Does automatic gratuity help or hurt servers? An examination of a casual restaurant’s POS data

Vrund Gurjar and Toby Qin

No d2k4z_v1, SocArXiv from Center for Open Science

Abstract: Restaurants use automatic gratuities to protect servers from low tips, but these charges may also reduce voluntary tipping. After analysing transaction data from a casual dining restaurant, we found that automatic gratuity policies reduce voluntary tipping while increasing total service payments to servers. Implications for restaurant managers and directions for future research are discussed.

Date: 2026-08-13
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:d2k4z_v1

DOI: 10.31235/osf.io/d2k4z_v1

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