Tipping at Fast Food Places

[PimTac]

A couple of weeks ago we visited a fish and chips place. After placing the order the screen asked me to choose between a 20 , 30, 35% tip. I chose no tip and left a $5 in their tip canister which came out to 15% or so.

I keep some $5’s in my wallet just for that purpose.

 

[97K15004WD]

I do tip at sit down restaurants, almost without exception.

My problem is not with tipping AFTER the service, but "tipping" before the service - especially at a drive-through.

We had a problem here where the restaurant owner was keeping the "tips" as the payments came through merchant services (credit card company), as this "tip" is a direct deposit into the company's bank account (with a total lack of transparency to the server).

Do you add the tip to your credit card receipt? The server may not get the gratuity you intended.

Deducting a service charge from tips on credit cards is common in restaurants. Ask your server if you're unsure. Reward hardworking, essential staff.

www.usatoday.com

Should Restaurants Deduct Credit Card Fees From Tips?

Whether restaurants and other service establishments can deduct credit card fees from workers’ tips depends on state wage laws, but employers should also consider whether it makes good business sense, employment attorneys told Bloomberg BNA in interviews the week of April 11.

news.bloomberglaw.com

Restaurant Owners keeping tips when you pay with credit card | San Francisco - Yelp

A couple of my waiter/waitress friends have told me that they highly prefer cash tips over putting the tip on the credit card, even when a customer is paying the bill with a credit card because the restaurant owner holds back and keeps a large…

www.yelp.com

Now the tips can be pooled and shared - so the slacker gets as much as the hustler.

Regardless, I have a problem with "tipping" before the service, or the product is made. I can picture someone in the kitchen paying less attention to an order because the purchaser didn't "tip".

 

[k1xv]

I will give a tip at sandwich shops such as Jersey Mikes, where the employee "custom makes" the sandwich to my order. But otherwise, no tip for drive throughs, McDonalds, Burger King, etc. Maybe some change from the transaction at Dunkin if I walk in.

 

[SC Maintenance]

Yes its out of control.

When they had the tip jar I would drop a buck or two. There not getting rich, and they work hard.

Now they flip the screen with the recommended tip it irks me. Most start at 18%. They recommend I tip 18% minimum to serve myself. Originally it wasn't intimidating, it was just sort of surprising. You don't want to stand there in line and think about it, so you click the button. Now I find the zero tip button - which sometimes takes multiple clicks.

Yes, cash solves the problem nicely.

 

[97K15004WD]

I was going to say something similar. Is it the company that is asking us to pay tips, or is it the individual franchise owners?

A couple weeks ago, I paid $17 for a 12" sandwich, cookie and drink at Subway. And yet the card reader thing asked me if I wanted to add a tip. I didn't tip.... Since they've about tripled their prices, it seems to me I'm already paying enough to pay the staff. But maybe I am crazy.

No, I think you are right. I just think back 10 years ago - did I get a tip request at Subway?.

No, no I did not.

So why should I "tip" them in advance now? I think the technology has allowed this incremental revenue stream to "leak" into these transactions, and the owner's are seeing the benefits while the actual worker may not.

And just in case someone doesn't see how this benefits the owner, I will say that the more credit card purchases you take in, the lower you can negotiate your fees from said company. I know this because I do negotiate based on previous years "utilization rates".

 

[eljefino]

For reasons I can't really justify or explain, I tip the ice cream person. But not at (other) fast food places.

This is a no-brainer. Order a small, throw your change in the cup, wind up with a medium, or more!

What gets me is Subway, their CC machine wants me to tip. I don't tip for counter service... unless it's ice cream, LOL.

 

[Pew]

As a previous waiter, those cashier's can go pound sand. They didn't do anything worth the tip. My sister who used to be a waitress does the same thing, hits 0.

 

[supton]

I've never liked the idea of tipping--I get it, it's a reward for good service. Still, shouldn't we just do our jobs well, and always that way?

Anyhow. I don't like tipping, so I try to avoid going to places that "require" it. I avoid take-out, eating out and the like. If I want ice cream, I'll buy a half gallon at the grocery store. Yeah it's nice to have the experience of sitting down with friends and family, and having a wide choice of food to pick from--but to me, it's a rather expensive way to go about it.

Finally, yes I agree, it has gotten out of control. Surprised that the card reader at the gas pump doesn't have it now.

 

[SaberOne]

I resent the intimidation tactic by forcing me to choose. For me, a tip is something you give because you were impressed by the service. When someone at a drive up window gives me a paper bag of food, it’s hard to be impressed by that alone. It’s simply doesn’t qualify for a tip. The best way for me to get out of that awkward situation is to shop less often. Not only am I saving on the tip, but I’m likely saving on products I don’t really need.

 

[shortyb]

I do tip at sit down restaurants, almost without exception.

My problem is not with tipping AFTER the service, but "tipping" before the service - especially at a drive-through.

We had a problem here where the restaurant owner was keeping the "tips" as the payments came through merchant services (credit card company), as this "tip" is a direct deposit into the company's bank account (with a total lack of transparency to the server).

Do you add the tip to your credit card receipt? The server may not get the gratuity you intended.

Deducting a service charge from tips on credit cards is common in restaurants. Ask your server if you're unsure. Reward hardworking, essential staff.

www.usatoday.com

Should Restaurants Deduct Credit Card Fees From Tips?

Whether restaurants and other service establishments can deduct credit card fees from workers’ tips depends on state wage laws, but employers should also consider whether it makes good business sense, employment attorneys told Bloomberg BNA in interviews the week of April 11.

news.bloomberglaw.com

Restaurant Owners keeping tips when you pay with credit card | San Francisco - Yelp

A couple of my waiter/waitress friends have told me that they highly prefer cash tips over putting the tip on the credit card, even when a customer is paying the bill with a credit card because the restaurant owner holds back and keeps a large…

www.yelp.com

Now the tips can be pooled and shared - so the slacker gets as much as the hustler.

Regardless, I have a problem with "tipping" before the service, or the product is made. I can picture someone in the kitchen paying less attention to an order because the purchaser didn't "tip".

This is why I still do my Dave Ramsey cash envelope system for "dining out". Use the cash from that one and leave it for my server. When the change comes back, I take it, and additional cash, and give it directly to my server. Now if they share it with others, it's beyond my control, but at least they get the entire tip instead of what scraps an unscrupulous owner will give them after CC "fees". I use my debit card for all other transactions involving counter service or drive-thru and do not tip.

 

[Rand]

I use my debit card for all other transactions involving counter service or drive-thru and do not tip.

I use a CC. Have had it stolen several times at restaurants...hate to have that happen with a debit card.
I do pay it off every month though.. havent carried a balance since my 0% for 12months Shed purchase or a real CC balance since Home ownership 10 years ago.
Its a nice feeling.

 

[drtyler]

There is also the matter of where the tips go - do they actually get distributed to the individual employees or does it just increase the corporate bank account?

 

[supton]

I do pay it off every month though.. havent carried a balance since my 0% for 12months Shed purchase or a real CC balance since Home ownership 10 years ago.
Its a nice feeling.

Indeed, although these days I'm less inclined to pick up any promo "0% apr for 12 months if you sign up for a new card". We did that after our first house on a "necessary" washer and dryer. Took us a few months to que in on what their plan was: not send us any bill for $0 each month, until the 12 month period was up, and then have interest accrue. We had no plans to pay interest, but to float "free" money for a few months. Plan was to take the bill, divide by 12 and pay off over the course of the year. Figured out how to make payments and got that paid off, and have had little desire to repeat.

 

[Astro14]

A fast food place with a swiveling computer screen? I never heard of such a thing.

POSSIBLE DEVELOPEMENT: While we were coming out of Covid lockdowns, I believe there was a 'movement' to tip restaurant workers to make up for some lost revenue.

So…you don’t get out much?

Those screens are ubiquitous.

 

[Bottom_Feeder]

Keep in mind, all those point of sale machines all have the tipping option built-in nowadays. It's not necessarily that business specifically is asking for tips, but there's no real reason to NOT have it presented to their customers either.

I tip and tip well in certain situations but I don't need to feel guilted into leaving one, and that's exactly what the designers of those PoS machines intend.

 

[John105]

This is why I still do my Dave Ramsey cash envelope system for "dining out". Use the cash from that one and leave it for my server. When the change comes back, I take it, and additional cash, and give it directly to my server. Now if they share it with others, it's beyond my control, but at least they get the entire tip instead of what scraps an unscrupulous owner will give them after CC "fees". I use my debit card for all other transactions involving counter service or drive-thru and do not tip.

My understanding, and I don't know from experience in 2023 as it's been a long time since I was a waiter, is that the server gets the full amount of the credit card tip. When I waited tables, the difference is that it became income. And subject to tax and SS.

If restaurants withhold or skim it, shame on them.

 

[Rand]

Indeed, although these days I'm less inclined to pick up any promo "0% apr for 12 months if you sign up for a new card". We did that after our first house on a "necessary" washer and dryer. Took us a few months to que in on what their plan was: not send us any bill for $0 each month, until the 12 month period was up, and then have interest accrue. We had no plans to pay interest, but to float "free" money for a few months. Plan was to take the bill, divide by 12 and pay off over the course of the year. Figured out how to make payments and got that paid off, and have had little desire to repeat.

bestbuy burned me once with that had a 12 month promo. but the 12th month bill was due a year and 20 days out.. paid it and got socked with 300 bucks in deferred interest for not paying it off "within a year"(owed about 50$ on last payment but you got socked with all the deferred interest if not paid in full by "12 months")
Its not something you forget.. although they did waive it after 3 or 4 phone calls... then sent me to collection.. which I disputed.. and won.

 

[John105]

bestbuy burned me once with that had a 12 month promo. but the 12th month bill was due a year and 20 days out.. paid it and got socked with 300 bucks in deferred interest for not paying it off "within a year"(owed about 50$ on last payment but you got socked with all the deferred interest if not paid in full by "12 months")
Its not something you forget.. although they did waive it after 3 or 4 phone calls... then sent me to collection.. which I disputed.. and won.

Remember the days when there was 0% no fee....I had $27,000 of our wedding parked as such and missed a due date. I called Citi and the person said you've been a member so long we can gladly waive the late charge. I said what about interest, does it go back to day 1? She said not sure, we'd have to wait and see. that was a one week period where I felt very uneasy. No interest, whew.

Last year with AMEX same happened on a $300 balance. Forfeited rewards, late fee, exorbitant interest rate, and additional letter stating you have activated the penalty interest rate.

Called AMEX and it took 3 phone calls to get all the above reversed. Pretty sure I posted the details here and many said why would you call them and expect them to reverse when you were wrong? Well, as a courtesy. Because of the above, every CC has autopayment statement in full set.

 

[Vil_Riker]

Is it just me, or are you guys tired of the "tipping" thing everywhere when you pay for fast food?

I've found the best way to avoid the "turn around the screen to me" intimidation tactic is to pay cash.

Anyone else?

The workers are probably converted to "tipped position" by the franchisee in order to circumvent minimum wage rules.

 

[supton]

bestbuy burned me once with that had a 12 month promo. but the 12th month bill was due a year and 20 days out.. paid it and got socked with 300 bucks in deferred interest for not paying it off "within a year"(owed about 50$ on last payment but you got socked with all the deferred interest if not paid in full by "12 months")
Its not something you forget.. although they did waive it after 3 or 4 phone calls... then sent me to collection.. which I disputed.. and won.

Thankfully we didn't have that much of a runaround, but for whatever I lose in promos or cashback offers I like to think I gain in simplicity in my life. And avoiding gotchas like this.