Applebee’s Tip Dispute Sparks Customer Backlash Over Math

WHO:

NY Post - An Applebee’s customer shared his tip-dispute experience in a TikTok video.

Fox News - The Applebee’s customer questioned the suggested gratuity displayed on the restaurant’s payment kiosk.

Fox News - Robert Mahon, managing partner of New York City-based Mahon Hospitality Group, discussed how restaurants’ payment systems calculate suggested gratuities.

Fox News - Fox News Digital contacted Applebee’s and the customer for comment.

WHAT:

NY Post - The customer questioned why Applebee’s payment kiosk suggested an $11.30 tip on a $49.49 bill.

Fox News - A 20% tip on $49.49 would be $9.90, about $1.40 less than the suggested $11.30.

Fox News - The kiosk’s apparent calculation used the after-tax total of $56.50 rather than the $49.49 subtotal.

Fox News - The payment screen indicated that tips were calculated after tax and before discounts.

Fox News - Mahon said, “It varies from restaurant to restaurant.” He said payment systems have default settings that restaurants can usually change.

Fox News - Mahon said Toast defaults to calculating tips before tax, with a back-office setting to switch the calculation.

Fox News - Mahon said, “You're tipping for the food, drinks and service — adding tax into that calculation doesn't really make sense to me,” and added, “Guests can always leave more if they want.”

Fox News - Mahon said customers should know what amount a suggested percentage applies to: “If someone hits 20%, they should know what they're leaving 20% on.”

Fox News - Mahon said, “I'd want to see the full receipt before putting it all down to tax.”

Fox News - Fox News Digital reported a similar prior incident at Dave & Buster’s, where customers questioned suggested gratuities apparently calculated on after-tax totals.

WHERE:

Fox News - Mahon Hospitality Group is based in New York City.

WHY:

Fox News - The customer raised questions after noticing that the suggested gratuity was higher than expected.

Fox News - The difference appeared to result from calculating the suggested tip on the after-tax total rather than the pre-tax subtotal.

HOW:

Fox News - The payment kiosk displayed a suggested tip and indicated that its calculation was based on the bill after tax and before discounts.

Fox News - Mahon said restaurants can generally adjust payment-system settings for suggested gratuity calculations.

(UPDATED October 29, 2026 16:06 UTC)

An Applebee’s customer questioned a payment kiosk that suggested an $11.30 tip on a $49.49 bill, after sharing the dispute in a TikTok video. The screen said tips were calculated after tax and before discounts, making the suggested amount appear to be based on the $56.50 after-tax total; 20% of the pre-tax bill would be about $9.90. Hospitality executive Robert Mahon said tip calculations vary by restaurant and that restaurants can usually change their payment-system settings, adding that customers should know which amount a suggested percentage applies to.