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Should Restaurants get rid of the tipping system?

Tipping has been a custom in all restaurants for a very long period of time. However, many people are getting fed up of having to tip the waiters and waitresses even if they believe that the service was not at a sufficient standard. This is what I think of the tipping system and whether restaurants should remove it or not.

Should Restaurants get rid of the tipping system?

For removing the Tipping system

I believe that the customer should not have to tip the staff if they do not want to. The tip is now added to the bill in many restaurants which means that the customers are obliged to pay the restaurant more than what they owe just for the food. This means that the staff will be getting a tip even if their customer service has been poor which means that the staff may start not caring about the customer service as they know they are going to get a tip anyway. This will lead to the restaurant’s customer service decreasing which will lead to the customers’ needs and wants being unsatisfied. This will lead to the customer deciding to go to another restaurant which will decrease the restaurant’s competitiveness and lead to the sales of the restaurant decreasing which will narrow the profit margin.

The staff should earn their tips because it shows that they have gone beyond their job roles to cater for the customer needs and wants. However, if a customer doesn’t tip an employee when they have clearly gone beyond their role to cater for their needs and wants, the restaurant owner should reward the employee so they feel appreciated. This will lead to them being motivated to offer better customer service. This will lead to the customer satisfaction increasing which will lead to more customers becoming loyal and repeat purchasing as the customers know that they will receive excellent customer service when they eat at your restaurant. This will have a positive impact on the sales and profit of your restaurant.

If you remove the tipping system, the customer will be obliged to spend more on the products and will be more open to an increase in prices on your menu. This will lead to the profit margin on each of your products increasing which will mean that the overall profit margin will widen substantially. However, the employees may become annoyed as they may feel that you only care about the finances of the business which could lead to them becoming angry and could lead to them leaving the restaurant. This shows that you must choose between the revenue of your business and the happiness of your employees.

Removing the tipping system will make sure that all your customers are treated equally and receive the same quality of customer service. This is because if the employees see that a wealthy group of customers come into the restaurant, the employees will expect a big tip and will all focus on their meals as they will want to be tipped. This will lead to the customers not being served as quickly and having to wait for their meals for a long period which will lead to them leaving the restaurant unsatisfied. This means that the tip system could have a negative effect on the customer service as employees will only care about the customers who may tip substantially. This will lead to customers choosing other restaurants over yours because they will want to be treated fairly despite their wealth. This will lead to your restaurant struggling against their competition and will lead to your sales and profit struggling.

Against removing the Tipping system

Tips should be mandatory in your restaurant because it makes your staff feel more appreciated and will lead to the staff working harder next time when they serve the customer because they will know that the customer will tip them and will be appreciative of their hard work. This will lead to the customer service of your restaurant increasing which will lead to the customer’s loyalty increasing as they are satisfied with the way they are treated in your restaurant. This will lead to your sales rising due to increased repeat purchases which will have a positive impact on your restaurant’s profit.

As a Restaurant owner, you should welcome the tipping system because this will allow your employees to receive a higher income when they are working and will increase their weekly wage. This means that there will be less complaints from the employees about their pay and will relieve the pressure on you to increase their pay. This will cut the costs of your restaurant and will lead to the profit margin widening as you will have the ability to keep the employee’s pay at the same rate. If you got rid of the tipping system, your employees may become annoyed because it will prevent them from earning a larger wage. This will lead to them becoming unmotivated and angry which will have an impact on the quality of customer service that they offer and may lead to the customers becoming unsatisfied. This shows that removing the tipping system will have a negative impact on your sales and profit.

 

The topic of Tipping is very controversial and either side you choose could have a positive or negative effect on your restaurant. This means that you should experiment by removing the tipping system so that you can see the effect it has on your restaurant and if it has a positive impact, you should remove it permanently. 

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