Why Don't You Like Automatic Gratuities?

In your review of Gjelina at the Venetian, you wrote that this restaurant has a mandatory service charge (tip) of 20%. All you said was that you don't like it for a number of reasons, without going into detail. Could you please go into those details?

Happy to.

We review Gjelina, a hot new restaurant at the Venetian, in the current issue of the Advisor.

Gjelina writes on its menus, "A 20% mandatory service charge will be added to your check. Our belief is that every Gjelina hourly employee contributes to your experience and 100% of the mandatory service charge will be distributed amongst them."

Here are our reasons for finding the auto-suck gratuities rebarbative.

First, there's no room for dissension or even discussion. When servers are guaranteed a percentage of the bill, they might be tempted to take advantage and slack off in the delivery of service, which ordinarily wouldn't be worthy of 20%. Similarly, why bother providing exceptional service when management has mandated the tip percentage, reducing the motivation and inclination of customers to tip extra?

Either way, the auto-suck adds another layer to the dining experience, which can lead to a negative impression. It did with us.

In addition, distributing tips with "hourly" (untipped) employees likewise reduces motivation throughout the customer-service chain -- bus people, chefs, line cooks, dishwashers.

In non-automatic-gratuity restaurants, many wait people have discretion over how much to tip their bussers, cooks, and dishwashers, rather than a set amount determined by management. This is no different than the auto-suck from customers; wait people reward the people who serve them with distinction with a higher tip out more than those who don't.

What's more, in researching this answer, we found several studies indicating that customers are less likely to return to restaurants that tack on automatic gratuities. The feeling of being forced to tip a set amount often outweighs the benefit of good food and service and ironically, the studies found that this was even truer for patrons who had otherwise positive experiences at the restaurants.

And what if, as we do, patrons would prefer to leave cash, rather than putting the tip on the credit card? The auto-suck completely eliminates that option. This will definitely come into play with the income-tax break on cash tips up to $25,000, which we discussed in yesterday's QoD.

Finally, there's the age-old argument of employers forcing patrons to subsidize the wages and salaries of employees. In northern Europe, along with Japan, South Korea, China, Singapore, and even Australia and New Zealand, tipping at all is inappropriate and even considered offensive. This is usually the cultural norm, due to wage structures and the perception of service-industry professionalism that's different from North American norms.

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

Have a question that hasn't been answered? Email us with your suggestion.

Missed a Question of the Day?

Have a Question?

Tomorrow's Question

Where did casino shills work in the '70s and '80s and how much did they earn?

Comments

sunny78 Aug-04-2025

good points

I like the way some other countries do it, just factor it all into the end price and be done with the tipping nonsense.

Plus, the concept that a $100 total meal bill for 2 people somehow deserves a server a much higher tip than a $40 meal for the same number of people/dishes is asinine to me. The plates that much heavier? The glasses? Silly deluxe. % system idiotic. 

Buffets? Yes, they carry dirty dishes away, but how about having a section where people can hand off the dirty dishes myself as I'm already serving myself the food, pouring my own drinks like at the Bellagio buffet. 

Then at quick serve places where a tip is asked for someone to hand me a cup of whatever they poured from a machine, hand me a cookie, doughnut, whatever. Please. How did we get here?

O2bnVegas Aug-04-2025

rebarbative

Another great word of the day! 

Candy

VegasVic Aug-04-2025

Agreed

Tips are to be earned.  I get lousy service and/or lousy food and I'm forced to pay 20%?  Not happening.

grouch Aug-04-2025

mandatory tip

NO way. it is my decision on how much i want to tip or not depending on service etc.wonder how long before they go out of business or change that RULE,

i can understand if it is 6 or more person at a table that a certain amount is automatically added to the bill but 2 or 3 people NO way

Kevin Rough Aug-04-2025

Just add 20% to the price

If this is what you want to do, just add 20% to the price.  So if you were going to charge $50 charge $60 instead.  Then the restaurant can distribute the extra $10 amongst staff and I haven't had a bad experience.  Plus then if I wish to leave a tip for the server, I can.

Plus with the new tip law, this would be considered a service charge which is not a tip.

Stewart Ethier Aug-04-2025

Miami Beach

In Miami Beach all restaurants have an automatic 20% service charge.  Customers are allowed to add tips but aren't expected to.  This was started because of the large proportion of tourists who aren't familiar with American tipping customs.  This might not work in Vegas, where tipping has become a form of virtue signaling and 20% is now considered small.

VegasROX Aug-04-2025

The new "norm".....

As with resort fees, eventually adding this 20% will become the new norm, in Vegas and beyond. There are only a few places that don't charge resort fees and it will probably be about the same % of restaurants that won't impose the new fee. After all, if my neighbor gets it, why not us!!

O2bnVegas Aug-04-2025

like with taxes

I'm curious...in Miami Beach for example, is that 20% already figured in on the tab that you sign?

I am seldom if ever in the position of paying such a huge tab such that 20% in tipping would be prohibitive.  If so, is there an opportunity to dispute it?  Perhaps with a manager, as in, "I'm going to pay 15% on this $850 tab.  The service was OK but didn't rise to the 20% level."  e.g. entree was cold, cocktails not cold;server brought our entrees at different pace/times; had to ask for water/ice refills; had to ask (and wait 20 minutes) for steak knife to cut my steak/had to ask for drawn butter for my lobster [I had those situations happen at one meal!].

Just wonderin'.

Candy

Bob Aug-04-2025

Crazy

Just scratched Gjelina off my Bucket List!

Michael Taylor Aug-04-2025

Not appropriate

A 20% tip is my standard amount for good or above service. But need the service to justify it. As there appears to be no recourse I will take this off my list of restaurants to visit during my next trip

Carey Rohrig Aug-04-2025

Hmmmm

So if these hourly employees are that important pay them a living wage

Brent Aug-04-2025

Why assume that Americans are naturally lazy?

I've eaten a many restaurants in both Europe and Asia--places where tipping is rare and minimal. The service there has always been at least comparable to the service that I get here.

The assumption that Americans will only do a good job if their compensation is directly affected at all times is both wrong and offensive.

asaidi Aug-04-2025

Raising prices

Basically, adding a 20% "service charge" means that whatever your order at the restaurant is 20% more expensive.  How about just raising the prices 20% and then raising the employees salaries.  That way it doesn't make you look like you're not paying your employees enough.

Question of the Day - 04 August 2025

Comments