One of my pet peeves is a bad experience.  It could be bad food, bad service, a pushy salesperson, etc. Read More »

When we go to a restaurant or a bar, we usually leave a tip… this is what we’re conditioned to do. Some people leave more than others, but for the most part, we all do it.

But what about when you buy a coffee or a sandwich at the take-out place, do you leave a tip? Most people don’t… I know that I never used to.

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As I was walking downtown today, I was handed an advertising piece for The Fairmont Royal York hotel… a beautiful grand hotel at the foot of Toronto. They’re celebrating their centennial year!

In honour of this occasion, they’re offering a summer rate for Ontario residents which I think is such a great idea. That’s the beauty of advertising, it makes people consider spending their money with you, especially when you make them an offer they can’t refuse.

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This seems to be a much debated topic, and rightfully so. But I think its important to shed some light on this issue and perhaps convince some people of my viewpoint.

To begin, let me start by saying that I have a number of perspectives on this topic that I believe make me well qualified to take my position, such that I intend on doing:

1. I have personally owned and invested in a number of restaurants and quick-service establishments;
2. My family has owned and operated a number of restaurants that I have worked in;
3. I have served tables on many occasions and at many different restaurants;
4. I have played bartender on a number of occasions and at many different establishments; and
5. I frequent a large number of restaurants in any given year.

Another point I want to make clear is my belief that one should do what they are best at and leave the rest to others that excel in those respective areas. I understand that there are always exceptions to the rule, but we should nonetheless strive for the optimum and operate under those conditions whenever possible.

Having prefaced this… let me say that I do not believe one should tip the restaurant owner. I know how as a society we are conditioned to feel bad about not tipping or not tipping enough… but should we let these unfounded misconceptions lead our lives and manage our core beliefs?

A restaurant owner goes in to business for a number of reasons, the least of which I believe is to make tips. Tips are generally given to bartenders (although I have another issue with this concept that I’ll explore later) and servers to help compensate for their paltry wages and for the most part, help them get through school, feed their kids, etc. For the record, I do not believe that every person should be tipped or that the tip amount should be a certain percentage, etc. Tips are earned and should be paid as a reward for good service, if such is received. Therefore, if no good service, then no good tip; but this too is a topic for another discussion.

I know there are occasions when an owner needs to chip in and help out her staff and I am all for this… but some owners don’t know where to draw the line and more often than not, get in the way, cause confusion and frustration among the staff and the customers. In addition, when an owner serves a table and accepts a tip, I think they should give that tip to the other servers.

When the owner keeps the tip, are they not double-dipping? Are they not selling you food at some markup and profiting from that, in addition to the tip you give them? Maybe they’re paying themselves a handsome salary and triple-dipping? I don’t know about you but I fundamentally have an issue with this… it’s just not fair and I think its unethical.

Would you tip the owner knowing that she is making a profit off the food you are enjoying, paying herself a decent salary that is way more than the peanuts she pays her servers and taking a tip that would have otherwise gone to a deserving server? It is the owners job and in their long term interests to ensure you are happy and well taken care of and for this, they benefit from a healthy and profitable business. Is it the purpose of the tip to reward the owner for a job well done? I have a serious issue with this.

So this still leaves the question as to whether you tip the owner or not. I know that there are circumstances where the owner has to pitch in and some good business people will do this and give their tips to their staff… the trick is to know whether you are being served by a good owner or a not so good owner. It’s generally easy to spot them out by the way they interact with customers and employees… just pay attention the next time you go to a restaurant.

My suggestion is to not frequent places where the owner serves on a regular basis or where you’re suspect of the owner’s ethics… that removes the issue and makes for a more enjoyable experience. In addition, your boycott of the establishment sends a strong message that you can not be taken advantage of. Maybe even that the owner should consider the business that s/he is in. After all, if they are not making money in it, then there needs to be some other driving force keeping them there.