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Have they announced what the new model will be? IIRC, it's true that when restaurants shift to a tipless system that (a) charges the true price up front and (b
by robbiemitchell 7y ago
Have they announced what the new model will be?
IIRC, it's true that when restaurants shift to a tipless system that (a) charges the true price up front and (b) distributes the revenue more evenly to both front of house and back of house, servers end up making less.
It seemed to be the most straightforward thing to do is to charge the customer the "guaranteed minimum" that they're promising to pay the delivery person, then add tip on top. The higher sticker price would probably drop demand, but the people who do deliver would earn more on average. It's also possible, though, that people will simply stop tipping, leading to a small drop in average revenue per delivery.
I wish we got rid of tipping for these situations altogether, but I realize it's useful as a price discrimination mechanism.