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Hard Times Take Toll on Tipping in
Chicago's Service Industry
Chicago Tribune
Knight Ridder/Tribune Business News 

Jan. 2--The Chinese zodiac may have identified 2001 as the year of the snake, but those in the service sector knew it as the year of the thin envelope. 

The holiday season is the traditional time for customers to say "thank you" to those who style their hair, park their cars, hail cabs for them and generally make life a bit easier throughout the year. But the economic downturn has made for slim pickings, according to those on the front lines. 

"It's not like it used to be," said Phyllis Nestor, a concierge at the Fairmont Hotel, who would get $10 to $20 for going beyond the call of duty for guests. "Now, it's just a thank you--and sometimes, not even that." 

It's a trickle-down economy, and with less coming in at the top, fewer dollars are finding their way to those in the service industry, said Alex Urbina, an economist at LaSalle National Bank. "Many business people did not get year-end bonuses, so, in turn, it reduces the amount of bonuses they give out to others." 

Last December, Urbina showed his appreciation by giving the five doormen in his high-rise about $30 each. This year, he moved into a home, "which is a good thing, because I'm sure I wouldn't be giving that much." 

Solomon Collins, a doorman at 1150 Lake Shore Drive, doesn't need an economist to tell him customers are unusually tight-fisted this year. How does he know? "Because at the end of the day, I don't have what I usually had," he said, demurring on what that amount is. 

The decline was especially noticeable in the annual employee Christmas fund, a pot of money that is filled with monetary gifts from tenants and then divvied up among the 25 staff members, based on seniority. 

"I don't think times have ever been the way they are now," said Collins, who has been at his post for 22 years. "In the past, "the fund" would increase from year to year." This year, it decreased, he said, adding that each employee got about $100 less than in previous years. 

The firm grip on the wallet appears to have hit small suburban businesses as well as downtown hotels and high-rises. Usually, the last people to be shortchanged are those who wield a scissors, but Charles Morris, the owner of a salon in New Lenox, also has noticed clients are giving less than in the past, when tips could add $500 to $800 to the annual income. 

"Not only are people giving less, but the IRS has really clamped down on our industry in 2001," said Morris, who added he receives monthly reminders that gratuities must be declared as earnings. 

Hardly anyone has been unscathed by the new frugality. Not those who polish cars in frigid temperatures, such as Ricardo Cortez of Turtle Wax Car Wash in Orland Park, where tips are in the $1 to $5 range. Or those who park cars while their owners stay warm. Arthur Lipnid of Med Park, a valet service at Children's Memorial Hospital and other medical centers, said tips have plummeted by about 20 percent. Because his staff of 50 parks cars for patients and visitors, he wonders if the cash might be heftier elsewhere, such as at a hotel, bar, restaurant or nightclub. 

"People are here because they have to be here...not because it's fun," he said. 

Thriftiness also appears not to play favorites. 

With hotel revenue in Chicago at $293 million in November--a dip of about 13 percent from the same month the previous year--it's no wonder that everyone is feeling the pinch, said Mark Lomanno, president of Smith Travel Research of Tennessee. 

Still, others who often go unnoticed for their work are seeing newfound attention. 

"It's increased a little bit" since previous years, especially for those who walk door-to-door, said Roy Prince Jr., a Buffalo Grove postal worker. 

Even a little bit can go a long way in feeling appreciated, said Marjabelle Young Stewart, an author of etiquette books. 

"Those in the service industry want to feel appreciated. Let them know they matter," Stewart said. "Simply stated, take care of those that take care of you." 

By Bonnie Miller Rubin and Shia Kapos. 

Tribune staff reporter Nancy K. Munson contributed to this report. 

-----To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicago.tribune.com/ 

(c) 2002, Chicago Tribune. Distributed by Knight Ridder/Tribune Business News. 


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