Food - Drink
Here’s how to decide how you should tip.
Tipping is customary when it comes to restaurant service in America, especially since the restaurant industry is getting back on its feet post-pandemic. While modern restaurants are far more tech-reliant and tip jars have gone almost obsolete, the pressure to tip is still there, so one may consider whether cash or credit is the better option.
It is important to keep in mind that every restaurant has its own policies for different types of tips, so there isn’t really a one-size fits all situation. Cash could be divided between staff while a percentage could be taken off on written tips — it’s completely dependent on the restaurant’s discretion, but there are some pros and cons to each.
Cash tips are good because they are immediately accessible to your server — who can also choose to share it with other staff like dishwashers or bartenders — and they can also be a source of tax-free income. However, withdrawing cash can be a hassle for diners, while for servers it can make claiming unemployment more complicated.
A larger tip on credit, even if there are fees for the server, is still a much better option, as some restaurants will "cash out" at the end of a night — leaving the server with extra cash at the end of a shift. For savvy credit card users, it’s a win-win situation, as the server gets to earn more, while the diner gets to collect more reward points.