Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So… We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn’t a grammatical horror to read]
Where the fuck did they come up with 18% being 20 odd dollars?
I’m gonna get lambasted for this, but I don’t see the issue.
If the restaurant paid them more in wages, the customer would pay for that too in the form of higher on-menu prices. That’s just how paying for goods and services works.
Unless this is some mega-restaurant where the owners are making so much money that they could take a pay cut and meaningfully increase everyone’s wages?
Sure, but I would be much happier with higher prices printed on the menu than a secret hidden fee at the end of the meal
I mean, that’s basically the way it works. Here it’s just ‘transparent’.
Want to pay workers more - food gets more expensive. It’s the same thing with America not adding sales tax to the sticker price. When I get something for 2 bucks in Europe, it’s 2 bucks including the vat. In America, it’s 2 bucks before vat.
But yeah, it’s probably not properly implemented and just a scheme to get more money out of people.
Except it’s contingent on people making purchases. If there is a slow day, you work the same amount of hours but earn less because your pay isn’t tied to how many hours you worked, but how many sales were made. By doing it this way, it takes the risk of running business off the owners shoulders and puts it on the workers instead.
What i meant is that, in a theoretical mathematically sound world, to support higher wages, you need higher prices. The service charge shouldn’t be put as a ‘bonus salary’ - basically the ‘service charge’ in most countries is included in the price of the food, and is paid out as the hourly wage to staff.
This is the opposite of transparent. When I order food, I’m agreeing the pay the listed price for the item I ordered. Adding 18% on top of that when it comes time to pay is hiding that fee.
If they want to charge more, they should raise their prices
Well yeah, that was my point.
Americans for some reason love this 'low low price of x$ (+tax +tip +service charge +fuck you charge) thing. Here in Switzerland, it’s all in the price. Menu says 40 bucks, you pay 40 bucks. Tips are very voluntary and usually just a “round up” -> total is 57 - let’s make it 60.
My wife works in a restaurant and gets around 3.7k a month - the tips she gets add up to around 300-700, depending on the month. In the store she works, tips get handled as a pool where everyone gets their monthly share depending on hours worked (serving staff and kitchen) - so total tips x person hours / total hours by everyone.
It’s still a low wage (I make around than double her wage, but then again I’m an electrical engineer), but it is very livable - I lived on a lower wage alone comfortably when I was studying and only working 50%
What is this nonsense? I mean, since the customers are the only source of income for a restaurant, of course the customers pay for the wages.
But why hide that behind obscure markups (that’s all a service charge/tip is)? Why not just price the food 18% higher and drop the service charge?
That way, the restaurant earns the same money, but the customers actually know what they are going to pay and the restaurant visit doesn’t end on a down note when paying.
Even if all the money does make into into the staff’s pockets, the owner still averts financial risk by making worker pay a function of sales. An employer must have higher business risks than their staff, because otherwise the staff wouldn’t need an employer anyways! This absolutely goes against the high risk - high reward scheme that is common place elsewhere. Want to earn more? Take a risky choice! Just want stable support for your life? Get employed and earn a regular wage.
