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    Tipping can feel like a minefield, especially as we enter our third year of COVID-19. You want to be generous to waitstaff, baristas and that DoorDash driver who always remembers the extra chili sauce with your dim sum, but the early pandemic urge to give massive tips just isn’t sustainable.

    So how do you determine an appropriate tip amount when all the rules are unwritten and money is tight? Here’s what you need to know.

    We’ve always believed that a tip is a reward for outstanding service and an incentive for waitstaff to go above and beyond. In fact, many restaurant managers rely on tips to measure their customers’ satisfaction and motivate their servers.

    But there is no significant correlation between large tips and good service. According to a study by Michael Lynn, professor of consumer behavior and marketing at Cornell University’s School of Hotel Administration, the quality of service represents less than 2% of the variation in tip amounts. This makes logical sense for most tipping situations: If you’re not a regular, it’s difficult for your large tip to garner better service since it’s provided after the fact.

    However, Barbara Sloan, a service industry expert and author of Tipped, claims that being a big tipper can come with better service in certain situations. “For example, if you are in a nightclub and start the bartender off with a big tip, they will likely remember you and get you back to dancing faster than the rest the next time you order, she says.

    Tipping and Improved Service

    Just because a bigger tip doesn’t always lead to better service doesn’t mean you should skimp on gratuity especially since most servers rely on tips for their income.

    According to Sloan, tipped workers are the only professionals who have an entirely different minimum wage... the federal minimum wage for tipped professionals is $2.13 per hour, though state laws vary.

    On average, waitstaff receive up to 62% of their hourly pay from tips, according to a 2015 report by Payscale. On average, bartenders and other food servers also receive more than half of their income via tips, which means adding a reasonable gratuity to your payment isn’t just kind, but also necessary.

    The Importance of Tips

    Even those who feel confident about restaurant tipping may scratch their heads over barista tip jars, in app tip suggestions and just how much you’re supposed to give the kid delivering your pizza.

    Etiquette experts can offer some guidance. For instance, Emily Post’s tipping guide gives a range of appropriate tips for various services. For example, tip 15% to 20% for sit down wait service, 10% to 15% for food delivery (or $2 to $5 for pizza delivery), $1 to $2 per drink for your bartender and $2 to $5 for a valet.

    A 15% tip was once considered the standard across all tipping situations, but Sloan believes that tips should now be no less than 20% unless you get stabbed, sued or spit on during your service experience.

    That’s especially true during the pandemic. “In a COVID world, I believe your tip should be between 20% and 25%, Sloan adds. “The service industry was and continues to be hit the hardest, and we should recognize that these times call for an adjustment.

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    Plus, many service industry professionals have to pay out a portion of their tips to others working behind the scenes during their shift. So if you tip less than the minimum acceptable 15%, the servers are essentially paying to wait on you, Sloan says.

    As for tipping on food delivery, Sloan recommends budgeting for a 20% tip in those situations, too.

    “If someone rides their bike to my door with my food, then that is the service, and they deserve 20%, Sloan explains. “The same goes for people who risk burning themselves for my preferred breakfast beverage.”

    Calculating a Tip Correctly

    Sure, the service industry has been on shaky ground, but so have many of us. So just keep in mind that while tipping is a financial expectation and a common social contract of sorts, it is entirely voluntary. That said, try deciding ahead of time what your tipping strategy will be and budget accordingly.

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    Emily Guy Birken

    Emily Guy Birken a former educator, lifelong money nerd and a Plutus Award- winning freelance writer. She is the author and co-author of five books, including The 5 Years Before You Retire and Stacked: Your Super Serious Guide to Modern Money Management (written with Joe Saul-Sehy). Emily lives in Milwaukee with her spouse, two sons, a dog and a cat.

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    Emily Guy Birken a former educator, lifelong money nerd and a Plutus Award- winning freelance writer. She is the author and co-author of five books, including The 5 Years Before You Retire and Stacked: Your Super Serious Guide to Modern Money Management (written with Joe Saul-Sehy). Emily lives in Milwaukee with her spouse, two sons, a dog and a cat.

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    Emily Guy Birken a former educator, lifelong money nerd and a Plutus Award- winning freelance writer. She is the author and co-author of five books, including The 5 Years Before You Retire and Stacked: Your Super Serious Guide to Modern Money Management (written with Joe Saul-Sehy). Emily lives in Milwaukee with her spouse, two sons, a dog and a cat.

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    Emily Guy Birken a former educator, lifelong money nerd and a Plutus Award- winning freelance writer. She is the author and co-author of five books, including The 5 Years Before You Retire and Stacked: Your Super Serious Guide to Modern Money Management (written with Joe Saul-Sehy). Emily lives in Milwaukee with her spouse, two sons, a dog and a cat.

    *The information, opinions and recommendations expressed in the article are for informational purposes only. Information has been obtained from sources generally believed to be reliable. However, because of the possibility of human or mechanical error by our sources, or any other, Synchrony does not provide any warranty as to the accuracy, adequacy or completeness of any information for its intended purpose or any results obtained from the use of such information. The data presented in the article was current as of the time of writing. Please consult with your individual advisors with respect to any information presented.
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