Why The U.S. Won’t Do Away With Tipping
985,372
Published 2023-10-14
Chapters:
1:50 Who relies on tips
5:47 Challenges
8:59 Hospitality included
14:22 The debate
Produced, Shot and Edited by: Emily Lorsch
Edited by: Darren Geeter
Senior Managing Producer: Tala Hadavi
Animation: Jason Reginato
Camera by: Jeff Bush
Additional Footage: Getty Images
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Subscribe to CNBC PRO: cnb.cx/2NLi9AN
#CNBC
Why The U.S. Won’t Do Away With Tipping
All Comments (21)
-
As a consumer, I believe that any restaurant that cannot afford to pay their employees proper minimum wage deserve to shut down. Plain and simple
-
How does this video not once mention that the entire rest of the world manages to pay servers non-tipped wages with zero drama? The businessowners saying they "can't afford to pay" are either lying or never had a viable business model in the first place
-
Kinda funny how restaurants raise thier prices but as soon as you ask them to pay a decent wage it’s “poor little unprofitable me, can’t afford it, your food will be super expensive”
-
They tell the worker…”No one is forcing you to work for 2.13.” But they don’t tell the business, “If you can’t provide a liveable or decent wage, no one is forcing you to keep that business open.”
-
Just came back from a trip to Italy. An item on the menu would say “$25.” I would get the check and it would be exactly $25. No taxes, no tip. I even tried to tip a bartender for bringing a bottle of wine to our rooftop patio and he downright refused. He told me “this is what I am paid to do.” Tipping is ridiculous. People should be paid for the work they do by their employers; not from the “kindness of customers hearts.” If for some reason you go above and beyond the line of duty serving food, then by all means leave a tip. But their livelihoods shouldn’t be based on some sort of expectation.
-
There is a popular ramen chain in Japan, Ichiran ramen, that has three restaurants in the NYC area. They do business exactly the way they do business in Japan: no tipping. They make it very clear as you enter the restaurant and at the checkout, they are NOT a tipping establishment. They adjust the pricing accordingly on the menu and when the bill is paid at the front, you pay what you owe, NO tip. This is how restaurants in the USA should handle it. No need to tip, just adjust your pricing.
-
I’m from Eastern Europe and I was a waitress for a while. It’s wild that servers in America get upset when they don’t get tipped, and they almost demand it from the customer. Why aren’t they redirecting that anger towards the government or the owner of the restaurant?
-
I’ve worked as a server before. I feel tipping just encourages businesses to cut corners on salaries. Tips should be a bonus not a means of how you make your living
-
It’s crazy how they say “we can’t pay our workers because we don’t have money” and they’re just allowed to exist
-
Anyone who has done a fair bit of traveling to other countries will truly appreciate just how antiquated and silly tipping is. It’s a myth that eliminating it would cause drastic price increases. I actually spend less money eating higher quality meals in Europe than I do in America despite their staff making living wages.
-
I will tip you if you give me extra good service but if all you’re gonna do is drop off my food and pour my drink, then as far as I’m concerned, you’re just doing your job
-
Sorry, if you’re adding a 20% “hospitality” charge, don’t expect a tip, too. THERE. WILL. BE. NO. TIP!
-
Its ridiculous for a restaurant to claim that they can afford to pay a waiter/waitress but then expect the customer to make up the wages with a tip. It still costs the customer the same as being honest and putting it on the bill to start with. Its happening more and more in the UK too.
-
It's not even having to pay more for a tip that bothers me, it's the displeasure of trying to go out to eat and have a good time and suddenly being responsible for the waiter being able to make a living or not. That should fall on the employer, not me. As a result I avoid eating out, or try to find no-tip establishments. These places might make more money by foregoing tips and raising prices just because it might bring more people in the door
-
I use to tip! But in California minimum wage is 20 dollars a hour, you deal with me for maybe 5 minutes and make 20 dollars a hour and want a tip for 5 minutes? 🤨
-
at this point it's not tipping anymore... they're just guilting you into giving them more money
-
So if I understand this correctly, the sub minimum wage of $2.13 is allowed because it is understood that if the worker does not receive at least $5 in tips per hour then the business will supplement that amount. So basically, your tip actually does not benefit the worker as much as it benefits the business by saving that business from having to pay the worker the extra $5 per hour. Basically your tip is benefitting the business for the first $5/hr, then after that amount is reached, anything extra will benefit the workers? This sounds like a scam to me.
-
Tipping is out of control. I like to help people and treat them well, but I think there must be a limit.
-
Why has this industry relied on the consumer to pay waitstaff. It’s ridiculous. People should be paid for their work.
-
Tipping needs to stop and the employer needs to pay the workers more. If you insist on paying the difference for the employee yourself then that's your problem.