ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Customer has $250 meal with his family. Then, the restaurant asked him to leave a massive tip

Simple calculations at the end of a meal can make the experience of a delicious outing awful.
UPDATED AUG 11, 2024
Cover Image Sources: TikTok|@Mario Zelaya
Cover Image Sources: TikTok|@Mario Zelaya

Having meals at the restaurant is a fun activity for most of us, and people like to be generous with giving tips to the helpful staff who ensure that their requests are being taken care of. But normal math at how much money one might end up giving as a tip can make you go bonkers. TikTok influencer Mario Zelaya recently made a post on TikTok where he spoke about how much money goes into tipping, and how tippling culture has become a more normal practice.

Image Sources: TikTok|@Marie Zelaya
Image Sources: TikTok|@Marie Zelaya

In the United States, federal law states that the minimum hourly wage for a restaurant staff needs to be $7.25. And if a staff member is categorized as a “tipped worker” then the restaurants can pay them less than the minimum wage of $7.25 per hour, since they can easily make more than 60% of the minimum wage from tip alone. What is surprising is that even the non-tipped staff in the United States expect the restaurant visitors to give them a generous tip. The practice has become quite prevalent not just in restaurants but even in bars.

Recalling a recent restaurant bill that Mario had to pay, he mentioned that the tip in the bill was more than 18% of the actual food price. For a bill amounting to $250, of which tip alone was $50. In addition to the tip, he had to pay the taxes which made total money out of his pocket $282. Doing a simple calculation at the end of the meal can make the experience of a delicious outing experience as awful. In some scenarios, it is even observed that the staff members get anxious as they are expecting a good tip for the services they offered, and eagerly look forward to it at the end.

Images Sources: Pexels|Photo by Cottonbro Studio
Images Sources: Pexels|Photo by Cottonbro Studio

It has become a common practice for restaurants to add a tip to the bill of the customers. And in most cases, the tip amounts to 20% of the total bill amount which can be a bitter experience for the customers. Federal law allows restaurants to add it, but customers have all the rights to pay it or get it waived from their bill at their discretion. That’s the reason why some bills even have it under the label discretionary service charges. However, it can be an unpleasant experience for customers to ask the restaurant manager to remove the charges from the bill. Tips are to be paid at the will of the customer if they are pleased with the service being offered by the staff. The practice of adding it to the bills default, and kind of forcing the customers to pay it is not a healthy one.

Editor's note: This article was originally published on January 27, 2024. It has since been updated.

MORE ON MARKET REALIST
The report paints a picture of how the future of work may look like.
18 hours ago
Some of the largest Fortune 500 companies across sectors have announced job cuts this year.
19 hours ago
The rise in AI stocks has been triggered by remarks made by Fed officials indicating a greater chance of a rate decrease next month, he warned.
19 hours ago
The Iceberg Index suggests AI could have a $1.2 trillion impact in wage value.
23 hours ago
The experts addressed that after 11 months in office, Trump is seen as accountable for the economy and inflation rates.
1 day ago
According to Wright, the growth in property prices will be "flat" by year's end, with a continuing slowdown already apparent.
1 day ago
The matter of healthcare has become a part of the wider affordability issue Americans face today.
2 days ago
This was perhaps one of the rarest instances in the show's long and storied history.
2 days ago
While share prices are down, there are a lot of things that one needs to consider before investing
2 days ago
Ray had given his twin a piece of advice, but he emphasized the importance of having fun on the show.
2 days ago
The contestants did not let the host off the hook easily, and Harvey was not too comfortable.
3 days ago
This is not a good look for the supermarket chain as infants' lives are at stake.
3 days ago
The protestors have voiced their concerns over the companies bowing down to the President's demands.
3 days ago
Albert Edwards has warned that there are some key elements which will make the fallout worse.
3 days ago
Recent reports suggest that while Walmart's sales have grown the last quarter, Target's are down.
3 days ago
The question might have been risky but everyone on the set seemed to have a great time with it.
6 days ago
Bonus Round winners are becoming few and far in between of late on the show.
6 days ago
The supermarket chain has never opened its doors on the festive day in the last five years.
6 days ago
This item was a favorite among shoppers, who were not happy when it was taken off the shelves
6 days ago
Reports suggest that the average price of a classic Thanksgiving meal has dropped considerably.
6 days ago