So, I’m actually sitting at a local Starbucks as I type this, waiting for an appointment. Since I had a little bit of time, I thought I would get a few things done. Of course, I’m paying for the opportunity, based on my very non-frugal, nearly $5 purchase of a drink and a snack.
That’s $5 without a tip. I have to add this comment because, you see, there is a tip jar here right at the place where you order and pay. It was filled with a few dollars and quite a few coins when I noticed it was sitting there, so clearly there are people who feel compelled to spend more for their purchase. Interestingly, soon after I noticed online that there was a story on CBS News regarding a controversy about tip jars at this very chain!
You can read the article itself to get details about that controversy. Now, I don’t have an opinion on that particular issue. But the idea that there is that story out there – along with my own observations about this and other tip jars I’ve seen at a wide range of different businesses – leads me to write this post unrelated to that specific issue. My own topic I’d like to discuss the notion that tip jars are ridiculous! I don’t see the need for businesses to have tip jars!
Really, I don’t recall them being so prevalent in days gone by. It seemed as though tips were generally given at restaurants, where someone actually served food to you. Or, perhaps at a bar. But at a place where you ordered at the counter and picked up your own food, there wasn’t a tip. You paid, got your food or drink, and went to sit down afterward.
It seems logical to me that for a job, there should be a set level of pay. Why is there a tip jar at places where the people are simply doing their jobs? It seems like quick-serve restaurants or coffee-shop type of places tend to have more of these, but here are some other places I’ve seen tip jars:
- Ice cream shop
- Shuttle bus
- Bathroom (yes, there was an attendant)
- Dry cleaners
What has changed, to make these jobs within the realm of tipping? Is the burden of paying their wages being indirectly shifted to the consumer?
I feel bad saying this, but I don’t want to contribute to tip jars anymore. I’ve written about this before, discussing that how much you should tip in given situations has seemingly changed. As in, upward.
At restaurants, I’ve been tipping 15% to 20% these days. I feel like that’s fair, and I realize that servers don’t have easy jobs and are getting paid very little. I’m not jaded, despite my encounter with the crafty waitress some years ago! If their wages are set up in such a way that tips are really expected, then it’s only fair to comply. But not every job warrants a tip, right?
My Questions for You
What are your thoughts on tip jars?
Do you think that what’s become “tip-worthy” has changed in recent years?
I don’t like them, but I loved them when I worked at the bowling alley as a cook. Some people were always nice enough to send a few extra dollars my way and I definitely thanked them. Whatever I never understood though was when people gave me a tip for giving them their carry out pizza at the cash register at a pizza place. Never complained, but never understood it.
Lance, I’m sure the view on tip jars probably changes depending on who is giving and who is receiving tips! That’s funny about the carry out tips. I always leave zero for carry out, even if it somehow feel uncomfortable to do so with the person right there. I just assume that carry out is not a tipping situation.
I’m not really a fan of tip jars at certain places. I used to work in retail, and we never had a tip jar, so I don’t see why some industries have it and others do not.
Michelle – I worked retail once before, and couldn’t imagine a tip jar out! Would almost be comical. Yet, some other businesses have them out when a generation ago it might have been comical.
I don’t mind tip jars, though I admit I generally ignore them. I’ll drop in a coin (we have $1 and $2 coins here in Canada) if the mood hits me or I get especially good service.
I think the behavior around tip jars is interesting. People want to be seen, or heard, by staff putting money in the tip jar, right? A tip no one knows you left means no good karma, right? I’ve noticed customers holding a dollar bill over the jar until an employee is paying attention before letting it go. That’s why I use coins–makes a noise when you toss it in!
Kurt – that’s funny, people want something in return for giving a tip! Maybe that acknowledgement of “thanks for the tip” is kind of like a tip for leaving a tip 🙂
I agree that businesses are shifting some of their costs directy on the consumer, but it’s hard to blame them. Minimum wage didn’t go up for almost a decade and they haven’t been able to raise food prices because of the recession. That’s why tip jars are becoming way more common.
Sometimes, I throw my change into the jar and sometimes I don’t. It depends a lot on whether the food is a good value to begin with. What I really hate are restaurants where you order at a counter and then they bring the food to you. Most have a tip jar and expect you to leave something on the table.
Shifting the burden sounds like a bad deal for both the consumer and the worker. If the worker depends on tips, but doesn’t get any, it’s not cool. But, when some people have jobs that pay tippable wages, and others make more and still want tips, it gets a little excessive. At least that’s my perception, but I know others see it differently. Clearly, if tip jars didn’t attract the money of customers, they probably wouldn’t be out there!
Tips are taxable income. The IRS has started going after Employers and Employees for under reporting wages.
Personally, I hate them. When I had a fast food restaurant, I never let my employees put out a tip jar. We have become accustom to serving people getting tips. I do not see much service in giving me a drink. Should I tip for take out too? Where does it stop?
I know what you mean. The line for what’s acceptable in terms of asking for tips has moved, no doubt!
I usually ignore tip jars simply because I don’t feel that the average cashier/barrista is doing anything worthy of a tip. And it’s not like they make sub-minimum wage and need to supplement their income with tips either. If that was the case, I’d probably tip them.
MFIJ – Your point on not making sub-minimum wage is a very good one. That would change things big time, and I’d tip then.
Don’t forget Dunkin’ Donuts! It’s crazy; people are shameless. That’s what it comes down to. Someone somewhere started a tip jar in every store that would let them and customers are too embarrassed in a high enough proportion to ignore the tip jar, so it spread. I use credit for most stuff and/or gift cards I bought online at a discount, so there’s no tip when handing a card for menial purchases. I tip for traditional restaurants, barber, etc., for not for scooping my ice cream.
Exactly! Tipping for scooping ice cream is a great example of this. The person is doing his or her job, scooping the ice cream and placing it on a cone, getting paid a wage to do so. Why is a tip needed too? That $2 cone doesn’t need a $1 tip, which it might have to be because you know that putting a quarter in the tip jar makes someone look like a cheapskate…
Okay I’ve worked at Starbucks and an ice cream store and I agree whole heartedly that you don’t have to tip if you don’t want to. But don’t bash the tip jar.There are some who tip despite having a jar for it in front of them. They like to give money for a service well done or for a pleasant interaction during that service. Workers who do give you the stink eye for not tipping are definitely in the wrong but don’t protest against tipping because you feel pressured or uncomfortable by it. The place I work at only has parking garages that require you to pay to park. All tip that customers generously leave goes into paying for my parking so I can still earn barely minimum wage. Even a quarter makes a difference.
And how does not tipping at all (instead of tipping a quarter) make you look like less of a cheapskate?…
You’re making minimum wage. Why use barely when describing your wage. It seems you’re trying to imply you don’t make minimum wage while saying you make minimum wage.
I used to work a couple minimum wage jobs at once. I was told to never accept a tip. Without saying where I was employed, I was on a lunch break so I had to clock out. I had just single handedly put together an order while other employees were shouting my name over the holiday crowd of customers to ask where things were. I never organized the shop shelves. I only paid attention to my job. I was the oldest employee and a single mom.
Back to the lunch break. A woman impressed with how I handled myself handed me a fifty dollar tip. I told her I could not take it as she walked away quickly. She knew we could not accept tips.
I eventually went back to school part time. I feel I did more work in school, making it to day care to pick up my daughter, and studying while she slept at night than an average minimum wage employee only working their minimum wage job.
My point is I feel sometimes I need a tip. I work, every so often take required continued education, grocery shop, cook four – five days a week, write bills, and clean house on my days off. I deserve to keep my extra money. If I give anything it will be to someone in need.
I have to say, Ida is spot on! Single mom here too…. not much room in my heart for the endless supply of tip jars that seem to be EVERYWHERE!
I have to disagree with ice cream shops – I worked at one, and it’s actually pretty labor intensive to scoop ice cream for 4-6 hours straight, especially when its 90 degrees outside. You’re sweaty, tired, and sure you get as much free ice cream as you want, but in the summer you have zero time to even sit down. It’s nice to get off your shift with a few extra dollars in your pocket.
Thanks for the perspective, Mary! I have to admit, I’ve never worked in an ice cream shop. Sounds like it could be tough on busy summer days. Maybe workers there should be paid more by their employers, instead of shifting the burden to customers?
Ah yes I’ve seen tip jars at fast-food places which I find confusing and out of place. In addition when I’ve made purchases with my debit card at fast-food restaurants often in malls there has been an option to add a tip…I was completely confused. It’s common for them to be at sit down restaurants but I don’t agree with them being at fast-food places.
I was a waitress getting paid $2.25/hr back in the day and I relied on tips for the bulk of my income from that job. Because if this I always hated TIP jars at places where the staff was making over twice my hourly wage. Even minimum wage is significantly higher than the minimum wage that waitstaff gets.. I overtip at restaurants but I hate, loathe, detest tip jars especially at establishments where I am already paying a price premium for the product. I am not sure what the minimum wages are these days, but I am sure it is a similar gap.
I stopped reading after your comment stating “Business’ shouldn’t have tip jars!”
It’s not the business that has a tip jar; it’s the workers. Stupid.
The workers can’t put the tip jar there unless the business owners approve. It’s a nice way for them to let the workers earn a little bit more while not paying for it
Bars and restaurants are where the tip thing spread big, in North America in particular. People started going out to eat/drink a lot more in the last 20 years, and more people work in bars and restaurants compared to yesteryear.
People see the tip jars at bars and think, “I wanna get paid like that, they ain’t doing nothing but slinging drinks”.
Aside from the obvious services provided at these service businesses, it gets old and is dangerous to have to deal with drunks, and there is legal liability in serving them – this hangs over all those who work in the business and are aware of the law.
The level of time and personal service involved in these jobs can be very high. Having an unhealthy lifestyle is an occupational hazard. Sexual harassment is rife. Barristas do something akin to waiting tables in their level of service, and presumably this why they make a lot of change as opposed to a lot of $1’s and $5’s – and they don’t deal with drunks.
So – bars and restaurants are service businesses. Retail businesses (such as MMJ Dispensaries), drive-thru’s of any kind, wedding receptions, all of these scenarios are now involving tip jars these days. They catch people off guard, create uncomfortable situations and denigrate the service businesses that have traditionally involved tipping.
Employers love an idea that, if it catches on, will put the burden of paying employees onto the shoulders of the customer. Plus: bar employees are paid like 5 or 6 bucks an hour because they are tip-paying jobs – look it up.
You don’t see tip jars at liquor stores, bookstores or supermarkets for another good reason – they can’t make you a bigger, fuller bag of product because you asked them “for a good stiff one this time”.
Tip jars that are out in these inappropriate situations stink to high heaven by their very appearance – people who leave them out know they are full of shit – they just need the money, like everybody else.
Darwin’s Money makes an excellent point that the ability of a questionable thing to exist is often the result of a not-high-enough-proportion of people overcoming the social awkwardness of rejecting it.
The results of the Stanley Milgram Experiment, which sorta showed how far people will go beyond the moral boundaries which they are brought up with when urged on by authority figures in labcoats, offers an inkling into this.
Additionally, people have different cultural thresholds for certain types of bullshit too.
For instance, in Europe people don’t abide commercial breaks particularly, so they don’t have as many of them compared to the US, generally. Networks know their different thresholds in this respect, and it would make for some interesting reading if there has been anything published.
That is how the inappropriately-placed jar works: it messes with peoples’ heads re: the above.
That’s why players don’t like all the people they play in the same room together – they like them on-by-one, like a drive-thru – sorta