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Would customers be willing to pay marginally higher menu prices if tips were explicitly not allowed? I assume there must be research on this.
by burkaman 5y ago
Would customers be willing to pay marginally higher menu prices if tips were explicitly not allowed? I assume there must be research on this.
- peteradio 5y agoChanging menu prices is probably a bit less elastic than letting people be flexible with their spending. I'm more likely to buy the burger that I can afford and stinge on the tip if I'm tight and come back next week and guilt tip when I'm full. Raise the price across the board and I'm not coming the tight week.
- watwut 5y agoWhy should wait staff salary be the thing that gets sacrificed to economic downfall? They have much less control over what kind of food the restaurants sell and for what price. It makes more sense for those who have more decision power to eat the consequences. They can make cheaper burgers, lower salaries for everyone rather then single profession, change what they sell. The wait staff can only decide whether they work or not.
- mindslight 5y agoTipping as price discrimination, with positive empathy from a human face being the upsell. You can pay either $8 or $10 for the same meal. If you pay $8 you feel bad, if you pay $10 you feel good. Thereby the restaurant takes in the full $10 from people who can afford it and/or aren't psychopaths, but still makes the sale at $8 for anyone else.