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> In another incident, my restaurant bill included an automatic 20% "service fee" Hm. This has been pretty common in larger cities for a while, mostly because

> In another incident, my restaurant bill included an automatic 20% "service fee" Hm. This has been pretty common in larger cities for a while, mostly because the service staff actually need the tips to like not be literally homeless. I can see how this would be off-putting if you're not aware of the practice, though. > It would have been more transparent to just make the food cost 20% more. They don't do this because people misunderstand the total price or at least misperceive it. > Finally, as a general observation, the move paying (and tipping) electronically makes me question if the waitstaff are getting 100% of these digital tips or the employer is keeping some/all of it. I'm pretty sure there are tax/fraud implications if they call it a tip or service fee and then pocket the cash. But yeah it's not like wait staff typically have tons of negotiating power.

AlexandrB 4y ago
> Hm. This has been pretty common in larger cities for a while, mostly because the service staff actually need the tips to like not be literally homeless. This is fucked up on its face. They should be making $15/hr or whatever the living wage is in the area (probably more) and tips should be on top of this. How did tipping go from a bonus to something someone needs to survive? Edit: > I'm pretty sure there are tax/fraud implications if they call it a tip or service fee and then pocket the cash. But yeah it's not like wait staff typically have tons of negotiating power. If a company as large and with as many workers as DoorDash was able to get away with it for over a year[1], I'm sure that there are small businesses out there doing it unnoticed. I'm not sure how a worker could confirm they were paid out fairly without independently keeping track of every customer's bill for the night. This is complicated even more when there is tip sharing between "front" and "back" of house. I hope I'm wrong though. [1] https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-for-2-5m-over-deceptive-tipping-practices/ https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-fo...
- thwayunion 4y ago
  > This is fucked up on its face. They should be making $15/hr or whatever the living wage is in the area (probably more) and tips should be on top of this. How did tipping go from a bonus to something someone needs to survive? Regardless, that ship sailed a long time ago. Restaurants have tried the "tip in price" model. It doesn't work; homo economicus is a lie. Consumer behavior is pretty well understood on this question. Remember that if the restaurant goes under then everyone loses their jobs anyways. The only viable solution that ensures decent pay and also keeps the business viable is to implement it as "mandatory tipping". > If a company as large and with as many workers as DoorDash was able to get away with it for over a year[1], I'm sure that there are small businesses out there doing it unnoticed. Agreed. But tip theft happens regardless. I don't think the "mandatory tip" model makes it either harder or easier. At the end of the day most people pay with credit and the owner of the restaurant owns the till that counts out that tips. I'm not saying that this situation is ideal; I'm just saying: what's the alternative that actually works?

AlexandrB 4y ago

> Hm. This has been pretty common in larger cities for a while, mostly because the service staff actually need the tips to like not be literally homeless. This is fucked up on its face. They should be making $15/hr or whatever the living wage is in the area (probably more) and tips should be on top of this. How did tipping go from a bonus to something someone needs to survive? Edit: > I'm pretty sure there are tax/fraud implications if they call it a tip or service fee and then pocket the cash. But yeah it's not like wait staff typically have tons of negotiating power. If a company as large and with as many workers as DoorDash was able to get away with it for over a year[1], I'm sure that there are small businesses out there doing it unnoticed. I'm not sure how a worker could confirm they were paid out fairly without independently keeping track of every customer's bill for the night. This is complicated even more when there is tip sharing between "front" and "back" of house. I hope I'm wrong though. [1] https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-for-2-5m-over-deceptive-tipping-practices/ https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-fo...

thwayunion 4y ago
> This is fucked up on its face. They should be making $15/hr or whatever the living wage is in the area (probably more) and tips should be on top of this. How did tipping go from a bonus to something someone needs to survive? Regardless, that ship sailed a long time ago. Restaurants have tried the "tip in price" model. It doesn't work; homo economicus is a lie. Consumer behavior is pretty well understood on this question. Remember that if the restaurant goes under then everyone loses their jobs anyways. The only viable solution that ensures decent pay and also keeps the business viable is to implement it as "mandatory tipping". > If a company as large and with as many workers as DoorDash was able to get away with it for over a year[1], I'm sure that there are small businesses out there doing it unnoticed. Agreed. But tip theft happens regardless. I don't think the "mandatory tip" model makes it either harder or easier. At the end of the day most people pay with credit and the owner of the restaurant owns the till that counts out that tips. I'm not saying that this situation is ideal; I'm just saying: what's the alternative that actually works?