Social Media and the New Culture of Tipping

KenMueller
Ken Mueller Owner/Partner, Inkling Media

Posted on September 24th 2013

Social Media and the New Culture of Tipping
 

300px Waitress taking an order Social Media and the New Culture of Tipping

I’m a pretty good tipper. Or at least I like to think so.

I have restaurants as clients and I’ve learned a lot about the food service and hospitality industry. I understand that preparing food and waiting tables isn’t a piece of cake. You’re on your feet all day, working long hours and often dealing with a wide range of people with a wide range of temperaments and personalities. You have to be on your game and pleasant, regardless of what you’re dealing with at home.

Sick kid? Bills due? Relationship issues? Car in need of repairs?

Doesn’t matter; you still need to be on your game and act as if everything is wonderful. Oh, and the hourly wages probably aren’t that good and you most likely don’t have insurance.

And even those who own the restaurants aren’t raking in the dough. The food service industry has one of the lowest profit margins among businesses. For a full-service restaurant, the profit margin can run around 2% to 6%, with higher end restaurants being on the lower end of that scale. That means for every $1,000 they bring in, their pre-tax profit might only be $20.

Yeah, don’t expect to get rich by opening a restaurant.

But back to tipping. I’m pretty laid back and easy to please. I generally tip around 20%, and the general guidelines for tipping are in the 15-20% range. That’s for restaurants as well as barbershops, spas, and most other businesses where tipping is the unwritten rule.

But in the digital age, our tips shouldn’t stop at handing some cash over to a waitperson or bartender. That money benefits them, and I’m sure they’re appreciative. But what about the dishwasher, the kitchen staff, and yes, even the owner?  They also worked hard to make sure you had a great experience, and there is something you can do for them as well.

The New Culture of Tipping

What is this new culture?

After you’ve paid the bill, don’t stop. Hop on your smartphone or computer the first chance you get, and let them know how they did. The problem is that our customers are more likely to complain than praise. As Peter Blackshaw states,

"Satisfied customers tell three friends, angry customers tell 3,000."

While that might be a bit of an exaggeration, it strikes at a very important truth: we are quick to anger and slow to praise. This is confirmed by a customer service survey that shows we are actually twice as likely to complain than to praise. That needs to change. From a business perspective we need to do our part and continually strive to provide great customer service and customer experience. But we also need to cultivate a new culture of tipping among our customers.

What does this new culture look like?

Make sure your customers are aware of your online presence. Perhaps when you deliver their check in the bill presenter, you also deliver a note, thanking them for their patronage. And then, make the ask.

Ask them to help you out by leaving a review on the sites that matter the most to you. And I stress the word, “honest.” After all, if you’re doing your job, you have nothing to worry about. Sure there will be some negative reviews, that will always happen. But the good reviews should outweigh the bad, by far. Here are a few of the sites you should be including for your customers (and on which you should have a presence!).

  • Write a review on your Facebook page
  • Write a review on Yelp
  • Write a review on Google Places (on Google +)
  • Write a review on Urban Spoon
  • Write a review on Trip Advisor
  • Leave a review or tip on Foursquare

You can pick just a few of these, and perhaps even add QR codes to make it easier for them. By offering them a few options, you let them know what sites are important to you, and give them the option of writing their review on their favorite site. And by printing them on a card and presenting it to them with the bill, you increase your chances of getting them to act. And if you really want them to take it with them, perhaps include a coupon for a discount on the other side that they can bring back with them next time they visit. Another option is to have the card available as part of a tabletop card holder, or even mention this on your printed menus.

And if you’re a customer, please consider taking a few minutes of time to post a review, especially if you had a good experience. Be honest. If you were pleased with the service, offer up the name of your server or bartender and give them credit. And make your reviews even more helpful by offering up useful tips on what to order or where to park.

A cash tip for your server is great, but a positive online review can go much further and helps the business reap greater dividends in the long run.

By all means, tip well. But go the extra mile and join the new culture of tipping by leaving a review online.

KenMueller

Ken Mueller

Owner/Partner, Inkling Media

The founder of Inkling Media, where he does social media and marketing for small and medium-sized businesses. He also is an adjunct professor at the Pennsylvania College of Art & Design, teaching continuing education classes in social media and inbound marketing.
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