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Determinants Of Tipping Rates: New Findings And Extensions, Christopher Carl Olson Oct 2017

Determinants Of Tipping Rates: New Findings And Extensions, Christopher Carl Olson

USF Tampa Graduate Theses and Dissertations

There is a movement underway to eliminate the practice of tipping restaurant servers that is gaining momentum (Goldberger, 2015). In lieu of gratuities, restaurants are simply raising menu prices or assessing a service charge and paying servers a fixed hourly wage (Kummer, 2016). Before restaurateurs can adopt such a strategy, they need to thoroughly understand the factors that affect tipping behavior in order to develop meaningful fixed wage rates that do not diminish service levels or employee morale. The first step in this process is a better understanding of the determinants of tipping rates.

The existing research has identified many …