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

1,602 thoughts on “Is There a Limit to How Much a Person Should Tip?

  1. Vidalista 20mg is cast-off to treat erectile dysfunction & impotence in men. Tadalafil is the most important part of medicines. This remedy will allow you to attain a harder erection for a longer time while having sex. Such effective medicine
    Such effective medicine willpower eradicate the chances of blood flow-related disorders like hypertension, hyperplasia & Erectile dysfunction.
    resolve eradicate the chances of blood flow-related disorders like hypertension, hyperplasia & Erectile dysfunction. It has become a traditional method for treating erectile disorder.Vidalista 20 is a drug that is highly effective in treating erectile dysfunction. Vidalista is manufactured in multiple strengths and forms by the Centurion Factories Pvt Ltd. Tadalafil is the chemical component(generic appellation) present in Vidalista.

  2. Adding value to your customer spending is the holiday equivalent of adding a dash of magic in their lives. Any value that can be counted, discounted, and has the power to reshape someone’s budget is a sure win this season. As a business, the most substantial thing you can do for your customers is to reduce the size of their holiday bills by adding more value to their spending.teacup parti yorkies

  3. HTFX Online is a Blogging Platform with Great category choices to publish your thoughts to the world.If you have any questions or queries about writing for us, please feel free to contact us! We like to receive feedback and want to find ways to work with you that will benefit us both.

  4. The Pomeranian Husky, also called a Pomsky For Adoption, is a designer dog that has recently gained in popularity. A specific breeding method is used to create this small dog breed. Dogs like this are very expensive, but many people want to own one. Before you make an investment in a dog, that means you want all the information you can get about it. You will not get your money back if you adopt or buy one of these expensive designer puppies. After all, you won’t be able to ask them any questions.

  5. HANDHOL BOX, also known as visit valves or telecommunication ponds. Composite or polyethylene hand valves are usually less than 60 cm in diameter and are used to visit spaces that are not accessible, as well as to control underground drainage and to check underground facilities such as gas and electricity, telecommunications, etc. And if there is a problem in these transmission pipes, it can be controlled and fixed by inspection valves such as handhole door or manhole door. They are classified into two types, light and heavy, based on their type of application.(هندهول کامپوزیتی)

  6. Awesome.. This is the cool website I’ve been looking for all this time, please click here to see this new and cool website… What are you waiting for?

    Besides that, you can also visit my page which is no less cool: Slot Online

  7. Garbage bags have different types that can be classified in two ways: in terms of production and in terms of consumption. Production aspect refers to the different shapes and types of this product at the production site; For example, we can name leaf bags and rolls.انواع کیسه زباله

  8. Asian Embed This site is a free entertainment platform where you can stream the latest and past Asian shows such as Korean,
    Taiwanese and Japanese dramas and movies with English subtitles and in high quality

Leave a Reply

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