Why American Tipping Culture is ILLEGAL in GERMANY | ( Now I understand 'Trinkgeld')
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- čas přidán 11. 05. 2024
- It wasn't until after I moved to Germany that I truly understood just how weird and completely un-fair American tipping culture is. From a history in post-civil war racism to causing 11 billion dollars in tax fraud... is it time the Americans took a hint from German tipping culture & service industry pay?
Episode 105 | #germany #usa #tipping #tips #minimumwage #serviceindustry #restaurant #waiter #taxes #wages #americaningermany #america #livingabroad | Filmed April 15th, 2023
Jump to Your Favorite Topic:
00:00 Intro
01:34 Tipping History & Racism in America
05:14 WTF is a "Sub-Minimum Wage"
09:40 11 Billion Dollar Crime
13:56 Has Tipping Culture Gone too Far?
15:54 Does this change your mind?
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As a European, each time i see a video about such topics (also, healthcare, workers rights, education, food and water quality/safety, etc) i feel like living in the US would actually be the worst experience of any developped country out there.
I live in the US and get 18$ an hour. It isn't really that bad as it is made to look. A lot has to do where you live in the US and what your expectations are .
@@svensulzmann4282 so if I am born poor in a sub-ideal area I am fucked... ?
@@NilsNonemurica baby
@@svensulzmann4282 'I am not one of those in poor conditions so the conditions aren't really that poor'.
@@svensulzmann4282 how you pay for a hospital bill?
I live in Europe and I do find the American tipping system prepostiously suppressing. It is not and never should be a requirement of the guests at a restaurant or hotel or what ever to make sure the staff is sufficiently paid for their work through tips. Tips are not salary it is a goodwill gesture, a token of appreciation of a service well done. The basic needs for the worker should already be covers by intern agreement between employer and employee and if they are not already covered by the ordinary paycheck then it is no longer a workplace but a slave farm.
Agreed. And I would add that even if a tipped employee is making enough money - or even a lot of money - that employees pay is based on a false narrative. Customers should pay the business, and the business should pay the employees. The employer and the employee(s) should negotiate some type of profit sharing if they like.
For me, it has something to do with the general tendency to leave many difficult and also morally ambiguous decisions to the individual citizen instead of the lawmakers creating clear rules.
In German, one says to this: Der Markt regelt das( The market will sort it out).
However, it leads many people to ask themselves whether they can tip and have less money themselves, but be morally satisfied in return. Or whether they should forego tipping, make it through the month better themselves, and be partly to blame for the waiter having a harder month.
And this approach can be extended to many other issues(eg climate protection). Even if Germany and the EU are usually a bit better at this than the US, it's still not really good.
It's always the customer's responsibility, but the difference is the European countries prefer to order another drink.
You don't understand the system of wages and basic needs of a worker, because in Germany, most wages are made by the authority. (Gewerkschaften) In the US, you have to be the one, to acknowledge what was done in work and what not. As you paid a price, there is never a "too low". Germans feel embarassed, because they are overly critical and might give to less, because they control inflation more strictly at home.
However, Germans should understand, that the US system is based on overly less developed public standards, meaning, the workers don't pay much in taxes, what Germans in contrast do. So, the net income in Germany is low, because Germany was historically homogeneous and supported public expenditures through taxes. And average costs in the US are high, because they are not tax subsidized. A German tourist automatically pays higher prices in the US, because he participates in paying the true costs. In Germany, a foreign tourist, has generally a lower price to pay, because things are tax payer subsidized! You as a tourist, are NOT the one, who should fund, what isn't of your concern. Also, it's ethically wrong to pay more, just because these people don't organize a social structure, because they are too lazy or weird. It has a reason, why salaries are NOT equal.
It's common sense.
@@schadelharry4048 I'm not sure I get your point, please clarify:
a) You say, its ethical wrong to pay more... Ok, so its the fault of the waiters they get so little from the shop owner, fine.. But then again, why should I tip them either? It's not my fault they earn so little. I don't understand what you want to say with that? Its no argument pro or contra tipping.
b) Your argument about tourists.. For one, the whole tipping discussion is not about tourists. Just leave them out of the argument and focus on guests dining in their own country. That aside: US tourist in germany: He does not need to tip, does not fund anything not his concern, fine. German tourist in US: Again he does not need to tip, why fund something not of his concern. He already pays the true cost... oh.. no, he wants to be served, but does not pay for it... Ok so he should tip the waiter because he wants to be served?
So in some sense you seem to say: As a German tourist, I don't care for the issues of the US system, I just don't tip. It's their problem. But I've to tell you: You won't be served twice in any US restaurant.. So be sure you have many places to go to during your stay.
Or, as US citizen, you seem to say: I don't tip at all. Oh, but wait. The US system expects you to tip?
c) Finally, I think it is a strong misunderstanding of ethics if you consider it unethical to help people that are somewhat handicaped. It might be unethical to reward someone for being a bad person. You seem to imply that someone is working under such condition because he freely decided to do so. That can be true in some case, but is an argument to simple for the general case. People might get bad education because of their race or the situation of their parents, and then can't get out of it. You heard in the clip, that it evolved with just freed slaves in the beginning who had just their lives (probably bad health from previous mistreatment), certainly no education (no writing etc) whatsoever. How should they organize?
There are plenty of reports why the American system does not give the same chances to everyone, and to be honest, I think to some extend that even holds for many if not most other contries.
All in all, I think your arguments are totally illogical and self-contradicting. This is not common sense.
The US tipping culture is absurd. Paying employees less because they get tips should be illegal, tips should be given for good service, not to help people survive. If you cannot afford to pay your employees a living wage, and if the 107% increase of the minimum wage is a problem for you, perhaps you should not be running a business.
Very much agree.
I agree with you on the absurdity of US tipping culture. Tips should never be more than a thank you for good service. I don’t agree with your statement that if you can’t afford a 100% increase in employee wages, you shouldn’t run a business. There isn’t a small business on the planet that can easily absorb such an expense increase.
The biggest cost for any business, anywhere, is employee wages. If those steadily increase every year then it’s easy for a small business to adjust for that. A small increase in sales prices, switching to a different supplier, etc. But when it’s suddenly a 100% increase, raising the prices by an amount that wont cost the business clientele won’t do enough to compensate for the increase in wages. Switching to a different supplier won’t safe the business enough money to compensate either. What it means is that the business will have to save on quality, or even personnel just to stay afloat. I’m talking about small business here. Not multi-million (or even billion) dollar companies that give out millions of dollars in bonuses to their top management every year. I mean the small business, like mom and pop restaurants that have 10 or 15 employees and one single location.
By adjusting the minimum wage on a yearly basis, based on the inflation that year, you solve this problem. That might be a $0.10 increase in price for a meal every year. Instead of a $1.40 increase every 14 years. In the end, the same increase in price. But, a customer is much more willing to pay that $0.10 more every year and suddenly $1.40 more.
In my own county (The Netherlands) the minimum wage is adjusted twice a year (January 1st and July 1st). Prices rise slowly with it. This tends to be just cents per product. Hardly even noticeable. There is however a grocery store that didn’t raise the prices for their most sold product for more than 10 years. It used to be €0.65 per item. In 2023 they decided they needed to adjust the price. They went to €0.89, in smaller increases, over a span of 3 months. It’s also a product that’s sold in batches of 6. So, it went from €3.90 to €5.34 almost over night. That’s an increase in price that’s definitely noticeable. And people complained about that increase a lot. And people are still complaining about it.
Now imagine an increase like that on every product in a small restaurant. That could very well be the end of that restaurant. Because patrons would probably simply go to a different restaurant where the prices didn’t have to be increased that much (like a larger chain restaurant that can more easily absorb the wage raise).
Naturally, a case can be made that business should increase their employees wages on their own, on a yearly basis. But that’s not how this capitalist world we live in works. And we all know it. Which is why most European countries have put it into law, forcing companies to do it. A lot of Americans forget that outside of the USA it’s just as capitalist. It’s just that the USA is an unchecked, almost unregulated form of capitalism. To prevent that from happening in the EU, laws were put in place. Have those laws suddenly go away, and the EU will become a capitalist clone of the US.
Basically this. And I hate the guilt tripping let alone that I have discalculia and having to calculate percentages on the spot gives me a meltdown. It's ableist and unfair and what the other person said. Pay would workers and pay them fair and while you at it stopp childlabor too.
Why we still call the usa a developed country is increasingly beyond me.
Tipping culture has absolutely stepped into the realm of the absurd. Lately, the payment kiosk at my local Menchies, a SELF-SERVICE frozen yogurt counter, asks for a tip presenting your balance. You walk in, pick up your own bowl from the counter, fill it yourself with fro-yo from the machines, put your own toppings on it at the topping bar, then bring it back to the counter to put it on the scale and weigh it, and the smiling attendant looks at the scale and tells you how much you owe for your yogurt, then turns the kiosk display to you where it's asking for a tip.
The rise of tipping asks on receipts and payment processing machines feels like it's turned the entire procedure into a guilt-based shadow tax that, rather than funding any sort of public services, is just directly subsidizing labor costs for capitalists. In the 80s and 90s, when I was a kid, 10-15% was a standard tip, with 15% being the customary gift for good service. Anything more than that was considered extremely generous. When I was in college in the 90s, I started seeing a "tip: ______" line fairly commonly on all receipts for credit-card payments, and tip jars in bars and coffee shops were becoming ubiquitous. In the very late 90s, I encountered for the first time ever, a restaurant that automatically added a gratuity to the bill for large parties. It wasn't until the mid 2000s that I first saw a restaurant receipt with a printed suggestion for tip amounts for 10, 15, and 20%, or a tip ask at a fast food counter (which seemed very weird and presumptuous at the time!) In 2023, I can't remember the last time I saw a receipt that didn't have suggested tip amounts, or one with the LOWEST ask anywhere below 18%, and I've been handed Square confirmation screens on many occasions asking me if I want to tip 25, 40, or 50% please choose. I 100% get that the workers receiving these tips need to make ends meet, but the responsibility for that NEEDS to get shifted back to their employers, please!
To reiterate it, then businesses, even small ones. SHOULD NOT, be in business, if they cannot provide a wage that can sustain the base cost of living, working full time. Its that simple. I do agree with what you're saying, I notice it too, but here in the states, we see all these businesses FLUSH with cash, as 67% of us are literally struggling to eat & pay our bills, it doesn't make sense to allow anti-worker businesses to exist, because to be anti-worker, is to also be anti-consumer. There is even a study done that has shown most of the inflation in the US is not from Wages, or Supply Chain issues, but rather, RECORD PROFITS, and companies refusing to absorb even just the smallest cost, they blame workers wanting their wages to stay in-line with inflation, yet its Walmart & Target & Kroger killing off the small businesses, not us trying to make ends meet, people need to stop falling for the propaganda!! These companies will literally kill you for profit, I'd suggest you read on the Coal Mine Wars here in the US, Companies will literally shoot you dead, to make sure they don't have to absorb a single penny in expenses. When we have an over-abundance of goods, yet prices are increasing, & our paychecks aren't, doesn't make any sense what-so-ever. Even then, here in the Southern US where I'm born & raised, most of us have been making $7-12 for the last 10 years and haven't seen a raise, even in this spike of inflation. They always point fingers at the workers, instead of taking the accountability & responsibility for their actions, without the workers, nobody has ANYTHING. @@mrpddnos
To be honest the way america treats their citizen is mindblowing. I feel bad for those who earn minimum wage and struggle to afford even smallest homes. So glad i live in germany...
It's pretty mind blowing to think that a $2.13 wage is still legal, let alone the fact that it hasn't been raised or updated in decades.
@@TypeAshton yeah i agree. But to be fair the biggest problem for america is simply the fact they despite socialism. Without a good socialist in the goverment, nothing will change. America needs to get away from pure capitalism and learn from other countries like germany or other EU countries. Not saying germany does everything better, but at least its not doing too bad.
Thank you for your videos i always enjoy watching them. Greetings from Hannover
@@mJrA83 a big problem is the way they vote. as there's only two parties realistically possible, political polarization is preprogrammed in an information society as it's easier perpetuation of power to just block any move of the opposition instead of trying to find a functional compromise.
especially when staying in power doesn't actually require you to want to solve the problems the country is facing 😅
@@mortuos557 Agree, the two party system here in the US is utterly counterproductive, to put it as mild as I can. Especially, as it's getting more polarized these days.
@TheBlackForestFamily I worked in 1980s in Texas in service 2.01$ an hour
I live in Germany and what annoys me is how much American tipping culture seems to creep into this country. Germans consume a lot of US media through TV shows, movies, CZcams, Social Media etc. and frequently get confronted with the trope of the service worker being upset about the tip amount. I feel that this is often taken out of context, since American service workers have much higher stakes when it comes to tips. As an uninformed customer, however, that really increases the feeling of guilt for not tipping enough, even in Germany.
I recently saw a poster ad campaign advocating tipping in Germany by the Jaegermeister brand (Don't drink that battery acid, there's so much better spirits available). This made me so angry that a large company would contribute to the pressure, since I'm of the opinion that tipping should always be voluntary. The last thing I want is that our tipping culture converts to what it is in America. As you said, it is tax free as long as it is voluntary, but if social pressure keeps building, it might not be considered voluntary any more.
I've known for years that high tips are expected, especially in restaurants etc., but that there is a law behind it which, strictly speaking, promotes "clandestine work" (work paid for in cash without taxes and social security contributions).
In other words, the state has deprived itself of part of the income.
While in Germany the tip culture is usually 5% on average and is reserved for "personal service" (restaurant, delivery service, hairdresser, etc.) and also the "thank you culture with small gifts" (coffee, chocolates, cake , wine, etc.) has come to an almost complete standstill, especially at Christmas. While in my field of work every colleague went home with 2 bags full of wine, chocolate, and pralines (shared among 10 colleagues on average) for Christmas up until the 1990s, this has steadily decreased and today around 10 colleagues share the 2 or 3 boxes of chocolates on site, enjoyed the wine together on special occasions after work, because you couldn't even distribute the gifts to all colleagues.
*not to forget that nowadays all these gifts have to be reported to the compliance department as well.
'Sharing the internet with the US is like sharing a living room with a rhino' But hey, I don't think anyone in Germany would pass a law even remotely close to what the US has.
I think part of the reason why tips have creeped into other countries is because American tourists don’t always read the customs of those countries and tip there
The US military in Germany has to have had a big influence too. Local customs are not always understood.
I saw those Jägermeister posters. They are "cancelled" now.
I think the tipping culture in the US is way out of hand. I remember when I was the first time in the US in the 90s, I was told that you tip 10% and if you like the service you can get up to 15%. Last year I was 3 times in the US and now at credit card terminals they suggest 15%, 20% or 25%. In one restaurant I wanted to give 15% and was asked several times by the staff if their service was not good enough. In another restaurant in New York, they even wrote on my bill a reminder "for Europeans" that tipping between 15%-25% in common in the US - before I even told them how much I wanted to tip. These practices made me so angry to doubt if I should tip at all. In these cases I payed the 15% but was left dissatisfied with losing the joy of going to a restaurant in the US at all.
It is not voluntary, it is demanded, like state tax and local fees. There is a sidewalk board with 'Coffee and apple pie $5.75 But you end up paying $9,35 And in those cases I refuse to say: Make it ten. And suddenly all those fake smiles and over the top 'friendliness' disappears and they look at you with a face that tells enough!
I lived in Germany for 5 years - what was normal during the DM days was just rounding up the bill to the next denomination for prompt service. It wasn't looked down on if you didn't tip at all though. If I had an 18DM bill I would drop a 20 on the table and leave if I was happy with the service. It was quicker for everyone involved too.
When I worked with Japanese workers they used tipping cards, and left a tip to the penny of 15%. (they expensed their actual costs, and that was how they were told to do it in the US)
It's actually fraud. You should go to different restaurants, they exist.
@@redwolfexr In Germany, the tipping culture originally was pretty much based on actual quality. Today, you also find more and more restaurants, who don't have skilled personal and don't pour wine correctly, forget the orders, but demand special treatment. I switched over in giving those more, who still do a good job. And others nothing. I also tried to show them, how to pour wine correctly 🙂 The problem accelerated, as Socialism created more equal wages, increasing prices and made several restaurants to close down or reduce quality. The "big winners" are fast-food restaurants since 20 years.
@@schadelharry4048 you can't blame socialism... sorry. Owners just got cheap and didn't want to pay "professional" waiters more than the cheapest ones they can hire.
You can always tell if the owner cares about good employees. Or not.
Because my two kids married Americans, we retired to the USA in 2009. We came to realise that life here is good if you’re wealthy (and, sadly, white - but that’s another issue). Tipping is one of America’s hidden taxes (and is sometimes worse than the ridiculous sales tax added on to the price when you get the bill).
Simple example - a $5 coffee (which is more expensive than every coffee I had in the UK, Netherlands and Germany on a visit last month) is typical here in Reno. You order at the cash register, wait for it to be made, then take it yourself to your table (no ‘service’ as such). Before receiving the coffee, you pay. Up on the iPad comes the price - $5.42!!
The extra is sales tax (you can’t buy this coffee anywhere else, so why not include the tax in the menu price?). And then the suggested tip appears, while your server is face to face with you. Typically there are three percentages suggested - 15%, 20% and 25 or 30%. 20% makes the coffee price almost $6.50. Really??? For one coffee???? A coffee shop near us charges $4.50 + tax + tip for a hot tea. That’s almost SIX DOLLARS for ONE TEABAG in a cup of BOILING WATER!!!
Some of your correspondents mention healthcare. My retired wife and I pay a total of $19,000 per year for Medicare as we have not worked here (contrast that with an American retiring to the UK).
So yes, the country can be great if you’re wealthy.
Unless things in Reno have vastly changed coffee costs no where near $5 at a restaurant. It's only that expensive at a coffee shop, which basically only sells coffee.
The thing about coffee shops, tea shops, restaurants, bars etc. Is that you pay far more than the coffee, drinks, or food actually costs. Because you are not paying for the food, you are paying for the tables, the building, the electricity, the kitchen, the cook, the worker, and you are also paying for them to wait their patiently between customers to provide for you at a moments notice.
The expense is not the coffee, it's the rent, and paying the person to wait around until you want your coffee.
@@utubenewb1265yea. I get it. Don't you think we pay for those things over here in Europe too. Where the staff actually get a living wage.
Why do Europeans complain so much about having the sales taxes noted separately? Why not understand how much tax the government is collecting? Why not have that information so the next time a tax levy is on the ballot a voter can readily make a decision - YES I’m OK with more tax, or NO I already pay too much tax. Everybody here knows that tax is extra and most people can do the simple arithmetic required. Please get over it already - or just stay home!
In Germany taxes are hidden - why? Because the government, and left-leaning citizens don’t want the average Johann to know how much they are paying for everything. Ignorance is a tool. Cars include about 20% tax and everyone in Germany seems oblivious to it. Gasoline in Europe is heavily taxed and most of it just goes to general revenue - not for roads or infrastructure.
I paid $3.00 for an Americano at Starbucks in Reno (which was more than just drip) - and I didn’t tip either. Why in God’s name would you tip for something you buy at a counter. People who do that are either dumb, or like throwing money at people. I’m neither. No need to pay over $5 for coffee in Reno. McDonald’s has phenomenal coffee or about $2 - and the tips go to Ronald McDonald House.
One side effect of depending on tips for a sheer living is the aspect of sexual harassment. It's a sad fact, that some customers seem to think the waitress forms part of the dish - which is awful enough in itself. But to know you depend on that guy's 'generosity' in order to pay your rent or buy food is just a whole new level of outrageous.
This! It is so wrong to make someone's basic pay for their job depend on the morals of their customers.
@@tfrtrouble Yep, that's it in a nutshell.
Right but girls know full well that they receive triple the tips onmvee guys because they have boobs.
@@borstenpinsel That doesn't change the fact that they did not choose to be sex workers so they should not have to deal with inappropriate touching and comments for their job. But if you think it's unfair that (young, white, thin) women tend to get tipped more than men, that is just an additional reason to get rid of this unfair system and have servers paid fairly for the work they do, rather than leaving it to the customer to reward them based on stupid things like whether they (the customer) was in a good mood or how attractive they find the server.
@Tfrtrouble no of course not. But that "depend on the guys generosity" is independent of that.
Another thing that I hated in the US when I lived there was the fact prices were almost always shown „incomplete“, meaning: no taxes included. Everytime I would ask the price of something more expensive I needed to pretty much ask what would be when taxes were included. Not sure if it is like that but yeah, I always needed to calculate things considering taxes instead of already know what I will pay at the end of the day.
C'mon man, after a few days and with the use of the calculator or smartphone you can find out the price with tax included. What I love about the US compared to here in Germany, if you buy groceries, there is no taxing at all. Remember, all the prices in supermarkets are tax included, which is 19%. Of course it is not that high in the US but I still think this is a great deal.
@@rikkidgermano9640 not all some ar at the reduced tax rate of 7%, and its not true that there is no tax at all, it differs from state to state
Price without tax is a common thing worldwide if a sales tax is paid and not a value added tax. America has sales tax while Europe has VAT. In South Africa when the gov switched from GST (tax not included) to VAT (taxed were included) that occurred.
That is one of the best things about US prices to me. As a citizen I want to know how much I pay for goods vs. how much tax the government is taking. Same goes for salaries.
@@MarianoLu you get a bill
In Belgium the law was changed 30-40 years ago. Netto pricing was to include all taxes, service and tips. I think it's better for the individual employee to have a living wage, that taxes can easily be levied but also that things like pension build up can be based on the employees full income. It also was another step in eradicating 'black' economy. From a customer perspective I also think it will increase a secure feeling of knowing the full cost up front - maybe even make you spend more, as you can more easily determine if you can afford it or not. Admittedly, the service might be a bit less enthusiastic with such a set up, but has just as much to do with the training of staff and culture in a business. When I was in the US some years ago, I found the very active waitressing quite annoying. You were constantly asked if you wanted something more, if it was tasty, etc. I felt disturbed while enjoying the meal, felt pressured that maybe I should order more, and stressed that they wanted me out as quickly as possible to accommodate the next customer. Not really an enjoyable experience. I was equally perturbed in the shopping mall where you had to try to figure out how much the CD I wanted to buy, was actually going to cost me. So I definitely prefer the European way - the price tagged is the price you pay.
I've visited Belgium quite a lot and in general, I really like the service more than in many other European countries. Usually, it is friendly and professional and they know exactly when to check in on you; but also when to leave you in peace to enjoy your meal.
Not getting good service because there's no expectation of tips is "not a thing". The business has to take care of that by training their workers. Risking to lose one's job because of bad performance (=service) is working quite well.
Go to Japan: excellent service and they will run after you in the street with the "tip" you accidentally left when paying.
Ex-Ami here, living in Switzerland since 1977. I rarely visit the US, so won't comment on that. When I eat out, my tipping (Trinkgeld) depends upon a few things:
1) first and foremost: we travel with our dog who as is custom here, accompanies us when we eat in restaurants. Yes, this is the rule and not the exception. The exception being that no dogs allowed. Has happened maybe 3-4 times in 45 years - and if that's the case, we simply leave and don't eat there. Anyway, especially in the summer, terrific restaurants will ask if they might bring a bowl of water for the dog. That waiter/waitress just got an immediate 10% in addition to anything else for any other reason. One restaurant even gave our dog a couple of tasty treats - another 5-7%.
2) friendly service, including answering questions about dishes served if it's a local dish we're not familiar with. A smile goes a long way.
3) good to great food is always appreciated.
So we might, depending upon circumstance, tip up to 15-20% if it was something we'll remember for a long time. Well worth the experience and good memories down the line. And basically, I'm well aware as a 70 year old retiree, that I've lead a privileged life and people in the service industry are struggling. I have no problems reaching into my filled pockets a little more.
One more situation. 8-10 times I year I go to one of two Türkish Döner-Buden to pick up a take-out Dürüm. As long as I've been going there, the price has remained the same and we're talking at least 8 years now. And they risked life-and-limb during the worst of the pandemic, so instead of simply paying my CHF 10.- for a Dürüm, I'd pay CHF 12.- with many thanks for being there in those hard times. And if at some time raise their price, I'll continue to "overpay" as a passed-due payment.
You truly tip high for Swiss standards. Nice of you.
Wow I finally know where that word ''Trinkgeld'' came from. In Slovakia, we call it ''tringelt'' but I never understood why. Thanks for this! :)
I'm a Swiss person and I sually round up to the next convenient number. If it's 4.30, I'll say 5, if it's 28.90, I'll say 30. So I'm just too lazy to carry around the small change basically.
But I haven't eaten out in a while because I can't / don't want to afford it, the beers once a week are expensive enough. But since I really enjoy cooking I can eat cheap and tasty, even with a minimal budget overall of roughly 1200.- per month.
To be fair it helps that I enjoy off-cuts a lot. So once a week it's stew time. :D
I'm an American who has worked in a "tipped" job in the past. It is very much true that for these jobs, receiving good tips is what determines whether you are able to put food on the table for your family. Even though I am no longer working in one of those jobs, I am still keenly aware of the impact that a tip, or lack thereof, can have on someone's budget. Personally, I factor a tip into the cost of a meal when I am planning to go out to eat.
Having said that, it does make me angry that my tip really only benefits the employer. By giving the employer the expectation that I will provide a tip to the employee, the employer can then decrease the amount that they pay their employees, and use the difference to increase their profits. The employee doesn't benefit from the tip, other than to make their financial situation suck a little bit less, which is something that the employer should be doing, not the customer. It will never happen, but I would love to see employers that claim that they care about their employees really demonstrate that by paying their employees a livable wage and letting their customers know that tipping is not necessary.
Well said. You get a fair wages and no one is banning you to tip extra if you're extra satisfied with the service ...
Other than changes to legislation something that citizens can do is reward businesses that don't rely on tipping. One problem I face is that people accuse me of have high prices. I don't. I'm on the lower end if average. However because I don't take tips people factor a tip in and believe I'm too expensive. In reality I'm a much better deal than chain massage places. But because everyone is so use to opaque pricing in the massage industry, my transparent pricing seems expensive.
It's actually the same with taxes. Any business can include the cost of the tax in the price. But then it makes your competitors look cheaper when they advertise a cheaper price. Even if it's exactly the same after taxes are added. I big part of tip culture is manipulating people with a lower advertised price.
When I was in uni, I took some economics class and they explained to us the "economic value" - like how a bottle of water might be of higher value to you when its hot and you are thirsty, then when you are not thirsty and its temperate. And how at any given time you might be unwilling to pay a certain price for a service or good, that you where before. In the US that seems totally out of the window, the advertised price has nothing to do with the one you have to pay (taxes are added later, tips are "optional" - but not really) so you are unable to evaluate if that coffee is worth its price to you in that moment. You are presented the real price only at the very end. I really hated this in the USA on holidays - it feels like cheating the customer to me.
As bad as that is, it is even worse in US healthcare. You go in for a service -- usually in urgent conditions, such as pain or injury -- and have no idea what you will pay coming out. No prices are listed at all, so it is impossible to "comparison shop" beforehand. And does this facility even take whatever insurance coverage you are under? So many surprising add-ons as well, especially if admitted to the hospital. The whole thing is just sick (pun intended). So glad I was able to escape the US and come to Scandinavia!
It's even more intransparent, because you don't know, where the money of the intransparent price is going to. It's often times disguised, so you don't see it back in some communitarian form, but it's going to China instead.
Many years ago, I got in conflict with a waiter in a NYC diner because I did not tipp. Why: the service was terrible, we didn't receive everything we ordered -even after asking for the missing items several times- nevertheless the items were still on the bill. The waiter was getting upset and made us feel bad, but how could we possibly reward non-existing service? This shows the discrepancy: In Europe the tip is a reward, not a necessity. I worked a lot in service jobs in Germany and I enjoyed the extra money. I felt seen if I did a good job. Therefore I do tipp very moderately (in German sense, in the US it would be stingy) if the service is "okay" and generous (but not US-generous) if the service was really good or outstanding. I don't like it that there is more and more expectation to tipp American style even if the conditions are entirely different. To All : please tipp housekeeping in hotels properly, it is much harder than serving drinks!!
I hope you didn’t tip at that New York city diner, especially since they left items still on the bill that you did not receive plus the service was horrible
@@enjoyslearningandtravel7957... no, we didn't. Even though I have been in NYC for approx. 10 months at that time, I still rememberred my brutal Northern German honesty and stubbornness... Don' t ask a Northern German about an opinion (or confront) if you are not ready for clear, unmasked, non-sugar-coated answer. Polite but painfully honest.
@@hikingcook good for you. Terrible service should not have a tip.
I live in the United States but I used to live in southwest Germany so I’m used to plain but honest speech also.
@@hikingcook Looking at Prussian history and the birth of protestantism, I'm not surprised Northern Germans are a fierce breed.
Having been to the US several times, I know about the tipping culture there and obey to it. However, it always makes me angry how service personnel depend on it and are exploited by their employers. In my eyes, every employer should feel obligated to pay their employees a fair salary for their job, so that they can make a living from it. And if I, as a customer, have the feeling that I have received a good service, I am happy to give something extra to put a smile on the employees' faces and surprise them in a positive way. Being paid fairly from the outset also makes their work more comparable to the work of other workers who are not in direct contact with customers and therefore do not receive tips. This can also be taken further. As a customer, I like to know in advance what I'm going to have to pay and see if I can really afford something. Always having to worry about what all the extra costs will be, whether it's for expected tips or even normal purchases, with gross prices that already include taxes to be paid at the register, is an unnecessary nuisance.
Hi, in the Czech Republic is very common to round the amount up (if you should pay 282 CZK, then you round the amount up to 300, etc.). Many times restaurants don't even accept tips by card, so if you want to tip, you have to pay in cash. I personally don't tip very often, only when I go out for dinner or drinks, otherwise not at all. American tipping culture is ridiculous. The employer should pay the employee a high enough wage that tipping is not necessary. Tipping should be something extra for exceptional service.
It's similar in neighbouring Germany.
The reason for tips in cash are the rather high transaction fees when credit cards are used. That's also why many many restaurants and cafes here still accept cash only.
Cash is printed freedom. Do not appl pay, all electronical fees feed banks, less income for shop owners. A buy-me-coffee 'Trinkgeld' is a thank you for good service and of course should Not be taxed, but as Ashton stated "this got way out of hand". And in the first place, pay a decent wage, so the obeying servants do Not need to check on you every 10 minutes, leaves you in peace.
@@Mayagick printed freedom? :D No, cash and money as a whole is not printed freedom. Money is just a medium of exchange, nothing more. Also, cash is way more expensive than electronic money. Electronic payments are faster, cheaper and more secure. If you don't want to "feed the banks" at all, you can use crypto currencies.
@@dansattah Cash or European Debit Cards (lower fees and pay protection when card was stolen).
@@Dosmans Cryptocurrency is Not the solution, it's an investment. Fraudster, grifters and ransomware rely on fast money transfer, they use mixer to camouflage the way of the money and the real beneficiary. No trust in banks, but no one to blame in case of a mishap. FTX and fraudcoins and you're still a believer? Besides all that an ecological catastophe of it's own. In Germany there is still the grandson (Enkel-) trick, creating a dyre situation to rip you off. Especially the elder that fall for it, taking advantage of their will to help.
In Germany, if the service was ok or good, I will typically round up to the next "round" number, having about 5-10% in the back of my head. E.g., for 23.30€ I would give about 25€.
But: if I was unhappy with the service, I don't feel obliged to tip at all, and that's the same with most people I know. 🤷♀️
That's the thing, sometimes I get a waitress who seems to not care at all, and I'm expected to give a 20% tip for mediocre service? That's why I hate going out at all.
In Denmark you are not expected to tip at all no matter what
@@Memoreism the minimum 15%. 20% for medium services and 25% is for high quality service.
Tipping in US has become completely out of hands. We were in the states, bay area, a couple of weeks ago and went to one of the big fast food chains. Now you sit at a table and make your order using a touch screen, no human involved. And at the end, you get the options for tipping: 32%, 28% or 24% as "suggestions". There is no option for anything else, which I doubt is even legal. If you want something else, you have to press a button for some staff member to appear and "help you further". And the 32% is added after sales tax. CA is 7.25% state tax, and local tax on top is around 1.5%. Which means the "suggested" tips are between 3x and 4x of all sales tax. And there is no doubt in my mind that the fast food chain keeps all tips, only uses it to reach minimum wage of their "employees" as only employees with customer interaction can receive tips (or get tips forwarded from bills). Fast food chains tried to make a law to allow pooling of tips, so they can pay everyone $2.13/hr -- that law failed, now they seem to do it this way.
Support resturants that pay their workers fairly.(if it excists in the US?)....
When I was a kid, I remember reading a sign in a Nordsee- Heilbad, stating that “Bedienungsgeld” is included in the pricing, just to remember you that tips are given voluntarily and only for good service
If I am not dealing with a single person through the visit that takes order, delivers food, refills drinks, basically pay at end instead of beginning, should be no tip. It's a market economy, so workers refused to work during pandemic when employers refused to pay more. That is how it should work. Employers need to pay more and raise prices to compensate. I think that is finally happening because fast food prices have exploded.
I feel pushed to keep this, system of underpaying staff, in place when I give a tip in the US. It doesn’t feel good and it isn’t good. I tried in NYC once by not paying a tip, but that wasn’t a succes. They wouldn’t let me stand up to leave my table by putting two waiters and the restaurant host around my table. So now I don’t go to the US anymore, in order to avoid this archaic and discriminatory system. I only want to give a tip if the food and service was nice to excellent, not to make sure the waiter/waitress can survive another day. In this aspect the US is a third world country.
In CA tipped workers have to be paid minimum wage before tips and pooling is illegal. Look it up before posting misinformation.
American from the Midwest here, and you're 100% right about the huge shift in tipping culture since 2020. Where we were once expected to tip the standard 20% only at full service restaurants, now everywhere we go, if there is food involved, a 20% tip is the minimum expected. During the worst of the pandemic, I was happy to help out because the service industry was having a hard time. But everything is back to normal now and I'm still being asked to tip on a pick up order, an ice cream cone or self service restaurant. I just kind of accepted it but your phrasing of it as "subsidizing employers" makes me think a little bit more about it. It had become so much the norm that I hadn't thought of it that way.
I've often thought that the poor treatment of workers in the US has its roots in slave culture and this is only further support of that theory. Employers feel they own you here and will pay you as little as they're able to get away with. Promises of higher wages, better benefits, or time off are just a carrot dangled to hire you. If used, they're considered abuses of the "generous" system. Once hired, you're a disloyal employee if you expect to get a higher wage or to use benefits. We can't expect anything from our employers but to be worked like dogs and dismissed just before retirement so they don't have to pay us for our loyal service.
As a union member in Germany, it saddens me to read something like this. I know it's difficult in the States, but organize wherever you can, fight. These conditions are simply intolerable and nobody will give you anything voluntarily.
@@einwitzigenname585 I'm a union member myself but, where I live, unions have almost no power. And they're vilified here. Also, most service workers don't have a union and/or are prohibited from joining or forming one. The balance of power is WAY tipped in favor of employers, which is why change will be long in coming.
@@reginakeith8187 I know, but it doesn't say, there is no chance ever. There is always a first moment. Nothing was given, each right has been fighten for.
Edit, because I don't want to sound too harsh: You are in a hard situation over there, I am talking priviledged in a way. But over here things are changing and not for better. People take for granted and loose interest in working rights, which is dangerous. I always hear "I have to accept, there is no way". No, unacceptable conditions are never to accept. Nowhere. And there is no other solution than guaranteed rights.
Don’t feel obligated to pay a tip if you’re not enough full-service restaurant, only if you want to.
Who tips for pick up order? An ice cream cone? Self-service restaurant? I'm an American and I never tipped for those. Who in the USA forces you to do that? Unheard of and I live in Dayton, Ohio.
Having to depend on tips must be terrible. I know that America has many good sides, but realising how poorly workers are being treated sometimes almost makes me forget. I always tip here in Germany, around 3-5% and under special circumstances or exceptional service up to 10%.
Thanks for yet another very informative video, Ashton!
That makes you a bad tipper even by german standards. You are supposed to give around 10% whenever the service was good enough. If the bill exceeds 100€ 5% is considered enough.
@@Quotenwagnerianer I disagree, because I have almost never seen anyone tipping 10% in Germany. 10% is reserved for really exceptional service. I would say around 5% is considered standard. 3% is a bit low, though. You have to consider that the wage in Germany is already considered sufficient, the tips are just a bonus. A waiter easily has 100€ transaction volume per hour, so tipping 10% would add 10€ per hour, therefore almost doubling their income (and because it's tax free more than doulbe it). This would not be right.
@@Quotenwagnerianer In Germany you are not supposed to give any tip, because people have to be paid well (of course not all are). But how much tip do you give in the bakery or the butcher shop or maybe when you are eventually buy anything at "KiK" ? The staff there surely is paid worse than the service staff in a restaurant and needs it even more.
I think I have an idea how we as tourists can change something. If someone develops an app that lists all the shops where the employees are paid well (I hope there are some) and if we support them by preferentially shopping there, maybe you can change something. Of course, we also have to talk about the app ourselves and explain what it can do and why we use it.
Great idea actually!! I would definitely pick a restaurant that pays employees a normal salary before a restaurant that exploits me and its employees.
A few states and cities have a $15 or more minimum wage, so all employees are paid well there. (Or at least, "better than the American average".) What you're asking for exists by word of mouth: some companies are known to "treat their employees well". App reviews can spread that information more widely. But then you don't know whether the review is true or not.
As a Dane, I feel so sad for the Way this works. How these lawmakers Can look themselves in the mirror every dag is beyond my understanding😔
I read something recently in the USA that companies have been pushing for more tips for just about everything so they could reclassify the workers are tipped workers. That would allow them to save a lot on payroll. The price would not be decreased based on the lower costs but it would then be your job to pay the workers a tip so they have a living wage.
So far I really like Germany where it just doesn't seem to have much of a tipping culture. In all the years I have been here I have normally just seen people say to keep the change on a transaction or they will give 1-2 euros.
I agree. On the one hand, I totally understand that the cost of running a business can be high - but if you can't pay your staff a living wage, then your business model isn't successful.
@@TypeAshton Exactly, I can never understand why business owners would think it is acceptable to complain about having to pay fair wages. They say it would bankrupt their business. Well, maybe it's a good thing if they go out of business then, because the business is obviously not working.
Tipping is out of control here in the USA. I stopped at Starbucks for a coffee and was surprised with them asking for a tip. Now this visit was an “emergency” lol, I normally make my coffee at home or support small coffee shops. But cmon! You’re asking for a tip after charging $5 for coffee?! Gtfo! This is expected everywhere now, they ask for tips even when I order carry out at restaurants.
Thank you for posting great content and cheers from Cleveland! 🍻
Clearly $5 is not enough for coffee if they have to ask for a tip :P
so did you tip or nah?
@@deadlypendroppingby nope! I feel it’s an insult to the consumer. I do a lot of times guilt myself into tipping but this is just crazy. Sometimes l carry cash for these kind of occasions, that way there’s no tip screen.
The donut shop where just buy a donut and coffee and leave and don’t eat there also has a cup !!! I don’t tip at places where I don’t sit at a table.
As a European living in the USA, I have gotten used to the tipping culture here. So much so that when I go back home, I sometimes wonder if I should have tipped for something, that I never used to tip for. During the pandemic I was very generous with tips, but now everything is so much more expensive that I have cut down on tipping a lot. Inflation is hitting everyone, not just people in the service industry. So I find the expectation of tipping almost 25% in some cases pretty outrageous.
Yes, I noticed that too, that after Cove it went down that now the expectation of tipping almost 25% or more has increased have been the norm. So now I am only tipping average, because I am so annoyed that my generosity changed. things. Not everyone can afford to tip 25 to 30% so now we’re not going out restaurants very much anymore.
Once again, Ashton's video digs much more deeply into historical background, social conditions and scientific data that could be expected from an average "comparing cultures" video. Thank you.
Well, it's definitely gotten out of hand. I recently heard of a Walmart self checkout, where the lady helping along customers actually had a tip jar at the exit of the area. On the other hand, I love it and definitely prefer companies that pay their employees well, like obviously Alaska Airlines does. In their lounges they have signs that read: 'IT'S OUR PLEASURE TO SERVE YOU. Please no tipping.'
It´s a difference if u HAVE to tip, or if you are just allowed to.
Ah, the American way. Living off other peoples benevolence, instead of just paying people a decent pay.
I find amusing, that people call themselves christians, but hate helping other people. "Helping" must happen through church, so that the giver can show off, his/her kindness. In Europe, you don't get to show off your "kindness", you just pay your taxes, knowing, you help other people, having a roof over their head, and puts food, on the table. But that's not the American way...
It's so hard to afford a roof in America. You always feel like you're 1 ambulance trip away from financial ruin. God forbid if you have to call an ambulance, that's about 3k out of your pocket.
First of all, as you probably know by now, I am an American who has lived in Europe for most of her adult life. So I am familiar with both worlds. Also as a note: Like so many millions of students, I worked in service to help pay for my tertiary education, so I know that neck of the woods relatively well. All that said, in my opinion, tipping in the U.S. has got way out of hand in the last 50 years. It is a genuine insult to all involved that restaurant guests are expected to pay the salary of service personnel and disguise that as a gratuity, which it is not. 20+% of the cost of a meal as a "gratuity" is absurd. Like in the case of the sales taxes and retail prices, these 20% should be a part of the server's regular wage - which should be at least the federal minimum wage - and be included in the menu prices because that is the real cost of the served meal. Any small tip given in addition would then really be completely gratuitous, a little thanks for special service that is not expected. You say the prices would rise? Well, yes, the fixed prices would rise by 20% across the board, but if you are tipping as required (what an absurd proposition in itself!), then you are already paying that price anyway. It may as well be on the menu. Eating out in Germany is so much more relaxed (and not as expensive).
Not necessarily. I live in Germany as well and to get decent service to your table can take an act of parliament. In the US, if you don't like the service, don't pay.
@@gman9353 But then, in the U.S., the waiter may well chase you out to the street and demand (in a loud voice) to know exactly what he/she did wrong. Nice end to a lovely evening?
I worked in a customer service job where tipping was a major part of my income. Over the years I observed that many factors that led to the person providing the service not being tipped were things over which the person providing the service has no control. People have a tendency to tip over their total experience and not just their experience with who they interact face to face.
Thank you for taking the time to discuss this.
It's simply insane. I recently went to a Korean restaurant in Germany. The waitress was kind enough to explain the specific beverages they offered and the food was just exceptionally good. We had a 50€ bill for 2 persons with starters, main course and drinks. Tipping wasn't expected but I gave 10€ extra because it was such an exceptional experience (and we rolled out instead of walked out 😅). That should be the norm.
Tipping someone for pushing a button on a coffee machine or a fast food place...
The same thing happened to me at a new Korean restaurant in my home US city. I know some Korean foods both others were new to me. The waitress (maybe owner) took time to explain the unfamiliar foods. I gave them a large tip.
As a European, I always found American tipping to be a complete anxiety minefield. Friends I was visiting were saying I should tip "15% if everything is okay and 20% if you can afford it because it's their wage". So selecting how much to tip and/or calculating it felt very stressful and bad, especially in front of the server.
In Germany here, I generally tend to tip small amounts (2-5 Euro, rarely more) for most jobs I consider underpaid, such as restaurant workers, hairdressers, food delivery people and so on. Mostly as a "sorry you have to do this shitty job" kind of deal, and it feels generally good!
Also Healthcare workers or at least EMS on transport ambulances do get tips often usually around 5-10€ in my experience especially for home transfers and doctors appointments, where they feel bad for us carrying them up to the 4th floor/ making us wait for a while and their insurance pays the actual bill so depending on the assignments that day I've made up to 80€ in tips per shift.
During my Bufdi I paid for my food just with tips as my actual paycheck just about covered my flat and other fixed expenses (and at 420€ plus Kindergeld I was making more than the average Bufdi for a full time position). Atm I make a good salary but in healthcare even in Germany minimum wage isnt always a thing even if you do the same work as someone in a full time postion.
Smol amounts? 2 to 5 euro is allot for me. I can't even afford three meals a day I'm German I have to live from Bürgergeld due to disability. And 5 euro mean a meal to me. Due to inflation I can afford to have one smal meal a day. But I know that I have it way better than any disabled person in America. (My freinds in america) And that's beyond infuriating.
Tipping culture for me is one of the most stressful things when traveling. At home I know what is common in my city, how the expectations are, how I have to behave when I want to be generous and how to react to bad service without being rude. When traveling this feeling is replaced by pure stress and this is why I really don't like the culture at all, although I really although I really don't begrudge the respective service staff their additional appreciation.
This stressfullness can be true in other parts of Germany, but especially in Italy I always get the feeling of potentially being rude when tipping - but also when not tipping. But the worst experience I had was in the US, where I once wanted to be "correct" according to the expectations and added an "obligatory" 15% tip (yes, I knew a little bit about the presumably precarious situation of service staff) to my credit card receipt - only to find out later back in Germany, that it had been changed by the waiter, which lead to an unpleasant conversation, as it had been a company credit card and the amount did not fit the amount on the receipt - almost a crime for German accounting.
Oh man that is really awful. I should probably be better about checking the receipts to make sure something like that doesn't happen, but to be honest - I rarely do. Another viewer recently commented on just how different it is that in the US, the waiter or waitress will take your credit card from you and run the amount away from your viewing... while I presume the intention behind it is politeness and a less intrusive dining experience - sadly, instances of fraud like this can also occur.
What a crime against account and Germaness, he should be charged with getting the Passierschein A 34 to the Finanzamt!
@@TypeAshton I prevent that by having alerts set on all my credit cards to receive a notification on any charge over $1, any foreign charge, any internet charge, and what not. So, usually by the time the waiter gets back with my card, I had a message on my phone what the charge was.
@@makuru_dd3662 😆. I would have been willing to tip far more, if that had spared me this conversation. Maybe we should have more open negotiations about the right amount of tips?
@@peterpritzl3354 Yes, on my personal CCs I have also stuff like that in place. Unfortunately with the company card I have no such options.
I live in Canada and tipping becomes a must-pay in hair salons on a $ 250-a-service minimum of 15%, In the manicure/ pedicure places I see people tipping 20 dollars on a 40-dollar service. Last time I was shocked to be offered to tip minimum of 18% on a 700-dollar service at a dermatologist clinic in Toronto. It is an embarrassment and going out of control.
As a customer I find it very confusing when the price listed in the menu doesn't include tax and tips, that looks like dishonest advertisement to me: The end price ends up being considerably higher than what's advertised. I noticed that during my trip to Chicago in 2018 (we ended up only going to a restaurant once per day, which was quite sufficient considering the generous portions, but they were pricy too, all elements of the bill included).
Personally I think a tip is a reward for extraordinary service, but shouldn't be expected from every customer. I might round up the bill at restaurants but that's below 10%. As a self-employed person I have no fixed wage so I go through phases of different wealth and that might influence my "tipping mood" as well.
A wage should definitely be enough for living, even without tips.
Here in Austria, minimum wages aren't decided by politics, but by the "social partnership", in negotiations between organizations of employees and employers.
What is strange to me is that you should tipp a percentage.
I underestand that when you order more and sum goes up and the waiter has to work more.
But what if there is the difference only in the prices.
Like I order a bottle of wine for $10 and I have to tipp $2, but when I order a bottle of wine for $100, I have to tip $20.
The work is the same for the waiter. And $20 would be a very high wage per hour when you count the time it really takes to serve it.
EXACTLY my thoughts!. I have commented on this aspect a few times while dining out. I was told by an older relative, that if you can afford an expensive meal at an expensive place, the then expensive tip will not matter to you.
As a customer, tipping (or gratuity as it is also called) is a way to show my appreciation for service that goes above and beyond!
And as you so clearly showed, the Yankeeland tipping culture is actually ENCOURAGING tax evasion (and tax fraud). It is a way for the worker to say: "Screw you, for screwing me!"
On a related note: Sales tax! When I encountered the issue of sales tax in the USA for the first time (as a 10 year old), I felt totally cheated and defrauded. When I saw the price tag on the shelf, that was the price I expected to pay to the cashier! If I went in with $5 cash in my pocket, I could never allow the price of the products I wanted to get, based on the price tags, to be more than $4 for fear of not having enough cash on hand. And hating the stores for cheating on the price!
When Paraguay established a Value Added Tax (sales tax) in the early 1990's, the tax was to be added at the end of the legal receipt. Most consumers (over 95%) requested the "cheaper price" (without the tax) on an informal receipt or even no receipt. Even many businesses opted to buy at the cheaper price, thus not paying the taxes. And even those businesses who wanted to go 100% legal had a hard time, because customers would simply go to the "dishonest" competition.
So about four years in, and with tax evasion rampant at over 80%, the government decreed that ALL prices quoted or displayed to customers and consumers had to include the value added tax. And at the bottom of the sales receipt would be an information on how much of the sales price corresponds to the tax. Now the tax evasion is below 20%.
In Germany (and also most of Europe) the quoted or posted prices for all products and services, is the price you pay at the cash register. There are no hidden fees or racketeering taxes! That makes it very easy to budget your shopping based on your cash-in-hand without having to know all the different tax rates based on the products and locations. Very unlike former British colonies on Continent America.
Great video as always! I wanted to add a few things as an American waitress.
I had heard that part of our tipping culture in America was a byproduct of the Great Depression. That Restaurants couldn’t afford staff so they “paid” workers with the promise of tips. Like most American history it was not framed as overtly racist, but as you pointed out, service and fieldwork was mostly black people back then (especially in the south), and both those positions have been notorios exceptions to fair wages.
My only other thought was on the rise of tipping for fast food/coffee/takeout. My own personal reason for tipping for that stuff is because my restaurant ramped up to-go orders during the pandemic, and while we were paid more than regular serving shifts, we still relied on tips. And packing to-go orders is much more difficult than people think, and most people don’t tip, even on large or difficult orders. We also worked with DoorDash. We hated DoorDash orders because the tip went to the drivers so we’d get shafted. The drivers were timed and stressed, so when orders got backed up, we’d get constantly berated. Lastly, I learned exactly what would happen if you stiffed on a DoorDash order - it would simply never get picked up. It would sit for an hour and I would have dashers that came in tell me “oh yeah, I saw that order but the tip was so low it wasn’t worth it”.
I no longer do that job, but the lessons stuck, as I’m sure it did for many Americans. It makes me long for a more European system, especially since I know it’s possible in America. I know, because my home state of Minnesota has implemented a higher minimum wage that grows with inflation, including for all tipped positions! So all the arguments that it isn’t feasible and it would bankrupt companies is utter crap.
I still wonder if I did something wrong in a Hotel regarding tipping. I an Dutch and I was in Denver and bought a breakfast in the BIG hotel, you know self service with a cashier at the entrance of the restaurant, pay up front and eat your heart out. There was a girl servicing me for drinks. It never even occured to me that she would need a tip. I was not aware of US tipping culture. I still feel guilty about that, as she was very friendly and learned in two days that I wanted an orange juice for breakfast, despite servicing probably hundreds of people every morning. To my amezement, I did not even have to ask. She just came with the huge glass of good orange juice every morning for a week. I feel so guilty. I still wonder, should I have tipped the cashier, or the waitress, or both? Well I did neither. SORRY!
We don't always tip then either. In my state the minimum wage is the same for everyone. Sometimes employers are able to pay less, but sometimes they cannot find employees if they do not pay the going rate that is paid at stores.
Tipping in the US is completely out of hand and no reflection of the quality of service. I will always tip generously (20%) for a good table side service, spa or salons but will not tip at coffee shops, carry out or places where traditionally we did not tip before. This all showed up all of a sudden during Covid and I’m scratching my head. Initially, when I saw these tipping options of over 20%, it even made me angry. In Germany, I will round up and would never not leave a tip for table side service.
Cheers Ashton for opening up this can of worms. Honestly, employers in the US should pay a wage people can live of. If they can't, then their business is just not viable.
But sadly it seems normal now that a large part of the US population needs to and (shockingly) find it normal to have a 2nd job to make ends meet. But then, the mindset of USAmericans shocks me constantly tbh. Goes for several other topics like health care or violence (gun culture) to name just a few. It seems to me that so many people don't really care about their fellow citizens, at all.
Thank you for bringing this topic up! Because of the huge differences between tipping on both sides of the Atlantic I often google at which was the appropriate amount to tip at numerous U.S. occasions: The sleeping car attendent upon exiting the Amtrak California Zephyr train, the mechanic who patched two tires without having charged us anything, the tour guide in a Native American reservation, the guy at the valet car park, the locksmith who drove 45min (and back) to help us open our car in a remote area for the fraction of the price we would have paid in Germany, the Lyft / Uber driver etc. I have learned from your video that I probably was my tipping used to be too generous in those self-service diners with the modern tablet cash registers that suggest, say, 15, 18 and 21%...
A tip should be a tip, not part of a bill. If it's mandatory, it's part of a bill.
Thank you so much for explaimimg this topic in depth. I get it that when you live Paycheck to Paycheck that you are more likeley to "skip" the taxes. But tipping for filling up my car or buying a Ice cream? No way Have a nice Sunday
Yeah the tips at the drive-thru have always taken me by surprise. I usually equate a tip to getting an "additional" service beyond just the item that I am paying for.
Trinkgelder sollten NIEMALS zum Mindestlohn dazu gehören!
Ich stimme sehr zu.
Das tun sie auch nicht, daher heisst es ja Mindestlohn aber sollte sich ein Arbeitgeber solche Faxen einfallen lassen, einfach Klage beim Arbeitsgericht einreichen!
Perspective from the UK - at absolute most, tipping should be reserved as an optional extra to say thank you for particularly good service. It definitely should not form an essential or significant part of a worker's wage, because (1) if it's reliant on the goodwill and cooperation of customers then it isn't part of their wage!, and (b) if it isn't audited and tracked then no-one knows how much those workers are actually earning, and in many cases it won't be declared and taxed.
Also where the money goes (especially if included in the bill, but in some cases even cash tips) is so dependent on the individual establishment - does it just go to the member of staff who served you, are the tips shared equally among all staff, does management take a cut, etc. The question of when, if and how much to tip can cause arguments, embarrassment and resentment - much better to have a price advertised up front that everyone knows is all they need to pay and that the staff are still getting a fair wage.
If in a cafe or restaurant and will pay by debit or credit card, I always give the tip in cash. Thus, the tip gets directly to the waiter rather than may or may not being payed when the owner gets the money from the card company.
The whole issue makes me feel so uncomfortable, I avoid eating out unless that's really necessary or if I see that all charges are up front. I wish it would go away and prices were charged that cover the wages. I really don't understand why it exists today (apart from legacy needing to be sorted out). I was a teacher, and on one parents' evening, a mother tried to thank me with a bottle of wine. I said thank you but I couldn't accept it. I can imagine it leading to favouritism and bribery, not to mention a real nightmare for parents feeling they had to keep up. It's a crazy idea. I just wish it would go away.
I'm an American living in Germany (moved here 8 months ago) and 100% think tipping in the US has gotten out of hand. The prompts on the screens definitely can make it feel like you have to tip.
Welcome here in Germany 🙋♂️
Do those print screen tips go to the employee?
In Denmark and some other countries in the EU, there is no minimum wage determined by law. It is mostly decided by local industry and its employees' trade union. In Denmark (DK)
If you are in a trade union, you earn approx. 25 - 30$ an hour (in the Hospitality sector). You really don't need to tip! But I tend to do so, if the servers made my dinning feel special. My rule of tipping is: 4-5% or rounding up to something equal.
You pay for the Meal and service.., not the smile 😍 !
LOL! in Denmark we also call it "Drikkepenge" (Trinkgeld) ! As always! Luv your Vlog 👍😊👍, since your unbiased and factual😊!
Very interesting! Good research! I learnt something and was entertained.
I lived in the US for quite a few years, it took my a long time to deprogram myself when I moved here to Germany. Everyone looked at me as if I’d gone mad when I tipped 20% over here! Now I ask my German friends and colleagues whether I should tip at places other than restaurants.
So in Northern Germany it is not compulsory to tip. But tipping is relatively normal in restaurants, bars, hairdressers and delivery drivers. So if someone serves you, I also give a tip. And if I give 20% (I'm German), then I'm more likely to see happy faces than confused ones. I always tip between 10%-20% percent. The cleaning staff in the hotel also gets a tip in the room.
You just round up and you only tip anyone in a service related industry which included waiters but also hair dressers and even people in trades like electricians. That last group doesn't get tips nearly as often but they also get the highest pay so it's kind of understandable. My partner still gets a few tips a week at his job though.
It seems like the American payment experience always has to include mental arithmetic.
Yes absolutely. Especially when local and states sales taxes can vary significantly.
Another very good segment. I might have a slightly different perspective on the subject than most. I am an American, but have lived in Europe (Spain, Germany) for an extended period of time. I also grew up in a family that owned and ran a mid-sized restaurant (25 employees). As per the standard the wait staff was paid the lower minimum wage and was supposed to make up the difference through tips. The system seemed to work well at the time and was deemed fair by all at the time. Tips were a lower percentage, and therefor less, but the gap between the two wage standards was much lower. A few things have changed since then. Prices in full service restaurants have skyrocketed since that time making a 10% tip much more money than it used to be. Expected tip percentages have gone up a lot since that time too. Where 10% used to be considered good it has now risen to 20% (or more) causing the tip, for what is the same level of service, to double. Also the level of respect given to these hard working people seems to have hit rock bottom. Behavior by patrons that would have not been tolerated (having the owner ask you to leave and not return) in the past seems to be much more common today. One indication of this is how much US food service establishments are struggling to find and retain servers. I follow the US norm when there to tip generously because they deserve to be compensated for their efforts. When in Europe I also follow the custom and leave a small tip (1-2 Euros) when the service is good because I know they are at least getting a decent wage to start and I want to recognize good service. One thing not mentioned is that the servers have to cope with being penalized for things that are not their fault. There is always a friction between the "front of house" and "back of house". Servers always suffer the burden of poorly prepared, or just plain bad, food from the kitchen for which they are not to blame. Do not take it out on the server when the owner buys bad ingredients or the chef can not tell the difference between a steak that is rare or well done. Overall I do like the system in Europe of service and tax included in the price so you know what dinner costs when you order and not 25% more when the check comes.
It’s out of hand in the US now with companies mostly using digital payment, there is a lot of pressure and it’s a huge screen that everyone can see how stingy or not you are. A new thing we’re seeing more of is restaurants including the tip which they call a ‘happiness and wellness fee’ which usually ranges between 15-20% of the total. But these restaurants also seem to have higher prices. I recently ate out at a restaurant with this system in place. I just wanted some toast with an egg on top and a latte. It cost 30.00! The toast was 13.00, the egg was 3.00, the latte was a whopping 6.75! Plus our local insane sales tax and a 15% ‘wellness’ fee. The service was subpar and the poor guy ringing me up said a lot of people think he’s made an error on their bill so he has to explain the breakdown multiple times a day. Feel bad for the staff but hope they actually see that benefit from their employer. And you’re also seeing the tipping option as you mentioned in places where you would never consider tipping before. I’m all for supporting the workers but I think employers are taking advantage of the technology.
Yes, it could be since . There is the new digital technology that the employers might not pay the employees all of the tip that is on the computer.
When I was young(er) and travelling with my father in Europe, mostly in Italy, France; Spain and Germany (in the '70s) he pointed out that service was included in the bill (coperto), and he left a small amount on the table, meant for the people who bussed tables. In the NL it was uncommon to tip at all. My Austrian husband said before, ( in the '60s and '70s) one would round up to around 5%, now it is around 10%.
Let's look to Japan as opposite. There tips are forbidden and simply not expected at all - even sensed as kind of defamation ! And it works very well nevertheless . . . .
Interesting question. I, German, dislike to have to tip because the business owner is "to greedy" to pay wages an employee can live on. When, in Germany, a couple of years ago minimum wages were introduced, some restaurants charging a lot for their meals went bankrupt, blaming especially Andrea Nahles and the SPD as the main culprits. If your business model is based on not paying your employees enough you shouldn't run that business. If you must rely on minimum wages, your business model is weak.
What I find funny regarding American tipping culture is their ingrained disgust about socialism. But, the US American tipping culture is nothing but socialism -- take money from the "rich" and givie to the "poor". On the other hand, they do not accept the tipping culture here in Germany when it comes to public bathrooms.
Our "Fachkräftemangel" (shortage of skilled workers) is to a great extent based on not enough pay for too many hours on weekends and evenings and night shifts. Because of that there are also too many hours of overtime. Pay decently and have socially acceptable work hours you will find skilled workers.
To me it seems that in the pursuit of more profits business owners have been able to get "more" out of the legislation than workers (I.e. what we in the EU see as rights are often benefits in the US) have hit the service industry extra hard.
As "second thought" rightly asks in his video titled "America Compared: why other countries treat their people so much better": "should any job, no matter the skill level, pay so little one cannot afford rent and the basic necessities like food, medicine and electricity ?".
Also what I find interesting is that the 15 dollar minimum wage is still way off what the minimum should be if it had kept up with inflation and productivity (should be somewhere around 25 dollars which would be an ever bigger rise).
As always loved the episode and have a great Sunday!
...great video, Ashton, as usual. Two comments. 1. In Germany tipping via credit card is widely not accepted since the tip appears for the IRS as turnover and thus raises tax obligations for the proprietor. So I tip in cash, usually with paper money, as I don't carry coins. So the overall effect is that I tip more than necessary. 2. I tip for good service normally 10%. The reason is that it is getting harder and harder for restaurant owners to find good staff. So I try to make those jobs a bit more attractive by showing also some financial appreciation.
How about the restaurant owner showing a little more appreciation by increasing their wages.
@Fred Reim Sure, whenever that is possible. However, I know a lot of countryside restaurants or inns where the keepers themselves have a lot of difficulties to make ends meet, in particular after Covid 🤔
I was shocked about the history of tips in the US 🤯 As a student (but already of age) I was lucky enough a few times to work in service for larger events and people were often quite generous there, in one case after four days of hard work I didn't need to take a job besides school for half a year. But those are also very few chances to earn well. I also got to know the other side (being treated miserably by the customer, nasty colleagues and boss who takes the tip illegally) and this has earned me a huge respect for everyone who works in service and these people are treated kindly by me without exception (no matter what the situation). I usually round up or to the nearest 5 step for food deliveries (we live quite rural), so at EUR 22.5 I would give EUR 25, at EUR 8.15 I would rather give EUR 9.
As an American I'm glad you brought up the point that tipping is being exploited by businesses, but you forgot to mention that this works because some companies have a policy of firing employees who fail to tip by a certain percentage (e.g. 18%). So if a business provides no tipped servers yet still requests a tip, the business executive customer risks losing his six or seven digit salary if he doesn't pay up. It's like being held up at gunpoint, especially since the pandemic.
Oh, it just occurred to me: Another interesting topic I'd love to hear you talk about would be the way VAT works in the US and Europe. As a European, I unsurprisingly prefer tax being included in price tags, so you know exactly how much money you'll need at the end, and don't have to do more complex maths to add the tax on top (particularly when you have limited cash with you - which is a problem specific to Germany, where we're still very cash-centric and being able to pay with EC or credit card is limited to larger stores and minimum spending in many places).
I'd be curious what the US perception of this is. Of course being able to mail-order from VAT-less states and get cheaper products is a benefit we don't get in Europe, but to me, not including the tax feels very much like lobby-work to make customers resent the government for high prices, and to make it easier to confuse customers and over-charge them because they don't have the exact price + tax in their head.
very good explanation.
My experiences with the tipping culture in different countries.
I usually give ~10%..never had a problem or a crazy situation (except china and icland) and i travel a lot.
In china, no one wanted a tip from me.
In iceland i watched a young woman (at the reception at the blue lagoon) entering the rage modus after a tourist offered her a tip.
On generell, waiters should be payed by their manager and tips should be only an addon.
The tipping culture is also unfair, did the cook receives tipping money or only the waiter?
This would be a great question to get more feedback from no our American audience. I was always under the impression that cooks were hourly (standard minimum wage and up), and the sub-minimum only applied to waiters, bartenders and hostesses. However, I do recall a friend in high school working as a waiter at an "upscale" restaurant. In his situation, all of the tips from all waiters were collected at the end of the night and a percentage was given to the cooks at the hostess. So I'm not entirely sure.
I've heard of this too from different places. My mother was a barback at a bar and grill when I was young. She had to split her tips with the rest of the staff. Also saw a documentary a little bit back where they interviewed a server who said similar. I think it depends on the place you work (their system).
I think tip sharing is per establishment. I have seen both.
Regarding China/Hongkong I mostly round up to a number ending with a 8. (When I leave a tip.)
I hate when they come by every five minutes or so. Please leave me alone when I eat, stop annoying me! If I need something I'll let you know!
If I will ever visit the USA I would avoid places and situations where people expect me to tip them. Tipping should always be voluntarily.
Excelent video! Worth watching!
The American approach to both tipping and minimum wage in general is insane.
Canadian living in Germany, but it’s crazy how much ‘tipping culture’ changed in Canada pre and post Covid!! It was actually embarrassing the places that now have ‘tipping’ on my last visit!
At least in the United States, I don't see it going back to how things were before COVID. I really like that tipping became a way to help others "weather the storm", but now tips are asked for nearly everywhere.
@@TypeAshton I was really generous if I want to restaurant during Coruna virus but since everyone else gave higher tips than usual or sometimes was even published in the paper has someone left $100 bill or $50 bill on the table when only $10 required then once we were out of Covid, it seem like it pushed the percentage of tips required up another 10% or more plus the fast food places now want tips for just putting a coffee out on the counter.
Whereas I used to be very generous, now I am just paying the average price for tips because I’m getting annoyed and am not eating out at all since it’s costing more than it should cost and also cost more for my groceries anyway !!
US citizen, who spent 6 years in Germany [which I loved, by the way].
I don't tip. I give gifts, in cash, so the recipient doesn't have to pay taxes on it. The amount varies by quality of service.
My (German) experience with tips: I worked in a rehabilitation clinic for several decades; when I started working there there was no collective agreement, there were very few in the union and they didn't dare to say so publicly! All the employees in the bathing department and physical therapy were deliberately given a small salary on the grounds that they would receive significant amounts of tips. One of the consequences of this was that her pension entitlements were very low, because tips don't pay taxes or pension insurance contributions!
Then came years of crisis and the willingness to tip decreased drastically and the employees were stuck with their shitty employment contracts! From there we (me and my union colleagues) started fighting for a fair collective agreement: we needed more than 50% in the union. you had to commit to it, we had to fight for a majority in the works council and since our employer was absolutely against the collective agreement, we had to organize a regular labor dispute, pull it through and keep at it - also against the bullying from the employer and some colleagues! In the end we won the fight: the employees in the bathing department and physiotherapy received decent and fair salaries including higher pensions !
That - and that's why I'm writing this here - isn't given to you by the state (tariff autonomy), you have to fight for it! And if you are not willing to fight, you have to be satisfied with tips and a small pension for decent work - but then please don't whine either!
You make a very good point about the issue of state pensions in Germany, which already are and will be miserable enough for present and coming generations. Add to that the fact that many restaurant workers are paid partly under the table in many establishments to save the owners insurance payments, you are looking at a lot of people who won't be able to live on their retirement income.
@@berlinorama What makes you think that our pension system should be state-run and miserable? My pension is contribution-financed and quite decent. In Germany, tips are not paid into the pension fund, and probably not in the USA either - or am I wrong? Could it be that you fell victim to a weird disinformation campaign?
@@user-kt9je5fc3s I am happy to hear you have a decent pension. Perhaps you misunderstood me. Since most people in Germany who aren't retired yet will only get 48% of their previous income as a (state) pension, this is pretty miserable in my eyes. I am a freelance translator who has paid into the statutory pension system (Deutsche Rentenversicherung) for many years, as have many of my friends, and most of us will be very lucky to come out with €1000 per month as a pension, which is scarcely enough to live on unless you own your own flat or house outright.
What differs in Latvia to the US is that the waiter doesn't take your credit card to pay for meal, most things can be bought by touch pay on your card, and you are not given the choice to tip
Oooh there's a whole other video we could make about the peculiarities of dining in the US versus Germany. Taking your credit card into another room while they run it is very different that what we experience here in Germany too.
@@TypeAshton Last year I went to Norway. And again in this regards it was completely different. We did a bar tour and went in on 5 - 6 bars that mostly also included capability of getting burgers, pizza, finger food etc. All of them had a QR code including a table number on each table. And everything happened on a web portal on your phone. The only contact with the personal was them bringing your order or you actively trying to get them to your table for a question. I consider that experience extremely good, since it was very efficient with nearly no waiting time, beside you choosing your stuff from the menu. Other than here in Germany where you sometimes have to fight for a chance to place your order or getting a menu. Tipping was the occasional rounding up, when I remember correctly.
@@TypeAshton I wonder, can you even do mobile payments in those US restaurants?
Wouldn't even work to give them your card in Norway. There is a pin code needed to use all cards here. Even credit cards.
Contactless payment is limited to 500 NOK max.
@@Gazer75 Is that contactless with card specifically or also contactless with your phone?
I'm in Canada. My local bakery's card machine gives the options of 18%, 20% or 22% tips. You have to press many buttons to not tip or do a lower tip, so it's obvious to the worker what you are doing. We just don't go.
This is right thing to do. Refuse the business altogether and vote with your wallet.
This is what I do too, along with blacklisting companies.
A world would be a much better place if everyone were doing that.
In France the minimum net wage is 9,12 € per hour.
It is the amount of money that the French minimum wage workers receive on their bank account for each hour of work. Which means this is after deduction of the social fees for retirement, unemployment and healthcare rights.
Those social fees are paid either by the workers, the employers or the government for low wages (as a way to support the employers with low margins).
All things added, the amount of money that a minimum wages worker earns in France, either directly or through the payment for social rights is about 16-17 € per hour.
On a general basis, if you ask a French worker they earn in direct payment you can add a third of it to estimate how much they through socialized worker rights costs.
I'm a German living in California and I don't mind tipping well at a restaurant if the service was good (usually I do 20 % here and 10 % in Germany). I also adjust that number downwards if the service was bad, but that rarely happens - love the American service culture :) I don't feel pressured to tip at least 20 %, because in the US you don't have that awkward moment that you tell the waiter directly to their face what the final amount including tip is (like in Germany) and they only find out when collecting the check. I think it is way more uncomfortable in Germany to give zero tip. I feel like in Germany the expectation is 10 % without even providing good service.
However, I do not tip at all when there is no service involved, e.g., just getting a coffee or ice cream. And yes, I do find it offensive when the default setting is 25 % on the screen when just getting a coffee. I have no problem hitting the "no tip" button though :)
I also have no problem hitting the new tip button !!! But if it’s restaurant service, I will give at least an average tip unless there’s a problem with the service and give a higher tip if I’ve asked for something special or more people in my party
I don't find it awkward at all to tip 10% or thereabouts. You don't owe the waiter anything but I've rarely had service so poor that I didn't want to give anything. But still - you're leaving, so why would you care what a waiter thinks of you?
I'm from Argentina and there it is customary to tip arround 10% if you feel like you received a good service. But now I live in Spain and I was surprised to see how rare is for people to leave a tip. Even one waitress told me once that it was not necessary. I have been in the US once and I was shocked at how high the tip is and how the waiter/waitress deem that mandatory
That was very informative and interesting. 👍
Small clarification: Puerto Rico just passed a law last year to raise their minimum wage above the Federal minimum.
Since you guys left the US, it's gotten even worse. Now, most waiters (in Texas anyway) don't even get paid at ALL, unless they can somehow make even less than the minimum wage for waiters in tips. So, basically, if you get tipped at all, they don't have to pay you at all. Wage is not subsidized with tips, it's ONLY tips. The waiters and waitresses I've asked about this recently don't even receive a pay stub.
I heard that it got out of hand in the U.S., especially since the modern electronic cashier devices seem often configured with tip request, even where is no service offerd at all.
I wonder how long it takes until those systems are directly connected to the tax offices and how long after that it takes until companies stop using those systems and tips will be payed in cash again .. until the use of the systems will become mandatory.
What I learned from my parents is that tipping was usual in all of Europe till laws were changed and service was included in the prices paid and not added as tips anymore. (I think in the 1950s or 60s.) And at that time tipping was made illegal, at least in some countries. I do not know the reasons back then, but it would make the tax situation easy and when you change that much you can also include the automated raise of the minimum wage yearly.
When the government doesn’t do its job to ensure people in the service industry receive a living wage, then the government is not entitled to any taxes on it.
And the service industry should not wonder if they have a shortage in people willing to work their lower backside off, when they don’t pay their staff.
Tipping for me is fairly simple. If the service is very good I give a tip. I also invited the kitchen for a drink because they also ha Minimum wages and nobody cares fir them. They do not even have a Chance to get tipped. There are tippingsystems in place (Tronc and others) to Spread the tips within all members of staff working that day but not everyone ist using them. In General giving a tip should be the Clients decission solomly. It can not be that the Clients are burdoned with the responsibility to see for the wellbeing of a waiter or waitress and take over the business risk if an owner. Pay a fair wage and give the freedom back to your Clients.
I very much agree. Jonathan and I were just talking this morning about the other "ripple" effects that this kind of tipping culture creates in the long-term for the waiter/waitress/bartender. If they happen to be one of the ~40% who don't report all tips, then they are also not appropriately paying into social security. And since that payment is predicated upon what you'e paid in, it could really come back to bite you in old age.
Thanks for another great episode. As a Belgian, it keeps surprising me how the American dream more and more looks like a nightmare for employees, especially the lower class, and a bonanza for the rich. Time after time, I'm stunned when I see various U.S. wages, and how the exploitation of employees is often written into laws. In my opinion, the US two-party system (basically them against us) hardens politics into extremes and is an important contributer to inequality in wages, tax burdens and much more. Doing good for those lower class workers is - politically - easily branded as socialistic in the US, something quite hilarious for most Europeans, as over here, social benifts, regulations or laws have nothing to do with socialism or communism (I'm far from socialist) but simply measures and standards to give people a descent life and wage. In the end, social simply means humane. And wherever I can pay in cash, my tip is in cash and meant as an extra for the woman/man that provides good service, not an extra for the employer or taxes ;-)
U.S. citizen here. While I have heard "20-25% is the new proper tipping amount" I ignore such comments. It is _already_ a percentage of an inflation tracking amount so upping the number doesn't make much sense. There is a much greater spirit of appreciation in European countries where tipping is optional or modestly practiced. I wouldn't be opposed to a movement to eliminate tipping from _most_ situations with a small increase in base wages.
An easy way to shift from tips to a more normal pay would be to charge the service on the bill that goes directly to the server. It would work as a commission. That way, we can tax accordingly and it's a no brainer for the employer nor the employee nor the customer. The only drawback is that the employee will feel its net income decrease due to taxes (but it's actually what they should pay already).
Tipping is also cultural in Canada but the minimum wage for tip employee is usually 2$ less than normal wage (it's up to the province/territory).
This reminds me of the case of the toilet cleaning women in German rest stops. They set up a plate and expected a tip. However, the income from the tips was higher than the wages. The state complained about tax evasion. Today this is solved in such a way that everyone who wants to use the toilets has to pay 50 cents at the machine at the entrance, but then gets a voucher for 50 cents for the shop. Nevertheless, not all vouchers are redeemed. In return, the cleaning staff received a higher wage. There is no begging for a tip.
Years ago we were toward eastern Europe somewhere, maybe the republic of Czech. One place you got one square of toilet paper in exchange for a tip to enter. It wasn't really nice toilet paper either. Brown with woodchips in it. We were a US college group and got a good laugh out of it. Some of the girls kept the square for their memory book they were going to make for the trip. Of course we had already been warned to bring your own TP.
Not tipping at all in restaurants is still considered pretty rude in Germany and is usually only done if the service was bad or if you're a bit of an asshole^^. 10% is what I usually go for depending on the quality of the service.
But 25% is pretty insane, it's essentially just employers pushing staff costs onto customers.
As an American I'm always tempted to tip 25% in Germany out of habit but the comments on this post have reassured me that 10% is actually OK. Whew.
I'm from Germany. In my opinion tipping should be a token of appreciation of a service well done. If the service is not good, no tipping. I thing it's rude to pressure the customer to tip. When I am at a restaurant i spend my hard earned money at this place. Good service results in good tipping. I am not responsible to take care of the service staff's wages to make a living through my tipping. That's the responsibility of the buisness owners and /or the law.
Dinner with drinks $20
+ tax
+ tourist fee
+ service fee
+ Covid fee
= $35
And the credit card unit still ask me "How much to tip"! 😠
We were pretty floored the last time we were back state-side in November. It seems like the price of nearly everything has skyrocketed. I wouldn't at all be surprised if the average tip has gone down because of the toll inflation has taken.
A COVID Fee? A Tourist Fee?
This reminds me of a little story, which I found quite funny, even as a kind. That is why I still know much of the details.
. About 25 years ago my maternal grandma invited the whole family to a chinese restaurant. The bill was 396 DM, which my grandma generously *cough* rounded up to 398DM. "That is two Mark! That's a lot of money!"
My father was s embarrassed that he went to the waiter, behind my grandmas back, aplogized and gave an additional 20DM. That was quite generous, but still is only 5%.
The fact that they went to a Chinese restaurant probably had something to do with it. A lot of people believe it's not necessary to tip in Chinese restaurants in Europe for some reason.
Oh yeah, that's the WW2 generation, who lived through food shortages, large-scale aerial bombings and tank battles.
Your grandmother probably remembered the time when the Deutsche Mark was introduced in 1948 and 2,- DM would buy you enough bread for a month.
@@BrokenCurtain Or the times before the introduction of the D-Mark when they traveled with train to the rural areas and trade their wedding rings (and everything else not needed to survive) for a pound of apples, six eggs and two pounds of floor with farmers - to feed their children.
@@indrinita i can assure you that has nothing to do with it
These days the credit card bills usually contain also a "suggested tip", and the values suggested are usually 18% and 20% meanwhile. It is much more, but easier. Previously I had with me a credit-card size "tip calculator" helping me to determine the former customary 15%. It is also very uncommon in the US to pay separately when in larger group, albeit giving 2 credit cards became also quite common to "split the bill." In Germany it was common to ask "paying together or separate."
Fascinating research, as always. I had no idea about the reversal in tipping customs. I was always told that through the tips we ensure a friendly service, what might be partly true. When we traveled to Vancouver I perceived often Canadian waiters as rude and/or not interested. So I thought, maybe the Amis are up to something here? But the existence of a sub-sub minimal wage throws a different light at this, and the tips are indeed a subsidy to wages.
Oh one more: just today I spotted a video by a mainstream US news provider CNBC with the title "Why Tipping Is So Out Of Control In The U.S.":
czcams.com/video/q_fMkXHYh6c/video.html
You hit the spot with your analysis, right on time!
In Hungary there are some restaurants and bars (usually high-end or want to be seen as high-end) who add a "service fee" to the bill, around 12-13% in general. If you have this, you don't have to tip, unless the service was beyond perfect and you want to. I'm not sure if it exists in other countries as well.
Btw I find it kind of disturbing that tipping in the US is straight up compulsory. For me, tipping is the "Trinkgeld", the way I say thank you for an very good service and I don't want to help the employer to avoid taxes. (According to my assumption, if they pay less for the employees, they also pay less tax. So the employer wins no matter what while their employees are abused.)
As a German, I fully agree, I do the same method!
I also did not tipped when the Service was awful or not existing at all.
Hello, a very interesting video on your channel again 😂. Thanks! As a German I used to tip only if meal and service had been good. On a trip to Washington D.C. in 1996 I made the experience, that tipping in the US is kind of required. I refused to tip because of very bad service and I was astonished that they announced me to call the police because I refused the tip on good reasons for my opinion at least. After they told me, that the tip is an importent part of their wages, finally I agreed to pay it (🎉and to avoid confrontation with the police, of course). Just did not know that then... so, while watching this video, I remebered this again. I think, it's better the way, employees in restaurants get enough wage to live from. If they do a good job, and many of them do, they can enjoy their tips as some extra money. Minimum wage in Germany is a lot higher than in the US. 12 Euros, and because of inflation their are plans to even increase it. I support that. Bosses start to cry again but I don't care about that. They cry always. Maybe some small businesses have to be helped to pay them but no big ones. That's my opinion.
Bye from Germany, Gregor
I have never heard that in the United States, that a restaurant or waiter can call the police if you didn’t tip. . I have never never heard this. And I have lived in the United States for many years in three different states. Maybe it’s the law in Washington DC I don’t know I have never visited there. It may be that the waiters or restaurant owner just bullied you or threatened you to pay a tip but then again, I don’t know for sure.
There has been a few times, but extremely few that I did not pay a tip because of very bad service, and no one threaten to call the police on me
There was one time in Florida, recently where I paid a normal tip, but an acquaintance from mine at the same table paid a very low tip. I guess she wasn’t pleased with the service not sure, but the waitress went after her and gave her back her tip because she said she was offended because the tip was too low. I was very annoyed because the waitress so aggressive so I went back to the table and took all my tip back which normally I wouldn’t do but the waitress was so rude.
As an Austrian for me it depends at which restaurant I am usually I just round up to the next euro or next 5€, so basically it’s to reduce the work of the waiter to search the change money.
Interesting fact: In Germany we didn't even have a minimum wage until 10 years ago. Even before that our waiters weren't depending on tips in the way American waiters are. So it's not only the law but also the culture of employment. It's called minimum wage and not fixed amount. Every employer could make a difference by paying fair wages.
I'm actually gonna answer a question nobody asked, which is "Where do you tip?"
I'm German and my parents always tended to be on the generous side when it came to tipping, not just by amount but by whether to tip at all, so that's gonna inform my answers here.
You _always_ tip in sit-down restaurants.
You tip in ice cream parlours and cafés. Coffeeshops too, I suppose.
You tip delivery drivers when you order in.
You _should_ tip at a bar, but it does kinda depend on what you're having. If you have a cocktail that's more work for the barkeeper than if you have a beer, so skipping the tip on the beer isn't as bad as skipping it on the cocktail.
You tip your hairdresser, and you tip them especially well if they did something time-intensive like dying your hair or a wash and haircut. This has been drilled into my head from a young age. _Tip hairdressers._
You tip other people working with your body, such as if you're getting your eyebrows plucked or you're getting a manicure or pedicure. I'm assuming this covers piercers and tattoo artists too, but my ma didn't teach me about those. I tipped my piercer though.
You tip the car wash worker who rinses down your car before you drive into the wash proper. This one I learnt from my dad.
You tip gardeners, I think? My ma tipped the guy who helped her stay on top of the gardening.
You can tip the mailman for carrying a particularly heavy package up to the house and helping you get it inside. If you know him by name you can also set a chocolate Santa with his name on it on the mailbox for him around Christmas time.
I'm not sure whether you tip the chimney sweep, but you _gotta_ touch him (not creepily, just shake his hand or something). Chimney sweeps are good luck.
And one thing my parents don't do but you should: Give something if you see someone begging on the street or on the train, whether they're homeless or have shelter (you can tell by how much stuff they've got with them). Even if it's just a Pfandflasche. And if you see a homeless person sleeping on the train, don't bother them, they don't have anywhere else where it's warm and dry.
I often don't tip. I'm under no obligation to subsidise wages from a stingy employer who doesn't reasonably pay his staff.