Turning point: Viral video raises questions about tipping

Tipping has changed, especially compared to pre-pandemic times when the cost of food and everything else was lower, but one man's recent experience that went viral on social media has raised new questions around tipping.

Mark O'Brien shared a video on Instagram showing an electronic screen displaying the recommended tip percentages for his $27 check. The problem, he said, “15% of $27 is not $6, 18% of $27 is not $7, 20% is not $8.”

The fuzzy bill sparked hundreds of different comments from viewers. Some wrote that “restaurants need to pay their employees, not us,” and one person argued that “tipping is getting out of control.”

However, the payment device in the video displays a disclaimer that states: “Tips are calculated after taxes and before discounts.”

The unnamed restaurant said O'Brien received a discount on the cost of an entree that he sent back to the kitchen. And even though he wasn't charged for that item, the discounted cost was included in the tip calculation.

“This is not a scam. We have a disclaimer informing guests that gratuities are calculated before discounts. For guests’ convenience, we also allow for individual tipping,” a restaurant representative told ABC News.

O'Brien claimed the discount was not made clear to him.

“I just want people to pay attention,” he told ABC News about why he decided to speak out. “But definitely don’t take it out on the servers because they’re just trying to make a living like everyone else.”

John Waldmann, founder and CEO of restaurant software Homebase, told ABC News that the confusion and frustration surrounding tipping these days isn't entirely surprising.

“Part of consumer frustration is that expectations and behaviors around tipping have changed dramatically over the last four years,” Waldmann said. “I think that really confused a lot of people.”