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You guys understand that the price of meals would go up to compensate for the lack of tipping right? You’re not simply removing the cash. That extra 20% or what
by 2muchcoffeeman 6y ago
You guys understand that the price of meals would go up to compensate for the lack of tipping right? You’re not simply removing the cash. That extra 20% or whatever is now baked into the price. And generous tippers can still leave their extra bit.
The change is, that by default everyone earns a fair wage.
- Noos 6y agoyou know that the actual minimum wage of someone who makes $30 or more in tips a month is $2.13 right? By law, if they don't make enough tips in a week to earn an effective wage of $7.25 an hour, the employer has to pay them that much. this is all the employer actually has to pay. Everything else is the customer. Now imagine the employer has to pay $15 an hour. Thats 6+ times what they pay now if its a decently busy place. You still think it's going to be baked into the price?
- ascorbic 6y agoSo...they put the prices up by 20% or whatever. By definition, the amount they'd raise would be enough to pay the staff the equivalent to the amount lost in tips. They don't need to maintain the same GP margin, as this is pure extra revenue.
- jobigoud 6y agoWait, if the employee gets their min wage covered by tips the employer pays less? That's even shadier than I thought. Is this in law? Wasn't a delivery company booed for that kind of behavior a while ago?
- 2muchcoffeeman 6y agoI don't understand your confusion. The amount of money the customer pays doesn't change. I'll give an example: $8 item + $4 (50%) tip = $12 $10 item + $2 (20%) tip = $12 $12 item + $0 (0%) tip = $12 In any scenario, the wait staff's pay comes from the customer. All we are doing is, setting the price, such that you no longer calculate the tip. If the actual price doesn't actually change, you can bake in whatever you want.