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Although it might be extreme, I am not that surprised by this story. Many restaurants will say clearly on their menus that large groups (could be 6 or more) will attract an automatic 18% gratuity. Especially if more than 1 waitstaff is used.
As has been pointed out, many restaurants in the USA will pay help less than minimum wage with the expectation that tips will put them over the top.
Waistaff are responsible for all income taxes (state and federal).
Depending on the restaurant, tips may be pooled and shared by others in the service chain (hostess, busboy, bartender, dishman etc.)....you can imagine how this might influence behaviour...
Okay, here is a rough tipping guide...
Poor service - ask to speak with the manager
Below average service - 10% before tax
Average (good) service - 15% before tax
Great service > 15% before tax...
Remember, if the food is bad but the service getting it there was good a tip would be in order.
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