The Controversy of Gringo Tipping in Mexico

Tipping culture varies widely across the world, In many Western countries, it’s now gotten to outrageous levels, with restaurants wanting a minimum of 25%. Some locations put an extra percent on the bill automatically and coffee shows expecting tips just for pressing buttons and putting a drink across the counter.
One often-discussed issue in this context is the controversy surrounding foreigners tipping at a significantly higher rate than locals in Mexico. Foreigners coming from Western countries to Mexico assume that the same 20% percent tip standard would be the same here, but it’s not. 10% is a standard tip and many of the venues that typically get tipped in America, simply don’t here.

The question is… What are the potential effects of Western style tipping culture making its way to Mexico and Latin America in general

The Generosity Gap

Mexico is known for its vibrant culture, great food, and warm hospitality. Foreigners are often enamored by the exceptional service they get, leading many people to generously tip either as a way to show their appreciation or in some cases, in a thought of superiority where they think its their duty to help the locals. The problem is, that the extent of this “generosity” can sometimes lead to an imbalance.

Tipping Norms in Mexico

In Mexico, a good rule of thumb for tips is to leave 10-15% of the bill. For instance, if you go out for dinner and get drinks, you might spend around 400 MXN. That would mean your tip would be between 40-60 MXN. In the West, tipping 3 dollars seems like an insult, and people often end up tipping well above the norm. But you also have to factor in that, the cost of living for locals is much lower and that 40-60 MXN goes further. In general, 10% is a good tip while 15% is a sign of exceptional service

Tipping Practices for Taxis and Ubers

It's generally not expected to tip taxi drivers or Uber drivers. Unlike some other countries where tipping your ride-share driver is customary, in Mexico, the fare you pay is considered compensation for the service. Yes, you can say that tips are used to cover additional gas, maintenance and cleaning, but outside of gas, upkeep on the average car is also much lower than in the West. Westerners have simply gotten accustomed to tipping Uber drivers because taxis were rarely used outside of big cities. You wouldn’t think about tipping your taxi driver, why would you get accustomed to tipping an Uber driver for taking you from point A to point B.

Local Restaurants
Multiple secondary effects come from this and not many people actually realize it

1. Price Hikes: An unintended consequence of foreigners tipping higher is that some local restaurants simply increase their prices to cater to this new standard. As they witness generous tips from tourists, they feel compelled to balance their earnings by charging more for their services. This can lead to an inflationary spiral, making dining out in Mexico more expensive for everyone, including locals. You can easily find locals complaining about the slow increase in the cost of dining out, that aren’t associated with inflation.

2. Unequal Treatment: Another concern is the potential for unequal treatment. Local servers get used to foreigners tipping higher and start to prioritize foreign patrons over locals. Many of my local friends have also made a note of this. The neighborhoods that frequently get tourists, are often places with high-end styles of restaurants. Locals come in and almost get disrespected. Because the staff, who aren’t well of themselves, start to look at locals as beneath them. In a lot of ways, this creates a sense of discrimination, where locals don’t feel comfortable going to the same places they used to.

3. Impact on Service Quality: Paradoxically, the pursuit of higher tips can sometimes lead to diminished service quality. When servers focus more on tourists due to the prospect of larger tips, it can result in a decrease in overall service quality, leaving both locals and tourists dissatisfied. Some restaurant staff just assume locals will tip them at a higher rate no matter what service they provide

A growing trend in Mexico's restaurant and café scene is the adoption of American-style tip practices. While I rarely hand out in the “touristy” parts of town, when I do go there, I sometimes notice “the creep. Small shops that used Mobile POS systems are getting bold enough to ask for tips on mobile orders or purchases over the counter. For example, at cafes where customers simply order a coffee or pastry at the counter, they may now find tip jars or prompts for tips during card transactions.

I believe this practice is a direct attempt to capitalize on the “generosity” or ignorance of foreigners. In previous years, local shops would never turn around their touch screen and a customer to tip for a coffee whether it was an extra couple pesos or not.

Hidden Truth: Tips Don’t Often Go To TheServers

Everyone has heard this in the West, but it’s not taken as seriously – some restaurant owners don’t even tip out their servers Those tip jars and or credit card tips go straight to the pocket of the owner.. It is not uncommon to find establishments where a portion of the tips is withheld or mismanaged.

Solutions: Simply tip the local rate. Don’t show up thinking you are high and mighty and just because you view the country as cheap. Don’t try to change the culture of a place. We’ve already seen this issue when people go from liberal states to conservative states. Despite leaving that state because people no longer enjoy the laws, they go to a new state and try to implement the same practices, only to cause that place to turn into a dump also

Foreigners should “adhere: to the local tipping norms, which are often lower than what they might be used to.

2. Support Locals: Travelers can research and choose restaurants that are committed to ethical tipping practices if they want. Local establishments that transparently distribute tips to their staff should be promoted. Look up Pujol and Sonora Grill, Both of these restaurant groups have horrible reputations regarding the treatment of their staff.

In the end, I’m not telling you to “live like a local”. Anyone coming to Mexico or Latin America is coming to boost their quality of life and gain value without spending a boatload of money. I’m just saying, be aware of the local customers and allow them to be maintained. Drop any sense of superiority or thoughts of saving the locals. That’s not your job.