So how bad are restaurant staff in the US with tipping? Here you can leave an average of 5-10% of the bill and most are cool with it, actually very appreciative.
Our expectation is a tip of 20% if we're doing our job correctly. 15% kind of sucks but it's understandable, 10% is a joke, 5% or lower is not even worth our time and it almost costs us money to serve you.
I'm a waiter and a bartender so i'll give you the rundown. For starters, most of us (at least in Illinois) get paid anywhere from $4ish/hour to $8.25 (Illinois Minimum Wage), however that hourly wage goes directly to our taxes and we only ever see any of it on a paycheck if we do not make over that amount in our shift. It's a little convoluted with minimum wage, tip credits, and a few other things, but unless we don't make enough in tips on that shift to match our hourly wage, we don't see that $4.85/hr. So for all intents and purposes, we don't get paid hourly. We'll see how much we made hourly on our W-2 tax forms but since our tips our usually given to us in cash at the end of the shift, we don't pay taxes immediately on what's earned that shift.
I believe it's different in Europe where they do actually get a decent hourly wage so it's much more acceptable to tip a lower amount, even considered as a courtesy. To be honest most servers don't like waiting on European guests because generally it means a 10-12% tip, which is fine under the Euro-pay structure but not here. What's more, servers will tip out bartenders, food runners, bus boys, a flat % of their sales. Some restaurants do it differently, mine uses a flat 4% rate of our total sales for the night. 2% to the bar, 1.25% to bussers, and .75% to the food runners. So if I have $1000 in sales, regardless of what my tips are I am automatically tipping out an additional $40. So if I was tipped 20% by all of my tables and received $200 in tips, i'm only making $160. But if all of my tables tipped me 10% i'm only making $60.
In Chicago this unfortunately happens too often where people will come in and spend something like $294 on dinner and drinks, put $300 in the check presenter, and then leave. So not only do we get 1/10th of our expected tip from that table, we still have to tip out 4% of the total sales form that check ($12) it actually costs us $6 to wait on them.