Tipping is a social norm in many countries and has important functions as a source of income, with significant social welfare effects. Tipping can also represent a form of lost tax revenue, as service workers and restaurants may not declare all cash tips. These interrelationships remain generally insufficiently understood. This paper presents the results of a comparative survey of resident tipping patterns in restaurants in Spain, France, Germany, Switzerland, Sweden, Norway, and the Netherlands. ANOVA and ANCOVA analyses confirm significant variation in tipping norms between countries, for instance with regard to the frequency of tipping and the proportion of tips in relation to bill size. The paper discusses these findings in the context of employment conditions and social welfare effects, comparing the European Union minimum wage model to gratuity-depending income approaches in the USA. Results have importance for the hospitality sector and policymakers concerned with social welfare
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Tipping behavior is a vital way for waiting staff to enhance their wages, and for managers to monitor guest satisfaction. Despite its importance, there is not yet an established consensus on reasons why people tip. Our lack of understanding about tipping behavior is exacerbated by a strong reliance on studies conducted in countries that have a system of voluntary tipping (e.g., the United States). The study aims therefore at expanding our understanding of tipping behavior beyond voluntary tipping countries and more specifically explaining tipping behavior under service-inclusive pricing. Data obtained from 1458 guests in five European countries show that income and payment method are the strongest predictors of customers’ decision to tip, whereas bill size is the most robust predictor of tip amount. Results advance knowledge by suggesting that social norm theory plays a major role to understand tipping behavior in service-inclusive pricing.
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We give a refinement of the well known business model canvas by Osterwalder and Pigneur by splitting the basic blocks into further subblocks to reduce confusion and increase its expressive power. The splitting is used in an online tool which in addition comes with a set of questions to further structure the business modelling process and help doing thought experiments.
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