After dessert, coffee and a final chat with the round table, it’s time for decisions again. Because when the bill is brought to the table, numerous questions arise. Together or separately? If someone pays the entire bill, who does it? And is it terribly silly to ask for a tax bill? Finally, how much is a reasonable tip to show appreciation for the service, food, and atmosphere?
From the point of view of operation, on the other hand, there are a few fewer questions. But one of them is: Cash or with a card? Presumably, waiters would be a little happier if the guest pulls out their wallet to pay the bill in cash. Because, as economists around Vikas Kakkar from the University of Hong Kong im Journal of Behavioral and Experimental Economics report, guests then tip more than if they pay by card. According to the researchers, those who hand over banknotes and coins make their transaction more visible to others at the table than when paying by card. That increases the incentive not to splash out and in this way to cultivate one’s image as a generous person.
The scientists collected their data at a large Chinese restaurant in Hong Kong. In total, they evaluated 572 transactions, all of which were made during lunchtime. According to Kakkar’s economists, the restaurant automatically adds a service fee of ten percent to the bill, which is standard practice in Hong Kong. Adding a tip to this is therefore not necessarily expected, but of course it is desirable from the waiter’s point of view. The likelihood of this happening was significantly higher when guests paid in cash. In this case, 49 percent of them gave tips. If they paid the bill by credit card, however, only 31 percent gave the waiters an extra amount.
Tips for image maintenance?
The authors write that this initially contradicts some findings from behavioral economics. According to this, people are more likely to spend money, and somewhat more recklessly, when they pay by card. On the one hand, because then it is easier for them to have a precise overview of their financial situation; on the other hand, because the psychological pain is a little greater when you have to part with banknotes that are physically available – or: were.
From this alone, the researchers deduce that comparatively higher cash payments are made in the restaurant for reasons of image cultivation. Other findings also support this: guests were more likely not to tip if they had eaten alone. In the end, apart from the cellars, there was no one to impress. Only 16 percent of the guests who dined alone gave a tip at all. On the other hand, the larger the group at the table, the higher the probability that a tip would be given – especially if the bill was paid in cash. Then the tip was a bit more generous.
In comparison, the male guests were also more generous than the women: They were significantly more likely – about ten percent – to tip at all and then on average even more than the female guests. Presumably, men find it somewhat more important to present themselves to large groups as generous and therefore also prosperous.