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

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  • Gurjar, Vrund
  • Qin, Toby

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.

Suggested Citation

  • Gurjar, Vrund & Qin, Toby, 2026. "Does automatic gratuity help or hurt servers? An examination of a casual restaurant’s POS data," SocArXiv d2k4z_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:d2k4z_v1
    DOI: 10.31235/osf.io/d2k4z_v1
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