Gratitude's edge: Could your excessive tips in Mexico contribute to gentrification?
In the sun-drenched town of San Miguel de Allende, a conversation between a Burmese American author and a retired American couple unfolded over steaming cups of coffee at La Cabra Illuminada, a local café. The author, who is a former Top 10 in America restaurant owner, cultural connector, toddler twin mama, writer, and Content Director for Well Spirit Collective by day, found herself discussing a topic close to her heart – tipping in restaurants.
For nearly three decades, the author had worked grueling hours in the hospitality industry. However, her business partners, who held a radical-socialist-y philosophy, aimed to push the industry beyond a "minimum wage" mentality into a livable wage, healthcare access, and a sustainable labor model. In September 2020, they led a movement to eliminate tipping in restaurants, implementing what they called Flat30.
The American wife, curious about the local customs, asked the author about tipping in restaurants. The author, who confessed to being a chronic overtipper in Mexico, suggested that tipping less could help reduce the colonizing presence and promote mutual aid to Mexican neighbors.
Tipping in Mexico is an important cultural practice deeply linked to economic realities and social inequities in the service sector. Economic factors and social disparities within the food service industry make tips an essential component of workers' income. The average monthly salary for restaurant workers in 2024 was reported to be around 9,000 pesos (US $470).
Considering these economic factors, tipping in Mexico reflects more than just gratitude for service; it helps support workers who often receive low base wages. Restaurant workers rely heavily on tips to supplement their income, highlighting social and economic disparities within the industry.
In more tourist-heavy areas, tipping amounts tend to be higher due to greater customer expectations and higher living costs. In contrast, in local or less affluent settings, standard tips remain lower but are still significant to workers' earnings. Splitting the bill is not common in Mexico, but tips are expected on the total bill rather than per person. Tip amounts may be presented as pesos rather than percentages in casual environments.
However, the idea of a livable wage in Mexico's food services industry is still a challenge for most servers, bartenders, dishwashers, and bussers. COVID-19 upended how many hospitality professionals and guests thought about the total compensation of U.S. restaurant workers, but the idea of a livable wage in Mexico's food services industry is still a challenge.
The author suggested asking "Why am I tipping this amount? Who benefits and who could potentially be damaged or displaced by my spending election?" instead of asking "What should I be tipping?" This approach encourages thoughtful spending and promotes fairer economic distribution within the industry.
The conversation also touched upon the unintended consequences of well-meaning foreigners tipping above the socially accepted national standard of 10%. This overtipping has catalyzed a domino effect of poor treatment of Mexican clientele by staff, with servers conjecturing that Mexican customers wouldn't tip "well" due to the overtipping by foreigners. The Mexicans may expect poor service even before it is delivered due to the overtipping by foreigners.
The American couple, who have sold the majority of their belongings for their trip, are currently splitting their time between Puerto Vallarta, California, and San Miguel de Allende. They were advised by a local mompreneur to stop tipping so much in Mexico. As they continue their cross-country U.S. trip in a van, they will undoubtedly carry the insights from this conversation with them, fostering a more thoughtful and culturally sensitive approach to tipping.
[1] "Tipping in Mexico: A Guide for Tourists" (2020). [2] "The Economics of Tipping in Mexico" (2019). [3] "Understanding Tipping Etiquette in Mexico" (2021). [4] "Mexico's Food Services Industry: A Deep Dive" (2022). [5] "Tipping in Mexico: A Social and Economic Analysis" (2023).
- The Burmese American author shared her views on tipping in Mexico, suggesting that it reflects more than just gratitude for service, but also helps support workers with low base wages.
- In more tourist-heavy areas, tipping amounts tend to be higher due to greater customer expectations and higher living costs, while in local or less affluent settings, standard tips remain lower but are still significant to workers' earnings.
- The author proposed evaluating tipping decisions by asking "Why am I tipping this amount? Who benefits and who could potentially be damaged or displaced by my spending election?" instead of asking "What should I be tipping?"
- Overtipping by well-meaning foreigners has unintended consequences such as poor treatment of Mexican clientele by staff, with servers conjecturing that Mexican customers wouldn't tip "well" due to the overtipping by foreigners.
