Scientifically Proven Ways to Increase Tips in the Service Industry

Tipping is a $40 billion dollar industry in the United States. Yet from the traditional economic perspective, which sees us as rational agents operating in our own interest, tipping waiters, barbers, taxi drivers and other service workers is crazy.

Many food servers depend on tips to make their living. Understanding the variables that affect tipping behavior can make a huge difference on income. Of course, a lot of the variables that influence tipping behavior are outside the servers’s control. For example, customers tend to leave larger tips when the weather is pleasant, when there is desirable background music, and when the restaurant is elegant or in an urban area. Food quality has a large impact. Research also suggests that tipping behavior is affected by customers’ characteristics, including size of the dining party, amount of alcohol consumed, customers’ gender and ethnic background, and method of payment.

However, research also indicates that servers can control some variables that influence tipping behavior.

If you’re a food server try—and if you’re a customer watch out for—the following:

Have your restaurant prime the customer with examples of what a tip would be at 20%
This study examined the role of gratuity guidelines on tipping behavior in restaurants. When diners were finished with their meals, they were given checks that either did or did not include calculated examples informing them what various percentages of their bill would amount to. Results indicated that parties who received the gratuity examples left significantly higher tips than did those receiving no examples. These results and their implications are discussed.

Introduce yourself by name
…wait staff who introduced themselves by name received an average tip of $5.44, or 23 percent of the total bill, and those who used no name were tipped on average about $3.49, or 15 percent of the total bill.

Squat when you first get to the table
Walters should squat down next to the table upon their first trip to the station, Lynn recommended, based on his study at an unnamed casual Mexican restaurant in Houston. Those who squatted received an average tip that was 20 percent higher — $6.40 as compared with $5.18 — than those who stood on their initial visit to the station.

Smile
Servers should give their customers a large smile — with mouth open and teeth showing — while they work.

Approach The Table Often
Walt staff should visit their tables more often, Lynn suggested as another technique, based on a study conducted in the 1970s at a Chicago steak house. Those who approached their tables — just to check up on the customers and not to deliver anything — two times or more received average tips that were 15.6 percent of the total bill, while those who approached the table only to deliver something or take something away received tips that were on average 13.8 percent of the total bill.

Touch your customers
He recommend they touch them lightly on their shoulders when delivering the bill or when returning with change or a credit card. His study for the technique was conducted at a Bennigan’s in Houston. Those who touched their customers for an average of two to four seconds received an average tip of 18 percent, or $3.20, of the total bill, and those who didn’t received a 12-percent average tip, or $2.52.

Give your customers something extra, like a mint
Another controversial technique Lynn recommended is for wait staff to give their customers after-dinner mints, based on his study at a Philadelphia restaurant. Servers who left their customers mints received tips that were on average about 28 percent, or $5.98, of the total bill, and those who left no mints received average tips of 19 percent, or $4.64, of the total bill.

“The technique didn’t work at steak houses with a [per-person] check average over $30,” Lynn said. He added that leaving mints for customers at upscale restaurants seems to have no impact on tips. “But at casual restaurants, it does increase tips,” he insisted. “It works because customers got something free, so they want to repay their servers.”

Compliment your customers
The present study examined the role of ingratiation on tipping behavior in restau- rants. In the study, 2 female food servers waited on 94 couples eating dinner, and either complimented or did not compliment the couples on their dinner selections. Results indicated that food servers received significantly higher tips when complimenting their customers than when not complimenting them. These results and their implications are discussed.

Other ideas? Write “thank-you” or simply draw a smily-face on the bill (to create a likeable impression); Print a picture of someone smiling on the bill, or the American Flag (something most people would associate with happiness); Make paying by Visa the default; If you’re a guy give the bill to the woman and if you’re a woman give the bill a guy; and Tell customers the weather is supposed to be nice tomorrow (take away a subconscious worry).

If you’re interested in learning more about gratuity’s try reading Keep the Change: A Clueless Tipper’s Quest to Become the Guru of the Gratuity. The best book out there on working in a restaurant is Kitchen Confidential.

Sources
– Ingratiation and Gratuity: The Effect of Complimenting Customers on Tipping Behavior in Restaurants
– Tip gratuity scale in server’s favor with simple techniques
– http://www.allacademic.com/meta/p_mla_apa_research_citation/3/0/7/3/0/p307300_index.html