Tipping in Restaurants

Chapter 11 Organizational Architecture ANALYZING MANAGERIAL DECISIONS: Tipping in Restaurants
In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the cus-tomer. However, many.restaurants require a 15 per-cent tip for parties of eight or more. Using the con-

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cepts from this chapter, discuss (a) why thepractice of tipping has emerged as a major method of com-pensating the wait staff, (I)) why the customer typi-cally decides on the amount of the tip, and( c) y wh restaurants require tips from large parties.