Increasing Servers Tips Ben Dewald The Collins College of Hospitality Management Cal Poly Pomona Introduction Whether or not customers tip depends a lot on the service received as well as whether or not they think they will be returning to the same establishment Sometimes guests leave tips simply because it is expected Believe it or not a lot of research has gone into why restaurant patrons tip and what makes them tip more or less for similar service Tipping is not always simply a sign of a job well done This presentation will reveal some interesting facts about server habits that can boost tip percentages 2 Background In theory customers reward good service with money Schein et al 84 Lynn et al 93 But Bill size prominent variable affecting tip Lynn Grassman 1990 Lynn 1988 Freeman et al 1975 Servers tend to work for a 15 20 commission 3 The Global Perspective People from around the world give voluntary sums of money called tips to service workers Most service worker are tipped in America and Southern Europe Hardly practiced in Asia Down under 4 Attributes Affecting Tips Controllable Uncontrollable Related to service quality Questionable service quality Gender specific Customer Payment Weather Culture Specific 7 Related to Service Quality Server smiling at guests Tidd Lockhard 1978 Making extra visits to the table Fitzsimmons Maurer 1991 Introducing oneself Garrity Degelman 1990 8 Server Smiling at Guests Tidd Lockhard 1978 Tested in a Seattle cocktail lounge Randomly assigned half to receive Large open mouth smile Small closed mouth smile Small smile average tip of 20 cents Big small average tip of 48 cents Increase of 140 Encourage your staff to flash big smiles 9 Server Introduction Garrity Degelman 1990 Good morning My name is Kim I ll be serving you this morning Have you ever been to Charlie Brown s for brunch before Large effect on tip 3 49 15 with no name 5 44 23 with name Earned 2 more Suggest your staff to introduce themselves professionally 10 Service Better Tips Casually touching guests Lynn et al 1998 Lynn 1996 Hornik 1992 Stephen Zweigenhaft 1986 Crusco Wetsel 1984 Squatting at the table by servers resulted in larger tips Lynn 1996 Lynn Mynier 1993 Credit card insignia on tip trays increased tips even when paying cash Feinberg 1986 Lynn 1996 writing Thank You on checks also resulted in larger tips Rind Bordia 1995 Giving candies 11 Touching Servers experienced a tip increase from 11 8 to 14 8 of the check total when they briefly touched the shoulder of the customer Both men and women left higher tips when touched and although younger customers increased their tip amount more all ages increased the tip by some amount 12 Squatting Two studies showed that serers who squatted next to the table when taking orders and talking with customers increased their tips from 14 9 of the bill to 17 5 of the bill in one study and from 12 to 15 in another study Apparently the eye contact and closer interaction creates a more intimate connection and makes us want to give the server more money 13 Credit Card Insignia on Tip Trays Tested in 2 establishments When presenting bill on a tip tray with a credit card emblem Tips increased from 16 to 20 in the restaurant and from 18 to 22 in the caf Not due to increased credit card use all caf customers paid in cash Start using tip tray w credit card emblems 14 Writing Thank You on Checks Tested at upscale restaurant in Philadelphia Randomly assigned lunch customers into 3 groups On the back of the check she wrote Nothing thank you thank you name Average tip 16 18 w Thank You Encourage servers to write 15 Giving Candy A study that involved giving customers a piece of candy with their bill showed an increase in tip percentage from 15 1 to 17 8 Another study in which servers gave each customer two pieces of candy with the bill increased the tip from 19 to 21 6 of the bill Still another study showed that the way the server gave the customer the candy had the largest impact on the increase of the tip This study had the server initially give each member of the customer s party one piece of candy and then spontaneously offer a second piece of candy This method increased the tip to 23 of the bill 16 Gender Specific Waitress s tips increased by drawing a happy face on checks but did the opposite for waiters Lynn 1996 Flowers in a waitress s hair increased her tips Stillman Hensley 1980 and Good looking waiters made more tips Lynn Latan 1984 Lynn et al 1993 Male customers tipped more Lynn Bond 1992 Crusco Wetsel 1984 Lynn Latane 1984 Stillman Hensley 1980 17 Drawing on Checks Some waitresses draw a happy face on the back of their checks Personalize serve to customer Communicate to customer server is happy to have served them Make customer smile themselves Waitress 28 33 18 Waiter 21 18 14 18 Payment Customer Weather Specific Tips were higher Paying by credit card Lynn Mynier 1993 Garrity Dengelman 1990 Lynn Latan 1984 People that have been drinking Lynn 1988 Regular guests Lynn Grassman 1990 on sunny days Crusco Wetzel 1984 Cunningham 1979 19 Tips for earning More Tips 20 Lynn 96 Actions Not Additive More research needed to be certain but Likely that as tip goes up so does resistance to further increases Combining actions that separately increase tips will probably not produce an even larger effect Managers can maximize their servers incomes without encouraging them to do all the things discussed Pick the ones you feel will work for you 21 Questions Answers