Tipping in Hawaii has become yet another part of the tourism controversy. Yikes, as if we needed another issue. Where did the expression”bribes to ensure good service” come from? It’s historical from the time when tips began, as you’ll see below. Some say that tip, by the way, stands for “To Insure Promptitude.” Now that you know that bit of trivia, here are five frustrations you may have encountered around tipping. Before we go further, this short 30-second video will help to set the tone.
Following are five “tipping points” to coin a phrase by Malcolm Gladwell, which means the moment you reach the boiling point in critical mass. How many of these have you found yourself in, and what do you do?
Tipping Point 1: Fatigue caused by endless requests for tips.
As businesses move to digital payment services like Square, found almost everywhere in Hawaii (and elsewhere), there is the dread of receiving the ubiquitous tip screen when service has not been rendered. Just like we saw in the video above.
Tipping fatigue, in Hawaii at least, seems like it is getting out of hand more so than elsewhere. In case you missed it, Hawaii visitors are taking to social media to rail about these requests that come through for everything from buying basic coffee, take-out, online ordering, and drive-throughs. Where is it going to end? If you break out in a cold sweat when you see the image below, then read on for more.
Tips are set by the business, and we’ve seen them go as high as 30%. Ugh.
What happened is that when we went from Hawaii’s tip jars to online requests, there entered this element of shame, embarrassment, and pressure. It’s left us feeling afraid about the food in the event we don’t leave what is deemed to be an adequate tip when ordering. Let alone what will someone standing nearby think if we opt for 15% instead of the up to 30% proposed.
Tipping Point 2: Asking for tips before service is rendered.
One restaurant even explained what the tips are for: 15% is for providing good service, while 18% would be when the service is great, 20% was for Wow! service, and 30% was for the best service ever. The problem is when service is provided after the tip is paid, since tipping was done at the point of order rather than when the service is delivered.
Anytime one is paying for something before receiving it (which is most transactions other than a classic sit-down restaurant experience), they are put in the situation of being asked for a tip by the software before they know if they’re even going to be happy with the product or service they receive. Thus your tip ends up being given out of good faith or a sense of obligation.
Tipping Point 3: Helping underpaid hospitality workers.
There’s just no doubt about it. People in Hawaii hospitality, whether they are waiters, cooks, baristas, or other staff, simply don’t get paid enough money to afford to live here. You commented widely on that in our recent post about the cost of living in Hawaii and those who are leaving.
Hourly workers, who may not even receive benefits, can make as little as $15/hour, which doesn’t provide a living wage in Hawaii. Others have suggested that the minimum wage in Hawaii should be more like $30, and we’d say they’re right. And even then, that’s when the employee is full-time and has benefits, including vacation, health care, sick leave, etc. For those who don’t, how can they even afford the $500+/month needed for basic health insurance? And that’s before talking about the minimum $2,000/mo for a one-bedroom apartment in Hawaii or the sky-high cost of food and other necessities.
Hawaii hospitality workers have come to expect to make a significant portion of their income in tips. And from the comments of some of you who work in hospitality, that just isn’t happening as it once did.
- One commenter said, “Face it, hospitality workers need to make a minimum of $30 an hour just to barely make ends meet. Wages can be increased immediately if all these greedy employers would accept the reality and pay quality people what they are worth! Regarding visitors, the person said, “Considering you barely tip if at all, why do you expect to receive 5-star service…”
- Another comment stated, “My 600 sqft 2 bedroom on Maui is the worst you can get here, hands down. I pay $2,300/month plus $200 electric and I turn my breakers off unless I’m using it. We get paid wage plus tips, our employers count on us to get tipped. Wages don’t cover half of what we need to survive. Missing out on a tip from a guest we served could mean we don’t make rent… Your Hawaii budget needs to include 15% tip bare minimum whatever the charge, for everything. If you can’t do that, please don’t come. We all live off of our tips.
- And finally, in response, “Tips are for outstanding service, not to supplement employers’ wages. Tell your employer to pay you more if you don’t like your wage, but for goodness sake don’t tell customers, “Don’t come!”
These countries either pay workers enough and/or indicate that tips are not required:
Australia, New Zealand, Myanmar, Singapore, Taiwan, Cambodia, Indonesia, Thailand, Vietnam, and parts of Turkey. In the European Union, expect a service charge to be added to your bill. But here in the United States, it’s like the “jelly of the month” club scene in the movie Christmas Vacation. People count on tips as part of their basic income.
Tipping Point 4: Pride in tipping is gone.
It used to be that we were happy to leave great tips for exceptional service. Now it seems an expectation for everything, including mediocre performance. Let’s face it, service isn’t what it once was in most cases. So that juxtaposition is irritating to even the best tippers.
Tipping Point 5: Tipping where tipping is not expected.
Here are some personal experiences. Editor Jeff said he walked into a coffee shop (not Starbucks) on Kauai to buy a bag of whole-bean coffee, which he took off the shelf and handed to the cashier. The store uses Square for customer payments. He saw the tipping options of up to 25% on the screen. That is a turn-off, pure and simple. Who likes being asked for a tip under that circumstance? If it isn’t possible to turn it off for that type of transaction, everyone suffers. We’ll add that if Jeff had requested they grind the beans for him, he would have tipped for that service.
Editor Rob reports on a local sandwich stand where he went to the refrigerator area to select a pre-made sandwich. When he brought it to the cashier to pay, he was shown the dreaded tip menu.
But, at least for us, if the goal is to make you feel bad and perform mercy tipping, it may have just backfired.
Nonetheless, according to guilty-as-charged Square, tipping at full-service restaurants was up by more than 25% in the last quarter they studied. They said that at service counter restaurants, that growth was 17%.
How we got to this tipping point: a historical perspective.
In the 1600s, people started using tips to ensure faster service in English pubs, essentially “bribing the staff” to get special consideration. The practice was introduced to the U.S. after the Civil War by Americans wanting to mimic the European upper class. In the 1980s, there was actually significant public push-back against the practice, which was seen as perpetuating the class boundaries between rich and poor.
Obviously, the tippers won out, and the custom became commonplace, morphing from a way for the well-to-do to get expedited service to a routine part of paying the bill. Gratuity in most restaurants is no longer gratuitous or extra but instead expected, with many establishments even prescribing a minimum acceptable percentage. Already guilt rather than gratitude was becoming a primary motivator, with the very livelihood of their servers depending on this added sum.
The article failed to include people who live here who are not making more than the employees they are supposed to tip …buying a bag of coffee or sandwich from she shelf during their lunch break should not ask them to pay a tip! I would try to avoid such a business!
In hawaii just now and looked for articles as this is out of control.
Paying a lot for the hotel and yet at every step getting asked for a tip.
I have no issue leaving a tip for good service but it is expected even for handing over food to you from a fridge.
If the local opinion is to pay 15-20 percent or do not come then this is fine, I will not be back.
The businesses should be held responsible for the cost of living prices – put the tip onto the shelf price and give workers a decent wage.
The cost of living has gone up everywhere in the world and most industries did not get a pay rise to cover it.
But we seem to be now told by the service industry that we are not welcome unless we pay over the odds for everything.
They shouldn’t be surprised to go out of business …I think a good business that values customers will win in the end!
This isn’t just happening in Hawaii. This is an issue everywhere in the US because that’s the system. It’s been exacerbated by the economy right now, but it’s everywhere. If, as you suggest, businesses would simply pay their workers a living wage, and adjust their prices accordingly (not take advantage of it to rip us all off even more) then tips could go back to being a reward for excellent services.
I’m curious as to what is considered a “living wage”? And should that be the base pay for the least skilled, entry level job there is? And is this for just a single individual or someone who has a family? And a renter or homeowner? 0, 1 or 2 cars? Saving for a vacation and putting money away for retirement?
Lot’s of things to consider when someone is talking about a “living wage”
There is a living wage calculator available at living wage dot bit dot edu what will allow you to answer all of those questions for a particular place. It include info for individuals with 0-3 children, with 1 or 2 working adults. Specifically, for the state of Hawaii a family with 2 working adults and 2 children would need to make $29.57/hour each. This include expenses such as Food, Child Care, Medical, Housing, Transportation, Civic, and Other.
I think that the basic definition should be wage paid for 40 hours per week that would support the emloyee. The details are that a wage for a student working in summer and living at home is different from a person of the same age living on their own. I suspect that job expected to be temporary (summer job, working over holidays in sales) might be at a lower rate but all positions considered as “permanent” should pay enough so the employee can pay for food, housing, transpiration, and clothing.
It’s a nice idea but I don’t think that it will work, discrimination lawsuits will be flying.
But here’s the issue with the “living wage” discussion, especially as it applies to “unskilled” labor. And when I say “unskilled”, I’m not saying it isn’t hard work but that it doesn’t take a college degree or trade school training to do it. You can pretty much do it after some initial training.
Single guy fresh out of HS and he’s to get his first job in some service industry, like a hotel. What’s a living wage for this guy / job?
Now we have the exact same job but now it’s an adult with 2 kids and a mortgage and maybe a car payment.
A living wage for the each of these people is different but it’s the same job.
What do we base the pay for this job on? How hard it is? How much training it takes to do it? Who is doing it?
You’re assuming the same amount of experience for both. Someone that’s married with 2 kids is going to have been in the job longer that a kid just graduating from high school. So, just like now, the more experience you have in the same job the more you get paid.
Assumptions are never guarantees. Many HS Students that I know/see work after school and on weekends unless they are involved in Sports. An older, yet young, person with 2 children and a wife doesn’t necessarily have as much experience as this could be an extra income job, something far too many have zero interest in exploring.
Maybe I should rephrase my question. Should All jobs pay a living wage for single individuals, or married individuals or?
Obviously, a single individual doesn’t need the same living wage as a married with kids individual.
So how do we determine how much an unskilled labor job should pay?
Are you saying the pay should not be based on the job but on the person doing the job?
Nope, I’m saying that the pay should be based on the person and the job, and the experience. Just like it is today. Not many jobs have a single pay rate. It’s usually a pay range, and different levels. So there’s a pay difference between someone who’s doing a job at the entry level and someone with 15 years of experience and is a Sr. person. But in the end, yes, someone who’s married and has 2 kids gets a higher “base” pay than a single person with no experience.
Even for entry level unskilled job? Like burger flipping or car parking or whatever the “beginner” job might be.
And the married person should get more? What’s to prevent me, a single person, from saying I’m married, and I have two kids?
Patrick I like the way that you think but I suggest padding that a little more. You live in an overpriced small 4 room apartment with your wife, 2 toddlers in diapers, and your newborn daughter. Don’t forget to say that you have a cat, dog, turtle, and goldfish. Make it sound desperate and a bit dire. Never know how much it may or may not help with the money! Just a suggestion.
Lol. That’s kind of my point. Most entry level jobs are just that. Entry level / no experience required. A married person with kids Can’t except to make a “living wage” doing that.
We just got back from Maui, and this report hit the nail on the head. In fact some restaurants sneak the grat onto the check, and Then include the additional tip menu. I now go down to 10 or 15% if I find the tip ask is overly greedy
The idea of hinting for a tip is so trashy!
I’m all about leaving a good tip for good service, I also work in the industry, It’s out of control all over the united states’ not just Hawaii, Good Service = Good Tips ,It shouldn’t be forced in service fees or gratuity, Here’s a tip do your job better get better tips
@joshJ If you work in the industry, then you know that there are some things that aren’t in the server’s control. The kitchen might be running behind, for example. This is often taking out on the server in the form of a bad/no tip. As I’ve said before, if tips were truly just for quality of service, then that’s one thing, but they aren’t. They are a way for company’s to underpay people and then force us, the customer, to make up the difference with tips. I personally prefer the system they have in Europe where you don’t tip at all, or rather just tip a small amount for extra good service and the servers are paid a living wage.
Juxtaposition is not the same as justification. I am pretty sure you meant justification in point 4.
The tipping issue isn’t limited to Hawaii. It is the same thing here in Washington State. While in Hawaii, we try to eat in the local restaurants and food trucks that are moderately priced. We have never received anything but outstanding friendly service (even when everyone was talking about how bad things were in Hawaii) and are always happy to leave a nice tip. We are on vacation enjoying someone else’s home after all. I kind of agree with the person who said if you can’t afford a tip don’t come or at least don’t go to a place where a tip is warranted. We put tips into the budget anytime we take a vacation.
AJ we also put tipping money into our spending plan wherever we vacation and travel, services deserve acknowledging. Hawaiian Food Trucks have amazing foods and most other venues that we have eaten at haven’t disappointed us either. With monetary conversions being different around the world and wages at many non-US resorts actually meeting or exceeding a living wage, seeing the workers satisfaction in their job is wonderful. Giving a Dollar tip can convert into a $25/$35 dollar local currency rate, over 10 days that can, and does, make a significant difference in the lives of hard working and friendly servers. Employees happily help support their parents and other family members, here that isn’t a possibility.
This all started with chip card technology, chip read transactions cannot be edited and changes once the the sale has been run as a result the tip is asked for up front, I told people developing this stuff it would be a while for people to accept and get used to this. Most restaurants are supplying your bill with the tip line all at once so tip is already part of the full amount of the transaction. Places that have both sit down dining and take out are not doing this on purpose everyone is held to chip card logistics is not logical in this instance but it is the way the banking industry designed the technology and all merchants must follow regulations as set forth by the industry.
You can always choose the ‘no tip’ option, rather than succumbing to the perceived guilt.
Lee I agree with you, however, I also believe that there’s things going on that most people are not considering, let’s call it the “BJ” proposal. It’s extremely disheartening to see the Exodus of people to Las Vegas and the Elected Politicians are unconcerned by it. Why would that be? The “BJ” proposal, as I call it, is an initiative that will solve big businesses concerns. Big Business and Your Politicians colluding to eventually import to Hawaii Illegals, Border Jumpers (BJ), to train and fill the positions necessary to operate effected businesses. Housing concerns would be taken care of by the employers, not saying that they would be acceptable to us, and everything would be good. Don’t doubt this, it will occur.
I Tip when I am served in a restaurant. If I order at a window, pick up the food and seat myself, there is nothing to Tip for and no Tip is provided. Anything else? Forget it. I’ve seen this “request” on credit card purchases and my standard response (Hawaii or elsewhere) is No Tip. No service, no Tip. If your employer isn’t paying enough, why are you working there?
It’s not a complex problem. If you can afford to have someone package or prepare your fresh food, the person handing you your product because you are advantaged enough to hire people to prepare your food probably needs money a bit more than youu. What’s the deep psychic philosophical issue that makes this a worthy topic?
James you’re assuming that anyone, and everyone, that consumes food from a takeout is better off than those who are working there and many times that may not be the case. Have you ever considered that many people purchase the food after Saving a portion of their meager earnings as a Special Treat for their child or children? Similar situations arise and for whatever reason it’s easier than driving home when running errands or attending appointments? Of course Some People are better off than the workers, perhaps they should go elsewhere with their money and put more people out of work? Comments can have unexpected results that can be counterproductive. Capitalism is Sound, Socialism weakens and falls apart the very fabric of society.
Since Ice has been so heavy in Hawaii I think alot of it has lost the Aloha Spirit..Shame it’s always been Home for me..but now it’s gotten so bad in so many areas.
Hawaii’s population is declining due to residents moving to the mainland where the cost of living is lower. Eventually wages will rise because employers will have to raise wages in order to have any staff. Until that happens it’s going to be a struggle.
I tip a set amount at restaurants. 5.00 per person in my party. No matter what restaurant. So at Panera, if my bill is 30.00 for 2 people, I tip 10.00. That’s a good tip, right? If I am at Ruth’s Chris Steakhouse, and my bill is 240.00 for 2 people, the tip is still 10.00. Why should someone working at a schwanky place be tipped more than a person working at an inexpensive restaurant?
Because the person at panera makes at least minimum wage while the Ruth Chris waiter makes well below minimum wage. I hope you will adjust your practice so you don’t cause a person to make below minimum wage.
The author left out extremely important historical context to the historical background to the history of tipping in the US. Most importantly, tipping really spread here, like the author said, just after the civil war when railroad owners used unpaid former slaves as porters, whose only pay was tips. Tipping is an obscene practice where the responsibility to pay employees is shifted to customers from employers where it completely belongs. We need to expect that employers pay their employees rather than leave payment to the good will of customers.
I would love to see the USA eliminate tipping as an excuse to underpay employees. Pay them what is fair for the work and be done with it. To be realistic, how will anyone earn a living wage waiting tables in expensive Hawaii? Maybe in an upscale restaurant, but not at a coffee shop. There are many places in the US where people routinely hold down 2 jobs to make ends meet. Sad, but true. Hawaii, relying heavily on tourism and repeated rejection of new industry will remain a state of working poor. As others have said, many leave for the mainland in search of better opportunities. It’s up to the state government to realign their priorities.
Kim, the State and County Governments need to realign their priorities which is a monumental task due to the “Influence” peddlers. The Entire Blame for the ongoing debacle faced by residents of Hawaii can be traced back decades and culminating today. The Voter’s choices in Politicians that They Elected all of this time, for the most part, has allowed all of this and it continues. The Voters need to take Responsibility for Their Choices, plain and simple. Blame over tourism on Yourselves, you allowed it to occur and get to where it is today. Now Accept That and Change it moving forward, it’s Your responsibility and choice! Don’t blame Tourists because of Your Choices that don’t work!
I agree with everything said. We do tip when service is provided like at restaurants boat trips thing where people actually work to serve the customers. I will put $1 in tip jar at Peets and places like that. Tipping is for good service and has become expected not a reward. I’m sorry employers don’t pay better to help their employees. I was surprised at how low Hawaii min. Wage is. CA is higher and things cost less. Servers make $15/hr plus tips.HI needs to increase minimum wage. If tourists stop coming you have no job.
We’re currently in Kauai and the other night we went to an upscale restaurant on the south shore. It has valet service and I normally tip the valet attendant when he brings the car. But when leaving the dining area we had to pass the front desk and was asked to pay $3. “For what?” I asked. I was told it was for the restaurant manager, who I never saw of course. Definitely over the top, probably won’t go back. It’s become more of a “great place to be seen” type restaurant anyway.
Did you leave the $3?
I lived through a great era when good service got rewarded with a good tip. Robotic service got minimal, and lousy service got none. It was a time when everyone shared “good values”. We believed in karma. Now, expectation and entitlement are foundations. We just eat at home. Healthier!
Nothing wrong with tipping most people have the money to tip 15% its part of our culture whether you like it or not. If no tips you will have no Hawaii to take a vacation to period.
That’s the problem! It’s become part of the culture instead of a reward for providing good service.
The culture of employers not wanted to pay people a living wage, yes.
You’re Right, nothing wrong with tipping, unless the service sucks. I can’t remember the last time that I didn’t tip, typically 18 to 20+ percent with the occasional tip closer to 50 percent. On the other end of the scale I can remember the smallest tip that I have left. The Server would have fit in as a dock worker, cursing and slamming everything on the table and not an ounc of courtesy…..I left an entire Quarter! 🙄 She didn’t last too long and I heard that she was complaining that she didn’t get tips like the other servers, she had no clue!
A simple solution….. first I do not feel I should have to support people who do not make a enough to support themselves…find a different job ! Second if the cost of living is to high where you are at…..move ! James
LOL, right then next you’ll be complaining that “no one wants to work anymore!” when your favorite restaurant doesn’t have enough servers to provide timely service. This is the same ‘ol problem where people think that good old fashioned work with your hands isn’t something that’s “skilled”, and this shouldn’t be compensated well. But without the carpenters, waitstaff, cleaning people, etc. those self same elitists wouldn’t have the services, or the buildings, or the furniture that they need/want.
@Joerg H – Carpentry, Mechanics, Plumbers, etc. Are skilled laborers. House keeping, food servers, etc. are not. And lets not confuse hard work (which they all are) with the skill factor. Some jobs take months, if not years of training to become proficient, others you can pretty much start day of and work.
LOL, have you ever worked as a server? There’s more to it than just going back and forth to the kitchen. Finally, let me say that there’s nothing wrong with hard work, and I think that people should be compensated for their labor fairly. this idea that “unskilled” labor should be treated like slave labor is abhorrent to me. As I’ve said elsewhere, I find it interesting that the same people who tell them to “get a better job if you don’t like it” are the ones complaining that “no one wants to work anymore!” when there’s a shortage of same said “unskilled labor” to work int he restaurants, as housekeepers, etc.
Yes I have worked as a server, my feet and fried mind remember all too well what it was like. The tips were awesome at certain times of the day and especially with repeat customers. If anyone has the opinion that servers are not professional maybe they should give it a few months. That’s If they get past day 3 without being shown the door!
What amazes me in these comments about only tip for good service is the obvious. If one can afford to let other people cook, serve your food and clean up after you, then what’s the problem with sharing a bit of aloha (paying it forward) for simply having the privilege of being privileged? Or has noblesse oblige lost its meaning?
Hi James, do You leave a “normal” tip of 15% or more for service that is below standards? Do You, by doing so, Encourage and Foster that kind of behavior? I would rather decide to tip accordingly, it can improve that person’s serving and people skills. It can also change the course of a life into a job/career that is better suited to the individual. Tipping bad servers encourages worse service to propagate. The Industry and Customer deserve much better! Consider that.
The only problem with your theory is that tips are no longer a reflection of the quality of service alone. Companies under pay their employees and expect us to make up the difference with tips. So, someone who’s having a bad day (you’ve had those, right?) is going to not be able to feed their family because you want to teach them a lesson?
Joerg, we both know that isn’t what I was stating or advocating. I actually inquire wanting to know, most of the time it is quite obvious that a plaguing problem exists that is effecting the person. It is those that simply have a problem with working and show it in practically every way that I refer to. Unfortunately as time moves forward there are more of them. Why give my all, referring to a good tip, when the server won’t? Call me a Concerned Consumer or a Nosey Customer, I do care!
Joerg there are too many people that cannot equate the Importance of any job that entails working with their hands as “Unskilled” and dismiss what they do as unessential. How many went to college and garnered a degree which is essentially “useless” or the pay scale is an unlivable wage yet they believe that they are Superior to others? I have seen the Wage Reports and True/Real Targeted Jobs Reports and Trade Schools would have been a better choice and Yes there are Bachelors Degrees awarded upon satisfactory completion of the course work! The Income for many Trades is well above what people realize and outcompetes many regular college degrees. Time for “kids” and parents to consider Reality vs supposed “prestige!”