Many restaurants have started adding a “service charge” that is not a tip in addition to menu prices. It’s super fucking shady. There is rarely an signage indicating the charge, relying of the hostesses to inform you. It isn’t always clear on the itemized bill they hand you, since it’s grouped down with the tax. It’s not the standard gratuity added for large groups. There is a restaurant near me that suddenly started adding this kind of charge. They did not notify me when I sat down and I didn’t see any indication of it on the itemized bill and only noticed when calculating the tip, after they’d run my card. I made a huge stink about it because it’s a fucking scam and they did discount my bill, but they refused to remove the service charge. I liked their food, but that was the last time I visited and I stopped recommending them.
I think what really kicked this off is that restaurants started putting surcharges on bills by directly passes specific legal requirement costs directly to the customers without increasing their menu prices. For example, now that servers get some health benefits in SF, they'll have a surcharge that says something like "SF Mandate" or "SF Health Surcharge".
This would also cover stuff like to go order surcharges where some places are charging more for takeout sort of like Doordash or Grubhub do, except of course, you're picking it up yourself.
I do wonder how/if places with some more traditional surcharges are going to comply now. For example pizza places charging delivery fees.
Places will still be able to get away with "X% gratuity added to bill for Y seats (though I've seen some places do it for any number of people, including 1)" because that's optional, even if they put it on your bill because you've always been able to make them remove it.
It is like on most people's cell phone bills in the US. You'll see stuff like "FCC surcharge" which is the company passing their FCC regulatory fees directly to the customer without changing their advertised prices for a plan, E911 fees for 911 services, various taxes levied on the company but not the consumer are also passed to the customer.
The purpose is to have restaurants take these fees/taxes/whatever and make them build those costs of doing business directly into their advertised pricing on their menus. Companies don't like this because they can advertise cheaper prices and psychologically the customer doesn't usually think or even know about the extra surcharges, companies can set those surprise charges to whatever they want (they aren't regulated) and they do not have to really compete with those prices wherever they advertise (menus, flyers, etc.) thus driving them down for the consumer.
That’s what pisses me off, if the consumer knows what they’ll actually have to pay they won’t buy.
They are arguing that they should be able to lie to the consumer and trick them. They think the consumer shouldn’t be informed to make a decision on what is right for them. And once again, they are putting the business before the customer.
“Bait and switch” is the advertising of a product without the bona fide intention to sell it, for the purpose of establishing contact with a prospective customer in order to induce or “switch” him to purchase another product.
The existence of bait and switch schemes may also be evidenced by the following factors: whether in fact there were a significant number of sales of the advertised product at the advertised price;
Adding on hidden taxes and fees is debatably not providing the advertised price. Maybe? I don’t know.
Only fees that are entirely optional — like leaving a tip for staff — can be left out of the posted price.
Wrong move. They should have outlawed tipping too. No more hiring for shit wages and leaving adequate compensation up to chance. Bump up the menu price and pay your staff an enticing salary.
You don’t need to ban tipping. Several countries don’t have a tipping culture and that’s because the waiters are paid adequately for their work. Tipping is seen as a bonus after exceptionally good service.
The US should raise the minimum wage for restaurant workers and not make it the customer’s responsibility to make sure the waiter can pay their rent.
Take your basic non super fancy restaurant, dinner for two with appetizers, entrees, desserts, a two rounds of drinks will probably be $100ish. And that table of two will be there for an hour. Assuming server gets 20% tip average, that’s $20 for the table. An average server will have four tables in their sections. That means if the restaurant is full, they are making $80 an hour in tips. They will get to keep 60% to 80% of that, the rest going in a tip pool that benefits kitchen staff, bussers, barbacks, etc. But they’ll still be making pretty good money.
Of course if the restaurant is empty or they only have one or two tables with people seated, they are making less.
The problem comes that if you get rid of this system, there’s a lot of financial risk for the restaurant owner. Currently they don’t have to pay the server or the staff very much, most of their compensation comes from tips, meaning there is less risk to them keeping the restaurant fully staffed if it’s not going to be busy. If you pay all these people are constant hourly, now there is risk on the restaurant owner in terms of staffing. Bring on too many staff when it’s quiet and they will lose a bundle. Don’t bring on enough staff when it’s busy and those people don’t have a financial incentive to bust their ass. It also becomes solely their job to ensure quality, because the server that spends half the time on their phone in the back room is making the same money as the server who is attentive to their tables. It also means less risk for hiring an inexperienced server, because if the server does a bad job they just won’t make good tips.
All that said, I agree something has to change. I think perhaps one answer would be a law requiring that each restaurant put 15% of gross receipts into a virtual tip pool. That way they aren’t paying through the nose to staff and empty restaurant, there would be a line item on the check like ‘automatic gratuity paid the staff $whatever on this check, further tipping is optional’.
there’s a lot of financial risk for the restaurant owner
Risk for the business owner, what a concept. The workers aren’t there to defray risks for an owner, they’re doing a job. If the restaurant founder wants to push risk to their employees, make it a coop, then they can share in the profits as well as the risk.
Servers deserve a lot more than minimum wage. Servers would generally not accept anything close to minimum wage, especially when with tips they can be making $50 to $100 an hour on a busy night.
I am simply pointing out that it is difficult to compete with that.
Nowhere close to enough. What we pay teachers is fucking criminal. I believe teaching should be a respected and sought profession that employs the best. Unfortunately my impression is nobody is really taking education seriously, except for the handful of teachers that haven’t burned out yet.
Just in case this isn’t a joke, then this is probably a country difference. In America, “entree” is synonymous with “main course”. I know, I know. That’s not what entree means. But the fact remains.
Where im from ive never heard of that, entree is usually a starter snack to hold you over till the food is done. But this could also be a regional thing still.
I am from Texas and have lived in several states in the eastern half of the US. “Entree” on a menu has always been the main dish in my experience. You also frequently see it used that way on recipe websites. This is the first I’ve heard that entree has a different meaning elsewhere. Merriam Webster has a bit of background info on how that came to be.
Hmm maybe this is a weird area where my part of SoCal reverted then, we do have a pretty big European immagrant population to this day. Lots of Germans and Nordics for some reason.
Huh? This might be a different wording thing. In the US, entree is another word for main course. So the meal I am illustrating is for two, has two starters, two main courses, two desserts, four drinks in total.
Agreed. I hate tipping. Some tippers will hate for tipping to go away because they can use their charisma to make a lot of money. More power to them but tipping is just a way for these businesses to keep their labor low. Many other countries don’t have tipping and can still have restaurants. For some reason the US needs tipping to be able to have restaurants.
Some tippers will hate for tipping to go away because they can use their charisma to make a lot of money
The funny thing is even if restaurants are forced to pay a living wage and not have tips as a subsidy, these servers would actually still be able to do that. Maybe not AS much as before, but between that and an actual living wage is bet they still would come out ahead lol
A lot (not all) of workers in the service industry like tipping, actually. They get cash a lot of the time, which they like, and can under report on their taxes. Most people opposed to banning tipping, in my experience, are actually the people receiving the tips.
Something tells me these same workers wouldn’t like tipping so much if people didn’t feel obligated to tip under threat of food tampering (real or imagined) or other threat/shame tactics.
I do wonder how much that’s changed over time. As more of us use only electronic payments or credit cards, that has to reduce the opportunity for tax fraud (same with panhandlers - I literally don’t carry any cash I could give you, so now what?)
A few places in Seattle experimented with different ways to go tipping when the city raised the minimum wage across the board without making an exception for tipped wages. A few forbade tipping a few had a standardized tip percentage. A few had a surcharge added on. Many made it clear how they did it. Shitheads like Tom Douglas did not make it clear and added a 4% charge on the bill noting that it was a living wage fee. I don’t go to the ones who were shady about it. Largely it has all returned to standard typing. There are a few coffee shops like Seattle Coffee Works and an ice cream shop (Mollie Moon’s) that do not allow tips.
They won’t make nearly as much as they did with tipping. I expect either tipping to come back to that place or the servers to leave for somewhere better.
Meanwhile, most places in London pay at least the minimum wage (not lower for waitstaff, but not necessarily living wage) and tack on an optional 12-20% service charge, and don’t give it to staff.
You have to determine if the service charge goes to staff, awkwardly refuse the service charge, and (optionally) tip your waitstaff in cash (and if you do, ask they split it with back of house)
The times we’ve done it seems to make the staff happy. Still a shit thing to do.
Agreed, but overall a good move to address separate and much simpler issue of predatory pricing (for the customer)
Heading to mother’s day lunch right now, set menu for $89 per person. Except it’s a 10% surcharge on Sundays, the only day that mother’s day is, so that price isnt really true at all.
This in Aus which I’d normally argue has better common-sense policies such as requiring sales tax in the menu price
I’m not a California resident but once on a visit I ate at a place. Paid the bill. No tip. Left. The shopkeeper chased me on the street to catch up and ask why I didn’t tip, and wasn’t the food good, etc. Embarrassed, I was with a friend who is a resident… I told her yes it was fine. “Then why no tip?!” Internally: Because it’s a tip? I didnt get some kind of exceptional service there. If anything they left us alone really. So what was I tipping for exactly? why not just charge a different price, etc. Externally: “Oh I’m sorry. I didn’t know”
Yeah, but you know how the system works, so you intentionally stiffed someone out of their income. Regardless of if the system is correct or just it exists and you don’t get to just opt out without being a gigantic asshole.
Ok… Thanks for your input I guess, but as a European, the practice of tipping isn’t ingrained in my culture as it may be in yours. Frankly, I find it bizarre and from the outside I also see many in your own culture find it bizarre also. If not downright predatory of businesses on customers.
Why not? If the waitron is counting on an “optional” tip and doesn’t get it, maybe they have more incentive to insist on fair pay or move along. … that’s what I say to myself , anyway, as I’m leaving the tip
If I go to McDonald’s and they serve me food. I don’t tip them. the same thing happened at that smaller restaurant. If all they did is walk the food to my table and that’s it, then why am I tipping some percent extra for them to walk the plates 3 meters (~15 feet)?
Definately how it should be, but staff at most places hate that idea. They know they’re making way over what they should be for the job, and they like not reporting all their earnings on taxes.
There are a lot of things I wished they did similar to other countries such as VAT. Hiding all these fees seems deceptive from both the business and the govt sneaking in their taxes.
Unfortunately, govt is the cause of that, not the solution. Taxes are always separate since they vary by location and are defined by the local govt. but yes it’s also a problem when that local govt wants to join in on fleecing the tourists, and it’s by convention not part of the price
Yeah. It would be really convenient to calculate if the hotels just stood around in one spot for years so the taxes didn’t change every time someone got a room, but with them constantly on the move who could predict anything?
This has been the case forever. Itemizing receipts for hotels is always a pain and at least my company’s expense tool has buttons for more than 7 different tax fields each night. It’s like filling out a whole spreadsheet it the nightly rate varies.
I do, but I also live in Bible Belt eagle fuckin rural America. Most of the people in my “city” live for every bad idea you can muster -
Like how practically half of this city exists explicitly on the far side of the city line, so they can dodge taxes while using the city’s infrastructure to get around (and then bitch about the state of the city’s infrastructure cause of course they do.)
I realize when I go out for a special event, like I did Friday night to see Harry Connick, Jr. play with the Boston Pops at Symphony Hall that I wasn’t going to quibble about costs.
However, after the non-optional 18% “gratuity”, they also had an additional “server” tip field. Ha, GFY, bitches!
Every hotel I’ve stayed in—regardless of state—has had this problem.
And if you read the first two paragraphs of the article, you’ll see the law actually applies to hotels as well; the article just chooses to focus on the restaurant part. So maybe your state-directed ire is misplaced.
On the tipping subject… it is just another way the well off designed long ago, to reinforce that the working class worked for them. Originally it was the business owner that they were targeting, to make sure they stayed dependent on the good graces of the elite. After all, back then most businesses were mom and pop shops. Now it is just out of controll, and used to increase profit margins as well as extract more cash from people who have trouble realizing the full cost.
Fees are predatory on people who are swayed by lower advertised cost. Basically, they are extorting the way many people’s brains work. It’s just another way to keep the not rich from ever catching up. Not just in dollars, but time. If you try to price compare, you have to sink a ton of time into uncovering all the fees. The rich just don’t have to worry about that. So it ends up as a time tax.
I agree that these fees are bad and I hate them, but couldn’t you make the opposite argument that they serve as a (money) tax on the rich? Poor people will take the time to shop around for the best deal, whereas rich people will simply pay whatever for the product they want. Therefore hidden fees disproportionately are paid by the rich.
Because you knew your “friends” are like that and went anyway. If I’m travelling to x for the first time, how would I know? If I can avoid it by staying at x+1, how should I even find that out without checking total prices everywhere? Since it’s not covered in pricing comparisons, I’d need to go through the motions for every possibility
No, it’s always taking advantage of the ignorant or the hurried, regardless whether they can afford it. I shouldn’t require extra steps to avoid being ripped off
It is bad if you think a person’s value of their own time isn’t reduced to market dynamics. Yes the rich pay a cost/tax for the convenience, but that is because their time is valued more by the market. Poor people are compensated less for their time and that seems to make it “okay” to ask poor people to spend more time to deal with less honest business practices. If you think their free time is as “valuable” as anyone else’s then this is offensive.
We need European pricing where the price is the price. I would go as far as making asking for a tip illegal too. Have restaurants put on their menu that prices include the tip. Raise minimum wage for restaurant workers.
And not just for restaurants, everything, from airline tickets to concert tickets, etc.
Yeah, tipping is pretty messed up. In a lot of states, wait staff are exempt from the minimum wage because they’re expected to treat tips (which are notoriously unreliable) as part of their salary.
Generally, as here in CO, there is still a minimum wage for staff that are regularly tipped, it’s just lower. I believe it’s also (again, as here) generally required that any time the tipping doesn’t make up the difference, companies are required to make it up instead.
That being said, it’s basically a way to advertise much lower prices than they actually charge. Roles that often get tipped tend to make pretty good money, and companies would basically never want to pay that much for those roles (especially when they are used to paying even less than minimum wage).
Weave backed ourselves into a corner for tipping. Restaurants may be convinced to pay a livable wage. But they’re never going to pay the servers what they can actually make in tips.
I was about 5 years into IT, My girlfriend was waiting tables at Ruby Tuesday. Most days she made more than I did. And depending on how bad they ‘adjusted’ their tax claims …
That said, some days she did basically pay to work there.
I suspect if you ask the vast majority of wait staff if they would like to be paid and livable wage or continue a tip-based system they want to stay tip based.
I think that’s very dependent on age. When I was in my early twenties, an inconsistent gig with the potential for high tips was very appealing. When I got into my late twenties/early thirties I moved over to events and catering because they offered a high hourly wage with predictable(ish) hours. If the restaurants pay well enough they’ll be able to find people.
The real problem will be vacation towns. There are some places where most of the restaurants and bars close in the off-season. The staff will work their asses off through the spring and summer, then use their tips to live the rest of the year. For some of these towns, even if the restaurant staff wanted to pick up a job in the off-season, they’d need to drive two hours just to find a part-time gig at Target. I really want tipping to end, but I’m not sure what would happen to these places. The seasonal restaurants could pay more, but I’m not sure they could offer enough to subsidize their staff for half the year.
How’s that any different? You’d get fewer takers for a seasonal job, so shouldn’t pay go up? Just like they now get disproportionate tips, shouldn’t they get a disproportionate living wage?
I’m not sure it will scale properly. Tipping might outpace sales in towns like that, and I’m not really sure what the economics are in maintaining seasonal restaurant. And if there are fewer takers for seasonal jobs, the employers could pay more theoretically, but in the restaurant industry, fewer servers means slower service. Slower service means fewer sales, fewer sales means less profit, and less profit means lower pay. I think places like this would require a UBI program to maintain how they currently operate without tips.
But they’re never going to pay the servers what they can actually make in tips
Im not sure I believe that. I mean, I’ve also known people who said the same things, so clearly there are people who really make out. However I suspect this is highly variable and there are even more just scraping by. I’m sure it greatly depend on the restaurant and the clientele, as well as the actual effort, and I’m sure it highly depends on looks. That 18yr old hottie at the local hot spot may rake it in, but the elderly matron at the local diner works just as hard but with less opportunity
Everyone talks about tips being a reward for good service but tips are almost never proportional to service
Good for her, but arguably it’s not supposed to be a high paying job. A living wage, sure, but higher than a job that you presumably studied for and required relatively uncommon knowledge seems wrong.
So I guess the answer is no, we wouldn’t expect restaurants to work out how much people get paid in tips and match it, it would be a liveable wage and if the current workers don’t like it they would leave.
I don’t know that your girlfriend getting bankrolled is common across the industry either, tips rely on high traffic and customers with big pockets. Most wait staff don’t brag about how rich they are.
OP said “asking for a tip”. If I want to tip a particularly good server experience, everyone should be free to do so. But asking for it, and it comes to mind those places that explicitly stipulate that 10% is minimum mandatory tipping, should be illegal. That’s a hidden fee, not a tip.
People can’t let go of tipping. A few restaurants near me tried it and ended up closing.
Tipping isn’t just a part of culture but it also breaks up the spend for the consumer. You commit to a $15 burger now, then the $3 of tip later. Integrating the tips with the cost makes it seem like everything is more expensive and also makes it not optional for how much you give.
…That’s why people don’t like the service fees, etc. It’s difficult to know, as a consumer, how much you’re actually being asked to spend. If you’re rich, haha who cares? Everybody else has to do this thing called “budgeting.”
This might be a weird question but when people tip for a good service, what exactly is good service?
If I go to a restaurant I expect them to take my order, bring me the food and when I’m done bring me the check. That’s it. I want nothing else from them. Should I tip them for not spitting in my food or not stumbling and throwing it all over my clothes?
I usually don’t tip, as I live in a country where people don’t depend on the tip. And if they got a problem with that, they can take it up with management. I am not their employer. Also, I don’t get extra money for simply doing my job as well.
But there are rare occasions, when I do. And that’s if I see that someone has gone unexpected “extra” lenghts, which can not usually be expected from doing the job.
For example, in an italian restaurant my partner and I ordered some noodle dishes. We were there often, so we didn’t expect anything unusual. However, that day, the waiter just brought us some Parmesan cheese with the advice it tastes better with it and we shouldn’t be shy to ask for it. That was very forthcoming and justified a tip.
On another occasion, when my partner had a hospital stay, we ordered some pizza. We did it once or twice, as the treatment took several weeks. Usually I went down to the building entrance and received the order. One day, there was an awesome delivery guy who took it up on himself to bring it to us to the patient room. We were very impressed. I remember that my partner said we should shower him in money, haha. We certainly gave him a nice tip.
Friendly, prompt with explanations for delays and either a remedy or some form of alleviation of the disappointment, good recommendations/feedback on food, etc. a big one for me personally is coming over only when you notice something is needed (drink low, people looking around, etc )
I’ll tip if someone does those kinds of things as it’s going above the basics I normally require
For me it usually about timeliness (I don’t know if that’s a word but it makes sense to me) and if our drinks a nearing empty they ask if we would like another rather than having to spend five mins trying to flag some one done.
Simply doing the job quickly and professionally which for me makes my meal a little bit better. Also this is much more achievable for the staff if the restaurant has enough staff.
Good service is anything outside what you just said. Did you need to ask for any changes/ substitutions? Did you have an allergy they had to accommodate? Are you on a rush and they brought it out quickly for you? Are you splitting the bill? Are there children in your party? Did anyone leave a mess or did a drink spill? Were they extra helpful with recommendations? All these merit a tip. If they do exactly as you said and you were an easy customer, no tip needed (assuming you’re in a country where tipping isn’t customary)
I’m not saying those things are morally worse or something, I’m just responding to OPs question about what merits a tip. I’m just outlining the etiquette.
If you have above average service needs, that’s when a tip is appropriate. It’s not your fault you have an allergy, but it creates more work, so a tip is appropriate.
Also it’s very common for waiters to tip out kitchen staff
Why is the price you put on a full water glass dependent on whether you got an expensive steak vs a cheaper pasta dish though? This is why percentages are so dumb.
I literally say that I am fine to pay extra when I believe the service is worth it. I live in a country where servers earn above minimum wage typically.
You do you, some people are cheap, some are ignorant some are both.
If I go to a restaurant I expect them to take my order, bring me the food and when I’m done bring me the check. That’s it.
I’ve been to a Michelin Star restaurant where a pair of waiters were constantly hovering over your table to clean it and refill drinks and offer provide conversation.
The chef comes by and makes a presentation of every dish (the bananas foster was practically a magic act, the way they assembled the meal and then light it on fire). The staff practically wingman for you, if you’ve got a date. Everyone is beautiful and charming.
But that was something like $300/person just for the table, with 20% gratuity as a fixed fee on the final bill.
There are lots of restaurants that don’t charge through the nose for the meal but offer comparable service. Charming friendly waiters who weedle your favorite food and give excellent recommendations. Staff that sing or make clever jokes or entertain small children or share a cocktail with you at the table. I know a few high end restaurants in Houston that will try to pouch waiters from one another because they’re friends with particularly wealthy regulars.
You see less of that now (at least in the states) because individual waiters are expected to cover more tables, turnover is more important than relationship building, and the quality of food has taken a real nosedive as we replace professional chefs with meals made in microwaves.
Now a tip is much more like a Coperto - a cover charge for seating - than gratuity for exceptional service.
A good waiter who earns his tip will have the skill to recognize that you want to be left alone, and will serve you quickly and efficiently and unobtrusively. Good waitstaff will quickly figure out what each patron needs in order to have an excellent dining experience, and then will deliver that.
Do it like in Europe. Prices are all inclusive, any kind of tip is just a thank you for outstanding service, and not a necessity so the waitress won’t starve.
It is a sales business with service, like buying clothes. Can you imagine having to tip the salesperson in a boutique?
It really depends on the country. France and Belgium, as you wrote. Germany, they expect a tip and look at you angry if you don’t. Italy, they add a service charge at the end that is nowhete advertised. Turkey, they invent a random price at the end, complaints only taken if you’re local. (I’m slightly exaggerating)
It’s common place in London to include a 12.5% service charge on the bill now. But it’s not mandatory. You can literally just be like “please remove the service charge”.
It’s kind of interesting because as an American it’s like I get to witness the invention of service charges in real time. If you hear employee complaints or warnings from people online they’ll say “the restaurant puts it into a common pool and only pays the employees a small portion of it” or “if you want to tip the staff, remove the charge and leave them cash” or “the business isn’t legally required to share any of the service charge with the employee”.
It’s like you get to see the UK go through all the bad phases of tipping culture before we get to the version we have in the US while everyone knows the winning move is to just not start down the tipping path in the first place.
Maybe I’m being overly cautious but the way the economies of the UK and Canada are incrementally becoming privatized, especially healthcare, is particularly disturbing. The populace must riot before it’s too late
I agree. I don’t know if we really need to go as far as rioting to say “stop putting ergvie charge on my bill, and please stop defending the NHS”, but yeah it is definitely concerning the way everything has gone since I moved here a dozen years ago.
Most restaurants where I live have a 20% service fee that is unknown until you get the check. I simply don’t go out to eat anymore. Half the restaurants have closed and the other half are mostly empty. Servers even sued for rights to the 20% but restaurant owners stepped in and took it. The 1% are insidious with their creep into your pockets to take every dime, then your inheritance, then into debt.
I was just in a smaller city in Germany and flew back to the US after that. I look German and speak German. When paying with card, Germany felt exactly like the US. At every restaurant, the tip request automatically came up within the thing used to process your card, just like in the US.
Same in colombia. The price advertised is the price you pay. No need to calculate the tax in your head in the grocery store, just add everything and you’re golden.
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