Nickel and Dimed - Service Workers Adjust to Lower Tips

July 4th, 2008 • Related • Filed Under
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If you make your living in the service industry, you’re economic woes are going doubly deep.

“People can’t afford to be generous right now,” says Susan, a server at a Boston restaurant. “They’ll leave the 15%, but you don’t get the 20% tippers too often anymore. I guess it’s going into their gas tanks.”

The same goes for bartenders, cab drivers, and doormen. A $5 dollar tip is now $3 dollars, and there are fewer customers to begin with.

Service Workers depend on tips for 50%-75% of their income.

I’ve been tipping at the same level when I go out for dinner or drinks, but I’m definitely going out less frequently. Is anyone else feeling the pinch out there- either as a service worker, or as a customer?

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There Are 3 Responses So Far. »

  1. Comment by no imageFrugal Dad (Who am I?) on 4 July 2008:

    I’ve held my tip levels pretty steady throughout this downturn, maybe even bumped them up slightly to offset others who have stopped being so generous.

    By the way, I Stumbled here and have enjoyed looking around your site. I’ve subscribed and look forward to future posts!

    Frugal Dads last blog post..Ask the Readers: Why Do You Visit Frugal Dad?

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  2. Comment by no imageScott (Who am I?) on 8 July 2008:

    Since my family is young, we don’t go out a lot anymore. When my wife and I do have a date night, we still tip about 20% for good service. Of course, with the cost of everything going up, the adjusted buying power is probably the equivalent of a 10% tip for the server.
    Great blog, I digg it :)

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  3. Comment by no imageLisa (Who am I?) on 9 July 2008:

    @ Scott and Frugal Dad- thanks for your input. I put leaving a good tip, these days, on the same level as making a donation to an organization. Seems like those not as fortunate in the economy deserve our help, too, if we can afford it. Best, Lisa

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