25% is fairly common in Manhattan's upscale places. Most other places it's 20%.
And I still don't understand this at all. I've heard the justification is the "high cost of living in NYC", but if the menu prices are double those in other mainstream NA cities, then 20% as a tip, in $$$ amount, is way higher than in other cities.
I can assure you Manhattan restaurant prices are not "double those in other mainstream NA cities". Not even close.
Yes there are some very upscale restaurants that charge a lot, but type for type, prices in Manhattan are probably about 10-20% more then the rest of the country and only about 5-10% more then other major cities if at all.
If you go to a chain restaurant, for example I just did a quick check or three Olive Garden menu items across the country. All the menus offered the "buy one get one" deal at $12.95. A la carte prices were varied, and yes most expensive in Manhattan, but not double by a long shot.
Manhattan:Bruschetta $9.50
Lasagne Classico $18.50
Create your own pizza $15.95
BrooklynBruschetta $7.25
Lasagne Classico $14.25
Create your own pizza $12.75
New Jersey (random town)Bruschetta $6.95
Lasagne Classico $13.75
Create your own pizza $11.95
ChicagoBruschetta $7.25
Lasagne Classico $13.95
Create your own pizza $12.50
San DiegoBruschetta $7.95
Lasagne Classico $15.50
Create your own pizza $13.95
BurbankBruschetta $7.95
Lasagne Classico $15.50
Create your own pizza $13.95
Washington DC (actually Hyattsville)Bruschetta $6.95
Lasagne Classico $11.95
Create your own pizza $11.95
Boston (Dorchester)Bruschetta $7.25
Lasagne Classico $14.25
Create your own pizza $12.75