Applebee’s customer pushes back on suggested tip after checking the math
A customer questioned an Applebee’s kiosk after it suggested an $11.30 tip on a $49.49 bill, more than the 20% tip he expected. The apparent reason was that the kiosk worked out the suggested tip from the $56.50 total after tax, highlighting how the calculation base can affect what diners are prompted to pay.
Hospitality managing partner Robert Mahon said restaurants can often change their payment systems’ tip settings, which may default to calculating gratuities before tax. He said tips should generally be based on the pre-tax amount and that customers should be told clearly what the suggested percentage applies to. The kiosk reportedly disclosed its method, and the article notes a similar dispute at Dave & Buster’s.
In short
- Applebee’s kiosk suggested an $11.30 tip on a $49.49 bill.
- The tip was calculated on the $56.50 after-tax total.
- A hospitality manager says tip calculation settings can vary.
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The strongest fair case each way — we don't pick a winner.
The case for
Calculating a suggested tip on the after-tax total can be defended as a simple, consistent approach that some diners may find convenient, especially when the kiosk clearly explains the basis. Restaurants may also see suggested amounts as prompts rather than rules, leaving customers free to choose a different tip.
The case against
A percentage tip is generally understood to reward service in relation to the price of the meal, so applying it to tax can make the suggested amount higher than diners expect. Clear disclosure helps, but calculating on the pre-tax bill may better match common expectations and avoid customers feeling they were prompted to pay more than the stated percentage implies.
Explained simply
Restaurant payment screens often suggest a tip by applying a percentage to the bill. The amount can differ depending on whether the calculation uses the food and drink cost before tax or the total after tax.
Restaurants can set how their payment systems calculate suggested tips, and the settings may vary. Robert Mahon, a hospitality managing partner, says tips are generally based on the pre-tax bill and that diners should be told which amount a suggested percentage uses.
Clear explanations matter because customers use suggested percentages to judge how much to leave. Similar questions have arisen at other businesses, including Dave & Buster’s.