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One other problem is tips are more tax-efficient for restaurants. A restaurant that charges more and pays more in wages has a higher revenue (but not profit). T
by likpok 4y ago
One other problem is tips are more tax-efficient for restaurants. A restaurant that charges more and pays more in wages has a higher revenue (but not profit). There are taxes and regulations that scale on revenue that don't allow for offsetting wage deductions, so going no-tip can increase other expenses.