(snip)"Amid a tottering economy, rising inflation, increasing unemployment and a housing market meltdown, waiters, beauticians and pet groomers report that customers are growing tightfisted.

It is hard to determine just how much people are cutting back on tipping. But the stakes are huge.

The restaurant industry in the U.S. employs 13.1 million people, making it the nation's third-largest employer, behind the federal government and the healthcare industry, according to the National Restaurant Assn., a trade organization.

About 1.1 million Californians work at food service and drinking establishments, many in jobs where tips make up a significant portion of their pay.

Thousands more work for car washes, nail salons, taxi companies and in other jobs in which tips play a role in their wages.

The slowdown in tips is another blow for increasingly squeezed service workers who often don't have much of a cushion to fall back on when times get tough. Some restaurants have closed down in recent months or have begun scaling back and laying off employees.

Other industries face similar pressures.

Michael Lynn, professor of consumer behavior at the Cornell School of Hotel Administration, estimated that Americans tip $30 billion annually, although he said there have been no good studies on the issue. "But the testimony is that tips go down in bad times."

Mac Brand, a Chicago restaurant consultant, said gratuities represent 30% to 60% of a server's wages, and even more at upscale eateries.

"There isn't anyone working at a chain or high-end restaurant so they can collect the minimum wage. If the tips don't come in, it's not worth working there," Brand said.

California law leaves tipped workers in a better position to withstand such a downturn when compared with workers in some other states.

The state is one of seven that require employers to pay restaurant servers its full state minimum wage of $8, said Sylvia Allegretto, a labor economist at UC Berkeley's Institute for Research on Labor and Employment.

In other states, employers generally pay only the federal sub-minimum wage of $2.13 and apply tips to make up any difference with state and federal minimum wage rules.

On a typical Saturday night, Brian Best once earned as much as $200 in tips as a server at Bubba Gump Shrimp Co. at Universal CityWalk. Since the fall, Best's tip take has slid to about $120 on a weekend night.

"People just don't have the money. They will go out to eat, but won't tip as much," Best said.

He now gets 10% to 15% of what his customers spend at the eatery, down from 15% to 20% before the economy's nose dive.

"I am hanging out a lot less at clubs and bars. I don't have the money," Best said.

To boost flagging sales, some restaurants are lowering their prices and introducing more specials and discount meals. Others are scaling back portions and skimping on free items such as refills and sauces. That could lead to lower tips -- especially if customers grow upset.

At the Cask 'n Cleaver steakhouse in Rancho Cucamonga, server Ashley Bechtel has seen a similar plunge in tips. In the Inland Empire, a troubled economic region dealing with one of the highest home foreclosure rates in the country, she said people also are economizing in other ways that cut into her pay.

"Big men will come in and order littler steaks than they used to," Bechtel said.

Instead of purchasing the larger rib eye for $28.95, they might get the 8-ounce top sirloin for $17.95. Or patrons will come in with coupons and tip on the discounted price of their meal instead of the retail price, which is customary, she said.

Customers are spending an average of $24 per person, down from $27 in the fall, said Chuck Keagle, the chain's owner. "Our profit is close to zero." '(snip)