The Hidden Habit Mark Cuban Swears Changes Everything

Tipping culture in America has become a topic of discussion for many, especially with the increasing number of places where tips are requested. From restaurants to coffee shops and even delivery services, people are constantly faced with the same question: how much should I tip?

Mark Cuban, the billionaire owner of the Dallas Mavericks and a former cast member on Shark Tank, has shared his thoughts on this matter. He believes that while one’s financial situation can influence tipping decisions, most people should still leave a tip when they go out to eat, get a haircut, or have food delivered.

Cuban’s perspective on tipping comes from his own experience working in the hospitality industry as a bartender before achieving business success. His insights offer a unique view on how generous tipping can positively impact those who receive it.

What Mark Cuban Says About Tipping Generously

Two years ago, Cuban participated in a Reddit discussion about which Shark Tank personalities would be the best or worst tippers. In his comment, he stated, “I always tip far more than 20 percent.” He added, “In a typical situation, it’s not a lot to me, but it can make the staff’s day. I’ve been a waiter and bartender. I know the impact it can have on your day or night.”

Given Cuban’s considerable wealth, it makes sense that he is more generous than the average tipper. After the Mavericks won the 2011 NBA Finals, he took the team out for a celebration, spending $90,000 and tipping the waitstaff $20,000—just over the average 20% threshold expected for bar staff.

What Experts Say About Tipping at Restaurants Today

With the rise of tipping requests across various industries, determining the right amount to tip can be confusing. Here’s what experts recommend:

• Full-service restaurants: The standard for good service is 18–20%. For exceptional service, 25% or more is appropriate.
• Coffee shops: Tipping isn’t universally expected at the counter, but $1 on a drip coffee or 10–15% on a handcrafted drink is appreciated. Larger or more complex orders may warrant a tip.
• Bars: The baseline is $1 per beer or glass of wine, and $2 per cocktail, or 15–20% of your total tab for an evening out.

Considerations When Tipping

Behind these norms lies a structural reality that many people overlook. Under federal law, tipped employees can legally be paid as little as the federal tipped minimum wage, a rate that hasn’t changed since 1991. Only six states require employers to pay tipped workers the full state minimum wage, meaning many workers rely heavily on tips to make ends meet.

When Experts Say It Makes Sense to Tip More

Experts highlight specific situations where tipping more than the standard 20% is warranted:

• Exceptional service: If a server handles special requests gracefully or demonstrates knowledge of the menu, 25% or more is well-earned.
• Large groups: Dining with more than five people requires extra effort, making a larger tip appropriate.
• Complex or oversized orders: Unusually large or detailed orders demand more time and effort.
• Difficult conditions: Delivering food in extreme weather or navigating difficult access requires additional work.

How Cuban’s Tipping Habit Compares to Expert Advice

Cuban’s generous tips of over 20% align closely with expert recommendations for full-service restaurants and bars. However, the key point is to tip what you can afford. Tipping more than 20% every time may not be feasible for everyone. Still, even small increases can make a meaningful difference for service workers.

On a $40 meal, the difference between 18% and 25% is less than three dollars, a minor line item in most budgets. However, for someone whose livelihood depends on tips, this small amount can be significant.

What the Average Consumer Should Know Today

Many Americans feel overwhelmed by the constant request to tip. A 2024 Bankrate survey found that over 42% of Americans believe tipping culture has gotten out of control. Despite this, tipping has expanded, and it shows no signs of slowing down.

According to an analysis by Gusto, the number of specialty retailers accepting tips increased significantly between 2019 and 2024. This trend highlights the growing prevalence of tipping in various industries.

Bottom Line

The tipping landscape will likely continue to evolve, so it’s important to stay informed when managing your dining budget. Cuban’s approach to tipping aligns with the advice of etiquette experts, consumer researchers, and service workers nationwide.

Tips make up more than 57% of the median restaurant worker’s income, down from nearly 65% in January 2020. This decline is largely due to rising base wages, not because diners are tipping more generously.

While this is a positive development for workers, they are still reliant on tips for more than half of their income. Giving a little bit more (if you can) can make a huge difference for service workers.