The Center for Hospitality Research - Hotel School Research Review

Disparities in Tipping Between Blacks and Whites Seen as an Educational Challenge for the Industry

The U.S. restaurant industry has long maintained that there is a disparity in tipping behaviors between black and white patrons. Some servers of both races would rather not wait on tables of black customers, however no one in the industry wants that situation to continue.

Education may be the best approach, as explained in a new report from the Center of Hospitality Research (CHR) at Cornell University. The report, “Race Differences in Tipping: Questions and Answers for the Restaurant Industry,” reviews relevant research and concludes that racial disparities in tipping practices are real, as are racial disparities in knowledge about tipping norms. However, its chief purpose is to offer solutions and to encourage industry action, according to author Michael Lynn, an associate professor at the School of Hotel Administration. The report is available at no charge from the Center for Hospitality Research: www.chr.cornell.edu.

In a commentary published in the report, Gerald A. Fernandez, president of the Multicultural Foodservice & Hospitality Alliance, underlines the importance of information in addressing the tipping issue. “I applaud Cornell’s Center for Hospitality Research for again tackling a very tough issue,” he said. Calling for additional research on customer behavior in restaurants, Fernandez notes particularly that restaurants need to examine service issues from a minority perspective. He stated: “whether you agree with the research or not, black customers are not always receiving the service they deserve, therefore any effort focused on improving customer service should be supported by the hospitality industry.”

After summarizing the research regarding tipping differences between blacks and whites, Lynn proposes a comprehensive set of education-oriented steps for servers, managers, and industry leaders. In proposing the educational effort, he said: “Now is the time for the industry to step up and address a serious problem. I’m concerned that blacks are not receiving the service they deserve in restaurants.”

Lynn calls on restaurant servers and managers, as well as trade groups, to educate all restaurant customers about U.S. tipping norms. He suggests that restaurant managers find ways to remind customers of the 15- to 20-percent norm in restaurant tipping. “This could be with table tents or notes on the menu, among other techniques,” he said.

However, the key effort should be made by industry associations. “The National Restaurant Association, the Multicultural Foodservice and Hospitality Alliance, and other groups should arrange broadly based public-relations campaigns to promote industry tipping norms,” said Lynn. “Restaurant chains should support the industry’s efforts to educate all groups about tipping. In addition, since many people learn about tipping from working in tipped jobs or from friends and family who work in tipped jobs, restaurants should also ensure that blacks and other ethnic minorities are provided the same career opportunities to work in the front of the house, just as whites are.”

CHR New Corporate Partner

Hospitality design firm Wimberly Allison Tong & Goo (WATG) has become a partner with the Center for Hospitality Research. WATG’s three year partnership with Cornell will underwrite projects conducted by the Center’s International Research Fellows. Under the agreement, WATG executive Rajesh Chandnani will join the Center's advisory board.

“We are very excited about this opportunity to join forces with one of the leading global research centers in the hospitality industry,” said Chandnani, the firm’s director of strategic planning and consulting and a graduate of the Cornell Hotel School. “There are a number of design-related projects we wish to explore, and we can think of no better partner for this work than Cornell’s Center for Hospitality Research.”

Wimberly Allison Tong & Goo is recognized as the world’s number one architecture, design, planning, and consulting firm specializing in hospitality, leisure, and entertainment. Since its founding in 1945, WATG has designed destinations in 150 countries and territories from its offices in Honolulu, Newport Beach, Seattle, Orlando, London and Singapore. For more information, visit http://www.watg.com.

“We are pleased to broaden our reach through this alliance with one of the most accomplished design firms in the hospitality field,” says Joe Strodel, director of corporate relations for the Cornell Hotel School. “We look forward to working with Raj and his colleagues to produce distinctive research that has a favorable impact on industry operating practices.”

CHR Adds Two New Friends

The CHR is pleased to announce two new corporate alliances, thereby furthering its mission to shape the global knowledge base in hospitality management. Joining the Center as Corporate Friends are: Estrela Marketing Solutions and Fireman's Fund Insurance Company.

Sue Miller, Vice President, Industry Development Executive, Commercial Business, Fireman's Fund ® , stated, "Cornell's Center for Hospitality Research is at the forefront of knowledge creation and distribution in the global hospitality marketplace. On behalf of Fireman's Fund, we are delighted to support this enterprise." Founded in 1863, Fireman's Fund is one of the most widely recognized and respected names in the insurance industry. Fireman’s Fund is rated "excellent" by A.M. Best, and is a member of Allianz AG, one of the largest property/casualty insurers in the world.

Estrela Marketing Solutions is a leader in permission-based online marketing campaigns. Estrela provides millions of high-quality e-mail contacts that are accessible only through its network. The services Estrela provides are: lead generation; opt-in email marketing; database broadcasting; e-mail appending; tracking and campaign; hosting; online advertising placements; and new media design.

CHR Featured Advisory Board Member

Scott Brodows

As Chief Operating Officer of SynXis Corporation, Scott Brodows leads the technology, marketing and operations teams, and plays a critical role in developing company strategy and building key alliances throughout the travel industry. Since joining Sabre Holdings in 1996, Brodows has served in a number of roles, most recently as Vice President of Car and Hotel Distribution for Sabre Travel Network and Car Rental Segment Manager for Sabre Holdings. During this time, he led strategy, marketing, sales and customer service initiatives for hotel, rental car and other ground transportation customers. He also was responsible for coordinating the company's rental car strategy across all Sabre Holdings business units.

Brodows earned a master's degree in business administration from the Darden School of Business at the University of Virginia and a bachelor's degree from the University of Michigan.

CHR Research Fellows and Staff at Industry Events

The San Francisco Convention & Visitors Bureau (SFCVB) Education & Research Foundation, Cornell University School of Hotel Management, PKF Consulting and the San Francisco Business Times are uniting to create the Northern California Visitor Industry Outlook Conference, to be held on Thursday, Feb. 23 at The Argent Hotel in San Francisco. Journalist Peter Greenberg will be the keynote speaker. He is the travel editor for NBC’s Today Show, CNBC and MSNBC and host of the nationally syndicated radio show, Travel Today. CHR research fellow Cathy A. Enz, Ph.D., associate dean of industry research and affairs, Cornell University School of Hotel Administration, and the SFCVB’s vice presidents of Conventions, Marketing and Tourism will present “Fast & Furious Five Minute Updates.” The full agenda and online registration is available at http://www.sfvisitor.org/memberinfo/html/FutureWatch.htm.

With record attendance in Monte Carlo in 2005, the 4th Annual International Hotel Conference moves to the spectacular Rome Cavalieri Hilton from 11-13 October 2006. The conference, co-sponsored by the Cornell School of Hotel Administration, focuses on hotel financing, development and management in Europe and beyond. The program will feature superb networking, deal making, and 100 industry expert speakers presenting 40 interactive sessions designed to engage the audience of executive level hoteliers, managers, owners, developers, lenders, members of the media, and those who service the hotel industry. Additional information about the event, registration, sponsorships and related activities can be found at the event’s web site www.internationalhotelconference.com, or by contacting the conference organizers, Morris Lasky and Mary Lou Koys of Lodging Unlimited, Inc. at mlasky@aol.com

Thank you to all the alumni and friends who visited the Cornell booth at the Americas Lodging Investment Summit (ALIS) on January 23-25, 2006 or attended the Cornell Reception at ALIS. Over 300 alumni and friends attended the reception held at The Peninsula Beverly Hills Hotel. We would like to extend a special thank you the co-sponsors of the event: Allied Waste Industries, Inc; Hilton Hotels Corporation; International Hotel & Restaurant Association; Lehman Brothers; The Peninsula Beverly Hills; and Sweet Street Desserts. Mark your calendars to save-the-date for next year's reception to be held on January 23rd at The Peninsula.

Hotel School alumni gather at Cornell booth and reception

CHR Labor and Employment Law Roundtable

The fifth annual Labor and Employment Law Roundtable, sponsored by Cornell's Center for Hospitality Research, will be held May 7 - 8, 2006, at the Statler Hotel, Cornell School of Hotel Administration. The Roundtable, chaired by Associate Professor David Sherwyn, JD, will be attended by over 20 lawyers from various sectors of the hospitality industry. For more information about this event, please visit: http://www.hotelschool.cornell.edu/chr/news/roundtables.html.

Upcoming CHR Reports

The CHR will be releasing the following new reports and tools in the upcoming months:

CHR reports and tools are available free of charge from the Cornell Center for Hospitality Research website at TheCenterforHospitality.org.

Featured CHR Corporate Partner

Founded in 1968, Southern Wine & Spirits of America, Inc. has operations in 20 states. The multi-state distributor currently operates in: Arizona, California, Colorado, Florida, Kentucky, Hawaii, Illinois, Maine, Massachusetts, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, South Carolina, Vermont, and Virginia. On a national basis, Southern Wine & Spirits of America, Inc. employs more than 10,000 team members.