Mark Cuban Says This Tipping Habit Makes a Bigger Difference Than You Realize

Tipping culture in America is all over the place now. With tablets asking for tips everywhere, people are faced with the same question over and over: how much to tip?

Billionaire Mark Cuban, known in the public eye for owning the Dallas Mavericks and as a cast member on Shark Tan` k, has some simple but provocative advice. Sure, your financial fitness can be a contributing factor in deciding how much to tip, but most people should expect to leave a tip when they go out to eat, get a nice haircut, or get food delivered.

Since Cuban started out working in the hospitality industry as a bartender before his business success, he has an interesting perspective on tipping. See below how, for Cuban, the right tipping habit can make a big difference for the person on the receiving end.

What Mark Cuban says about tipping generously

Two years ago, on the r/sharktank subreddit, Cuban jumped into a thread debating which Shark Tank personalities would be the best or worst tippers.

"I always tip far more than 20 percent," Cuban wrote in his Reddit comment. IMO, it's not a lot to me (in a typical situation), 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 that Cuban is worth well over $6 billion, it makes sense that he would be a bit more generous than the average tipper. After the Mavericks won the 2011 NBA Finals, he famously took the team out for a celebration, spending $90,000 and tipping the waitstaff a cool $20,000, just a bit over the average 20% threshold that's expected for bar staff.

What experts say about tipping at restaurants today

Given the overwhelming number of tipping requests people receive from bars, restaurants, coffee shops, auto mechanics, movie theaters, etc., it's difficult to determine which norms to follow. Here's what the experts say about tipping etiquette:

Full-service restaurants: The standard for good service is 18–20%. While 15-20% used to be the norm, 18–20% is now customary at full-service restaurants. 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. For complex or large orders, a tip is a considerate gesture.

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.

You may want to consider this when tipping

Behind all of these norms is a structural reality many people don't fully consider. 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; the rest allow restaurant owners to pay workers less. So for many workers in the industry, a good tip can make or break their shift.

When experts say it makes sense to tip more

While 20% has become the baseline in full-service dining, experts point to specific situations where avoiding tipping below that and even going higher is warranted.

Exceptional service: If a server handles special requests gracefully, demonstrates real knowledge of the menu or wine list, or recovers well from a kitchen mistake, 25% or more is well-earned.

Large groups: Dining with more than five people requires more effort, between managing multiple orders, coordinating timing, handling split checks, and making sure everything arrives on time.

Complex or oversized orders: Whether dining in, taking out, or ordering delivery, unusually large or detailed orders require extra time and effort.

Difficult conditions: Delivering food in heavy rain, snow, or extreme heat is harder work. The same applies to drivers navigating significant distances or navigating difficult building access.

How Cuban's tipping habit compares to expert advice

Cuban's generous tips of over 20% aren't too far off what the experts suggest for full-service restaurants and bars.

The key point is to tip what you can afford. Tipping more than 20% every time you go out isn't financially feasible for a good portion of Americans. Don't feel pressured to tip more than you're able to. Just keep in mind that a little can go a long way for your server.

On a $40 meal, the difference between 18% and 25% is less than three dollars, a minor line item in most budgets. However, that's a meaningful difference for someone whose livelihood depends on what ends up in the tip pool at the end of the night.

What the average consumer should know today

Many Americans are simply tired of being asked to tip at every business they go to. More than 42% of Americans believe tipping culture has gotten out of control, according to Bankrate's 2024 survey.

However, tipping has expanded, and it isn't slowing down. The percentage of specialty food stores, such as bakeries, coffee shops, and ice cream shops, accepting tips increased significantly between 2019 and 2024. According to an analysis by the small-business payroll service Gusto, the number of specialty retailers, such as florists and record shops, accepting tips grew by 50% during that same period.

So, keep the basics in mind. Always tip at full-service bars and restaurants, and for any specialty hair and beauty salons. Use your discretion when tipping other places, such as fast-food, fast-casual, coffee shops, mechanics, movie theaters, etc.

Bottom line

The tipping landscape will likely continue to evolve, which is something to keep in mind when you're looking to boost your eating-out budget.

The core principle Cuban lives by when it comes to tipping aligns with what etiquette experts, consumer researchers, and service workers across the country say. Tips make up more than 57% of the median restaurant worker's income, down from nearly 65% in January 2020, according to a December 2024 ADP Research analysis of nearly 100,000 full-service restaurant workers. A decline driven largely by rising base wages, not by diners tipping more generously.

While that's a small win for workers, they're still reliant on tips for more than half of their wage, so giving a little bit more (if you can) can make a huge difference for service workers.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Up To 5% Cash Back

Discover it^® Cash Back

Benefits Card Details

• Intro APR on purchases and balance transfers
• $0 annual fee
• Apply Now

• Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness
• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
• Redeem cash back for any amount. No annual fee
• Terms and conditions apply

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

on Issuer's secure website

Rates and fees

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

$0

+ -

Why we like it

• The Discover it^® Cash Back is ideal for anyone who loves flexible rewards options.

• Cardholders can redeem their cash back for any amount.

• Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases. Categories may include places like gas stations, grocery stores, restaurants, and more.

• Apply Now

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms