Do tips make for better service?
DAVID FRANK started working for tips when he was 11 years old, delighting restaurant diners in New York with his magic tricks. But to give money to a white man was embarrassing to me.” In many European countries, a service charge is included in the bill and customers are not expected to pay much extra but they often round the figure up, leaving a few coins or a modest note on the table, amounting to an extra percentage or two. Tipping also passes a chunk of risk from managers to servers, especially when between 20% and 60% of a waiter’s income may be in tips, as is often the case in America. In 2018 America’s Internal Revenue Service estimated that around 10% of personal income-tax underreporting was because employees did not report income in tips, though this has become harder as tips are more often put onto credit cards. A survey of 1,189 servers found that half said that the quality of their service had a large or very large effect on the size of their tips.
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