What is the golden rule of tipping?

The Golden Rule of Tipping: 20% and Beyond

Tipping has become a standard practice in the service industry, a way to express gratitude for satisfactory service. The traditional 15-20% guideline has become outdated, and today’s service industry demands a more generous approach.

The new golden rule of tipping is 20%. This baseline ensures that service providers feel valued and appreciated. Anything less than 20% can be interpreted as dissatisfaction, potentially leading to decreased motivation and diminished service quality.

Why 20%?

The 20% guideline is based on several factors:

• Increased cost of living: The expenses faced by service industry workers have risen steadily, and a 20% tip helps them keep up with inflation.
• Recognition of hard work: Tipping acknowledges the effort and skill required in providing quality service.
• Incentivizing excellence: A generous tip encourages service providers to go above and beyond, ensuring a positive dining or retail experience.

When to Tip More or Less

While 20% is the recommended baseline, there are instances where adjusting the tip amount is appropriate:

• Exceptional service: If a server or other service provider delivers exceptional service, a 25% or more tip is a gracious way to show your appreciation.
• Poor service: If the service is unsatisfactory, a tip of less than 20% is acceptable. However, it’s important to communicate the reason for the reduced tip to the manager.
• Group dining: For groups of 6 or more, a gratuity of 18-20% is often automatically added to the bill. If the service is exceptional, you can opt to leave an additional tip.
• Counter service: For casual dining establishments where you order at the counter, a 15-18% tip is appropriate.

Additional Tips

• Tip in cash: Cash tips are preferred by service providers as they avoid processing fees associated with credit card payments.
• Round up: If your bill is $19.87, consider rounding the tip up to $4 so the server receives a full $20.
• Don’t stiff: Tipping is an essential part of the dining or retail experience. If you are unable to leave a tip, consider seeking an alternative establishment.

Remember, the golden rule of tipping is to express gratitude and support the service industry. By tipping 20% or more, you not only show your appreciation but also encourage excellence and ensure that service providers are fairly compensated for their work.