MFHA: education a way to boost minority tipping

Nation's Restaurant News, Sept 16, 2002 by Dina Berta

SAN DIEGO -- Not an organization to shy away from controversy, the Multicultural Foodservice and Hospitality Alliance presented a panel discussion during its conference on the contentious topic of minority tipping.

During the well-attended session "Minorities don't tip: Fact or fiction?" a hospitality professor, restaurant executives and restaurant owners shared evidence and experiences supporting the prevailing stereotype that minorities, particularly blacks, do not tip or tip lower amounts than white customers do. Then they discussed ways to educate minority patrons about tipping in order to combat the stereotype.

Michael Lynn, associate professor of consumer behavior and marketing at the Cornell University School of Hotel Administration, presented the combined results of five academic studies, totaling about 1,800 observations. The results showed that whites tip a higher percentage than blacks do even when education and income levels are the same. The difference also held even when patrons said the service was satisfactory.

However, blacks who ate out more frequently tipped higher than blacks who dined out less often, the studies found.

"Among those that are frequent diners [more than 100 times a year], the black-white difference disappears," Lynn told the audience. "It's infrequent diners who are contributing to this ethnic difference in tipping."

Carlos Smith, who has owned an Outback Steakhouse in a predominantly black community in St. Louis for the past eight years, said he struggles to keep servers because of tipping issues with black customers.

"What can I say when I face a server who has a party of seven and a bill that comes to $130, $140, and the customer says the food was great, the service was outstanding, but leaves a $2 tip?" Smith asked. "What can I say when it comes time to check out, my servers sit down and cash out and come to find out, according to their sales, they only made 5 percent? The government mandates they claim 8 percent. Why be a server?"

Outback restaurants in other minority communities have had similar issues, but the company is committed to finding ways to solve the problems, said Joseph Jackson, inclusion director for the Tampa, Fla.-based steakhouse chain.

Outback pledged $10,000 to the MFHA to support more education and research on the topic, Jackson said.

"Outback has opened six Outbacks in vibrant, African American communities in the past two years," Jackson said. "We expect $25 million in revenues from these stores."

But tipping has become such an issue that in some communities, Outback held town meetings with community leaders to discuss the problem, he said.

"Minorities must and can speak to this issue with other minorities, who are our valued patrons," Jackson said.

Panelists offered various explanations for the discrepancy, from lack of education regarding tipping customs to the legacy of racism when blacks were barred from eating in establishments or given poor service because of their race.

"There is a vicious circle," Jackson said. "African-Americans think they won't get good service, and they are keen to look at that--to feel, smell and understand that people may not want to wait on them. The servers will think [the black customer won't tip], so they don't give good service. It's a never-ending, vicious circle of denial."

Servers must be trained to give good service, regardless of the race, gender or age of the customer, said Laura Kornegay, college and diversity recruiter for Carlson Restaurants Worldwide.

"Nonverbal behavior has an effect on tipping," Kornegay said. "We must be able to coach employees on what is said, how it is said and the body language that is used."

Some servers who want to maintain a good attitude wait until after they have left the restaurant to count their tips and give only an estimate when they close out after a shift, Kornegay said. That way, if they discover discrepancies, they report them the next day It also gives them time to calm down and not work while they are upset or angry.

"Servers use tipping as a performance appraisal; it's how well they are doing their job," she said." "[Counting tips later] is a way to not get frustrated or down, so they can come back out and give the same level of 'wow' service."

To educate customers better, restaurants can use tabletop advertisements or include tip suggestions on the menu or guest check, panelists suggested.

One member of the audience cautioned the panelists and attendees not to foster negative stereotypes.

"It is difficult to talk about this," Jackson said in response. "As the MEHA, we have a vehicle with African-Americans, Asians, Indians, Latinos and Latinas to make changes. We can talk to groups, talk to organizations and erase the stereotype, the hidden racism that exists."