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How to Get People to Pay More with One Simple Phrase

… or what a restaurant server can teach us about selling

by Kurian M. Tharakan food server

Food servers rely on tips to supplement their wages. Because US minimum wage legislation does not apply to this class of employee, researchers estimate that an 8% tip is required to break even with normal minimum wage guidelines. Clearly, if you are working in this field you may be very interested in learning the subtle techniques of impression management to improve the tip amount. Not surprisingly, these same techniques will work for everyone else as well!

Studies conducted on customer tipping behaviour have found that several factors can affect the tip amount, including environmental elements like:

  • Weather
  • Restaurant decor
  • Urban or rural locations
  • Background music
  • Size of the dining party
  • Amount of alcohol consumed
  • Customer gender
  • Ethnic background
  • Method of payment

But for the most part, these elements are outside of the server’s control. What is within their power is how they interact with the dining party. Studies have found that simple things like:

  • Smiling
  • A light touch on the customer’s shoulder
  • Squatting at eye level with a customer when speaking with them at the table
  • Introducing themselves by name
  • Giving mints when presenting the bill
  • Drawing smiley faces on the bill
  • or light verbal commentary such as a joke or weather predictions (“… it’s going to be a great day tomorrow!”)

All of these actions can significantly increase the tip amount received!

All of these actions can significantly increase the tip amount received! This list of what’s in a server’s control are all designed to do one simple thing: INCREASE THE CUSTOMER’S LIKING FOR THE SERVER.

A 2007 article by John Seiter of Utah State University in the Journal of Applied Social Psychology detailed a study in which 94 couples at two casual dining restaurants were observed to verify a hypothesis: that food servers will receive significantly higher tips when they compliment their customers than when they do not.

Based on a random coin selection, the server approached the diners and either offered a compliment on their food selection or not. If the coin selection determined that a compliment was to be delivered, the server would give each diner the following statement:

  • … after the first person in the party presented his or her order, the server said, “You made a good choice!” After the second person ordered, the server said, “You did good [sic], too!”

… customers who were complimented left almost 13% more in tips …

What were the results?

The customers who were complimented left almost 13% more in tips that those who were not complimented! Not too bad for a simple gesture anyone can do!

What’s the takeaway?

Your clients want to like you, and will reward you if they do! A simple, sincere, compliment may be all you need to do to get the ball rolling!

photo credit: Chris JL

About Kurian Tharakan

Kurian Mathew Tharakan is the founder of sales and marketing strategy firm StrategyPeak Sales & Marketing Advisors, a 27 year veteran of the sales and marketing industry, and the author of the Amazon bestseller, The Seven Essential Stories Charismatic Leaders Tell. He has consulted for companies in numerous sectors, including Retail, Professional Services, Manufacturing, Distribution, High Technology, Software, Non-Profit, and Life Sciences. In addition to his consulting practice, he has also been an Executive in Residence at the business accelerators TEC Edmonton and NABI where he has assisted clients with their go-to-market strategy. Prior to StrategyPeak, Mr. Tharakan was a vice president of sales & marketing for an Alberta-based software firm where his team achieved notable wins with several members of the US Fortune 500.

Entertaining, Motivational, Funny. Book Kurian to Speak.


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“When someone loses their way, it is almost always because they have lost their story. When they regain their story, they will regain their way.” – Kurian M. Tharakan

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KURIAN MATHEW THARAKAN
Managing Director
Strategic Marketing Services


StrategyPeak Sales & Marketing Advisors
204, 10108 - 125 Street
Edmonton, Alberta, T5N 4B6
Canada

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