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Practice of Tipping at Restaurants

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In most restuarants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15% tip for parties of 8 or more.

a. why the practice of tipping has emerged as a major method of compensating the wait staff

b. why the customer typically decides on the amount of tip?

c. why restaurants require tips for large parties?

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Practice of Tipping at Restaurants

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The practice of tipping has emerged as a major method of compensating the wait staff to ensure that they are fully motivated to serve the customers and provide them total satisfaction which is of utmost importance in the restaurant business. Further, tips act as an automatic check on the wait staff and keeps them on their toes to serve the customers in a batter way ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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