The Impact of Tipping on Job Satisfaction of Restaurant Servers: A Cross-cultural Study.

Abstract

Tipping of restaurant servers is expected in the USA and is a major source of their income. However, tipping of servers in Australia is not normally expected. This study of sixty-four USA servers and seventy-five Australian servers showed significant differences in job satisfaction, degree of satisfaction with total earnings and degree of control over earnings. A review of literature also revealed cultural differences between the USA and Australia that may explain differences in tipping customs.

Keywords: Tipping, Satisfaction, Labour Turnover

Introduction

Factors associated with tourist satisfaction have been a topic of study for many years (see, for example Pizam, Newman and Reikel 1978). In that the consumption of food in restaurants represents a major expense for tourists, the levels of service provided in restaurants is an important variable for study. It is reasonable to assume that job satisfaction of restaurant servers is associated with the level of service they provide. For example, Lynn and Graves (1996) stated that people work primarily to make money and dissatisfaction with income is a significant cause of labour turnover. They further stated that restaurant managers could attract and keep competent workers by promising and delivering a high income to them.

In the United States (USA), tips are considered a primary source of income for many restaurant servers. In fact, tipping is so ingrained in the USA culture that federal wage and hour law allows restaurateurs to pay servers less than the minimum wage …