Applebees Customer Questions Suggested Tip Calculation

A payment kiosk at Applebee's prompted a customer to question restaurant tipping practices after suggesting an $11.30 gratuity on a $49.49 bill. The customer shared the discrepancy in a TikTok video, highlighting how calculating tips on an after-tax total can increase the amount customers are asked to pay.

According to the video, a 20% tip on the $49.49 subtotal would equal approximately $9.90, about $1.40 less than the suggested gratuity. The kiosk appeared to calculate the tip using the $56.50 total after tax instead of the pre-tax amount.

The payment screen indicated that suggested tips were calculated after tax and before discounts, according to the customer's video. Fox News Digital contacted Applebee's and the customer for comment.

Robert Mahon, managing partner of New York City-based Mahon Hospitality Group, said restaurants generally have some control over how their payment systems calculate suggested gratuities.

"It varies from restaurant to restaurant," Mahon said. "The systems come with default settings, but the restaurant can usually change them. We use Toast, which defaults to calculating tips before tax, and there's a setting in the back office to switch it."

Mahon said his preference is to calculate gratuities using the pre-tax bill. He explained that payment platforms may offer different default configurations, allowing restaurants to determine how suggested percentages are applied.

"You're tipping for the food, drinks and service — adding tax into that calculation doesn't really make sense to me," Mahon said. "Guests can always leave more if they want."

He also emphasized that customers should understand the amount used to calculate a suggested percentage. Clear disclosure can help diners determine how much they are leaving when selecting a preset tip option.

"The main thing is being clear. If someone hits 20%, they should know what they're leaving 20% on," Mahon said.

Fox News Digital previously reported a similar dispute involving Dave & Buster's, where customers questioned suggested gratuities that appeared to be calculated on after-tax totals. The Applebee's payment screen, however, appeared to disclose its calculation method.

Mahon said he would want to review the complete receipt before attributing a higher suggested gratuity solely to the inclusion of taxes.

"I'd want to see the full receipt before putting it all down to tax," Mahon said.