A customer’s viral TikTok video is drawing attention to how some restaurant payment kiosks calculate suggested tips — and why diners should check the math before tapping a button.
The customer said Applebee’s payment kiosk suggested an $11.30 tip on a bill of $49.49. A straightforward 20% tip on that subtotal would come to $9.90, about $1.40 less than what the kiosk recommended.
The gap had a simple explanation: the kiosk had calculated the suggested gratuity based on the after-tax total of $56.50, not the $49.49 subtotal. According to the video, the payment screen did disclose that tips were calculated after tax and before any discounts.
Fox News Digital reached out to both Applebee’s and the customer for comment.
Restaurants Can Set Their Own Defaults
Robert Mahon, managing partner of New York City-based Mahon Hospitality Group, told Fox News Digital that restaurants typically have the ability to control how their point-of-sale systems calculate suggested tips.
“It varies from restaurant to restaurant,” he 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 he personally believes gratuities should be figured on the pre-tax total.
“You’re tipping for the food, drinks and service — adding tax into that calculation doesn’t really make sense to me,” he said. “Guests can always leave more if they want.”
He also emphasized that restaurants owe customers clarity about what their suggested percentage is actually based on.
“The main thing is being clear. If someone hits 20%, they should know what they’re leaving 20% on,” he said.
Not an Isolated Case
Fox News Digital has previously reported on a similar situation at Dave & Buster’s, where customers also noticed suggested gratuities appearing to be based on after-tax totals rather than the pre-tax bill.
In the Applebee’s case, the kiosk did disclose its method on screen. Even so, the episode is a reminder for diners to look closely at what number a suggested tip percentage is actually applied to before paying.
“I’d want to see the full receipt before putting it all down to tax,” Mahon said.
