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Another Tipping Query

Original post made by GMC, Midtown, on Sep 17, 2007

I'd like follow up on the posting by "Curious" with another tipping thread. Consider this situation at a fictional restaurant called "Grant's Salt Shaker." Grant's cusine is a fusion of Indian-Mexican-Chinese-Ecuadorian and American comfort food. They have a fabulous wine list ranging from $30 all the way up to a $1000 bottle of champagne.
Occupying 2 of the tables are 2 different parties: Party 1 is Marie and Ray, a couple on their 3rd date. Party 2 is Ken and Rebeccah, married parents (the kids are with a sitter.) The waiter for both tables is named Paul.
Amazingly, the couples order the same appetizers, main courses and desserts. In fact, the only difference in their bill is that Ken and Rebeccah, celebrating Rebeccah's big promotion at work ordered the $1000 bottle of champagne, while Marie and Ray ordered the cheapest bottle of wine - a $35 dollar bottle of Trefethen Chardonnay.
Here are their bills: Marie and Ray $100 food, $35 drink - a total of $135 dollars.
Ken and Rebecca: $100 food, $1000 drink - a total of $1100 dollars.

Both parties were pleased with Paul's service. They wish to tip him 20%. Assume that Ken and Rebecca make about the same amount of money as Marie and Ray, and there are no other unusual circumstances that would cause them to have any especially large amount of money to "throw around." Also, guests get the wine from the server and there is no sommelier.

How much should they each tip?
A) Marie and Ray tip $27 and Ken and Rebeccah tip $220 (both tip 20% of the total bill)
B) Marie and Ray tip $20 and Ken and Rebeccah tip $20 (both tip 20% of the FOOD portion of the bill)
C) Marie and Ray tip $27 and Ken and Rebeccah tip $20 plus another amount for the beverage service (indicate amount and why)
D) any other amount for either party

You have 35 minutes to complete this section. Begin.

Comments (4)

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Posted by Clue Train
a resident of Monroe Park
on Sep 17, 2007 at 5:40 pm

There is no other way than "A", unless K&R pay at least 15% for beverage service, or both parties pay at least 15% on their entire bill

"B" deserves a label of "cheapskate" for Ken and Rebecca

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Posted by taxman
a resident of Barron Park
on Sep 18, 2007 at 12:24 pm

I can't remember what the actual deal is but I understood that "waiters" are taxed on tips at a rate of 8% (at least) of the bill regardless of whether they actually received a tip.

So, in the above scenario, they are going to be taxed on 8% of $1100 = $88. Assume a 25% tax rate and they will pay $22 in tax. So chosing "B" or "C" means your waiter is actually losing money by serving your table.

Like this comment
Posted by janet
a resident of Crescent Park
on Sep 18, 2007 at 1:13 pm

A. Then Ken and Rebeccah are taken away to have their heads examined.

Like this comment
Posted by Anamika
a resident of Midtown
on Sep 19, 2007 at 7:09 am

Janet - you had a very hilarious comment !

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