4 ms·

I tried this when I started my popup restaurant. I rolled taxes into my prices, and didn’t ask for tip when collecting with Square. I did this because I love th

by jpcfl 4y ago

I tried this when I started my popup restaurant. I rolled taxes into my prices, and didn’t ask for tip when collecting with Square. I did this because I love the simplicity of dining in Europe, where you pay exactly the price you see, and don’t get guilt tripped at the register. My customers complained that my prices were too high. So, I lowered my prices, added tax, then asked for a tip. About 50% of people tip, so my profits have actually gone up on average after this adjustment. People seem to be buying more, too. I hate it, but this model seems to work better from a business perspective, despite it being a worse customer experience (subjective, I know). How do you train your customers not to have sticker shock? Do I need to hang a banner that says “TAX AND TIP INCLUDED IN ALL PRICES” in comic sans?

notch656c 4y ago
It would be simple for me. I would refuse to go to your restaurant because dealing with multiple systems is too much work for my feeble mind. And my wife tells me I'm better with math than the common person. Your system is better. But it's special. Special is bad because I don't like having to do things X different ways for X different restaraunts. I would rather pay a little more and not have to remember the quarks of your restaurant. I am also just trained to tip so I will feel icky leaving your restaurant no matter if you are paying them a fair amount already. So if you charge more money to include the tip I will still feel obliged to tip anyway and I will leave with the experience your restaurant is too expensive and not come back. In short I think you've done the right thing. Don't fight the mob, embrace it.