Friday, August 21, 2009

Tips on Tipping?

The Maple Leaf restaurant in Maplewood, NJ, is an institution. Located right in the middle of quaint Maplewood Village, it's been a mainstay (albeit in more than one location) since something like 1492. Back in the late 1990's, when my wife and I were just married and had no kids--our footloose and fancy-free days--we used to frequent the Leaf a lot. Not only was the food good and the service excellent (every waitress called you "hon"), but the prices were downright cheap. It was not usual for both of us to get a great breakfast and get a bill that totaled less than $10.

One day I had breakfast at the Leaf with an old friend who'd grown up in Maplewood but moved away to Colorado. When we were done and the bill came, I put down a two or three dollar tip--I'll be honest and say that I don't remember the details--on a $4 or $5 tab. I put my wallet away and stood up from the table when my friend stopped me.

"Hold it," he said. "You can't leave that much of a tip."

"Why not?" I asked? "It's an extra dollar--maybe. What's the big deal?"

"If you leave that much," he said, picking up bills from the modest pile on the table, "the waitresses will get used to it. It's not fair to them."

"Put the money back," I said. "It's fine."

I mention this story in the interests of full disclosure, to show that maybe I'm just not good at tipping and that's why I don't get the argument voiced by one City Councilor against the meals tax that Northampton just passed last night. Ward 5 City Councilor David Murphy objected to the tax on the basis that it will hurt the waitstaff, because they'll earn less money.

As reported on Masslive: "Ward 5 Councilor David A. Murphy, who cast the lone vote against the meals tax, called it a de facto tax on people who work for tips, maintaining that patrons will take the additional cost out on waiters and waitresses."

Now, I can understand if the point is that the meals tax will cause people to eat out less than they might otherwise, but I've also heard the the increased tax will mean that servers will see a reduction in tips, that somehow because the bill for eating out will increase, the tips on those bills will decrease. But how does that work? Do people separate out the amount of the meal from the tax when they calculate tips? And if they do that, how would an increase in the tax result in a decrease in tips?

I simply look at the amount and apply the percentage on the total. So I have to ask again, am I tipping incorrectly?

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