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No Tipping Allowed

Discussion in 'Non-Vegas Chat' started by Breeze147, Jan 7, 2015.

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  1. Breeze147

    Breeze147 Button Man

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    Last edited: Jan 7, 2015
  2. dmr

    dmr Registered Abuser

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    In the 1970s there was a regional chain in the midwest (King's) which had a no tipping policy.
     
  3. C0usineddie

    C0usineddie VIP Whale

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    Its a double edged sword.

    Sounds like a great proposal but do we really think that these people are just being nice or are they just encouraging patrons to spend what they would have tipped on more food?

    The bottom line is always, always factored in.

    people dont avoid restaurants because they know they have to tip.

    This is a way to hopefully generate more income for the restaurant and work the servers harder. Sounds like a pretty fancy place so there is the possiblity that the servers will make less then they would have if the traditional method would have been in place plus they will now be obligated for more hours.

    I can see this going south.

    It works out to be about $15 an hour. So say they get a 20 top that eats there for 2 hours. They get $30 for that. That 20 top will spend what, $500 or so at least. Then the 18% gratuity would be on top of that so that would equal $90. So the server, just on this 20 top loses $40 in 2 hours.

    What the motivation to work harder on the next 20 top?
     
  4. Krh2o

    Krh2o MIA

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    As someone who worked in this industry while in college and still has friends that are servers, most would rather get a deal like this if the yearly money is equal. For every 20 top, there are weekday slow shifts and other slow shifts where the tips are small, and then there are big nights where the tips are great. With the POS systems now its pretty easy to figure out what each server sold in a year, and then figure out an average tip amount around 18%. I am sure the average tip amount plus their hourly was pretty close to 35K. Now they get consistency in their checks.
     
  5. Auggie

    Auggie Dovahkiin

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    I think its all going to depend how it pans out in the end: saying that they aren't going to raise prices but instead get more business sounds great in theory, but doesn't mean its necessarily going to happen.

    If it ends up something like the restaurant raises its prices 20% to compensate for paying its employees well then thats not really a benefit to the customer: it's more akin to saying they are enforcing a 20% tip on all orders, whether you were a tipper or not or how much you tipped, its now effectively 20% on all purchases.

    And then at the same time if the staff pay doesn't go up by the same amount, say the staff all got a 10% raise in the end (when you factor in everything), then its like ripping off the staff: it would be like enforcing a 20% tip but the house keeps half because they only give the employees a 10% raise...
     
  6. MikeOPensacola

    MikeOPensacola VIP Whale

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    This is a short sighted ploy by the restaurant IMHO. When an employer removes incentive in regards to job performance from its employees the end result is obvious; employees eventually get to the point where they simply don't give a shit. There are many variables in business that ownership/management can not control, but employee morale is certainly not one of them. A little imagination can go a long way. This sounds like a classic "bean counter dismissing the human factor" move. When I read articles like the one posted I almost Hope for the business to fail. Rant over.......
     
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  7. lotso-bear

    lotso-bear VIP Whale

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    I think this wouldn't work in many restaurants in the States due to cultural reasons. There will be those who will appreciate making a stable income, but there are those who will prefer making less than minimum wage while relying on tips.
     
  8. firstkill

    firstkill High-Roller

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    I actually like it when its all included into the check for "fine dining restaurant" where quality and consistency is the same all the time.

    I hate it when its and low and mid tier restaurants where service and quality can be "hit or miss"

    It bothers me when they break it down by Sub total, beverage, % tip already added and tax. If it was going to be "pre charged" I want the tip to be buried into the cost of the item.
     
  9. joespoolhall

    joespoolhall Low-Roller

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    s someone that work both as a tipped employee and a manager in the business, I see a few problems.

    1 - First and foremost, you're asking owners to subsidize tipping. Most just aren't in a position to do so. I know many think it's so easy to make money in the business, but that's not so. If it was so easy to make money, you wouldn't see the high percentage of closures you do year in and year out.

    2 - That hourly figure would be sliding depending on the location. The example of $2.73 plus tips makes $15/hr more reasonable, but in my state (Wa) min is almost $10/hr and is not tip adjusted, so $15/hr wouldn't be very attractive. This is a wage for servers. Bartenders make more. I know you couldn't find many places able to do that even if they wanted to.

    3 - It takes away incentive. As tipped employee I made sure to try and give the best service I could to every customer. As a result, my tip ratio to sales was typically higher than most I worked with.
    Under this system, my 110% effort would be compensated at the same rate as the employee that put out 80%.

    I just don't see it working.

    Good Luck!
    Ric at Joes
     
  10. TIMSPEED

    TIMSPEED !địt mẹ!

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    Didn't read the thread, just the OP...
    I think if they raised restaurant prices 15-20% across the board and said DO NOT TIP, it wouldn't affect anything (but I think people would still tip, out of guilty conscience)
     
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  11. leo21

    leo21 VIP Whale

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    I don't think most servers even understand what good service is anymore so I don't see removing tips as a disincentive to good service. Customers are being bullied into tipping when service is crap as it is. Servers don't even recognize that a bad tip was do to their poor performance - they think it's do to you being a cheapskate. Putting the full burden of the server's wage on the restaurant may force them to set better standards for service and more discipline for sloppy service.

    Coming from retail, I have never understood why restaurant servers need to be incentivized to do their jobs. In other parts of the service sector, you do your job right or get the fuck out. Maybe dining out would be more enjoyable if compensation changed. I'm all for seeing more non-tipping restaurants. I'm not seeing a convincing argument as to why it can't work.
     
  12. makikiboy

    makikiboy VIP Whale

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    Actually one problem with that is that some restaurants pool tips so it doesn't matter if one server provides poor service, they all get an even cut of the tips.

    Some things to note (from my friends who work in the industry): they like the (cash) tip route because they don't have a paper trail that they have to report to the IRS on so they can hedge a little when they do their tax returns (officially, I'm just joking, they don't do that do they? LOL). Some restaurants will add up all the tips from charges and give it back in the employees' paycheck so they have to claim that as income.

    Many people feel the tip method is just a way for employers to not have to pay the employee a decent wage, many make a lot of money off tips so the employer can pay them much less.

    IMHO, I like the no tip thing. I was in Japan in November and they don't have tipping in restaurants and the service was still excellent. But I think that is a cultural thing, most workers in Japan seem to take pride in their work, something that I don't see as often in American restaurants (many just go through the motions).
     
  13. leo21

    leo21 VIP Whale

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    Here's a funny video to explain the case against tipping. NSFW

    [video=youtube_share;q_vivC7c_1k]http://youtu.be/q_vivC7c_1k[/video]
     
  14. lotso-bear

    lotso-bear VIP Whale

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    This is the case for most of Asia, the only main exception from experience has been Singapore.

    The tipping culture of the US is spreading to countries that never required tips at restaurants. This is actually making locals quite angry since they're now expected to tip employees..
     
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