Tipping for take out

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dbphd
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Tipping for take out

Post by dbphd »

Is it usual to tip when picking up a take out order?

db
fareastwarriors
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Re: Tipping for take out

Post by fareastwarriors »

I don't do it personally. But many people I know do a buck or 2.
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InvestorNewb
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Re: Tipping for take out

Post by InvestorNewb »

I got take out at a Thai restaurant last week. I tipped $0 and got a dirty look from the lady. The cost of the meal was already $18.

Won't be going back.
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Re: Tipping for take out

Post by cheese_breath »

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ajcp
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Re: Tipping for take out

Post by ajcp »

One of the commonly cited reasons you're "supposed to"top on take out is they claim they get taxed on it whether you tip or not. I'm guessing that excuse wouldn't fly on this forum. :happy
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mhc
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Re: Tipping for take out

Post by mhc »

No for a sit down restaurant. I don't get a discount on the bill for not sitting down and dirtying a table and occupying the waitstaff. I assume it is already more efficient for the restaurant.

If it is a take out only place and they go above and beyond what I expected, I would tip.
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The Wizard
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Re: Tipping for take out

Post by The Wizard »

No, I don't tip for takeout.
The waitstaff function isn't involved for that experience...
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Re: Tipping for take out

Post by abuss368 »

For take out we do not.
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Re: Tipping for take out

Post by KyleAAA »

I tip for takeout. It has always been my understanding that tipping in this situation is customary and therefore no logical justification is necessary.
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Re: Tipping for take out

Post by Pacific »

I think you need to ask Drew Brees.
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JonnyDVM
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Re: Tipping for take out

Post by JonnyDVM »

A couple bucks usually. Don't think you are obligated to tip on take out though.
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Rob5TCP
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Re: Tipping for take out

Post by Rob5TCP »

Most are paid minimum wage and tips help them survive. For delivery, I tip 15/20% more in inclement weather.
For takeout at least $1 up to $4/$5 if it's a really large take out order.
poker27
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Re: Tipping for take out

Post by poker27 »

I will not tip at a Chipotle type of take out place, but will occasionally do it at places that arent primarily fast food. In Chicago 99% of the places I go to are restaurants or bars with good food. So the bulk of the time the bar tender or the like will put my order together for me, put food in a bag, napkins, and silveware. I will occassionally tip a couple bucks for this. It takes more effort then it would for them to open a beer...
Iorek
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Re: Tipping for take out

Post by Iorek »

mhc wrote:No for a sit down restaurant. I don't get a discount on the bill for not sitting down and dirtying a table and occupying the waitstaff. I assume it is already more efficient for the restaurant.

If it is a take out only place and they go above and beyond what I expected, I would tip.
See for me it's the opposite-- I tip a couple bucks for sit down restaurants because I figure someone had to put to together to go, but for a takeout only place I often don't.

The one that gets me is the fancy pizza place-- is it pizza or a sit down restaurant? ;)
FedGuy
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Re: Tipping for take out

Post by FedGuy »

No, tipping for take out is not customary. I'll tip for take-out if (1) if it's a place I go to frequently, and then just once in a while; or (2) they do something above and beyond to make it a particularly good experience. Otherwise, no.
Jerrybaby
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Re: Tipping for take out

Post by Jerrybaby »

Iorek wrote:
mhc wrote:No for a sit down restaurant. I don't get a discount on the bill for not sitting down and dirtying a table and occupying the waitstaff. I assume it is already more efficient for the restaurant.

If it is a take out only place and they go above and beyond what I expected, I would tip.
See for me it's the opposite-- I tip a couple bucks for sit down restaurants because I figure someone had to put to together to go, but for a takeout only place I often don't.

The one that gets me is the fancy pizza place-- is it pizza or a sit down restaurant? ;)
I tip at sit down type restaurants as well. The packaging of a take out order is usually an ordeal, as opposed to just putting the food on a plate.
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Re: Tipping for take out

Post by mickeyd »

I cast my vote with the no tipping gang. Stuffing food in a sack and taking my money (or CC) does not rate as good (or bad) service. It's what I ordered.
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windaar
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Re: Tipping for take out

Post by windaar »

If you tip your bartender for handing you a beer, you should tip the folks at the restaurant for packaging your take-out meal.
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AdmiralAdama
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Re: Tipping for take out

Post by AdmiralAdama »

I worked at a restaurant. Getting everything ready for a take-out order is a pretty big job for the waitstaff. Although I never tipped for takeout before, I always do after that experience.
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Re: Tipping for take out

Post by RyeWhiskey »

Rob5TCP wrote:Most are paid minimum wage and tips help them survive. For delivery, I tip 15/20% more in inclement weather.
For takeout at least $1 up to $4/$5 if it's a really large take out order.
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Watty
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Re: Tipping for take out

Post by Watty »

ajcp wrote:One of the commonly cited reasons you're "supposed to"top on take out is they claim they get taxed on it whether you tip or not. I'm guessing that excuse wouldn't fly on this forum. :happy
It does not work that way, the take out food it tracked differently.

In some areas the sales tax on take out food may be calculated differently too.
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Re: Tipping for take out

Post by ajcp »

Watty wrote:
ajcp wrote:One of the commonly cited reasons you're "supposed to"top on take out is they claim they get taxed on it whether you tip or not. I'm guessing that excuse wouldn't fly on this forum. :happy
It does not work that way, the take out food it tracked differently.

In some areas the sales tax on take out food may be calculated differently too.
I don't know how it actually works, but this is what I've seen claimed:

There is an "assumed tip" say 15% for sit down, 10% for take out, so if you get a $50 take out and leave no tip, they would have to have to claim an extra $5 income even though they didn't actually make it.

Of course, even if this is true, actual tips are realistically going to be higher than that, so they would only "get taxed on it" if they were committing tax fraud by not reporting all their tips. Which is why bogleheads wouldn't be to understanding of that particular reason.
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Re: Tipping for take out

Post by cheesepep »

I have never ordered take-out from a sit-down restaurant before, but if I did, I wouldn't tip.

In sit-down restaurants, I always sit-down and eat. If I want takeout, I go to typical take-out places (McDonald's, etc).
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Re: Tipping for take out

Post by richard »

ajcp wrote:
Watty wrote:
ajcp wrote:One of the commonly cited reasons you're "supposed to"top on take out is they claim they get taxed on it whether you tip or not. I'm guessing that excuse wouldn't fly on this forum. :happy
It does not work that way, the take out food it tracked differently.

In some areas the sales tax on take out food may be calculated differently too.
I don't know how it actually works, but this is what I've seen claimed:

There is an "assumed tip" say 15% for sit down, 10% for take out, so if you get a $50 take out and leave no tip, they would have to have to claim an extra $5 income even though they didn't actually make it.

Of course, even if this is true, actual tips are realistically going to be higher than that, so they would only "get taxed on it" if they were committing tax fraud by not reporting all their tips. Which is why bogleheads wouldn't be to understanding of that particular reason.
Where's sscritic to remind us that looking at IRS publications (a few moments of googling) is a rather reliable method of figuring out tax rules.
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Re: Tipping for take out

Post by The Wizard »

windaar wrote:If you tip your bartender for handing you a beer, you should tip the folks at the restaurant for packaging your take-out meal.
With the bartender/beer example, you're usually sitting at the bar or a table nearby.
Once you sit down, the rules change.
So don't sit down when picking up a take-out order...
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ajcp
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Re: Tipping for take out

Post by ajcp »

richard wrote:
ajcp wrote:
Watty wrote:
ajcp wrote:One of the commonly cited reasons you're "supposed to"top on take out is they claim they get taxed on it whether you tip or not. I'm guessing that excuse wouldn't fly on this forum. :happy
It does not work that way, the take out food it tracked differently.

In some areas the sales tax on take out food may be calculated differently too.
I don't know how it actually works, but this is what I've seen claimed:

There is an "assumed tip" say 15% for sit down, 10% for take out, so if you get a $50 take out and leave no tip, they would have to have to claim an extra $5 income even though they didn't actually make it.

Of course, even if this is true, actual tips are realistically going to be higher than that, so they would only "get taxed on it" if they were committing tax fraud by not reporting all their tips. Which is why bogleheads wouldn't be to understanding of that particular reason.
Where's sscritic to remind us that looking at IRS publications (a few moments of googling) is a rather reliable method of figuring out tax rules.
I believe it was just a (common?) restaurant policy, not an IRS reg. And once it showed up on their W-2, they 'd have a hard time getting around that. But again, actual tips are likely to be higher than reported W-2 tips, so really it only matters if you're not claiming that difference.
guitarguy
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Re: Tipping for take out

Post by guitarguy »

Almost never...

But...there is a local family owned Chinese food place that my wife and I frequent. They are very friendly and the food is terrific. Sometimes (not every time) we'll throw a couple bucks in the jar there.
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Re: Tipping for take out

Post by guitarguy »

cheesepep wrote:I have never ordered take-out from a sit-down restaurant before, but if I did, I wouldn't tip.

In sit-down restaurants, I always sit-down and eat. If I want takeout, I go to typical take-out places (McDonald's, etc).
I'm surprised at this!

We get take out from places that also offer sit-down quite often, especially ethnic places (Indian, Thai, etc).

And I guess technically...you can sit down at McDonalds. :mrgreen:
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Re: Tipping for take out

Post by mickeyd »

windaar wrote:If you tip your bartender for handing you a beer, you should tip the folks at the restaurant for packaging your take-out meal.

I may tip my favorite lap dancer $5 at a local gents club, but her job is pretty-much all service. The beer is extra.
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four7s
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Re: Tipping for take out

Post by four7s »

Tipping is essential for helping people to become eventual Bogleheads. Those of us who are fortunate enough to have extra bucks shouldn't begrudge passing along something extra for people who need tips to make ends meet. Think of tipping as a grassroots stimulus program.
Big Worm
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Re: Tipping for take out

Post by Big Worm »

Sometimes leave some change or a few bucks. Depends on how ornery I am feeling.
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Re: Tipping for take out

Post by sscritic »

richard wrote: Where's sscritic to remind us that looking at IRS publications (a few moments of googling) is a rather reliable method of figuring out tax rules.
You rang?
As an employer, you must ensure that the total tip income reported to you during any pay period is, at a minimum, equal to 8% of your total receipts for that period.

In calculating 8% of total receipts, you do not include nonallocable receipts. Nonallocable receipts are defined as receipts for carry out sales and receipts with a service charge added of 10% or more.

When the total reported to you is less than 8%, you must allocate the difference between the actual tip income reported and 8% of gross receipts. There are three methods for allocating tip income:
  • Gross Receipt Method
  • Hours Worked Method
  • Good Faith Agreement
Employers can request a lower rate (but not lower than 2%) for tip allocation purposes by submitting an application to the IRS. Detailed instructions for computing allocation of tips, reporting allocated tips to employees, and for requesting a lower rate can be found in the Instructions for Form 8027. (PDF)

Note: The amount shown as allocated tip income is for information purposes only. You are not required to withhold Income or Social Security taxes on the allocated tip income. The amount of tip income allocated to each employee is shown in box 8 of their Form W-2
http://www.irs.gov/Businesses/Small-Bus ... t-Tax-Tips

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DoWahDaddy
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Re: Tipping for take out

Post by DoWahDaddy »

This is interesting, and im glad its being discussed. Ive felt a little odd over my recent proclivity to tip for takeout Ive been tipping about 10% up to $5 for take out for dinner, from memory its been the chinese, indian, moroccan and italian places by me that are sit down places, but we just felt like bringing that type of food home. Oh the hibachi place too. I dont have much of a logical explanation for this, except that i would like the places i frequent to stay in business, and the staff to be happy, and figure they coulduse the money more than me. It isnt much at all, but feels appropriate to pay, and im surprised how few people do it. Its barely even worth the effort in typing this.
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ClevrChico
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Re: Tipping for take out

Post by ClevrChico »

I used to do non-food delivery, and even with that, only 10% of the people tipped me. It was tough work being in and out of the elements and driving in horrible weather at times. If everyone would have tipped me it would have made for a much better lifestyle, and I probably wouldn't have quit after a year. Pay started below minimum wage, which was legal as a "training wage". As far as being customary, it was a gray area, and I think tipping for every little thing is out of control. I avoid places with large tip jars.

A tip for simply ringing up an order is crazy!
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StormShadow
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Re: Tipping for take out

Post by StormShadow »

guitarguy wrote:
cheesepep wrote:I have never ordered take-out from a sit-down restaurant before, but if I did, I wouldn't tip.

In sit-down restaurants, I always sit-down and eat. If I want takeout, I go to typical take-out places (McDonald's, etc).
I'm surprised at this!

We get take out from places that also offer sit-down quite often, especially ethnic places (Indian, Thai, etc).

And I guess technically...you can sit down at McDonalds. :mrgreen:
I get take-out from my favorite chinese restaurant all the time. My family has been going there for over 30 years and often the wait for a seat takes way too long. The food has always tasted just fine whenever we took it home.

They have never expected us to tip for take-out and have always shown appreciation to us for continuing to frequent their restaurant.

That said, through the years my father was a very generous tipper when we sat inside (24%+). Myself, I stuck with 15-20%.
FedGuy
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Re: Tipping for take out

Post by FedGuy »

The Wizard wrote:Once you sit down, the rules change.
So, what about those restaurants where you order and pay at the counter, sit down, wait for them to call your number, then you go back to the counter, take your food, sit back down, eat, and then dump your trash and put your tray on the shelf before leaving? I used to eat weekly at a place like that in my neighborhood that closed a few months ago. I'd drop a dollar into the tip jar once every two or three visits, but that was the extent of it. My theory is that, just like with take-out, I wasn't waited on, so no tip was required, but since I became a regular I figured I'd toss a dollar their way once in a while.

I did quietly drop a little more money in the tip jar the day they told me they were closing two days later, though.
huntertheory
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Re: Tipping for take out

Post by huntertheory »

You should tip for take out, though it doesn't need to be 15%. It depends where you go, but if you, say, get take out from a restaurant for your family and you have two or three separate containers for entrees, three or four more for salads and sides, bread wrapped up nice, condiments packaged for you, and napkins, silverware, etc -- that's added value that somebody put together and their pay rate still assumes tips. Throw a couple of dollars in.
chicagobear
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Re: Tipping for take out

Post by chicagobear »

Tipping for carry out? *confused look* I wouldn't even consider such a thing.
Bmac
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Re: Tipping for take out

Post by Bmac »

Sit down restaurant-Tip 15-20%
Delivery-Tip 10%
Take out-Rarely tip
Ice cream,barista, etc.-Pay cash, drop coin change in "tip" jar
wades1
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Re: Tipping for take out

Post by wades1 »

I'm the owner of a national quick service restaurant carryout only franchise. My employees are required to show me their tips before they put the money away. I trust them, but don't want any co-workers seeing them put money in their pockets and think they might be stealing. Typically on a $3000-$6000 gross sales day, my register girls might take combined $3 - $5. I must also say that my employees are some of the friendliest in town. So if you don't tip, you are definately in the majority. But... when they get a tip, even just a dollar, these young kids are extremely happy and thankful.
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Re: Tipping for take out

Post by moshe »

For me It depends:

If it is a sit down restaurant which I frequent often as a sit-down customer i always tip. This is the right thing to do and it helps ensure attentive service in the future. You do NOT want to be known as a "cheap-skate" in a restaurant where you are known.

If it is a take out only place then i do not.

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Louis Winthorpe III
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Re: Tipping for take out

Post by Louis Winthorpe III »

dbphd wrote:Is it usual to tip when picking up a take out order?

db
For me, it depends. If I go pick up a pizza and I walk in the store, I'm not tipping. If it's a sit down restaurant that has curb side takeout, I'll always tip a couple of bucks. If it's a sit down restaurant and I go inside to pick up my order, I'll still tip a couple of bucks, but I could see the argument for not tipping.

This is one of those things I've seen debated on a bunch of different message boards. Everyone has their own threshold. I personally prefer to be generous with others, even if I'm fairly cheap with myself. I probably do takeout a couple of times a month. Tipping a couple of bucks costs me ~$50 / year. To me, that's a small price to pay.
Louis Winthorpe III
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Re: Tipping for take out

Post by Louis Winthorpe III »

ajcp wrote: I believe it was just a (common?) restaurant policy, not an IRS reg. And once it showed up on their W-2, they 'd have a hard time getting around that. But again, actual tips are likely to be higher than reported W-2 tips, so really it only matters if you're not claiming that difference.
There are IRS regulations that spell out what a restaurant has to do to avoid being subject to a claim of underwithholding on FICA. If the restaurant agrees to report a certain percentage of tips on the employees' W-2, the restaurant is off the hook even if the employees under report their tip income. The rules allow the IRS to collect more taxes than they did before the rules were implemented, even if there is still some underreporting by wait staff. And the IRS collects the added amount without having to audit a bunch of waiters to try to prove the under reporting.

Edit: I see the regs themselves have been quoted above.
rongos
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Re: Tipping for take out

Post by rongos »

I'm doing my part to bring the USA in line with much of rest the world where good service is standard and built into the wage, and tipping is not expected. To me, tips are like a throwback to less civilized cultures where bribery and favoritism permeate.

Please join me!
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2comma
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Re: Tipping for take out

Post by 2comma »

mickeyd wrote:
windaar wrote:If you tip your bartender for handing you a beer, you should tip the folks at the restaurant for packaging your take-out meal.

I may tip my favorite lap dancer $5 at a local gents club, but her job is pretty-much all service. The beer is extra.
Thanks for the belly laugh! You deserve a tip for that!
Don't tip for takeout but I do tip waitstaff pretty well - ex restaurant worker.
If I am stupid I will pay.
Professor Emeritus
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Re: Tipping for take out

Post by Professor Emeritus »

FWIW if the restaurant owner collects the same price for a carry out order and does not have to provide the overhead of dining space it is the owner not the customer who has the obligation to pay the people who pack the food. Otherwise the owner gets a windfall profit at the expense of the worker . I realize there are many restaurant owners who cheat and exploit the staff but you will not solve that problem by a paying the owner's obligation to the worker. In fact you encourage the sleazebags.

OTOH I always tip waitstaff generously when I sit down.
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Re: Tipping for take out

Post by KyleAAA »

Professor Emeritus wrote:FWIW if the restaurant owner collects the same price for a carry out order and does not have to provide the overhead of dining space it is the owner not the customer who has the obligation to pay the people who pack the food. Otherwise the owner gets a windfall profit at the expense of the worker . I realize there are many restaurant owners who cheat and exploit the staff but you will not solve that problem by a paying the owner's obligation to the worker. In fact you encourage the sleazebags.

OTOH I always tip waitstaff generously when I sit down.
Based on what I've heard from restaurant owners, takeout orders entail more overhead than dine-in patrons in many cases. It makes sense if you think about it: cleaning and reusing dinnerware is much, much cheaper in the long run than constantly buying reusable containers and they would be paying the waitstaff, the water bill, etc anyway. Thus, take-out adds marginal costs instead of taking them away. You cost the owner more money when you order takeout than when you eat in the restaurant.

Plus, there's a chance you would do something like order a drink or desert spontaneously in the restaurant but there's no such chance with takeout. I wouldn't be surprised if takeout customers on the whole are MUCH less profitable than sit-down customers.
Jerrybaby
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Re: Tipping for take out

Post by Jerrybaby »

Some tip, some don't. Those that don't get talked about when they leave, ha ha.
Sriracha
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Re: Tipping for take out

Post by Sriracha »

I don't do much in the way of takeout these days, but I did it quite a bit when I was single and living in NY 20+ years go. It was all simple stuff, single-guy-food. I don't remember tipping for takeout at first, but once I found my favorite neighborhood spots for pizza, burritos, Chinese, what have you, I started tipping a buck or two each time. It just seemed like a natural progression. The employees appreciated it, which led to the exchange of a few kind words on each visit. And I appreciated that they'd remember how I liked my stuff prepared, with extra this or that, and that my chow would always be ready for me if I called ahead to order.
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Atilla
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Re: Tipping for take out

Post by Atilla »

I spent the first few years of my working life sweating in a kitchen and never got jack for a tip. If the person throwing the food down on your table at a sitdown dinner deserves a tip, the guy making your carryout deserves a buck or two.
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