7 ms·

Context matters. The dynamics of the business are fundamentally different because many employees prefer tips to the alternative, and they have have many options

Context matters. The dynamics of the business are fundamentally different because many employees prefer tips to the alternative, and they have have many options where to work. Employees have a lot of leverage due to a chronic labor shortage. This dynamic has played out time and again in Seattle, where business owners tried to switch to a "no tipping" model with a 20% mandatory service charge but ultimately had to relent because employees were not keen on earning less money.

FrontierPsych 4y ago
I don't like the proliferation of tipping everywhere. But I know many sit-down restaurants have tried to institute a no-tip policy, but both employees and customers hate it. I would hate it. I like giving tips. I wouldn't go to a restaurant where tipping was not allowed. Plus, the restaurant has to raise their prices up by 20% anyways, because they now have to pay their wait staff more. The customer pays anyways. So it's a stupid thing not to have tipping. You're not going to save any money at all as the customer. It's impossible to save money. Furthermore, I know waitstaff that make a considerable amount of money from tips. Like, $300-$400 per shift and more. That's about $80,000 to $105,000 per year. So the food prices are going to have to go up substantially to cover what that person made with tips. The reason that many wait staff make so much is that they have "regulars" who tip them well because they develop a relationship and a repore that goes beyond just simple waiting on a random customer. People say they want the price that's on the menu, but come on - you know there's going to be a tip, if the menu says it is $20, then it is $23, you can do this in your head or on your mobile phone. You know exactly what the price will be unless you failed 2nd grade math. Why on earth would anyone care if the price said $20 or $23 on the menu, if in either case you pay $23? It's ridiculous in the extreme. Unless someone is an extreme pedantic martinet.
- ztrww 4y ago
  > to go up substantially to cover what that person made with tips more realistically, unless they are capable of finding another job that will pay as much they’ll just end up earning less without tips.
  - FrontierPsych 4y ago
    Sure. Of course. But what they found in restaurants that had the no-tip policy is that all of their really great staff found better paying jobs easily, and the shitty employees, or new employees, would be the ones that stayed. And the new employees would leave as soon as they were trained up, so all that was left at the no-tip restaurants were the shittiest of the shitty employees. This is what I read from a study on this exact situation of no-tip restaurants and the effect it had.
  - lostlogin 4y ago
    Legal minimum wages which are a living wage seems like something that should be a bare minimum.
    - collyw 4y ago
      How do you fell about internships? I generally think those are a good thing. Those are often below minimum wage jobs. Then again, I am not in favor of say Amazon workers being exploited with very poorly paid jobs and conditions for their source of income over the long term. (Thomas Sowell gives some good arguments against minimum wage - I am on the fence and it boils down to "it depends").
      - gambiting 4y ago
        >>How do you fell about internships? I generally think those are a good thing. Massively against them if they aren't paid like any normal job. If the intern is doing actual productive work(and let's not kid ourselves - they are most of the time), then they should be paid like any other employee. The only exception I can see is companies that have training programmes with vocational schools, where you go and work somewhere for say 2 years training to be a carpenter or a plumber or electrician or whatever - then it's no different than being at school and learning. But I'd wager than 99% of internships are not like that, they are just a very cheap way to get unpaid(or poorly paid) labour under the pretense of "giving young people work experience". It's nonsense.
        4y ago
- calgoo 4y ago
  I see it completely different. Coming from the EU, I hate going to restaurants in the US because of the tipping culture. I dont mind leaving something if the service has been amazing, but then it might be 5e when the family have had a full meal etc. Being forced to pay part of the staff salary directly, with staff getting angry / annoyed when you dont leave enough is backwards to me. Its not that the math is hard, its about having to decide what your income is going to be based on how you work. Thats not my business to deal with, thats the management / workers business. I almost feel like it creates a culture of entitled people (Karen Generators), who believe they can do what they want. Im also assuming that a lot of waiters dont pay taxes on the tips (at least when they are paid in cash), which would probably account for some of the difference in income between salary and tips. Here in the EU (most of the countries) at least we have good healthcare and education that is payed from those taxes, so you dont need to pay a 1k private insurance on a waiters salary.
  - FrontierPsych 4y ago
    Right, I understand what you are saying. Many say the same exact thing. However, while you don't like it, a vast majority of Americans DO like it. I like it. The staff like it. Management likes it. I guess the solution is that if someone doesn't like tipping, they should never ever go out to restaurants here in the USA. That would take care of it instantly for you. But again, as I said, you will pay the exact same or more if tipping is included in the price! The exact same or more. The thing is that if you don't want to leave a tip, don't. It's so easy. Just don't. Most wait staff would rather a dinner party leave without paying the tip rather than have whining - who wouldn't? I've never had staff get angry with me and I've been going to restaurants probably longer than you've been alive. So I don't know where you're getting this from, unless you are lying for effect, to falsely bolster your case. I've never had entitle person ever. I've always had fantastic relationships with the wait staff. Because THEY WANT to give you a great experience so that they can get a nice juicy tip. It's not fake on their side, any more than a Disney worker or auto repair shop owner is nice to their customers. I've had such a good time with some wait staff, that they give me free desserts. I remember once my reputation for getting free desserts got around to a group of friends I occasionally hung out with. We were at the restaurant and said that it was bullshit and to do it right at that restaurant. I did. The waiter gave me a free dessert. Which are restaurants' main money makers. Waiters are required to pay taxes on tips, but you are right, if they are in cash, well, they can break the law, but that's the same exact thing as if someone doesn't come to a complete stop at a stop sign. Anyone can break the law. And as I also said, a LOT of restaurants, even high-end restaurants in New York, Los Angeles, San Francisco have tried no tips. But it was a disaster in almost all cases. Their wait staff would quit all the time, because a good wait staff person can make fantastically more money in tips. If a restaurant pays $25/hour (good luck on that) the wait staff would be paid $50K/year, but a good waiter can make $100K+ on tips. So the wait staff quit the no-tipping restaurants and move to a better, for them, restaurant. But really, you are paying the exact same, or more, if it is all included in one bill with no break out. And by breaking out healthcare costs, you will actually pay less money for the meal than all included. As far as healthcare and education being free in EU, that is irrelevant.
- lostlogin 4y ago
  > You know exactly what the price will be unless you failed 2nd grade math. As a tourist to the US, it just seemed silly. The random sales tax percentage, the tip or no tip (calculated pre or post sales tax?) situation. And due to the tipping thing, I had to carry cash, which I hadn’t done in 20+ years. It felt like going back in time a very long way. Ask for what you want, I’ll decide if I’ll pay it and I’ll come back if I liked the service.
  - FrontierPsych 4y ago
    There are actual rational reasons, though. You, and even most Americans, don't know what they are, is all. Random sales tax on stuff for example is separate. This is not the fault of the business. The way USA government works is that sales tax is set by the county. There are 3,142 counties and county equivalents. Each charging their own tax amount. Let's say you are a big store like Target with stores across the USA. They want to charge $25 for a pair of shoes. How do they advertise? They take out advertising all across the USA, and charge $25 for the shoes. Well, how do you put in the correct amount on the newspaper or website advertisement? You put it in the newspaper for $27.50 because one county charges 10% sales tax. But the next county over has a 7% sales tax. The correct price is $26.75. But that newspaper is delivered into multiple counties, in the same exact newspaper, so there is no possible way for target to put the correct price. It's literally impossible. So what they do is say the shoes are $25, and you pay the difference to the county as an extra. Because the business can do fuck all about it. In European countries, they probably have the same exact sales tax everywhere, so it is ok to do it that way. But Target isn't going to get the entire USA to change the tax code of 3,142 different tax jurisdictions. Good luck on that one. For tipping, you don't have to carry cash at all. I never do. They have an extra line on the receipt to add the tip. I just round it and don't do it exactly, because it is easier and faster that way. You want me to ask for what I want? Ok. I want to tell you the price of the meal and you pay a 15% tip. That is what I want. And I don't want anyone whining about it. If one wants to whine, just stay at home and cook a home-cooked meal. Everyone wins. And, as I stated elsewhere, it is usually the people that are most vocal against tips that are the most pain in the butt customers anyways; even if there were not tips, they would still be the worst customers. Maybe not you, but most like that always have something more to complain about.
- deleted 4y ago
  [deleted]
- moritonal 4y ago
  To explain my down-vote. Firstly, many people, even smart ones are bad at mental math. The idea extra charges are added at the end is literally a dark-patterns used to trick people into spending more money because they are bad at doing this. Next, why do _some_ waitstaff make a lot of tips, and not others. You don't acknowledge how in almost every biased way possible tipping promotes some people, and punishes others. Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt.
  - FrontierPsych 4y ago
    Everyone carries a mobile with them. We didn't use to and had to figure it out. But it is so simple. All you have to do is take 10%, then take 1/2 of that and add them together. So if a meal is $48.75, then 10% is $4.88. Round it up to $5. Half of $5 is $2.50. $5 plus $2.50 is $7.50 tip. then add that onto the total of the $48.75 but I round the $7.50 up to $8 and so $48.75 and $8 is $56.75. Super easy to do in one's head in less than 30 seconds. If lunch is $38.64, then 10% is $3.86. Round it up to $4. Half of $4 is $2, so $4 + $2 is $6 tip. Total is $38.64 + $6 or $44.64. Thirty seconds to calculate it. You do rounding to make it easy - you don't do all the decimal points exactly, that sucks to do it that way. Rounding is close enough, and you round up. . Some waitstaff are better than others. They are more social. They develop regulars. That's where the real money is made. You get regulars. There are other tricks, too. Not all of them work every time for every person, but it is a statistics game. Like if a waitress wears a flower in her hair, can make up to 17% more tips. Some people know how to upsell for a higher total bill and make more tips because of the percentage. If you draw a smily face on the bill, you will get a bigger tip. Studies have shown if you can entertain people when appropriate (unobrusively - you have to guage the situation), that can increase tips by 7%. If you have regulars, give them freebies - fucking EVERYONE loves a freebie. A study showed that if you give a weather forecast on the bill, the tip is an average of 22.2% vs 18% if they didn't - so when giving the bill you write "The weather is supposed to be great tomorrow, have a great day!" If you use your customer's name, you will get a bigger tip. Giving a gift increases tips - even giving a candy cane during christmas or candy corn during halloween, etc. Other ways: Squat down to talk to customers, smile a lot, write "thank you" on the bill. Read your customers. Learn what your boss wants so you get the better shifts more often. Get better customers and get them to come back to you and ask for you. Basically create an environment that predisposes customers to be generous. Did this answer your question about why some make better tips? >Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? That's ok. None of us can please everyone. I'm positive someone finds things that you think or want as gross, and I don't mean that in a bad way. I very much am strongly supporting tipping, I think it is great. >It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt. Eh. It's blunt everywhere. We all knuckle under to our stupid bosses we've all had in life because of money. And the thing is, that multiple studies have been made for waitstaff and they all WANT to be controlled if they make more money. Wait staff in the USA love tips, and they love the thought that if they give great service, that their tips can be larger - it gives them motivation. This is not me saying this, it's what the wait staff wants. They love it. Not every single waiter/waitress. People who suck at interpersonal communication probably hate it, of course. That would be logical. But it is a personal job, so they should find another job, quite frankly. And in general, customers don't look at it as a power trip, at all. Some do, but the vast majority do not. I don't. I'm not imperious, snapping my fingers for service, and ordering people around. That is just bad manners and an ill-mannered person who would do this even if there was no tipping. Because that is how people are.
pull_my_finger 4y ago
> tried to switch to a "no tipping" model with a 20% mandatory service charge Sounds like a false dichotomy. Why is the only other option still an imposed cost on the customer? Wouldn't it be nice if the bad servers just got fired like any other profession and the good servers got a bonus or something from the business owner? Maybe people shouldn't "aspire" to be cafe baristas and chain restaurant wait staff. There are plenty of students and elderly that could handle the job and also handle the minimum wage. There's no reason those jobs should be lucrative, unless the business owners (rightly) realize those staff are the face of their operations, but in that case, again, the business owner should "invest" in their higher salaries to hopefully bring in business. None of this should be imposed on customers. Just my opinion.
- b112 4y ago
  There are plenty of students and elderly that could handle the job and also handle the minimum wage. It is my understanding that in the US, you're not paid minimum wage. Waiters are paid mostly by tips. Some may have no wage! Tips only. Where I live, this is illegal, and I suspect in Europe too, and this is where the lack of understanding comes from. Now, coffee shops? People behind counters are not waiters, so I am unsure of wage issues, in the US.
  - tallanvor 4y ago
    Some places still have a lower tipped wage, but your hourly pay + tips has to at least equal the federal minimum wage, otherwise the employer has to make up the difference. Of course, the federal minimum wage is criminally low, and many employers aren't exactly ethical/operating legally.
- jandrewrogers 4y ago
  There is no revenue/wage neutral way of restructuring how the costs are presented. A 20% service charge generates less income for waiters than tipping. Adding 20% to menu items generates less income for waiters than adding a 20% service charge. This effect isn't due to redistribution but a reduction in bill + tip revenue. No one has to like it but there is a lot of empirical evidence for this effect (and there are good theories as to why it happens). By trying to eliminate tipping, you are working against the interest of waiters since they naturally want to maximize their income. You may not like tipping but it is economically optimal in many contexts. Businesses need to compete for employees and tipping maximizes employee income relative to revenue. Where I live, most of the bartenders and waiters I know personally earn on the order of $80k/year if they do it full-time, and not at high-end establishments. Not an ostentatious lifestyle but definitely middle class.

FrontierPsych 4y ago

I don't like the proliferation of tipping everywhere. But I know many sit-down restaurants have tried to institute a no-tip policy, but both employees and customers hate it. I would hate it. I like giving tips. I wouldn't go to a restaurant where tipping was not allowed. Plus, the restaurant has to raise their prices up by 20% anyways, because they now have to pay their wait staff more. The customer pays anyways. So it's a stupid thing not to have tipping. You're not going to save any money at all as the customer. It's impossible to save money. Furthermore, I know waitstaff that make a considerable amount of money from tips. Like, $300-$400 per shift and more. That's about $80,000 to $105,000 per year. So the food prices are going to have to go up substantially to cover what that person made with tips. The reason that many wait staff make so much is that they have "regulars" who tip them well because they develop a relationship and a repore that goes beyond just simple waiting on a random customer. People say they want the price that's on the menu, but come on - you know there's going to be a tip, if the menu says it is $20, then it is $23, you can do this in your head or on your mobile phone. You know exactly what the price will be unless you failed 2nd grade math. Why on earth would anyone care if the price said $20 or $23 on the menu, if in either case you pay $23? It's ridiculous in the extreme. Unless someone is an extreme pedantic martinet.

ztrww 4y ago
> to go up substantially to cover what that person made with tips more realistically, unless they are capable of finding another job that will pay as much they’ll just end up earning less without tips.
- FrontierPsych 4y ago
  Sure. Of course. But what they found in restaurants that had the no-tip policy is that all of their really great staff found better paying jobs easily, and the shitty employees, or new employees, would be the ones that stayed. And the new employees would leave as soon as they were trained up, so all that was left at the no-tip restaurants were the shittiest of the shitty employees. This is what I read from a study on this exact situation of no-tip restaurants and the effect it had.
- lostlogin 4y ago
  Legal minimum wages which are a living wage seems like something that should be a bare minimum.
  - collyw 4y ago
    How do you fell about internships? I generally think those are a good thing. Those are often below minimum wage jobs. Then again, I am not in favor of say Amazon workers being exploited with very poorly paid jobs and conditions for their source of income over the long term. (Thomas Sowell gives some good arguments against minimum wage - I am on the fence and it boils down to "it depends").
    - gambiting 4y ago
      >>How do you fell about internships? I generally think those are a good thing. Massively against them if they aren't paid like any normal job. If the intern is doing actual productive work(and let's not kid ourselves - they are most of the time), then they should be paid like any other employee. The only exception I can see is companies that have training programmes with vocational schools, where you go and work somewhere for say 2 years training to be a carpenter or a plumber or electrician or whatever - then it's no different than being at school and learning. But I'd wager than 99% of internships are not like that, they are just a very cheap way to get unpaid(or poorly paid) labour under the pretense of "giving young people work experience". It's nonsense.
      - 4y ago
calgoo 4y ago
I see it completely different. Coming from the EU, I hate going to restaurants in the US because of the tipping culture. I dont mind leaving something if the service has been amazing, but then it might be 5e when the family have had a full meal etc. Being forced to pay part of the staff salary directly, with staff getting angry / annoyed when you dont leave enough is backwards to me. Its not that the math is hard, its about having to decide what your income is going to be based on how you work. Thats not my business to deal with, thats the management / workers business. I almost feel like it creates a culture of entitled people (Karen Generators), who believe they can do what they want. Im also assuming that a lot of waiters dont pay taxes on the tips (at least when they are paid in cash), which would probably account for some of the difference in income between salary and tips. Here in the EU (most of the countries) at least we have good healthcare and education that is payed from those taxes, so you dont need to pay a 1k private insurance on a waiters salary.
- FrontierPsych 4y ago
  Right, I understand what you are saying. Many say the same exact thing. However, while you don't like it, a vast majority of Americans DO like it. I like it. The staff like it. Management likes it. I guess the solution is that if someone doesn't like tipping, they should never ever go out to restaurants here in the USA. That would take care of it instantly for you. But again, as I said, you will pay the exact same or more if tipping is included in the price! The exact same or more. The thing is that if you don't want to leave a tip, don't. It's so easy. Just don't. Most wait staff would rather a dinner party leave without paying the tip rather than have whining - who wouldn't? I've never had staff get angry with me and I've been going to restaurants probably longer than you've been alive. So I don't know where you're getting this from, unless you are lying for effect, to falsely bolster your case. I've never had entitle person ever. I've always had fantastic relationships with the wait staff. Because THEY WANT to give you a great experience so that they can get a nice juicy tip. It's not fake on their side, any more than a Disney worker or auto repair shop owner is nice to their customers. I've had such a good time with some wait staff, that they give me free desserts. I remember once my reputation for getting free desserts got around to a group of friends I occasionally hung out with. We were at the restaurant and said that it was bullshit and to do it right at that restaurant. I did. The waiter gave me a free dessert. Which are restaurants' main money makers. Waiters are required to pay taxes on tips, but you are right, if they are in cash, well, they can break the law, but that's the same exact thing as if someone doesn't come to a complete stop at a stop sign. Anyone can break the law. And as I also said, a LOT of restaurants, even high-end restaurants in New York, Los Angeles, San Francisco have tried no tips. But it was a disaster in almost all cases. Their wait staff would quit all the time, because a good wait staff person can make fantastically more money in tips. If a restaurant pays $25/hour (good luck on that) the wait staff would be paid $50K/year, but a good waiter can make $100K+ on tips. So the wait staff quit the no-tipping restaurants and move to a better, for them, restaurant. But really, you are paying the exact same, or more, if it is all included in one bill with no break out. And by breaking out healthcare costs, you will actually pay less money for the meal than all included. As far as healthcare and education being free in EU, that is irrelevant.
lostlogin 4y ago
> You know exactly what the price will be unless you failed 2nd grade math. As a tourist to the US, it just seemed silly. The random sales tax percentage, the tip or no tip (calculated pre or post sales tax?) situation. And due to the tipping thing, I had to carry cash, which I hadn’t done in 20+ years. It felt like going back in time a very long way. Ask for what you want, I’ll decide if I’ll pay it and I’ll come back if I liked the service.
- FrontierPsych 4y ago
  There are actual rational reasons, though. You, and even most Americans, don't know what they are, is all. Random sales tax on stuff for example is separate. This is not the fault of the business. The way USA government works is that sales tax is set by the county. There are 3,142 counties and county equivalents. Each charging their own tax amount. Let's say you are a big store like Target with stores across the USA. They want to charge $25 for a pair of shoes. How do they advertise? They take out advertising all across the USA, and charge $25 for the shoes. Well, how do you put in the correct amount on the newspaper or website advertisement? You put it in the newspaper for $27.50 because one county charges 10% sales tax. But the next county over has a 7% sales tax. The correct price is $26.75. But that newspaper is delivered into multiple counties, in the same exact newspaper, so there is no possible way for target to put the correct price. It's literally impossible. So what they do is say the shoes are $25, and you pay the difference to the county as an extra. Because the business can do fuck all about it. In European countries, they probably have the same exact sales tax everywhere, so it is ok to do it that way. But Target isn't going to get the entire USA to change the tax code of 3,142 different tax jurisdictions. Good luck on that one. For tipping, you don't have to carry cash at all. I never do. They have an extra line on the receipt to add the tip. I just round it and don't do it exactly, because it is easier and faster that way. You want me to ask for what I want? Ok. I want to tell you the price of the meal and you pay a 15% tip. That is what I want. And I don't want anyone whining about it. If one wants to whine, just stay at home and cook a home-cooked meal. Everyone wins. And, as I stated elsewhere, it is usually the people that are most vocal against tips that are the most pain in the butt customers anyways; even if there were not tips, they would still be the worst customers. Maybe not you, but most like that always have something more to complain about.
deleted 4y ago
[deleted]
moritonal 4y ago
To explain my down-vote. Firstly, many people, even smart ones are bad at mental math. The idea extra charges are added at the end is literally a dark-patterns used to trick people into spending more money because they are bad at doing this. Next, why do _some_ waitstaff make a lot of tips, and not others. You don't acknowledge how in almost every biased way possible tipping promotes some people, and punishes others. Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt.
- FrontierPsych 4y ago
  Everyone carries a mobile with them. We didn't use to and had to figure it out. But it is so simple. All you have to do is take 10%, then take 1/2 of that and add them together. So if a meal is $48.75, then 10% is $4.88. Round it up to $5. Half of $5 is $2.50. $5 plus $2.50 is $7.50 tip. then add that onto the total of the $48.75 but I round the $7.50 up to $8 and so $48.75 and $8 is $56.75. Super easy to do in one's head in less than 30 seconds. If lunch is $38.64, then 10% is $3.86. Round it up to $4. Half of $4 is $2, so $4 + $2 is $6 tip. Total is $38.64 + $6 or $44.64. Thirty seconds to calculate it. You do rounding to make it easy - you don't do all the decimal points exactly, that sucks to do it that way. Rounding is close enough, and you round up. . Some waitstaff are better than others. They are more social. They develop regulars. That's where the real money is made. You get regulars. There are other tricks, too. Not all of them work every time for every person, but it is a statistics game. Like if a waitress wears a flower in her hair, can make up to 17% more tips. Some people know how to upsell for a higher total bill and make more tips because of the percentage. If you draw a smily face on the bill, you will get a bigger tip. Studies have shown if you can entertain people when appropriate (unobrusively - you have to guage the situation), that can increase tips by 7%. If you have regulars, give them freebies - fucking EVERYONE loves a freebie. A study showed that if you give a weather forecast on the bill, the tip is an average of 22.2% vs 18% if they didn't - so when giving the bill you write "The weather is supposed to be great tomorrow, have a great day!" If you use your customer's name, you will get a bigger tip. Giving a gift increases tips - even giving a candy cane during christmas or candy corn during halloween, etc. Other ways: Squat down to talk to customers, smile a lot, write "thank you" on the bill. Read your customers. Learn what your boss wants so you get the better shifts more often. Get better customers and get them to come back to you and ask for you. Basically create an environment that predisposes customers to be generous. Did this answer your question about why some make better tips? >Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? That's ok. None of us can please everyone. I'm positive someone finds things that you think or want as gross, and I don't mean that in a bad way. I very much am strongly supporting tipping, I think it is great. >It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt. Eh. It's blunt everywhere. We all knuckle under to our stupid bosses we've all had in life because of money. And the thing is, that multiple studies have been made for waitstaff and they all WANT to be controlled if they make more money. Wait staff in the USA love tips, and they love the thought that if they give great service, that their tips can be larger - it gives them motivation. This is not me saying this, it's what the wait staff wants. They love it. Not every single waiter/waitress. People who suck at interpersonal communication probably hate it, of course. That would be logical. But it is a personal job, so they should find another job, quite frankly. And in general, customers don't look at it as a power trip, at all. Some do, but the vast majority do not. I don't. I'm not imperious, snapping my fingers for service, and ordering people around. That is just bad manners and an ill-mannered person who would do this even if there was no tipping. Because that is how people are.

pull_my_finger 4y ago

> tried to switch to a "no tipping" model with a 20% mandatory service charge Sounds like a false dichotomy. Why is the only other option still an imposed cost on the customer? Wouldn't it be nice if the bad servers just got fired like any other profession and the good servers got a bonus or something from the business owner? Maybe people shouldn't "aspire" to be cafe baristas and chain restaurant wait staff. There are plenty of students and elderly that could handle the job and also handle the minimum wage. There's no reason those jobs should be lucrative, unless the business owners (rightly) realize those staff are the face of their operations, but in that case, again, the business owner should "invest" in their higher salaries to hopefully bring in business. None of this should be imposed on customers. Just my opinion.

b112 4y ago
There are plenty of students and elderly that could handle the job and also handle the minimum wage. It is my understanding that in the US, you're not paid minimum wage. Waiters are paid mostly by tips. Some may have no wage! Tips only. Where I live, this is illegal, and I suspect in Europe too, and this is where the lack of understanding comes from. Now, coffee shops? People behind counters are not waiters, so I am unsure of wage issues, in the US.
- tallanvor 4y ago
  Some places still have a lower tipped wage, but your hourly pay + tips has to at least equal the federal minimum wage, otherwise the employer has to make up the difference. Of course, the federal minimum wage is criminally low, and many employers aren't exactly ethical/operating legally.
jandrewrogers 4y ago
There is no revenue/wage neutral way of restructuring how the costs are presented. A 20% service charge generates less income for waiters than tipping. Adding 20% to menu items generates less income for waiters than adding a 20% service charge. This effect isn't due to redistribution but a reduction in bill + tip revenue. No one has to like it but there is a lot of empirical evidence for this effect (and there are good theories as to why it happens). By trying to eliminate tipping, you are working against the interest of waiters since they naturally want to maximize their income. You may not like tipping but it is economically optimal in many contexts. Businesses need to compete for employees and tipping maximizes employee income relative to revenue. Where I live, most of the bartenders and waiters I know personally earn on the order of $80k/year if they do it full-time, and not at high-end establishments. Not an ostentatious lifestyle but definitely middle class.