Restaurant tips- better evidence of reality

As accountants, we have quite a few clients who have a lot of business
restaurant meals. I was adding up a bunch yesterday for a client and it
occurred to me that I had much better evidence on what people actually
do than what I've been reading here from people with a misplaced sense
of charity or a need to buy someone's approval.

I casually looked through the pile and found that this guy never tipped
as high as 15%. Typically it was more like 10%-12% or so. As we're
waiting for info from him, and things are slow right now, I took a
little time and flipped through the chits of our other clients. These
people are self-employed or small companies doing such things as
computer consultanting, making dentures, a lawyer, graphic design,
hazardous waste disposal, an engineer, a carpenter and a salesman. All
work in the Toronto area, except the carpenter (Victoria, BC) and the
salesman (mostly northeast US and Quebec). Their incomes range from
under $15K to well over $100K. The bills ranged from $25 at Swiss
Chalet to $200 at some fancy restaurants.

To my surprise, 15% seemed to be an upper limit. I rarely saw any slip
that went higher. No one ever got to 20% of the pre-tax amount.
Remember, these people were (supposed to be) entertaining clients or
perhaps co-workers or employees, and they knew that their expenditures
were tax-deductible (50%, anyway, in Canada). It also was the case for
employees who were fully imbursed for their expenses (and I know they
were not instructed on a tip level).

Personally, I was surprised. I've always tipped on the basis that 15%
was the standard (not minimum!) for standard service, with more for
superior service and less for substandard service. It certainly does
not appear to be the case based on the real-world sample I just
examined. This does, however, tally with my long experience as an
employee of TD Bank (one of Canada's largest). I travelled a lot on
bank business and got to know the expense account guidelines well. They
allowed a tip of 12.5% (1/8th) on the pre-tax amount, saying that this
was the standard in Canada and the US. I always thought they were
cheapskates. But maybe they were right.

"Lynn Guinni" wrote in message
...

Personally, I was surprised. I've always tipped on the basis that 15%
was the standard (not minimum!) for standard service, with more for
superior service and less for substandard service. It certainly does
not appear to be the case based on the real-world sample I just
examined. This does, however, tally with my long experience as an
employee of TD Bank (one of Canada's largest). I travelled a lot on
bank business and got to know the expense account guidelines well. They
allowed a tip of 12.5% (1/8th) on the pre-tax amount, saying that this
was the standard in Canada and the US. I always thought they were
cheapskates. But maybe they were right.

I've eaten in restaurants on holiday with Canadian friends and they never
seem to tip much more than $1 a person however high the bill. Maybe it's
frugality based on cautious Scottish ancestory.

"Mike O'Sullivan" wrote in message
...

I've eaten in restaurants on holiday with Canadian friends and they never
seem to tip much more than $1 a person however high the bill. Maybe it's
frugality based on cautious Scottish ancestory.

You must have a lot of cash-poor Scottish university type friends,
that take you for dinner at the nearest corner diner or burger joint.

I am Canadian, and not a great big tipper, but $1 per person for a
meal in a restaurant that serves liquor and wine comes close to an
insult if the service was reasonably acceptable.

JTK