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Georgia Applebee's receipt fuels debate after payment screen bases tips on tax and discounts

"The store gets the better portion when done electronically, not the server."

A calculator showing 20% of a $49.49 bill next to Applebee's higher total.

Photo Credit: TikTok

An Applebee's customer in Georgia sparked an online argument about tipping norms after noticing a kiosk's 20% suggestion came to $11.30 on a $49.49 bill, even though 20% is $9.89.

Here's what to know

In his first TikTok upload, Georgia creator jdmacias77 (@jdmacias77) showed an Applebee's checkout screen to question how the suggested gratuity was calculated.

@jdmacias77 the math didn't feel right so I did the calculation for each tip option and found that all the options take more than they should. This is at Riverside branch on Mulberry and University. #theft #applebees #tips #math #lawyer ♬ original sound - jdmacias77

"So, we're here at Applebee's, and isn't this very interesting?" the creator said in the clip, showing his phone's calculation of a 20% tip next to the checkout screen's suggestion. 

At the time of OK! Magazine's report, the video had reached 203,300 views and 1,421 comments.

A note on the payment screen explained that the tip was calculated on the post-tax, pre-discount amount, indicating the original total was $56.50, making a 20% gratuity $11.30.

A viewer highlighted that detail in the comments, writing, "It says right on the screen tip is calculated after tax and before discounts. Look at the full receipt and you will see your answer."

Tipping based on pre-discounted prices is standard practice when discounts are in play, since some discounts may reduce a bill so significantly as part of a limited promotion that it would drastically reduce the income of the restaurant staff, who overwhelmingly rely on tips in the U.S. That said, many in the comments still questioned the practice of tipping based on the check's post-tax total. 

More background

The difference between the tips in question was $1.41, which can make a noticeable difference for diners trying to keep close track of their spending.

The original video included on-screen text that said, "Applebees caught stealing your tips," though there is no evidence Applebee's isn't passing along the entire total to its staff, and it seems that was written before understanding how the total had been calculated.

Many viewers still homed in on the practice of tipping on a taxed total since that difference can add up over time in how much a family spends on dining out. "Why are we tipping on tax? When did this start?" one person asked, while another commented that tips should be based on the pre-tax cost of the meal.

What people are saying

Some commenters said their solution to electronic tip prompts is to leave gratuity separately. 

One wrote, "We pay cash tips." 

Another suggested, "Cash tip only. The store gets the better portion when done electronically, not the server."

One TikToker wrote, "I believe you should tip on the pre-tax amount, and it's even better to give it in cash. You can tip on the taxes if you want, since adding the tax to the food total makes it higher, but you only need to tip on the food, not the taxes." 

The bottom line is to read itemized receipts and payscreens thoroughly to understand the grand total.

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