Black–White Differences in Tipping

Abstract

Two studies found that higher socioeconomic status reduced differences between black and white patrons in stiffing and flat tipping, but increased black–white differences in the amount tipped by those who did tip. The finding that movement up the socioeconomic ladder increases black–white differences in tip size suggests that efforts to address the problems posed by those differences in tipping should not be confined to lower-class establishments and neighborhoods. Managers and executives of restaurants and restaurant chains catering to black customers of all socioeconomic levels are encouraged to reduce racial discrimination in service delivery and to address the other problems stemming from black–white differences in tipping by (1) hiring both black and white mystery shoppers to monitor the service provided to black guests; (2) increasing blacks’ awareness and internalization of tipping norms through community education, as well as information provided in the restaurant; or (3) replacing voluntary tipping with automatic service charges.