The New Restaurant Tipflation ‘Scam,’ Explained

There’s a new tiplfation “scam” that Instagram users are being warned against when they go out to eat: an alleged scheme to bilk more tip money out of diners than they intend to pay. This “scam” might not be a scam at all, but it does expose a lot about America’s tipping system and diners’ growing fatigue with the practice.

On April 27, Instagram user @big_beau7 posted a video of a restaurant’s pay-at-the-table interface on a tablet screen. The typical tip amount options are displayed: 15%, 18%, 20%, 25%, and “CUSTOM.” The Instagram user points out that although the check amount is listed as $27, the 25% tip option comes out to $10.37, which is actually closer to a 38% tip. 

“Every single choice was way off!” @big_beau7 wrote in the caption of the video. “So whenever you choose to use kiosk CHECK YOUR MATH!” The post has more than 71,000 likes and more than 6,000 comments so far.

The payment screen also notes “Tip is calculated after tax and before discounts.” This means that the $27 is not the actual check amount upon which the tip is calculated; that might be the amount after special promotions were applied. However, when commenters asked the OP whether the meal included any discounts, the OP replied “no.” Ultimately, we don’t have all the necessary information to discern how the tip was calculated. But “CHECK YOUR MATH!” is always good advice. 

It’s worth pointing out that although headlines boldly warned readers to look out for this “scam” at restaurants, there’s no proof that businesses are intentionally manipulating the public with this technology — it could be that @big_beau7 (who never uses the word “scam” in the video) was unaware of certain promotional menu prices, or maybe the kiosks use a shoddy, error-prone point-of-sale system; I’ve even encountered the same percentage-calculation error on my own credit card statements. But whatever the case, this incident does highlight multiple flaws in America’s tipping system. 

In the realm of restaurant tips, nothing is strictly required of the diner, and everything is open to interpretation. Is 18% your standard tip, or is 20%? Do you tip 25% for “exceptional service,” and if so, what qualifies as exceptional? Is your server inattentive because they’re incompetent, or because they work at an understaffed restaurant where they’re responsible for half the tables on the floor during an unexpected rush period? And hey, are we supposed to tip the same percentages for table service versus counter service? 

Clearly, the gray areas are plentiful. And because of all this ambiguity around tipping, the guests hold all the power in the transaction — even worse, they know it. Some diners even take this knowledge to the extreme, withholding tips to either save money or punish what they view as subpar service. (Servers, for their part, wish that guests knew a lot more about how tips factor into a server’s pay.)

On the other hand, tip fatigue is real, and amid the rising price of just about everything, but especially food, many Americans feel like dining out is becoming a more distant and unachievable luxury than it’s ever been. Even McDonald’s reported lower-than-expected profits this week, citing the fact that “all income cohorts are seeking value.” When you layer a generous tip on top of an already expensive entree, that might be a good chunk of your disposable income. 

The bottom line is this: As annoying as one might find the American tipping system — which really can be a labyrinthine, ever-evolving snarl of a practice — it’s not okay to take out those frustrations on the servers themselves, who did not design the system yet must carve out a living within it. Stiffing the server on tips is not an acceptable form of protest. Instead, use this handy restaurant tipping guide and channel your displeasure into alternative forms of action: 

• Look into how your state handles tipped minimum wages, and whether local lawmakers are pushing for any changes to that system. 
• Educate yourself on how restaurants price out their menus to gain a fuller understanding of where the added costs are coming from.
• If you can’t stand tipping, find and support the restaurants in your neighborhood that charge a flat service fee, or those that factor a server’s full salary into the menu prices. These restaurants do not expect you to tip on top of the final bill, and they’re becoming more common across the country. 

Most people would agree that tipping isn’t the ideal way to pay servers what they deserve. But as we begin to dismantle that system and seek alternatives to it, let’s all agree that it’s a good idea to keep checking the math.