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Well, in the UK this is how every good restaurant operates. Waiting staff get paid a working wage and don't rely on tips to get by - tips will be considered an

Well, in the UK this is how every good restaurant operates. Waiting staff get paid a working wage and don't rely on tips to get by - tips will be considered an added extra; something nice to have. Surely that means it's a cultural thing rather than a business thing?

larrys 13y ago
Businesses will typically operate with the standards of what other businesses do wherever they are located. As such it could be out of the question to do it for another way other than whatever the legacy established standards are. So what we are talking about is hypothetically changing behavior that people already expect in their country or community. And not only that doing it individually since it is unlikely that a law would be passed for this. For example if I am the only restaurant in a certain area and I charge $35 for lobster "tip included" what I am saying is that less people will buy lobster than if it is priced (at an equal place) where the lobster is priced at $29 because $29 is a more attractive price "on the menu". I think from my exposure in the business world it is pretty much well established that people respond more favorably to a low price than a high-er price as they aren't not able in their head to either compute the total price or somehow a higher price is just a turnoff or other psychological reasons. If you study advertising you will see this. Not that there aren't places that have done well by not breaking out charges (all inclusive resorts for one thing or cruise ships as another). But speaking of cruise ships they now offer other restaurants where you pay more for the food and for that matter they charge for drinks. And also you don't tip (on the ones I have been on) you pay a daily fee. But note that the daily fee isn't included in the trip cost when you do research but shown as an "added cost" elsewhere in the advertising material (same with some hotels for that matter)
- pbhjpbhj 13y ago
  >For example if I am the only restaurant in a certain area and I charge $35 for lobster [...] // It's strange but in UK we also have restaurants that add a fixed service charge to bills. There's a note in the menu saying "a service charge of 15% will be added" or something like that. Those sorts of restaurants are often already the most expensive; and of course it's a ruse to keep the apparent price low. The "service charge" is just creative accounting though, the servers just get paid as normal, it's really just a part of your food-bill. Why do you find it unlikely that a law would be passed to force restaurants to be included in minimum wage laws and so actually have to pay reasonable wages? Also when you charge $35 people consider your lobster better, even if it's just a comparatively inflated price.

larrys 13y ago

Businesses will typically operate with the standards of what other businesses do wherever they are located. As such it could be out of the question to do it for another way other than whatever the legacy established standards are. So what we are talking about is hypothetically changing behavior that people already expect in their country or community. And not only that doing it individually since it is unlikely that a law would be passed for this. For example if I am the only restaurant in a certain area and I charge $35 for lobster "tip included" what I am saying is that less people will buy lobster than if it is priced (at an equal place) where the lobster is priced at $29 because $29 is a more attractive price "on the menu". I think from my exposure in the business world it is pretty much well established that people respond more favorably to a low price than a high-er price as they aren't not able in their head to either compute the total price or somehow a higher price is just a turnoff or other psychological reasons. If you study advertising you will see this. Not that there aren't places that have done well by not breaking out charges (all inclusive resorts for one thing or cruise ships as another). But speaking of cruise ships they now offer other restaurants where you pay more for the food and for that matter they charge for drinks. And also you don't tip (on the ones I have been on) you pay a daily fee. But note that the daily fee isn't included in the trip cost when you do research but shown as an "added cost" elsewhere in the advertising material (same with some hotels for that matter)

pbhjpbhj 13y ago
>For example if I am the only restaurant in a certain area and I charge $35 for lobster [...] // It's strange but in UK we also have restaurants that add a fixed service charge to bills. There's a note in the menu saying "a service charge of 15% will be added" or something like that. Those sorts of restaurants are often already the most expensive; and of course it's a ruse to keep the apparent price low. The "service charge" is just creative accounting though, the servers just get paid as normal, it's really just a part of your food-bill. Why do you find it unlikely that a law would be passed to force restaurants to be included in minimum wage laws and so actually have to pay reasonable wages? Also when you charge $35 people consider your lobster better, even if it's just a comparatively inflated price.