Is There a Limit to How Much a Person Should Tip?

I was cleaning up my desk when I came across the picture at the bottom of this blog entry.  The picture is of a professional sports team’s bar tab after they won the league’s championship.  The service fee was 20% of their bar tab.   Twenty percent doesn’t seem like something worth blogging about, but this team ended up paying $25,000 service fee for 2 hours of just drinking and not eating a single bite of food.   Professional sports teams do crazy things after winning championships so having a giant bar tab is not unusual.  What was unusual was the team in addition to drinking lots of beer and whiskey, drank one bottle of very rare champagne that cost $100,000.  The waitress didn’t  open the bottle or serve it, that was done by the players themselves.  However, by having one single bottle of champagne the players’ tip jumped from a $5,000 service fee to a $25,000 service fee.  The huge increase led me to wonder, “Is there a limit to how much a person or group should tip?”

Another giant tip occurred in January.  Shane Smith, chief executive of the Vice Media group, spent $300,000 for a dinner at the Bellagio’s Prime Steakhouse in Las Vegas during the International CES trade show in January.  All restaurants in the Bellagio Hotel have a uniform tipping policy, where “All parties of twelve (12) or more and/or private dining events are subject to a 20% service fee, 8.1% sales tax and group booking fee (based on group size).”  The 20% service fee means a tip of over $50,000 for the lucky waiter/waitress who served Mr. Smith and his party their meal.

Tipping is not a universal phenomena.  Tips are expected in the USA and Canada in bars, restaurants and from taxi cab drivers.  However, in many countries, like Japan and England, tipping is often not expected.  In these and many other countries waiters, waitresses and other service workers are paid higher wages and businesses simply include these wages when figuring out the price of a meal, drink or ride.   In North America a person often has a lot of discretion when trying to figure out the right amount to tip.   Usually people tip between 15% and 20% of the bill.  The interesting question is should there be an upper limit?

The word TIPS is an acronym for To Insure Prompt Service.  Giving a tip was designed to speed up waiters.  Money is clearly an incentive to work faster.  However, is there some maximum amount of money where waiters and waitresses will not or cannot work any faster or act any friendlier? If I was a waiter I would like the largest tip possible, but is there some point at which more money is ineffective?

The bar tab was rung up by  the Boston Bruins hockey team after they won the Stanley Cup Championship in 2011.  The Stanley Cup is the ultimate prize in North American hockey so the team was very excited.  After winning the Cup they went to celebrate at a night club in Connecticut. The team was very happy and so was Danielle their waitress who hit the tip jackpot (you can see her name on the top of the bill). What did they drink that cost so much?  They ordered a 30 liter bottle of Armand de Brignac, also called the Midas.

The team got a good deal on the wine.  They “only” paid $100,000.  That same year two people in Las Vegas paid $120,000 (plus a tip) for the same size and type of Champagne.  If you want to save money, the bottle can be ordered over the Internet for “only” $60,000.  Using the Internet means you do not have to pay a penny in tips (click here for the current price).  Be careful pouring though since the bottle weighs about 100 pounds when full.

The ultimate question though is very simple.  Is it fair that Danielle earned an extra $20,000 just because she brought out one very expensive bottle of champagne?  In a similar vein should we place limits on CEO salaries?  Both Danielle and many CEOs got/get ample compensation before large amounts are tacked on as an extra bonus.  What do you think, is there a limit at which CEO pay and tips should be capped?

Boston Bruins Bar Tab With a $25,000 Tip

Boston Bruins Bar Tab With a $25,000 Tip

925 thoughts on “Is There a Limit to How Much a Person Should Tip?

  1. Dünyayı keşfetmek, kıtalara ait ülke ülke gezi rehberleri, gezilecek yerler, görülmesi gereken yerler, tarihçeleri ve daha birçok detay için Gezi Tayfa size yeter.

  2. Thanks For this great content. Really Enjoyed.Keep It up.We are a group of content writing services and running a community in the same niche.If anyone want content writing services then hire content writer and increase conversions for your online store.You have done a extraordinary job!

    خرید گیفت کارت

  3. You are so intriguing! I don’t really accept that I’ve genuinely perused anything like that previously. So awesome to find someone else with a couple of interesting considerations on this issue. Truly.. much obliged for firing this up. This site is something that is needed on the web, somebody with a touch of innovation!

    Bigg Boss 14 Online

  4. There is not a day that does not happen in the world of technology. At Chikav, we try to provide everything that happens in the world of technology in the form of news, reviews, videos, applications, etc., and show a new world of modern technologies. chi kav

  5. Wow, so why should anyone expect the Gartner APM MQ, In the past year or currently moving forward?!?

    This has to be a total conflict of interest, so you have to tell me that the 2 people he has named Will Cappelli and Cameron wouldn’t be now heavily influenced by the Jonah guy in his brand new perch at AppDynamics? I sort of feel duped and this situation seems dirty. This guy Jonah leaving to take a cushy VP job at a business he allegedly provided unbiased analysis for the previous 4 decades, why should anybody believe a word coming from these documents.

    Ek Duje Ke Vaaste 2

  6. This has to be a total conflict of interest Molkki, so that you have to tell me that the two people he has named Will Cappelli and Cameron would not be heavily influenced by the Jonah guy in his brand new perch at AppDynamics? I kind of feel duped and this scenario seems dirty. This guy Jonah leaving to have a cushy VP job at a business he allegedly provided unbiased investigation for the previous 4 years, why should anybody believe a word coming from these documents.

  7. Awesome site you have here but I was curious about if you knew of any forums that cover the same topics discussed in this article?
    I’d really like to be a part of community where I can get feedback from other experienced people that share the same interest.

  8. Thanks for a marvelous posting! I certainly enjoyed reading it, you happen to be a great author.I will be sure to bookmark your blog
    and may come back in the future. I want to encourage you to continue your great posts, have a nice day!

    Brahma Rakshas 2
    Desi Serials

  9. In the era of instant-everything, you shouldn’t have to spend an entire afternoon researching, calling, and comparing local pros whenever you need one. So we set out to make it easier the answer of how to leave a review on thumbtack. Today, millions of customers use Thumbtack technology to find and hire small businesses across the country.

    • Helping landscapers. Painters. Personal trainers. Dance teachers. Entrepreneurs who take what they’re great at and turn it into something greater and how to leave a review on thumbtack.
      Busy Moms. Commuters. Homeowners. Pet parents. People with big plans (and even bigger to-do lists) who want some help getting them done.

  10. Data HK 2020
    Please visit my website for daily updated information of Hongkongpools results. Website will be updated daily for the best convenience of our users.
    Thank you for sharing.

  11. Thank you for sharing exceptional informations. Your site is quite cool. I am impressed with the details you have on this website. It shows how well you comprehend this topic. Bookmarked this web page, will return for more posts. I discovered only the advice that I searched all around the area and just could not encounter. What a fantastic web-site.
    Yeh Hai Chahatein

  12. Very nice and described Written amazing article for Indian Drama Serial Portals for 2020 You can watch Here and Download watch Indian Drama Serial Latest Episode in HD quality free. Excellent write-up. I absolutely appreciate this site. Keep it up!

Leave a Reply

Your email address will not be published. Required fields are marked *