Scholars in the field of psychology and economics have carried out studies and developed several economic theories, models and speculations which can be successfully applied in explaining restaurant tipping. Today, tipping is practiced in several countries of the world, though with a few countries in which the act is prohibited. Broadly, tipping is meant to serve as a reward to the food and beverage service staff for providing quality service and more importantly -a complement of their monthly income. On the other hand, it was decided through union negotiations in 1924 to add a 10% service charge to restaurant bills and as a result therefore, some countries of the world such as the United States and Norway adopted laws prohibiting tipping in early 1900s, probably as a result of the negative effects that this act imposed on service quality. Research indicates that tipping is to fulfill three reasons; a reward upon perception of service, incentive for improved future service and as a social norm.
Scholars in the field of psychology and economics have carried out studies and developed several economic theories, models and speculations which can be successfully applied in explaining restaurant tipping. Today, tipping is practiced in several countries of the world, though with a few countries in which the act is prohibited. Broadly, tipping is meant to serve as a reward to the food and beverage service staff for providing quality service and more importantly – a complement of their monthly income. On the other hand, it was decided through union negotiations in 1924 to add a 10% service charge to restaurant bills and as a result therefore, some countries of the world such as the United States and Norway adopted laws prohibiting tipping in early 1900s, probably as a result of the negative effects that this act imposed on service quality. Research indicates that tipping is to fulfill three reasons; a reward upon perception of service, incentive for improved future service and as a social norm.