The Tip Project

Last updated
Tip Promotion Association
IndustryHospitality
Founded2021
FounderYoshihito Kamogashira
Defunct2023
Website |tip-culture.com (archived)

The Tip Project was a business venture and organization which unsuccessfully pushed to introduce American practices of gratuity into Japanese culture. First launched in 2021 and managed by the Tip Promotion Association, it was shut down in the first half of 2023.

Contents

Background

Japan was previously noted as a culture where gratuity practices largely did not exist. Numerous travel agencies, blogs, and companies have written about how in Japan, tipping is considered either something that should not be practiced and in some cases, considered to be rude. [1] In restaurants and food service, where American tipping is most common and prevalent for the reasons of waiters usually not making a living wage and the United States' minimum wage laws enabling workers who frequently receive gratuity to be paid a lower wage than most employees, Japanese culture treats good service as something to be expected by default and not rewarded. Cultural customs also traditionally give Japanese food service workers at least one free meal per worked day. [2] The only Japanese workers who traditionally receive gratuities are highly-personal staff, such as geishas and workers in ryokan hotels, though these workers frequently receive their gratuity similar to Chinese red envelopes rather than standalone cash. [3] [4]

The Tip Project came at about the same time as Japanese taxi drivers giving the ability for riders to add gratuity. The effort was started by Japanese taxi operator Sanwa Kotsu in collaboration with the Respo company, a digital tipping firm; Sanwa Kotsu has previously recorded instances of the company's drivers receiving tips. [5] Prior to the Tip Project and the taxi driver tipping system, the only gratuity forms in Japan to gain traction was in a form of origami tips, where service workers were handed custom origami sculptures made from chopstick wrappers as gratuity. [6]

Project history

Beginnings

The project was founded in early 2021 by Yoshihito Kamogashira, a Japanese YouTuber. Kamogashira started the project because he believed that American tipping practices would help raise the self-esteem and happiness of Japanese service industry workers who were severely affected by the COVID-19 pandemic. The project also believes that the creation of the system will enable businesses to succeed not solely on the number of customers it receives. [7] [8]

Business model and promotion

The Tip Project's primary source of revenue came from selling branded paper slips and supplementary goods, with the slips known as "tip tickets". These tip tickets read "premium Japan tip", which featured the tipper's name, the recipient server or worker's name, as well as an amount to be tipped in yen. The project noted that at least ten restaurants signed onto the idea. [8]

One of the ways The Tip Project promoted its practices was by producing and marketing a video in which the project's recommended usage of its tip tickets is used. In the video, set in a restaurant, a waiter offers a guest a blanket, though instead of vocally expressing her gratitude, decides to fill out a tip ticket. [9] [10]

Reception

Pre-failure

The backlash against the project was immediate. Translations of Japanese comments in a Kotaku article that covered the project read "This doesn't suit Japan" and "This is a pain in the ass". One comment suggested that if 20% was the standard tip, discount all prices by 20%. [8]

Dissolution

The Tip Project vanished in 2023. The Financial Times celebrated the failure of the Tip Project, with columnist Leo Lewis writing that the project's failure was a rare time when people should "relish the failure of a business venture". Lewis proceeds to describe the failure of the Tip Project as Japan's culture being spared from a social "tyranny", in comparison to the overly-high gratuity amounts given in American culture. Lewis draws the ultimate conclusion that tipping is a fundamentally "un-Japanese" practice. [11]

Related Research Articles

<span class="mw-page-title-main">Gratuity</span> Sum of money customarily tendered to service sector workers

A gratuity is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service.

<span class="mw-page-title-main">Waiting staff</span> Service occupation

Waiting staff (BrE), waiters / waitresses, or servers (AmE) are those who work at a restaurant, a diner, or a bar and sometimes in private homes, attending to customers by supplying them with food and drink as requested. Waiting staff follow rules and guidelines determined by the manager. Waiting staff carry out many different tasks, such as taking orders, food-running, polishing dishes and silverware, helping bus tables, entertaining patrons, restocking working stations with needed supplies, and handing out the bill.

<span class="mw-page-title-main">Wage</span> Payment by an employer to an employee for labour

A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as minimum wage, prevailing wage, and yearly bonuses, and remunerative payments such as prizes and tip payouts. Wages are part of the expenses that are involved in running a business. It is an obligation to the employee regardless of the profitability of the company.

Under the Constitution of Canada, the responsibility for enacting and enforcing labour laws, including the minimum wage, rests primarily with the ten Provinces of Canada. The three Territories of Canada have a similar power, delegated to them by federal legislation. Some provinces allow lower wages to be paid to liquor servers and other gratuity earners or to inexperienced employees.

<i>Nyotaimori</i> Serving sushi or sashimi on naked bodies

Nyotaimori, often referred to as "body sushi", is the Japanese practice of serving sashimi or sushi from the naked body of a woman. The less common male variant is called nantaimori (男体盛り).

<span class="mw-page-title-main">Anegasaki Station</span> Railway station in Ichihara, Chiba Prefecture, Japan

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<span class="mw-page-title-main">Lyft</span> American ride-sharing company

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<span class="mw-page-title-main">Chopsticks</span> Shaped pairs of sticks used as kitchen and eating utensils

Chopsticks are shaped pairs of equal-length sticks that have been used as kitchen and eating utensils in most of East Asia for over three millennia. They are held in the dominant hand, secured by fingers, and wielded as extensions of the hand, to pick up food.

<i>Annabels (Berkeley Square) Ltd v Revenue and Customs Comrs</i>

Revenue and Customs Commissioners v Annabel's Ltd [2009] EWCA Civ 361 is a UK labour law case regarding the treatment of tips under the National Minimum Wage Act 1998. It led to the abolition of tips being considered part of wages for the purpose of assessing compliance with the national minimum wage.

Mandatory tipping is a tip which is added automatically to the customer's bill, without the customer determining the amount or being asked. It may be implemented in several ways, such as applying a fixed percentage to all customer's bills, or to large groups, or on a customer-by-customer basis. Economists have varied opinions on the issue of mandatory tipping. Arguments against mandatory tipping include higher food price at the restaurant to make up for wages and loss of control of dining experience.

<span class="mw-page-title-main">Wage theft</span> Denial of wages or employee benefits rightfully owed to an employee

Wage theft is the failing to pay wages or provide employee benefits owed to an employee by contract or law. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassification of employees as independent contractors; illegal deductions in pay; forcing employees to work "off the clock", not paying annual leave or holiday entitlements, or simply not paying an employee at all.

<i>Orizuru</i> Origami of a crane (bird)

The orizuru, origami crane or paper crane, is a design that is considered to be the most classic of all Japanese origami. In Japanese culture, it is believed that its wings carry souls up to paradise, and it is a representation of the Japanese red-crowned crane, referred to as the "Honourable Lord Crane" in Japanese culture. It is often used as a ceremonial wrapper or restaurant table decoration. A thousand orizuru strung together is called senbazuru (千羽鶴), meaning "thousand cranes", and it is said that if someone folds a thousand cranes, they are granted one wish.

The tipped wage is base wage paid to an employee in the United States who receives a substantial portion of their compensation from tips. According to a common labor law provision referred to as a "tip credit", the employee must earn at least the state's minimum wage when tips and wages are combined or the employer is required to increase the wage to fulfill that threshold. This ensures that all tipped employees earn at least the minimum wage: significantly more than the tipped minimum wage.

DoorDash, Inc. is an American company operating online food ordering and food delivery. It trades under the symbol DASH. With a 56% market share, DoorDash is the largest food delivery platform in the United States. It also has a 60% market share in the convenience delivery category. As of December 31, 2020, the platform was used by 450,000 merchants, 20,000,000 consumers, and one million delivery couriers.

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Initiative 77 was a voter-approved ballot initiative in Washington, D.C., to phase out the special minimum wage for tipped employees as part of the national Fight for $15 campaign. In the June 2018 primary election, D.C. voters approved Initiative 77 by a margin of 56% to 44%; however, the D.C. Council repealed the initiative in October before it could enter into force. In 2022, a nearly identical Initiative 82 was approved for the November 8, 2022 election.

<span class="mw-page-title-main">Customs and etiquette in Japanese dining</span> Etquette and practices in Japan

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<span class="mw-page-title-main">2020 California Proposition 22</span> Gig economy workers employment status ballot initiative

Proposition 22 was a ballot initiative in California that became law after the November 2020 state election, passing with 59% of the vote and granting app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as "independent contractors", rather than "employees". The law exempts employers from providing the full suite of mandated employee benefits while instead giving drivers new protections:

In the video game industry, crunch is compulsory overtime during the development of a game. Crunch is common in the industry and can lead to work weeks of 65–80 hours for extended periods of time, often uncompensated beyond the normal working hours. It is often used as a way to cut the costs of game development, a labour-intensive endeavour. However, it leads to negative health impacts for game developers and a decrease in the quality of their work, which drives developers out of the industry temporarily or permanently. Critics of crunch note how it has become normalized within the game-development industry, to deleterious effects for all involved. A lack of unionization on the part of game developers has often been suggested as the reason crunch exists. Organizations such as Game Workers Unite aim to fight against crunch by forcing studios to honour game developers' labour rights.

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<span class="mw-page-title-main">Tipflation</span> Phenomenon of increasing amounts and presence of gratuity in the US economy

Tipflation and tip creep are terms to describe the United States' recent widespread expansion of gratuity to more industries, as opposed to being traditionally only prevalent in full-service restaurants. Tipflation's origins are likely the COVID-19 pandemic and the inflation surge which began in 2021. Touch-screen digital payment systems run by companies like Clover and Square include gratuity prompts that are often visible to nearby members of the public and the service worker. The social pressure created from such systems is often separately mentioned as guilt-tipping, and tipflation has also been seen as causing tipping fatigue, which is the resentment that American consumers generally feel from tipping culture.

References

  1. "Tipping Culture in Japan and China - Start Travel". www.starttravel.co.uk. Retrieved 2023-03-28.
  2. "Tipping in Japan? Not So Much a Thing | Frommer's". www.frommers.com. Retrieved 2023-03-28.
  3. "Tipping in Japan: When They Are and Aren't Accepted". alljapantours.com. Retrieved 2023-03-28.
  4. webmaster. "Tipping in Japan: There is no tipping culture in Japan – Toranomon Language School" . Retrieved 2023-03-28.
  5. "Time for Japan to start tipping taxi drivers? Cab company now gives passengers option in Tokyo". SoraNews24 -Japan News-. 2021-07-20. Retrieved 2023-03-29.
  6. Taggart, Emma (2017-12-25). "13,000 Origami Sculptures Made From Chopstick Sleeves Left as "Tips" in Japan". My Modern Met. Retrieved 2023-03-29.
  7. "tip-culture.com". 2022-01-27. Archived from the original on 2022-01-27. Retrieved 2023-03-29.
  8. 1 2 3 "A Japanese Company Plans To Promote Tipping Culture In Japan Through Tip Tickets - Japan Inside". 2021-10-26. Retrieved 2023-03-29.
  9. チップ普及協会イメージムービー , retrieved 2023-03-29
  10. "Tipping In Japan? One Company Aims To Spread It Throughout The Country". Kotaku. 2021-10-20. Retrieved 2023-03-29.
  11. Lewis, Leo (2023-03-26). "Japan remains free from the tyranny of tipping". Financial Times. Retrieved 2023-03-29.