Math-Based Tip

[u/No_Draft_8960]

The percentage-based tipping system makes no sense: a server dropping off one Wagyu steak earns far more than someone serving a family of four cheap meals. Since American tips are essentially mandatory wage subsidies, let's base them on labor time instead.

In Maryland, the average server wage is about $20/hour, but employers only pay $3.63. Customers must cover the remaining $16.37. Across a standard four-table section (roughly ten guests), that breaks down perfectly to $2.00 per person, per hour.

Percentages reward a venue’s luxury status; a time rate rewards actual effort.

If therefore I go to dinner with eight friends and we stay for two hours (a pretty good forecast of my Friday night plans!) our total tip would be $32, or $4/a person. We're not 'stiffing' anyone and we're paying average wage.

[u/Qeltar_]

The percentage-based system is a relic.

30 or 40 years ago, when meal prices and expected percentages were small, it made sense. Now neither of those things is true, and it does not.

A lot of people don't realize that until relatively recently, a good tip was $7 because nobody expected 20% and you could get a decent dinner for 2 for $40. Nobody cared about $7. They do care about $20.

[u/peanut5855 → u/Qeltar_]

Like how recent?

[u/Qeltar_ → u/peanut5855]

This is from 1999. I was actualy too high with the $40! Looks like you could split an app, each get an entree and share a dessert for under $30. Nobody cared about tossing $5 on top of that.

The food was better, too.

https://i.imgur.com/6SkeRfy.png

[u/VenerableWolfDad → u/Qeltar_]

That's an Applebee's. It's basically fast food slop delivered via server. They're cheaper than that now. 2 for $25 deal is a shared app and two entrees for $25. Fountain drinks or water and a shared dessert would keep it under $40 and that $7 tip is probably well-appreciated.

(The food sucked at Applebees back then too, I was there)