A customer's recent experience at an Applebee's location has ignited a debate about restaurant tipping practices, particularly concerning how suggested gratuities are calculated on payment kiosks. The customer shared a video on TikTok detailing how the restaurant's payment system suggested an $11.30 tip on a $49.49 bill, a figure that appeared disproportionately high.
A standard 20% tip on $49.49 would amount to approximately $9.90. However, the kiosk's calculation was reportedly based on the after-tax total of $56.50, rather than the pre-tax subtotal. The payment screen indicated that tips were calculated after tax and before discounts, according to the customer's video.
Robert Mahon, managing partner of Mahon Hospitality Group, explained that restaurant payment systems often have default settings for gratuity calculations, but these can typically be adjusted by the establishment. Mahon stated that his group's system, Toast, defaults to calculating tips before tax, and that changing this setting is possible through the back office.
Mahon expressed his view that gratuities should be based on the pre-tax amount, as customers are tipping for the food, drinks, and service, not the tax itself. He emphasized the importance of transparency, ensuring that customers understand the basis for any suggested tip percentage presented to them.
This incident echoes similar concerns raised previously regarding payment systems at other establishments, such as Dave & Buster's, where customers questioned suggested gratuities calculated on after-tax totals. While the Applebee's kiosk reportedly disclosed its calculation method, the situation underscores the need for diners to carefully review their bills and suggested gratuities before finalizing their payment.