Thesis on "Customer's Perspective on This Issue"

Thesis 4 pages (1142 words) Sources: 2 Style: MLA

[EXCERPT] . . . .

customer's perspective on this issue before addressing the tipping question from the restaurant's point-of-view. From my own perspective as a customer, tipping is just a hidden cost you don't see, a way of maximizing profit for the owner of the restaurant and an instrument he uses to decrease his own fixed costs by making you, the customer, feel forced to pay additionally over the cost of what was consumed for the meal. There is nothing wrong with tipping to reward service, but this is tipping that has nothing to do with service, because you feel it is compulsory to offer at least 15% (maybe going as far as 20 or 25% in some cities) to the waiter.

Tipping in the U.S. feels as if it is something expected from you, while in Europe, it is mostly done to reward the service. The distinction is important: in Europe, tipping is usually optional (the case where service is actually included in the bill is limited to only a couple of countries) and proportional to the service provided. In the U.S., even bad service is usually rewarded with 15%, only because the customer feels that this is necessary because the waiter does not even receive minimal wages.

However, minimal wages and the fact that these are not compulsory for waiters is not something that should impact the client and his relationship with the waiter. In my opinion, tipping in the U.S. is significantly different from the one in Europe, with the customer being forced to share on costs pertaining to the owner of the restaurant.

However, if we look at it from an organizational point-of-view, including a service charge on the bill is probably better because it is likely to divide the profit coming from tips in a more equitable manner among all the shareholders in a restaurant (waiters, kitchen staff, baristas etc.). Maslow's hierarchy of needs is the first organizational behavior theories that can support this theory. Maslow's pyramid of needs supports the idea according to which there is a hierarchy of needs for every individual. The most primitive ones are at the bottom of the pyramid - these are physiological needs, followed by safety and love/belonging needs. Despite the fact that the tipping issue and including the tip as a service charge may seem to belong to a lower level, I think that it is, in fact, on the fourth level of the Maslow pyramid - the esteem level.

Indeed, having a service charge means that you tacitly acknowledge the fact that everybody in the team is part of the profit that the restaurant makes. The article makes an important point about how the service charge additionally motivates cooks to be much more flexible with the requests they receive from the clients, usually related to customizing their order. The tips that waiters receive are not necessarily only related with the actual process of taking the order from the kitchen and getting it to the table, but also with preparing the meal, with ensuring the production process and with providing the appropriate administrative framework for the dinner to be served.

Going back to Maslow's pyramid of needs, with the tip being charged as a service charge on the bill, the auxiliary entities to the meal delivery process can feel included in the process and appreciated for the job they do. This can increase their self-esteem and their confidence, as well as… READ MORE

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