A diner is raising eyebrows over tipping practices at Applebee’s after noticing that the recommended tip on his bill was unexpectedly high.
This customer shared his experience in a TikTok video where he expressed surprise that the payment kiosk suggested an $11.30 tip on a $49.49 bill.
To put it in perspective, a typical 20% gratuity on that amount would add up to $9.90, which is roughly $1.40 less than what was suggested.
The explanation seems to stem from the kiosk computing the tip based on the after-tax total of $56.50, rather than the initial subtotal of $49.49.
The digital payment screen clarified that tips were figured after taxes and before any discounts, as shown in the video.
Fox News Digital reached out to both Applebee’s and the customer for their views.
Robert Mahon, a managing partner at Mahon Hospitality Group in New York City, explained that restaurants generally have some leeway in how their systems calculate suggested tips.
“It varies from place to place,” he shared. “These systems usually come with preset settings, but restaurants can change them. For instance, we use Toast, which defaults to calculating tips before tax, and it can be adjusted in the back office.”
Mahon believes that tips should ideally be based on the pre-tax total.
“You’re tipping on the food, drinks, and service — including tax doesn’t quite make sense to me,” he noted. “People can always leave a higher amount if they prefer.”
He emphasized the need for transparency when suggested tipping amounts are presented to customers.
“The key is clarity. If someone opts for a 20% tip, they should clearly see what that amount is based on,” he remarked.
Previously, a similar situation was reported at Dave & Buster’s, where diners questioned suggested gratuities calculated using after-tax totals.
While the Applebee’s kiosk provided some information about how tips were figured, this incident underscores the value of checking the basis for any suggested gratuity before checking out.
“I’d want to scrutinize the full receipt before factoring in tax,” Mahon added.
