3 ms·
On principle I agree with you. I'd be perfectly happy walking into a restaurant that raised prices by 20% across the board and put a note on the menu saying "ti
by eigenvector 8y ago
On principle I agree with you. I'd be perfectly happy walking into a restaurant that raised prices by 20% across the board and put a note on the menu saying "tipping not expected - our prices account for service."
The problem is that every actor - from the diner to the server - is so used to the tipping system. Diners won't factor in the fact that they don't have to tip, because they will probably still want to tip (as mentioned in the article, a lot of people like the feeling of control tipping gives them). Servers won't like it because unlike a service charge or tip, that 20% baked in isn't only for them and they will feel like the owner is shorting them compared to tips (even if they aren't).
Path dependence is hard. I don't know how to fix this situation.