You're Hoodwinked by a Smiley Face
Allen sees tip inflation growing at an even higher rate than food inflation: It used to be that a gratuity of 10 percent was acceptable and the norm; then it went to 12 percent, because customers wanted to show that they weren't just satisfied—they were impressed. This cycle continued, and now the typical amount is 20 percent, with some restaurants even suggesting 22 percent and higher at the bottom of the bill. Obviously, there are times when a very generous tip is appropriate (and it's still true that most servers make below minimum wage, so they really do depend on the extra cash). But base your tip on the service itself, says Allen—not on what a restaurant "suggests." And beware tactics like the smiley face (one study found that people tip 18 percent more when a waitress draws one on the check).