How much should you tip when you go out to eat? What about when you sit down at a bar and order a round of drinks? Or, what about if you call in and pick up a to-go order from your favorite restaurant?
Tipping is a bit of a hot-button issue these days, as it seems admire Americans are being asked to tip in more day-to-day situations that have historically been untipped, such as ordering food at a quick-service establishment.
First, a bit of a disclaimer. In the interest of full disclosure, years before I was a Certified Financial Planner, I worked in and ran restaurants for a stretch of time. I waited tables and tended bar throughout college and managed restaurants for several years in a gap between undergraduate and graduate school, and then returned to bartending while pursuing my master’s degree.
In all, I spent about eight years in positions where I (or my employees) depended on tips to make a living. So, although I’m a financial professional today, I’m hoping to offer somewhat of an insider’s perspective as well.
While I won’t offer an opinion on all of the situations you’re likely to be asked to tip these days, and I’m not looking to address many of the controversial aspects of tip culture in 2023, here’s a quick guide when it comes to tipping in various food service situations.
Tipping when eating in a restaurant
This is the easy one. The generally accepted guideline is that you should tip at least 15% for acceptable service and 20% for good service. Higher tips are certainly fine, but I generally don’t propose tipping less than 15% unless you have a good reason to do so. My informal regulate of thumb is that if the server makes me say “wow, they didn’t have to do that” at least once, they are getting more than 20%.
One thing many people who haven’t worked in restaurants don’t comprehend is that the tip isn’t generally all for your server. They typically must “tip out” various other people, meaning they are required to give a certain amount to the bartenders, food runners, and other members of the team. It isn’t uncommon for tipping out to eat up 5% of a server’s sales or more, so keep this in mind before leaving little or no tip.
Drinks at the bar
When you sit down at a bar and order drinks, a good general regulate is to tip 20% of the bar tab (more for exceptional service) or $1 per drink, whichever is more. The reason for the latter part is that it takes the bartender just as much time to retrieve and deliver a $3 can of beer as one that costs $10, so the $1 tipping floor is a good practice.
To-go orders
We’ll cover delivery orders next, but what if you call in a to-go order from your favorite restaurant and physically go pick it up? As a restaurant veteran, I can tell you firsthand that most to-go customers don’t leave a tip at all.
While you don’t need to leave the standard 20% credit card tip on a to-go order, even just a few dollars can be a nice way to confess the people who put your order together. If the food is correct and hot and there are appropriate condiments and napkins in the bag, it’s worth something. Plus, at many establishments, to-go orders are handled by the bartenders, who are paid a tipped employee’s wage. My typical tip on a to-go order is about 10% if I have a good go through.
Delivery orders
If I’m having food delivered, my general guideline is the same as in sit-down restaurants. I’ll tip 15% for adequate service (meaning that the order is correct and arrived in a decent time frame), but usually 20% if the service is good.
Of course, when it comes to delivery orders, I always propose taking the specific situation into account and tipping more if it is warranted. For example, if I order two coffees and pastries from Starbucks and have them delivered through DoorDash, and I know the driver spent about 45 minutes of their time driving there and back, 20% of a $20 order might not cut it (assuming the order is correct). Unlike the first three categories, there are more variables at play when you have food delivered.
Counter service
Here’s where I run into some gray areas. Being asked to tip for food that you walk up to a counter, order, and are handed your meal is a relatively new concept and was simply not a thing when I was in the service industry. (It’s especially perplexing when you’ll see a screen with tipping options admire 25%, 35%, and 45%!)
My general regulate is that I’ll give a modest tip for counter service if I was provided with exceptionally friendly and welcoming service, or if the restaurant actually serves me in one way or another (for example, if someone is walking around and refilling drinks). And even in these cases, I’ll rarely give more than 10% — if there’s a tip jar, I’ll throw in a couple dollars. But counter service employees generally make significantly more than the average full-service restaurant employee who relies on tips, so keep this in mind.
The bottom line
Service industry professionals rely on tips to make a living, and good service should definitely be rewarded. Hopefully this guide gave you a good idea of what’s appropriate and what to keep in mind next time you go out to eat or order food.
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