A Comparative Study of Tipping in Western and Chinese Restaurants

Increasing Servers Tips Ben Dewald The Collins College of Hospitality Management Cal Poly, Pomona Introduction Whether or not customers tip depends a lot on the service received, as well as whether or not they think they will be returning to the same establishment. Sometimes guests leave tips simply because it is expected. Believe it or not, a lot of research has gone into why restaurant patrons tip and what makes them tip more or less for similar service. Tipping is not

always simply a sign of a job well done. This presentation will reveal some interesting facts about server habits that can boost tip percentages. 2 Background In theory customers reward good service with money (Schein et al. 84; Lynn et al. 93) But Bill size prominent variable affecting tip (Lynn & Grassman 1990; Lynn, 1988; Freeman et al. 1975) Servers tend to work for a 15 - 20% commission 3

The Global Perspective People from around the world give voluntary sums of money, called tips, to service workers Most service worker are tipped in America and Southern Europe Hardly practiced in Asia & Down under 4 Attributes Affecting Tips Controllable & Uncontrollable Related to service quality Questionable service quality Gender specific

Customer Payment Weather Culture Specific 7 Related to Service Quality Server smiling at guests (Tidd & Lockhard, 1978) Making extra visits to the table (Fitzsimmons & Maurer, 1991) Introducing oneself (Garrity & Degelman, 1990) 8

Server Smiling at Guests (Tidd & Lockhard, 1978) Tested in a Seattle cocktail lounge Randomly assigned half to receive Large, open-mouth smile Small, closed mouth smile Small smile average tip of 20 cents Big small average tip of 48 cents Increase of 140% Encourage your staff to flash big smiles 9 Server Introduction

(Garrity & Degelman, 1990) Good morning. My name is Kim & Ill be serving you this morning. Have you ever been to Charlie Browns for brunch before? Large effect on tip $3.49 (15%) with no name $5.44 (23%) with name Earned $2 more Suggest your staff to introduce themselves professionally 10 Service ? Better Tips

Casually touching guests (Lynn et al., 1998; Lynn, 1996; Hornik, 1992; Stephen & Zweigenhaft, 1986; Crusco & Wetsel, 1984). Squatting at the table by servers resulted in larger tips (Lynn, 1996; Lynn & Mynier, 1993). Credit-card insignia on tip trays increased tips even when paying cash (Feinberg, 1986; Lynn, 1996) writing Thank You on checks also resulted in larger tips (Rind & Bordia, 1995). Giving candies 11 Touching Servers experienced a tip increase from 11.8% to

14.8% of the check total when they briefly touched the shoulder of the customer. Both men and women left higher tips when touched, and although younger customers increased their tip amount more, all ages increased the tip by some amount. 12 Squatting Two studies showed that serers who squatted next to

the table when taking orders and talking with customers increased their tips from 14.9% of the bill to 17.5% of the bill in one study, and from 12% to 15% in another study. Apparently, the eye contact and closer interaction creates a more intimate connection and makes us want to give the server more money. 13 Credit-Card Insignia on Tip Trays Tested in 2 establishments

When presenting bill on a tip tray with a credit-card emblem Tips increased from 16 to 20% in the restaurant and from 18 to 22% in the caf Not due to increased credit card use all caf customers paid in cash Start using tip tray w/ credit-card emblems 14 Writing Thank You on Checks Tested at upscale restaurant in Philadelphia Randomly assigned lunch customers into 3 groups On the back of the check she wrote Nothing, thank you, thank you & name

Average tip 16-18% w/ Thank You Encourage servers to write 15 Giving Candy A study that involved giving customers a piece of candy with their bill showed an increase in tip percentage from 15.1% to 17.8%. Another study in which servers gave each customer two pieces of candy with the bill increased the tip from 19% to 21.6% of the bill. Still another study showed that the way the server gave the customer the candy had the largest impact on the increase of the tip: This study had the server initially give each member of the customer's party one piece of candy

and then "spontaneously" offer a second piece of candy. This method increased the tip to 23% of the bill! 16 Gender Specific Waitresss tips increased by drawing a happy face on checks but did the opposite for waiters (Lynn, 1996), Flowers in a waitresss hair increased her tips (Stillman & Hensley, 1980) and Good looking waiters made more tips (Lynn & Latan, 1984; Lynn et al., 1993). Male customers tipped more (Lynn & Bond, 1992; Crusco & Wetsel, 1984; Lynn & Latane, 1984; Stillman & Hensley, 1980).

17 Drawing on Checks Some waitresses draw a happy face on the back of their checks. Personalize serve to customer Communicate to customer server is happy to have served them Make customer smile themselves Waitress 28-33%= +18% Waiter 21-18%= -14%

18 Payment/Customer/Weather Specific Tips were higher: Paying by credit card (Lynn & Mynier, 1993; Garrity & Dengelman, 1990; Lynn & Latan, 1984), People that have been drinking (Lynn, 1988) Regular guests (Lynn & Grassman, 1990). on sunny days (Crusco & Wetzel, 1984: Cunningham, 1979). 19 Tips for earning More Tips ACTI ON

I ntro self Control Group 15% Squatting Waiter Waitress Smiling Experimental I ncrease % 23% 53%

15% 12% 20C 18% 15% 48C 20% 25% 140% Credit Card I nsignia 16%

20% 25% Thank You Check 16% 18% 13% Draw Happy Face Waiter Waitress

21% 28% 18% 33% -14% 18% 15.1% 19 % 17.8% 21.6% 2.7%

2.6% Candy w/ Check 20 (Lynn 96) Actions Not Additive More research needed to be certain but Likely that as tip goes up, so does resistance to further increases Combining actions that separately increase tips will probably not produce an even larger effect. Managers can maximize their servers incomes without encouraging them to do all the things

discussed. Pick the ones you feel will work for you. 21 Questions & Answers

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