4 ms·
> where proprietors no longer have to price the cost of service into the menu. I know what you are referring to, but is this really the practice? Do you have e
by csydas 9y ago
> where proprietors no longer have to price the cost of service into the menu.
I know what you are referring to, but is this really the practice? Do you have evidence that supports this claim?
The corollary to tip-based salaries is that the employer is required to provide the difference up to the local minimum wage should the server's total tips be under the minimum wage, as per the Fair Labor Standards Act [1]. Given that this is a known cost, I would assume that to some degree the prices are set to accommodate such costs to at least a percentage of the required funds. I know based on anecdotal evidence that most restaurants are run pretty tightly, but your average chain that pays minimum wage surely must be aware of the potential for slow periods. For tourist areas with on/off seasons, I know the solution is to simply bring on and let go seasonal workers, but I would still assume that it's easier to factor in the potential cost for minimum wage than it is to get caught without available funds.
[1] - https://www.dol.gov/whd/regs/compliance/whdfs15.pdf https://www.dol.gov/whd/regs/compliance/whdfs15.pdf
- beisner 9y agoThe reality of the situation is that waiting tables is generally not a minimum wage job in the US, because of tips. Sure, a restaurant might be required to make up the difference between earned income and minimum wage on a slow day (although hearing from my server friends this may or may not happen), but the market wage for waiters can be 1.5-2x minimum wage in a low-end chain, and much higher at high-end restaurants. Service is thus explicitly not priced into the food, because the employer is not responsible for the true market wages of the employee.