Forced gratuity


A New York restaurant is taking the option out of tipping. Instead, they will charge customers a flat 20% service charge on their meals. Waiters are not happy and say that the restaurant owners are trying to funnel more money to the cooks and support staff. The owners say they are tired of losing good cooks because they aren't tipped out well enough.

Regardless, if they know what's good for them they should probably just roll the tip up into the price of each item. If I went to a restaurant where they insisted on adding 20% to the bill I would be deeply offended. Much more so than if I looked at the menu and saw that the prices were 20% higher than normal.

I also wonder how it would affect the quality of the service. Waitressing is hard work, but on a bad day with bad service I like the option of being able to let the wait staff know when they've screwed up. Time will tell, but I don't think this will sit well with the eating public.



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Comments

Add shipping and handling to account for the waiters' exclusive cut.

And perhaps a Universal Cost Recovery Fee to account for the cost of the meat, vegetables, china, silverware, table, and rent/utilities.

We're moving to a society where we allow companies to tack on service fees to the list price that ensures that the price is all profit.

Posted by: Brian J. at August 16, 2005 8:59 AM

Considering that the vast, vast majority of restaurant bills are paid for by credit card - with the tip included - I don't understand where the concern comes in. If your a restaurant owner you simply let everyone know that the cook and busboys are getting a cut and you will ensure it.

I used to work at a restaurant in high school as a bus boy. I actually made more than the wait staff some nights, since I was paid a regular salary (albeit minimum wage) as opposed to the wait staff's $1.00 an hour or whatever it was. S-Th the waitresses would keep their own tips and then each would tip me out - thats when I had the chance to do better than some individual waitresses.

It was in their best interst to keep me and the cooks happy - and they knew that. I knew who were my friends and would go to the ends of the earth to keep their customers happy, keep their drinks filled and their dirty dishes off the table.

On Friday and Saturday evenings, since it was soo busy and everyone was helping everyone else out all the tip money would go into a giant pot and at the end of the night 15% would be taken out and given to the chef and I, while the waitstaff would get to split the remainder.

Before I took my current position I worked in a local law firm doing lots of local real estate work - part of which developed into a practice representing restaurants (and doing ABC work). At least up to 2 years ago, many restaurants continued to operate on this same model that I experienced in highschool in 1980s New Jersey.

Posted by: countertop at August 16, 2005 11:36 AM

German restaurants have long had, or anyway long ago had, mit or ohne Bedienung on the prices. I dont' know how it's come out since then.

Posted by: Ron Hardin at August 16, 2005 12:34 PM

NYC resaurants are already overpriced by at least 25%, and in general the service is no better than you would find anywhere else. And 20% gratuity? The nerve!!! 15% is all they have a "right" to expect, and that's for exceptional service, not just Ok service.

Once upon a time I worked as a fry cook in a Friendly's. I got $5/hr and no tips. The wait staff got $3/hr and only had to parse the tips with the bus boys. Those folks were averaging $12-$15/hr because of the taste and portion size of the food I made. They gave me hell on the spot if they thought there wasn't enough food on the plates because they knew that's where their tips came from.

Yeah, yeah, waitressing is hard work. Right. Being in the kitchen is far far worse. And for no tips? Screw that. I quit after 4 months.

Posted by: Drew at August 16, 2005 12:55 PM

I worked as a fry cook at one restaurant. I can tell you though that after looking at how the managers treated the wait staff I was happy for the lower pay. Anyway the food service is only ran by assholes and I know I'll never return.

Go government. Guaranteed job for life, good benefits, and you make it what you want it to be, either public service or another day job. (ARGH! THat sounded so liberal.)

Posted by: Rhett at August 16, 2005 6:11 PM

First off, I am a server. I make my living off of the tips that are given to me. Whether you are offeneded or not, that added gratuity is there for the protection of the server. See, at the end of the year, we have to pay taxes on EVERYTHING we had recieved for that year. And if every single person did not tip the proper amount, we are paying out of pocket what we should have been given. Thirdly, I base my tip percentage on the number of people I am waiting on. Such as, 1 person 10%, 2 or more 15% , 5 or more 18%, and over 9 people 20%. You can't just roll the tip into the price of the food. The server would never see their money. Remeber, we only make 2.38/hr and the added tip is for the protection of the server. Example,
Before I worked in a resturaunt with gratuity, I waited on a table of 20. Their check was 102.00. If the tip had been added, my tip would have been 23.88. Their food came out in 12 mins, I had no other tables to take care of while waiting on that table. Needless to say their service was perfect. At the end I recieved 5.68. Yeah, I got their change, and I had to pay out of my paycheck what they were supposed to give me from the very begining. Tis all.

Posted by: Stephanie at September 3, 2005 10:00 PM

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