I agree with most of the posts now, but it does bug me that the waiters at the steakhouses and fishmarkets are trying to make 100k+ a year from being a waiter at a high-end restaurant. And if you notice closely, the more expensive the restaurant, the more the waiter thinks his shit doesn't stink. IMO the nicer the restaurant, the worse the service.
When my ass hits the chair, it's 20% and from there it goes up or down. If I wait 5 minutes or more before someone comes to offer drinks, it's 15% and can go up or down from there. My last birthday was the second worst service I have ever had and it was an expensive seafood restaurant. The food was incredible, but the service sucked. As we sat down I saw the credit card receipt from the last party and thought "How rude, they only tipped 5%." It did not take us long to see why they tipped $5 on a $110 bill. I didn't pay the bill this night (it was my birthday) but I'm sure our party did not leave more then 10% on a $250 bill. It was like pulling teeth to get drinks and to get the food we ordered. One of the best meals I ever ate but horrible service. A bartender who makes good drinks in a nightclub gets great tips from me. I don't want strong drinks; I just want properly mixed drinks. There are some who hit the nail on the head and many who just pour shit in a glass. I'm sure they all talk and I always tell those who make 'em perfect why they get the tip they're getting. I get great service in exchange so it works both ways. I get good drinks and good service in exchange for a better then average tip. In come cultures it's offensive to tip. Always ask when you travel. But don't ask the waiter
They should go nowhere but all you can eat buffets ...the same skinflints who when you were a kid and your ball went on their lawn they ran out and kept it.
McDonalds pays much less for their inventory. Their cost control structure is the envy of the industry. There is no fair cost comparison with them. Ideally, a restaurant strives for 30% profit. My family has been in business (pizza) for nearly 40 years, we know of no store doing those numbers. A small (10 employees or less) restaurant is lucky to hit 10% after expenses such as utilities, inventory, insurances, payroll, etc. However, I tip. On the rare occasion I dine out.
When I was a kid playing kickball there was a very nasty woman who kept threatening to "call the lifeguards" as our ball would go in her yard. After a while the "lifeguards" showed up. It seems this lady was saying "squad cars" but she was so hysterical we could not understand her. She is the proud mother of Bob Parsons of GoDaddy. She is one nasty person so say it nicely. If I were going to tell it like it is I would say she is one mean, nasty, stuck up bitch but I don't talk like that so I won't.
I'll tip 15 points at places I'll never go back to, and 20 points to regular joints. But I'm not afraid to tip 5 points or even zilch if the service really sucks. A few years ago we were at a new place a few miles away. We waited with empty glasses, and again to get our check, and again to get our receipt. The waitress got nutten. But she filled out a nice 20 point tip. I notified the credit card company and they reversed that part of the charge. With any luck, they fired the bimbo. The restaurant closed soon after. I've tipped 25% on occasion for outstanding service such as saying "Uhm, just between you and me, some customers have said that they like the cod (!) better than the salmon." If the waitstaff guide me to an awesome menu choice, that's money on the table as far as I am concerned. But don't get me started on how everybody wants a tip these days. Tip jars at sandwich shops, at fast food restaurants, give me a break. I tip wait staff, hair cutters, movers, cruise folks and taxi/limo drivers. That's it. No tips for the paper boy, mailman, handyman service, gutter cleaning, Subway shop, etc.
Frankly, eating out I do for convenience. Wendy's has some killer salads. I like subs and good italian pizza sometimes, etc. Our malls has a great Japanese style fast food Sarka's I think? - really good. Double order of meat (chicken/pork), veggies, rice can feed two people for $8 - and is as good as some "fine" Japanese restaurant food. There are decent Chinese restaurants where you get really good food, and it is maybe $6 each. No tips at any of these places, and I usually get the food in 5-15 minutes. I don't mind getting my meal and taking it to my table. That way, I know it will not take 30 minutes to try and get my order, and paying 15-25% for someone else I don't mind doing salmon and other stuff at home a lot. We make a large smoothie every night - frozen berries, kefir/yogurt, splenda and quercitin/resveratrol and white tea. Taste fantastic and extremely good for you. Some ritzy places do well. A few it is like "is THAT all I get to eat for $30?" Seriously. I don't want to order 2 entrees for myself just to stop the stomach from growling.
I usually tip around 20% if the service is decent. Anyone that has worked for tips usually tips better than average although some people are plain cheap. Here is that scene from Reservoir Dogs : http://www.youtube.com/watch?v=zBFUDbOldMs