I agree, the tip at that point is entirely optional whereas without the service charge it would be expected. This seems no different than a “18% gratuity will be added to parties of 8 or more.”
It says on the receipt that they use the service charge to post a higher wage so if that is true then it does (indirectly) go to the staff. Like you say though - there’s no guarantee that it all goes to the staff.
At the very least they’re calculating the tip from the pretax/pregratuity price. Most places seem to calculate the suggested tips from the after tax total. So they’re not complete scumbags. Only mostly scumbags.
Tips exist because servers were/are paid below minimum wage. A service charge should replace the tip, not be added on top of it. Or the restaurant should factor labor costs into the price of their meals. The owners are double dipping to shift the cost onto the consumer.
Our taxes in general would need an overhaul for this. City tax, county tax, state tax. There is a different tax rate on different products.
I’m not against it, it’s just that the way the USA is organized with city, county, state, and federal hierarchies each able to levy taxes makes the implementation burdensome. Not impossible, but very difficult.
Nope, not an issue. It’s easier even… You buy a frozen pizza, a bag of flour, and a case of beer. All three of those might have different taxes… You can add it up at the register, or you can add them separately when you print the price labels
That’s if stores are the ones printing the price labels. Many prices are printed by the manufacturer on the packaging. They can print a single price on their product and ship it across the nation. All stores need to do is put it out.
They used to, but I don’t think that’s a common thing anymore. The few things that still print the price, like certain candy and Arizona iced tea, have a separate price at most places I’ve seen lately
Even then, they could just factor it in… They would make less on each unit in more expensive states, but it is an option. I saw that in places when I lived in France - and everything ended in round numbers too, it makes shopping so much more pleasant
Well too be fair the cost will always be borne by the consumer. After all if it comes out of the operator’s pocket they’ll just up the food prices.
But that’s really what should happen because it makes the pricing clear for everyone and a salary for the waiters makes them have a decent income even when it’s quieter.
If they need to raise prices by 18% to pay their workers, then they need to actually raise the prices on the menu. Right now this is just bait and switch, it’s dishonest and possibly illegal depending on the location.
I don’t see how paying your workers is infuriating
The bottom still suggest to tip… It’s not used to give their employees a better wage, it’s to show lower prices on the menus.
I actually interpreted that is tipping is now optional because the service charge goes to the staff
I agree, the tip at that point is entirely optional whereas without the service charge it would be expected. This seems no different than a “18% gratuity will be added to parties of 8 or more.”
Does it? Tips are legally protected and must go to staff, but I don’t think the same applies to “service charges”.
It says on the receipt that they use the service charge to post a higher wage so if that is true then it does (indirectly) go to the staff. Like you say though - there’s no guarantee that it all goes to the staff.
That’s how I interpreted the contents of the receipt, that’s all I can tell you.
This would reduce tipping a lot, so if the staff weren’t being paid well to begin with I don’t see how they’d continue working there.
At the very least they’re calculating the tip from the pretax/pregratuity price. Most places seem to calculate the suggested tips from the after tax total. So they’re not complete scumbags. Only mostly scumbags.
Tips exist because servers were/are paid below minimum wage. A service charge should replace the tip, not be added on top of it. Or the restaurant should factor labor costs into the price of their meals. The owners are double dipping to shift the cost onto the consumer.
Service charges are bullshit. Businesses need to advertise the full price of the food.
Imo, this is simply unacceptable.
I’m in the same boat. I think the costs should be reflected in the price of the meal.
I wonder if the menu showed there was a service charge
While we’re at it, how about we make the price on the label be the price you pay at the register across the board?
Other countries don’t do this… The price is the price, no surprise sales tax or service charges. The way we do it is insane
Our taxes in general would need an overhaul for this. City tax, county tax, state tax. There is a different tax rate on different products.
I’m not against it, it’s just that the way the USA is organized with city, county, state, and federal hierarchies each able to levy taxes makes the implementation burdensome. Not impossible, but very difficult.
Nope, not an issue. It’s easier even… You buy a frozen pizza, a bag of flour, and a case of beer. All three of those might have different taxes… You can add it up at the register, or you can add them separately when you print the price labels
That’s if stores are the ones printing the price labels. Many prices are printed by the manufacturer on the packaging. They can print a single price on their product and ship it across the nation. All stores need to do is put it out.
They used to, but I don’t think that’s a common thing anymore. The few things that still print the price, like certain candy and Arizona iced tea, have a separate price at most places I’ve seen lately
Even then, they could just factor it in… They would make less on each unit in more expensive states, but it is an option. I saw that in places when I lived in France - and everything ended in round numbers too, it makes shopping so much more pleasant
This is the answer.
Well too be fair the cost will always be borne by the consumer. After all if it comes out of the operator’s pocket they’ll just up the food prices.
But that’s really what should happen because it makes the pricing clear for everyone and a salary for the waiters makes them have a decent income even when it’s quieter.
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If they need to raise prices by 18% to pay their workers, then they need to actually raise the prices on the menu. Right now this is just bait and switch, it’s dishonest and possibly illegal depending on the location.
You can pay your workers without adding hidden fees.