If your business model requires you to pay your workers less than a livable wage, you do not have a viable business model.
Restaurants are getting killed by greedflation not higher wages. When everything is expensive people start cutting back on discretionary expenses like eating out.
And food costs are about to go up even more. And Netflix is increasing prices too. Say goodbye to your bread and circuses!
Prices have skyrocketed along with tipping exploding beyond reason. The last place I sat down to eat had automatic options of 20, 25, and 30 percent.
I remember 15% being customary and anything above 20% being super generous.
The restaurant has had to add a 23% service charge in lieu of gratuity to bridge the wage gap between front and back-of-house staff.
Is this a 23% charge on top of tipping the front-of-house staff? Isn’t a “service charge” disingenuous? Why not raise prices by 23% instead?
No, it is instead of tipping. That’s what they mean by “in lieu of”.
The question about prices is a good one, and the answer is that you can’t just raise prices when most other restaurants don’t include gratuity. It would just seem like your restaurant is much more expensive than everyone else.
It would just seem like your restaurant is much more expensive than everyone else.
Its a forced 23% gratuity, it IS more expensive than everyone else, except the restaurant isn’t being honest about it and hiding it in fine print only to be discovered when the bill comes.
That seems to be a great way to alienate customers from ever returning because they won’t know how much they’re being charged until the bill comes.
The average tip at most fine dining restaurants in American cities is between 18-25%, so a fixed 23% service charge instead comes out about even on cost.
I don’t know what it’s like at this restaurant, but most places that have a fixed gratuity make it fairly obvious, to avoid exactly the situation you raise.
So how much are they asking for in tips? I note that the article states a dramatic increase in tipped wages, is the restaurant still asking for traditional 15-20% on top of increased menu prices?
I used to live going out to eat. But prices are insane and they have time if given fees. No thank you.
