4 ms·

Yeah, but switching from a tipping to no-tipping equilibrium is probably hard. It's hard for a no-tipping restaurant to compete because the advertised menu pri

Yeah, but switching from a tipping to no-tipping equilibrium is probably hard. It's hard for a no-tipping restaurant to compete because the advertised menu prices will simply be higher, and you'd need consumers to mentally adjust all prices ~13% downward. "But some restaurants that adopted a no-tipping policy in 2016 have already revoked it: The New York restaurateurs David Chang, Tom Colicchio and Gabe Stulman all found it unworkable in the small-scale experiments they tried. “We continue to be supportive of the no-tipping movement,” Mr. Colicchio said, “but we’ve heard from our customers and team that they just aren’t ready for it yet.”" EDIT: It looks like just tacking on a service charge doesn't necessarily work either [1]. Probably diners hate being 'forced' to tip? These high-end restaurants are able to counteract that with their 'we're helping our waiters' newspaper PR blitz, by banding together, and because rich consumers are probably a bit less price-conscious. But I don't think that approach scales well at the lower end, where most wait staff actually work. [1] http://www.huffingtonpost.com/entry/momofuku-nishi-tipping_us_5692b9e8e4b0cad15e65343d http://www.huffingtonpost.com/entry/momofuku-nishi-tipping_u...

mahyarm 10y ago
Advertise the lower prices and then add a flat 'staff service fee'. That way you can advertise the same prices with a similar tip difference.
- sandGorgon 10y ago
  this is exactly that happens in india. it's called "service charge". you dont have to tip extra unless you really want to. Most restaurants in india clearly mention "we charge X % as service charge"
raverbashing 10y ago
Restaurants need to calculate the equivalent "pre-tipping" price and leave it there for comparison
ragebol 10y ago
When I was in the US, I also had to mentally adjust for the incomplete, tax-less, pricing at places. At the airport, I thought I could buy one last thing from my last few coins and bills of change. Quite a bummer at the register when it turned out it was actually more expensive. In Europe, sometimes prices even list both the VAT included and excluded prices.
- alkonaut 10y ago
  What's the point of even having a price sticker if what's charged is more than what it says? Are some people exempt from the sales tax added? Is it dynamic depdending on the total amount charged?
  - ars 10y ago
    > What's the point of even having a price sticker if what's charged is more than what it says? It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area. Because of this it became the custom not to include tax on any prices. Unlike Europe there is no sales tax on a national level in the US (except for gasoline), so there is no tax that could be listed that applies to everyone. (And gasoline, it should be noted, is always advertised with all taxes included.) > Are some people exempt from the sales tax added? Yes, certain non profits do not pay sales tax. You can show the sales person a document with your tax free status and it won't be added. (You'll have to sign something attesting you will not use it for personal use, but only for the purposes of the non-profit.) > Is it dynamic depdending on the total amount charged? Only for some luxury items, where below a certain amount it's not considered a luxury and the tax is lower.
    - alkonaut 10y ago
      > It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area. Yeah I was thinking about actual price tags on products or store shelves. Not billboards or tv ads etc. Doesn't explain why something would be marked $1.00 and charged $1.10 at the register (for example). I see how it could be advertised as $1.00 (+VAT) in a national ad though. > Yes, certain non profits do not pay sales tax. If 99% of the customers do pay the tax, wouldn't it help the customers most to mark the products and store shelves with what they will be charged?
deleted 10y ago
[deleted]

mahyarm 10y ago

Advertise the lower prices and then add a flat 'staff service fee'. That way you can advertise the same prices with a similar tip difference.

sandGorgon 10y ago
this is exactly that happens in india. it's called "service charge". you dont have to tip extra unless you really want to. Most restaurants in india clearly mention "we charge X % as service charge"

raverbashing 10y ago

Restaurants need to calculate the equivalent "pre-tipping" price and leave it there for comparison

ragebol 10y ago

When I was in the US, I also had to mentally adjust for the incomplete, tax-less, pricing at places. At the airport, I thought I could buy one last thing from my last few coins and bills of change. Quite a bummer at the register when it turned out it was actually more expensive. In Europe, sometimes prices even list both the VAT included and excluded prices.

alkonaut 10y ago
What's the point of even having a price sticker if what's charged is more than what it says? Are some people exempt from the sales tax added? Is it dynamic depdending on the total amount charged?
- ars 10y ago
  > What's the point of even having a price sticker if what's charged is more than what it says? It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area. Because of this it became the custom not to include tax on any prices. Unlike Europe there is no sales tax on a national level in the US (except for gasoline), so there is no tax that could be listed that applies to everyone. (And gasoline, it should be noted, is always advertised with all taxes included.) > Are some people exempt from the sales tax added? Yes, certain non profits do not pay sales tax. You can show the sales person a document with your tax free status and it won't be added. (You'll have to sign something attesting you will not use it for personal use, but only for the purposes of the non-profit.) > Is it dynamic depdending on the total amount charged? Only for some luxury items, where below a certain amount it's not considered a luxury and the tax is lower.
  - alkonaut 10y ago
    > It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area. Yeah I was thinking about actual price tags on products or store shelves. Not billboards or tv ads etc. Doesn't explain why something would be marked $1.00 and charged $1.10 at the register (for example). I see how it could be advertised as $1.00 (+VAT) in a national ad though. > Yes, certain non profits do not pay sales tax. If 99% of the customers do pay the tax, wouldn't it help the customers most to mark the products and store shelves with what they will be charged?

deleted 10y ago

[deleted]