The Evolution of Tip: From Business to Dining Gratuity
How did the word tip come to mean giving a waitress a gratuity for good service in a restaurant?
The term tip originates from the concept of to insure promptitude. By the 18th century, the use of the term tip had nothing to do with giving a gratuity nor was it for good service. Let's delve into the historical journey of this term and its association with gratuity.
TIP: An Early Form of Business Insurance
In the 1890s, businesses traveled to different cities for business deals and often stayed in hotels for extended periods. For instance, if a businessman was doing business in St. Louis and needed to secure a deal in Denver, he would have to travel with his entire office and staff by train, potentially staying in a hotel for several weeks. The cost of the business trip was significant, and any mishap could mean the loss of a valuable business deal.
Businessmen sought to ensure smooth operations during their stay by providing a TIP to the doorman upon arrival. This TIP was not a gratuity but a payment to guarantee well-being and prompt service. The doorman would then communicate with the bar staff and servers, ensuring that the businessman was given the best possible service and promptly attended to. The employees mentioned earlier in this context did not receive the TIP, which went to the doorman. In essence, the doorman became the master of the house, ensuring the smooth running of the stay.
The Transition from Business to Dining
As time progressed, the concept of a TIP gradually transitioned from the world of business to dining establishments. Initially, restaurants began charging a nominal fee for such prompt and attentive service, which was similar to the initial TIP. Over time, the TIP evolved into a gratuity for good service, often leaving a tip on the bill or as a separate payment.
The practice of leaving a tip became standard, particularly in restaurants, where a common amount was a dollar, either 10-20 cents for lunch or dinner. The concept of tipping was further ingrained in the daily routine of patrons who regularly left tips, often at set times, like 12:10 PM, ensuring a familiar and reliable service every day.
The Exploitation and Minimum Wage Laws
Sadly, the notion of tipping became associated with exploitative practices. As owners realized that customers left tips for better service, they began to rely on these tips rather than paying staff a fair wage. Employers discovered a convenient source of revenue from potentially exploited employees, often women, children, and minorities. This exploitation was made more convenient by the fact that customers tipped for various reasons, including good service, and employments became contingent on tipping well.
This led to a shift where restaurant owners minimized their financial contributions to the wages of their staff, relying on a pool of people willing to work for tips. This practice became even more untenable with the introduction of minimum wage laws, which required employers to pay a certain level of compensation regardless of additional tips. The concept of tipping as an involuntary obligation rather than a voluntary act aligns with the origins of tipping as an insurance payment to ensure a smooth business environment.
In conclusion, the word tip originated as a concept to ensure prompt and efficient service in a business setting. Over time, it evolved into a customary gratuity for good service in dining establishments, with the associated exploitative practices becoming a part of its history. The journey of the term tip reflects changing economic and social dynamics in various sectors of society.