Tipping in the USA

In most countries, where workers are paid a fair minimum wage, a tip is just that – a bonus for great service. Paying extra on top of the bill at a restaurant may seem unnecessary to us but if you consider the waiters (“servers”) in America earn just a few dollars per hour for their services, it starts to make sense. In fact, under American federal law, the minimum wage for employees who also earn tips is just US$2.13 an hour and for those who don’t it’s US$7.25. Think of them as independent contractors you’re paying to wait your table. Taking a seat at a restaurant in the US means you’re entering a social contract with your waiter – you can’t apply your home standards here.

There is a social outcry in USA, as the tipping culture has become more and more out-of-hand. Its gotten so ridiculous that some businesses are asking customers to tip at cash registers and even at self-checkout stations! You shouldn’t have to tip there.. but here is a generally accepted list of places where you are expected to do so.

A gratuity of 20 to 25 per cent on top of the bill (before sales tax) is standard, with extra given for top-notch service. Servers in America work hard for the money – they’re generally friendly, knowledgeable and willing to go the extra mile for customers.

Bad service is unusual but it happens. To not tip at all, though, the service would have to be dreadful. Leaving just 10 per cent is a clear indication that the experience was not up to par. If you really don’t think your waitperson deserves to be paid for their service, the best course of action is to explain to the restaurant manager why you’re not leaving a tip. If you depart without tipping or providing an explanation, your server will want to know why.

There is one exception- Some restaurants will take it upon themselves to add a gratuity if you’re with a large party or it’s a public holiday. If the bill reads “gratuity included”, you’re not required to pay extra.

At a bar– The accepted standard is US$1 a beer – if you’re heading out to a bar, ensure you have a pocketful of dollar bills. Order and pay for your drink and leave a dollar bill on the bar for the bartender – it’s not necessary to put it in their hands. For a complicated cocktail, however, the standard 20% rate is recommended.

For Fast food/ takeaway coffee– At fast food chains such as McDonalds or Dominos, the answer is no- if you are collecting it in person. In any other establishment such as specialist deli’s, cafes and fast-casual joints from taco trucks to hotdog vendors, 10 per cent is the accepted minimum amount. For takeaway from a restaurant, you should tip the restaurant at least 10 per cent to cover the staff who facilitate and manage your order. If you’re simply picking up a coffee to go, a US$1 tip or 20 per cent is customary.

For door-delivery (Doordash/ Grubhub/ Uber eats etc)- In the pre-covid past, the general consensus was that a reasonable tip falls somewhere between 15% to 20% of the total bill. However standards have shifted- the new rule of thumb is to tip delivery people, whether they’re on foot, bike, or in a car, between $3 and $5 depending on the cost of the meal and how far they travel. You should increase your tip based on the size of the order. In other words, if you’re ordering dinner for 10 — with all those accompanying boxes and bags — then you should tip more. Also, consider if they will be battling inclement weather (rain/snow) or if they had to schlep up stairs and tip more accordingly.

For taxi/ Uber/ Lyft a 20% tip is generally fine- if you’re paying cash just add a couple of extra dollars to the fare.

For hairdressers, manicurists and beauty therapists, the standard is 20 per cent, plus a few dollars for the apprentice who washes your hair.

Tip porters, or bellhops, US$1 per bag they carry or US$2 for heavy bags.