Christine Seib
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Lisa Cabanes has made plenty of concessions to America's recession. The co-founder of Social Couture, a party-planning company based in Los Angeles, stayed away from the shops and made Christmas gifts - “a hot chocolate kit with chocolate shavings, little peppermint stirrers, marshmallows, all wrapped up with a ribbon” - for friends.
Instead of handing out cash to everyone who provided her with services this year, the well-groomed Californian substituted some of the money with store gift cards.
This last move was one of the most delicate. The economic downturn has turned America's finely honed system of tipping upside down. With a bonfire on Wall Street, record numbers of homeowners unable to pay their mortgages and the jobless queues lengthening, all the long-established rules about whom to tip and how much are out. The social confusion this is causing is more painfully apparent in the traditionally gratuity-rich festive season.
On top of tips for taxi drivers and waiters, the Christmas and new year break brings a list of regular service providers who expect, and in some cases need, an annual cash gift to supplement their wages - condominium door staff, building superintendents, laundry owners, postal workers, refuse collectors, dog-walkers, cleaners, child-minders, hairstylists, personal trainers and manicurists. Americans with a lawn can add the gardener to the list.
A box of chocolates or an M&S scarf may cut it as an end-of-year gift for your child's teacher in Britain, but in the US cash tips for teachers and school bus drivers are not uncommon. Housekeepers, nannies and daily dog-walkers can expect a week's extra pay at Christmas, while condo residents are expected to distribute as much as a month's rent between their building's staff. The gratuity gift list can end up costing thousands of dollars.
Cabanes says: “People are definitely saying that they won't do as much this year as they normally do. People are struggling, it's hard out there. When it comes to cleaners, the doorman, hairdressers, normally you'd give them $100 (£69) but now people are giving gift cards instead.” How much to tip in one-off encounters and how to show long-time contacts that you still care, even if your husband no longer has his Lehman Brothers' job, has become a prime-time concern. Every major TV channel has run a holiday tipping special and there are lengthy online discussions dissecting the issue. Martha Stewart, the shamed domestic goddess, offers a cut-out-and-keep “tipometer” on her website to assist with tricky tipping decisions.
Jodi Smith, president of Mannersmith, an etiquette consultancy based in Massachusetts, appeared on Fox News to advise on the niceties of tipping in a recession.
Anyone still in a job, she declared, should continue to tip the expected amount. “But for people who have lost their jobs, whose mortgages have disappeared, who are suddenly caring for ailing parents, whose budget has decreased significantly, then you need other ways to show appreciation,” she says.
“If you can't tip the usual amounts, scale back. And then write a note: Usually I would give you a much better tip, it's really been tough this year'. You can also write a letter. Either to them personally to tell them how much they mean to you, or a letter to their supervisor or boss so that that puts them in line for a promotion. And lastly, if your'e good in the kitchen, you can always bake them something to show your appreciation.”
The Emily Post Institute, set up by the legendary etiquette adviser in 1946 to provide a “civility barometer” for American society, published a 2008 holiday tipping guide to help people through the minefield of giving gratuities in straitened times. Anna Post, Emily's great-great-granddaughter, adds a word of caution on homemade gifts such as soap, candles or baked goods. “Unless you know the person well, try something unlikely to offend or cause allergic reactions.” She points out that gift cards can also be risky, given that even large US chainstores are filing for bankruptcy with frightening regularity.
Some sectors are faring reasonably well in the recession. Women may be going for a half-head rather than full-head of highlights and tolerating their regrowth for a few weeks longer than before, but at least customers are still tipping.
Serene, a cut-and-colourist at John Masters Organics, says that she still receives tips of $20 or more from regular clients at the Manhattan salon. “The difference is that during the holiday season they'd give extra, maybe the cost of the haircut again, but that's not happening as much. But I understand and am supportive of that.”
That such generous tips were ever on the table is likely to surprise the British. One well-heeled Londoner confesses to not tipping at all if the bill for her hair comes to more than £100 and giving just a few pounds to her stylist for a blow dry.
But in the US, where tips are so much part of the culture, workers without loyal customers are suffering. Bill Lindauer, a 30-year veteran taxidriver, now mans the phones at the New York Taxi Workers' Alliance. Tips used to make up about 12 per cent of his day's takings, a far cry from the “round it up to the nearest pound” gratuity handed to London's black-cab drivers. Lindauer reckons that with no bankers rushing between Wall Street and midtown Manhattan, business for the city's drivers is down 30 per cent, while tips have fallen off a cliff. “Tipping's gone down, especially now more people are paying fares with credit cards. You're lucky if you get anything,” he says.
J.J. Jdmel, a bellman at the Renaissance Hotel, Manhattan, used to receive $2 for every bag he carried and $5 for pushing a cart of luggage to the kerb. “Now it's $1 to nothing,” he says. “It really hurts.”
But Americans are confident that big tips will make a comeback, despite the downturn. New Yorker Philip Goldstein calls it “a cultural thing. People who live here know they're going to have to give up a lot of money for a lot of things and that includes tips”.
Some see it as a way of fighting back against the recession. As one reader commented on a New York Times blog about holiday tipping: “Spreading the wealth is the way out of this downward spiral.”
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There's no tipping culture in my country (Asia). I was thrilled by the tipping culture in western country. I enjoyed being tipped instead tipping out. If there's a fair wage in the restaurant service sector in western country, why bother to have customer to "co-pay" the wage for their employers?
Angel, ONTARIO, CANADA
I would like to second the comments about purported tipping of teachers in the US. As a teacher of many years in a public district, I have never heard of this practice, and it would be a preposterous breach of professional ethics. Cards and homemade cookies, maybe, but cash? Donate to the PTA.
Sue, New Jersey, USA
I went to New York a few years ago and found the tipping culture a nightmare. If you sat at a bar you were expected to pay a tip per drink - usually a dollar. How hard is it to pull a pint and plonk it on the bar in front of a customer? Pay people proper wages and tipping wouldn't be needed.
Sam , London,
i dont enjoy eating out anymore,..i feel the price one pays is pricey enough and to expect an expected tip on top of this !!,..i dont feel the service in most places is value for money & dont care how they serve as long as they get their tip!!.,i,m against it
claire, calgary, canada
I think tipping should be expected as a right of poor people like waiters. Perhaps a fixed tip rather than proportional to the size of the bill. However, this is rather unfair to the average person compared to a multibillionaire !!!
Bill Rafter, Los Angeles, USA
To get a good realistic view of tipping, you should watch the 3rd rock from the sun episode in which the tipping culture is widely explored and actually makes alot of sense!
Jenni, Derry, Ireland
If you can't afford to tip, you can't afford the service either.
Tom Hayden, nyc, usa
The author overstated the tipping culture in the US. Yes, it is bad, but the amounts given and the breadth of it is not reality. For example, the line about if you have a lawn, you have a gardener? No.
Karen, Sun Prairie, USA
I don't know where you heard that teachers get cash tips.
Not true.
If a parent wants to give a gift to the teacher, it's more in the form of getting some supplies for the school room.
I have put two kids through school and have never heard of anyone giving cash to a teacher. It's unheard of.
Sandra, Chicago, USA
If people are so hard up, what are they doing going out for dinner and getting taxis in the first place?
sharon, brighton, uk
I waited tables for years. I actually averaged about $15 an hour with tips. That doesn't includthe 2.13 an hour that is your wage. Waiting tables is still a great job for those without a good education. I'd make about $500 a week. The average ticket was about $12.
Didi, Conway,
Never forget my visit to a restaurant 15 years ago, that's still there, on Ken High Street. The waitress was terrible. We didn't pay the "optional service charge." Upon leaving the owner shouted at us, "If you can't afford it, get out."
Restaurant owners just don't get it.
James, London, UK
Cash tips for teachers! Uncommon! Check your facts, Ms. Seib! I've taught in public school in the US for over 10 years and have NEVER gotten more than a card, and my kids love me! It's very unethical for teachers to accept more than a token card or bit of candy from students, much less cash.
alice, salado/lowestoft, TxUS/UK
Tipping is for exceptional service, a "thank you" for work well done. It is not your obligation, as a customer already paying for a service, to supplement a worker's wage deficiency. US federal law sets a minimum wage. If you agreed to work for less, the consequences are yours.
M, Seattle, USA
Its about time the service industries in the US and elsewhere paid a proper wage for the job being done and not rely on tips. There are plenty of people who are not in a position to receive tips yet they are still expected to do their job.
Richard, Torrevieja, Spain
Another good reason to live in Australia - no tipping expected! And no so-called service charges, either.
mykl, Kangaroo Point,
The US 'Tipping' system is all wrong. Good, polite, friendly service should be included in the price. The tip would be the customer coming back again!
Neil, Frankfurt, Germany
Tony from Islington must have been very lucky - service here is often sullen and rude even with the big tip!!
Bill Atkins, Rehoboth Beach, USA
Hard times are worst for people on low wages so we should tip more than we usually do.
Ali , London,
I adore bars and restaurants in the US; because they work for a tip, the service is brilliant. I'd hate for it to become sullen and rude like the UK, where tips are just often added to the bill automtically.
Tony, Islington, London, UK
Some people wait tables because they do not have the qualifications/experience to get a job where they do not have to rely on tips in order to pay the rent. "They can get another job" - in a time of such high unemployment rates, I am grateful to have a job in the first place.
Linda, London,
Waiters voluntarily work as waiters, there's no slavery. If they don't like the wage, they can find another job. When they blatantly expect a tip, it really puts people off.
Katie, London,
when you get bad service in us your still expected to leave a tip! I didnt leave one a few weeks ago because the service was non existant - then the waitress turned rude - the restaurant has lost a customer for ever - who loses the most here? Im all for tipping for great service.
james, cirencester, uk
One reason for the "tip culture" in the US is that most people have had the experience of working in a "service" job sometime, if only in their youth. This includes traditional wealthy families who send their teenagers to wait tables at places like Martha's Vineyard.
David Null, Claremont, CA, USA
Most waiters in the US make between 4 and 5 dollars an hour, which is significantly below minimum wage. The rest of the pay is expected to come from the tips from each table the waiter works. So no matter how tough a year its been for you, by not tipping the expected amount, you hurt the wait staff
Drew, Ossining, NY, USA
As a native New Yorker I have to chime in and say both comemnts are incorrect as well as the article. The average New Yorker is very generous and realizes that waiters and hairdressers make minimum wage so they try and give them a decent tip to top off their wage.
Katie, NYC,
I left a Holiday gift for my newspaper delivery person in the newspaper box where he is supposed to deposit my daily newspaper. He threw the paper on the driveway and so missed the gift. I then gave it to someone providing better service. Sorry, Newspaperperson!
Corrinne , Cool, USA
It is sad that we still expect the best for ourselves but save on the tip to the lowest paid people.Instead of cutting back on the dinner we cut back on the tip.
Andy O'Donnell, Sacramento, CA .USA.
This tipping culture is a big & tiring nusiance for foreigner's visiting USA. It would be much better if the price simply reflected the total service costs.
While visiting Washington, I half expected George W to be sticking a tip jar out of the fence, when we went to view the White House.
Firo, HongKong, HK
I so dislike the tip culture. It's really old fashion&unfair 4all. Why can't all costs (and the salary of employees is 1) be included in the final price, together with taxes? In US all prices are shown without, it's such a rip off society... and I agree that many graduates earn less than a waiter!!
Francesca, Verona, Italy
I agree that tipping is out of control in the US, it is ridiculous that 15-20% extra is expected on top of the bill. But you have to roll with the punches because the service industry there is poorly regulated and with no guarantee of a proper wage those people depend on gratuities.The system sucks
tril h, Dublin,
The spread of American tipping culture to countries like Ireland makes for strange times. Waiters have a guaranteed wage PLUS tips of 10%+ per cover, so here in Dublin i know lots of people who've been making 35-40K a year as waitstaff, should society be paying more to food servers than graduates?
tril h, Dublin,
I think the author of this article must get her information on tipping from only her wealthy contacts. The USA is not full of wealthy people. The average American does not tip as this article suggests. Most people have to budget for Christmas and can't afford this kind of tipping.
Bob, Eatonton, USA
I want to know why there is always a tip jar on the counter when I pick up take-out. What extra service do I get? Unlike in the UK, where it's often a lower price for take-out, I pay full menu price, but use no dishes, silverware, etc. Tipping in the US is definitely out of control.
Shari, Dallas, USA
Employers should be made to pay a fair wage for the proper delivery of what ever service they are trying to sell. Why is a service charge added to some bills? surely service is part of what is being sold in the first place.
Derek Nesbit, York, England
Recently in a restaurant in new york, my bill came to $60 and I paid with two $50s, i.e. gave the guy $100.
He asked, upon receipt of said $100, "Can I get you some change for that?". Yes, I bloody well do want my $40 change, do you expect a 67% tip mate?
Tipping in the US is out of control
rm, singapore, singapore
Mmmm. I tip waitresses & waiters 15-20% of the bill; I know they work hard & their regular paycheck is less than minimum wage. But nothing extra at Christmas. But otherwise, just a few dollars at xmas for the newspaper delivery person: bad hrs, low pay, frequent bad weather, & I love my a.m. paper
Carol, Parker, USA