers go to expensive restaurants, they are only willing to cover the exact food cost. Tips at huge restaurants (5 star hotels) should be incorporated between the food costs at a restaurant not as a separate gratuity charge. Restaurants can give a different outlook towards customers if they show a “No Tips are Required” sign outside the particular restaurant. It would derive customers towards them and people would like to try it out. Under that process, the restaurant can increase the food price by 1 per cent. And when the bill arrives, they deduct the total per cent of the bill by the number of items ordered.

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