The Sketchy Tipping Strategy Texas Roadhouse's Customers Are Noticing - Tasting Table

"The whole point of a tip, despite tipping's storied history, is that it's meant to acknowledge service given. Whether that was food and drinks or the customer service of the restaurant employees, that is what's being compensated with a tip. Taxes are a mandatory government fee not related to the service. That money is paid to the government, so asking a customer for a tip on money charged by the government and unrelated to the products or service is a bit shady and unfair."

"In 2025, the province of Quebec in Canada made it illegal for restaurants to calculate tip suggestions based on post-tax totals. Businesses there can no longer try to persuade you to tip a certain amount, either. This has been an issue for years, and in some cases, businesses aren't even aware that the POS system they use is calculating tips on post-tax totals."

Tipping remains a contentious North American practice, with debate centered on whether it compensates service or allows businesses to avoid fair wages. Texas Roadhouse has drawn criticism for suggesting gratuities calculated on post-tax amounts. Since tips should acknowledge service provided, including taxes in tip calculations is problematic—taxes are mandatory government fees unrelated to service quality. While the financial impact per transaction may seem small, the practice is considered deceptive. Quebec made this practice illegal in 2025, prohibiting restaurants from calculating tip suggestions on post-tax totals or persuading customers toward specific amounts. Many businesses may not realize their point-of-sale systems perform post-tax calculations.

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