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Hard times mean that tipping is going out of fashion. It may only be small change to you, but it's a serious blow for the taxi drivers, waiters and hairdressers who count on these tips. Emine Saner reports
Taxi drivers are the first to notice when the economy turns sour. Martin, who I meet at a favourite spot for central London cabbies answering a call of nature, says he knew it was particularly bad as long ago as the end of 2007. "Then things didn't pick up in the spring like they usually do, so last year was bad. And this year has been terrible."
What's more, the passengers they do pick up don't want to tip these days. "If a fare is, say, £4.80," says Mark Daly, who I accost as he crosses the road back to his cab, "they'll wait for the 20p change. How tight is that? Sometimes I feel like flinging it at them."
Martin agrees. "Only the Americans tip any more," he says. "They will give you 20%. The trouble is, there aren't many coming over here now, and lots of them were sacked when those banks collapsed last year."
Martin says he is making about a quarter of what he made in tips during the good years. "You don't rely on your tips, but they're an important part of your income - especially when fuel prices go up. Tips are a good barometer. You know things are going well when they cover your fuel costs."
The big problem, says Stan Smith, who has been a cab driver for 30 years, is that the Inland Revenue automatically taxes cabbies on what it estimates they have received in tips, "but at the moment, the tips are non-existent". Does it irritate him when people don't tip? "What can you do?" he shrugs. "But if you've just dropped them off at an expensive restaurant, you do think, 'I bet you'll leave a big tip in there.'"
That, though, may no longer be true either. Jesus Suarez, a waiter at a small Italian restaurant in the West End of London, says the amount diners are tipping has gone down significantly - not necessarily because people are meaner, but because restaurants like his are being forced into offering deals to get people through the door. "And so, when the bill is lower, the tips are lower," he says.
Rebecca Navarro, who runs a tapas restaurant a few doors down, agrees. "We are still busy, but people are spending less. They ask for tap water, or they will have one bottle of wine rather than two. This means everything costs less when they eat out, including the tip."
At least neither is reliant on tips to scrape a minimum wage. In numerous restaurants - including the chains Carluccio's, Café Rouge, Loch Fyne and the Hard Rock Cafe - your tip goes towards making up the waiter's salary. The restaurants which do this say that, in practice, their waiting staff salaries usually exceed the minimum wage, but if tips are declining it will have a significant impact on these incomes. Restaurants are legally allowed to take a cut, or all of, the service charge left on a credit card - only if cash is left on the tables can a waiter take it for him or herself.
On a sunny Monday afternoon, there is no shortage of customers outside a central London branch of Carluccio's. Every table is full and the waiting staff - mainly young and foreign - are busy. I catch my waiter and ask him about tips. He looks around nervously to see where his manager is, but after a bit of prodding, he admits that his basic hourly rate is £3.75, nearly £2 less than the minimum wage.
"Tips go towards making that up," he says. "If there aren't enough tips, obviously we get paid the [minimum wage] by the restaurant. But that means we don't get the extra tips on top, so it does have an effect on your income." He grimaces.
Carluccio's is far from alone in this practice, which is legal. Last year, the union Unite launched a Fair Tips campaign, asking restaurants to sign up to its charter promising to give waiting staff 100% of tips on top of their salary. And the outcome of the government's consultation on closing the loophole that allows restaurants to make up employees' salaries with tips - which affects an estimated 44,800 workers - is expected in the next few weeks.
It is, of course, no coincidence that the people we tip are those whose salaries are low to begin with. "Tipping is a part of our culture, and a way of showing gratitude for good service, so we should tip," says Jo Bryant, the etiquette advisor at Debrett's. "The people in jobs where tipping is usual often rely on their tips. If you go somewhere regularly - to a restaurant, or use the same cabbie, or find a good hairdresser - tipping them ensures you build up a rapport."
The problem here - as opposed to the US, where people tip just about everyone - is that tipping is so arbitrary. We regularly tip waiters, but not bar staff; hairdressers, but not plumbers. Add in British embarrassment about money and the whole thing becomes quite awkward.
There are also signs that younger people just don't know how to tip. Mitko Todorov, a hairdresser at a salon near Oxford Circus says, "Younger people don't tend to tip, and as I have more younger clients these days I get less." That said, even his older clients are being less free with their money. "When times were good, I used to get around £10 a day in tips; now that's around £3. It is an important part of your salary and you do rely on it."
Crystal Clarke, another hairdresser, says she uses tips to pay for her annual holiday. "But it has dropped a fair bit. I still get tips from my regulars, but instead of the £5 or £10 I'd get before, I now get £2 or £3. I don't blame them, though; money is tight for everyone."
In the back room of Paphos cars, a minicab office in north London, Viddhima Beeharry is watching the Nigerian movie channel with Rashid, one of her drivers. "A year ago, they could rely on at least a 50p or £1 tip for most jobs," she says. "Now they're not even getting that. There are fewer jobs now too - especially for local journeys, more people are taking the bus."
A fare to Heathrow airport, for instance, costs £30 and is a 45-minute journey, but Rashid says very few people add a tip on to that.
Mike Jayter, who runs a limousine company, agrees that tips are definitely down. "Before, you could earn more in a night in tips than your salary," he says. "Now, people aren't giving as much, or they're not tipping at all." Different types of people leave very different tips, apparently: "Celebrities never tip," Jayter says, leaning against his gleaming white car in the sunshine. "But you can drive up to a normal-looking house on a normal-looking estate to pick your passengers up - they've probably saved up to hire the limo for their daughter's birthday or something as a treat - and they will always leave you a good tip. It's because they appreciate it. They tip more than rich people".
So how much should you give?
The Debrett's guide to tipping
Restaurants
Tip in cash, unless service is already included, and don't just empty all your coppers into the dish. "You should tip 10 to 12%," says Jo Bryant, etiquette advisor and editor of Debrett's A-Z of Modern Manners. "If the service is bad, adjust your tip accordingly; if the service is good and the food bad, leave a tip but make a complaint about the food to the manager." Bryant says if you are really unhappy with the service, you should explain why you don't want to pay the service charge and ask for it to be removed. "But only refuse to pay the entire service charge if the service has been terrible."
Hairdressers and beauty therapists
Tip 5-10% of the total cost when you pay your bill. "Or, if you have a regular hairdresser or beautician, you may want to combine all your tips at Christmas," says Bryant, adding that you can also tip the junior who washed your hair (and who will probably be on a low wage) about half of what you give the stylist. But why do we tip all of these people in the first place? You wouldn't tip a plumber, for instance. "I think it's just convention and our culture, it's handed through. The thing all of these people are offering is a very personal service, so you should tip for that. But do ensure the different amounts reach the right people."
Taxis
You should, according to Debrett's, tip 10% when you pay. In London, black cabs cost a fortune - and many of us have the sneaking suspicion that all cabbies live in Essex mansions - so you may feel put out giving them even more money. But Bryant says they are performing a service, "and they will get you to your destination using the quickest route". Besides, she says, it's part of our culture and should really be adhered to. Taxi drivers in rural areas won't earn as much, and you may build up a relationship with a regular driver, so there is more incentive to tip.
Hotels
I can't be the only one who finds tipping hotel porters excruciatingly embarrassing, and I always try to wrestle my suitcase off them - never successfully. I have stood in a lift with a porter carrying my (very light) weekend bag in an awkward silence, knowing I have nothing smaller than a fiver to give him. "Tipping bellboys and doormen is part of our culture and is expected in smarter establishments," says Bryant. "You shouldn't feel embarrassed as they are used to receiving tips. Just give it to them in a natural and low-key fashion; nothing is more embarrassing than those who tip with showy gestures."
Bryant says you should tip porters one unit of currency (ie, £1 or a €1) per case, and give the doorman a unit for calling you a cab. Personally, I don't really think sticking your arm out and hailing a cab is really deserving of a quid; much more deserving are the housekeeping staff who clean your room every day. You probably won't see them, but it isn't pixies who come in and smooth your sheets and fold the end of your loo roll into a point, so don't forget them.
Bars and pubs
Leave 10% for table service in a bar, although in these kinds of places a service charge may already be added to your bill. Leave a few coins for cloakroom attendants. We still don't tip in pubs in this country, but you can offer to buy the bar staff a drink.
• Debrett's A-Z of Modern Manners is edited by Jo Bryant (Debrett's, £11.99).
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