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Will Tipping be Dead (or at least Diabetic) in the Near(ish) Future?

 
 
Reply Tue 3 Nov, 2015 02:26 pm
One megarestaurant entrepeneur's policy change doesn't make a business revolution but it's interesting to think about as the topic is trending in the restaurant world.

One of the main arguments for eliminating tipping is to help bring balance to disparity between cooks' pay and servers' pay.

Should tipping be eliminated for a Hospitality Included-similar structure in US restaurants? Would this work only in high end restaurants but fail in low end chain based franchises like TGIFs and Applebees? How about mom and pop restaurants who have lower profit margins?

5 Big Takeaways From Danny Meyer’s No-Tipping Town Hall Meeting

Danny Meyer’s Corporate Culture Is the Real Reason His No-Tipping Policy Will Succeed


Danny Meyer’s Corporate Culture Is the Real Reason His No-Tipping Policy Will Succeed
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Type: Discussion • Score: 5 • Views: 1,318 • Replies: 15
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chai2
 
  1  
Reply Tue 3 Nov, 2015 02:42 pm
I just glanced at the "5 takeaways" article, and it answered a question for me.

I had wonder how much more a meal in a restaurant would cost to the consumer if tipping were eliminated. According to that article, it says it would average I think 5% to 8% more. Well, that a win/win situation then isn't it?

Since most people now tip 20%, or at least a minimum of 15%. We would be getting quite a deal.

I'm not sure how it would work if the diner pays 8% more and the server is coming out at least equal to what they were making before though.

I'd be willing to have up to 15% tacked onto the cost of the meal, since that's a the minimum of what I'm paying anyway.

I do pick up a good amount of take out from real restaurants, mostly because we want the food, but want to eat it at home in our underwear (so to speak) I wouldn't like having to pay the extra if all I'm doing is picking up my food at the register, which one person had to walk from the kitchen to leave it there in a bag.

On the other hand, I was watching a youtube video yesterday with an experienced American traveler talking about what to be aware of in Europe when traveling. He did say the service level as far as being check in on during the meal was lower. Also, you better order right away, because if you say "we need a few minutes" you never know when the server is going to come back.

ossobuco
 
  1  
Reply Tue 3 Nov, 2015 02:51 pm
I don't know about Europe now, but in my times in Italy, there was a 15% service charge. Some might leave a few more lire (nowadays euros) but most didn't.

I liked their waiters, who tended to stand away and watch the room, and ask it if it seemed you needed something and not bug you with "how're you doings" repeatedly. They will see you if you raise you hand to signal them. They tend to think of it as a professional job there. (Or did, back then) What do I know? Not all that much compared to natives there, but I did dine in at least a hundred restaurants in the times I was there.
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Linkat
 
  1  
Reply Tue 3 Nov, 2015 05:15 pm
@chai2,
Aw the article is no longer available. I wonder if the cost is less than the average tip, then will the waitstaff pay go down?

Or maybe what happens is it even outs. Some people tip 20%, some 15% and then so cheapos tip close to nothing. And like what is mentioned take out prices will go up if they are charged the same as sit down meals.

So those that tend to dine in and tip higher normally will be paying less. Everyone else will be paying more.

I wouldn't doubt that some waitstaff - their service would go down - what is the incentive (other than perhaps keeping your job if you are really bad) to provide excellent service.
chai2
 
  1  
Reply Tue 3 Nov, 2015 07:00 pm
@Linkat,
I just clicked on the link again linkat, seems to work for me. Confused

Just curious, do you really know people here in the States that are so cheap they tip next to nothing?

I mean, I believe you, but I can't fathom not leaving at least 15%. At least I've never eaten with someone where the amount (thereabouts) got left.

That is definately one of those things that if you're not prepared to leave a decent tip, don't go out.

Re bad tippers, I bet you can pick them out by the bad haircuts they must have for stiffing their barber or stylist the time before their current cut.

I live by the creed that if someone is standing over you with scissors, razors and chemicals, and has the power to make you look awful, don't cross them.

Think of what a difference a decent tip would have made in this persons life.

http://gossiplyfe.com/wp-content/uploads/2015/03/Cholombians-haircut.jpg
Linkat
 
  1  
Reply Wed 4 Nov, 2015 07:11 am
@chai2,
My husband worked in the restaurant business so yes some people do tip poorly - not to mention if you work anywhere near an area where you get more tourists - I hate to say it as we have many here that are Canadian, but because Canadian in their own country have a much lower tipping, they may not realize it is different here - so often times they tip much lower.

Certain ethinics groups as well as known to be poor tippers - does this mean all of one group either ethinic or Canadian tip poorly - no - just on average. At least this has been my husband's experience who had in the past worked as a server and manager of restaurants - here on the east coast and previously on the west coast and he has had similar results in both areas.
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Linkat
 
  1  
Reply Wed 4 Nov, 2015 07:17 am
@chai2,
As far as tipping well - I agree with you.

And at least one time, we were at the restaurant my future husband to be was managing. I went with a girlfriend of mine and her boyfriend (who lived in Canada). My future husband paid for the meal for us (at a deep discount of course) - and my friend's boyfriend offered to leave the tip. As we were leaving my husband came over and asked if there was a problem with the service because the tip was so low - apparantely the Canadian thought it was sufficient - my friend and I embarassingly gave more money for the tip.

I would suggest doing a search for various forums about should you tip or not and you will read an earful of cheap tippers -- from the US -- just because they feel they should not have to tip with no care that these servers end up footing more money because they are taxed on expected tips so if you do not tip -- in theory you could cost to be paying to work.

I always warn -- if you tip that low, you better not go to the same restaurant twice. Kinda along the lines of the person with sharp objects around your head and neck. And not to mention this is a person's livelihood.
Setanta
 
  1  
Reply Wed 4 Nov, 2015 07:35 am
I tip well, if i can. I have always thought, though, that tipping is just a way for some fat s.o.b. to get away with not paying his employees a living wage. For any employee who receives at least $30 per month in tips, the minimum wage is $2.13 an hour. Capitalist just make me want to puke.
0 Replies
 
hawkeye10
 
  0  
Reply Wed 4 Nov, 2015 08:47 am
The main reason for doing away with tipping is to deal with Min Wage law big increases. Dealing with the wage disparity between front and back of the house is usually an added benefit. Another reason for it is that the IRS is moving towards mandating that tips get run through payroll so that employees dont have the chance to cheat, so tips are getting to be more of a pain in the ass administratively. I dont think we see no tipping as the industry norm unless the high min wage gets more prevalent. I see that Tacoma yesterday voted for $12, what we dont know is if high min wages will stick around.
0 Replies
 
chai2
 
  1  
Reply Wed 4 Nov, 2015 12:50 pm
@Linkat,
Linkat, yeah you're right about Canada's not needing to tip.

A few years ago an A2ker from Canada visited Austin, so we had coffee while her husband did some husband stuff.

She asked about tipping, because they were going out to dinner that night. She asked me if leaving a certain amount was all right. She was right on the mark and I told her so.

She sighed in relief and said something like "Now tell my husband that. He just doesn't believe me when I tell him that what you do."

It wasn't at all that he was cheap, just hadn't been exposed to it before.
ehBeth
 
  1  
Reply Wed 4 Nov, 2015 01:02 pm
@Linkat,
The standard tip is 15% here (and has been since the late 1970's at least), though I've seen a lot of people move to 20%

Given that the base salaries are so much higher here, it does seem weird to have the same level of tipping.
0 Replies
 
Walter Hinteler
 
  2  
Reply Wed 4 Nov, 2015 01:20 pm
Generally, in Europe a sercice charge is included. All taxes are included in things offered at any shops - we pay what's on the sign/menu.

Of course, in most countries tipping is done as well - mostly by just rounding up the amount of the check, adding perhaps some Euros.
A “normal” German tip is 5-10 percent.

The minum wage for a "Restaurantfachfrau" (or "-mann" = waitress/waiter, who has passed the apprenticeship successfully) is 1,800 € per month.

After getting a higher qualification ('master waiter', Fachwirt im Gastgewerbe), your salary starts at 2,500€.
0 Replies
 
Linkat
 
  1  
Reply Wed 4 Nov, 2015 04:55 pm
@chai2,
Yeah different cultural and sometimes even knowing that isn't the cultural here, they do not fully understand how much they screw the every day worker by not leaving an appropriate tip.

I know people though who have done the opposite - my cousin went on her honeymoon to Aruba and kept talking about how expensive going out to eat was -I went there and said well it is about the amount I would spend in a restaurant in Boston - meaning more expensive than the small suburb towns, but normal if you are in a city.

Then come to find out they left a tip every where - she didn't notice the gratuity already added onto the bill.

It is in your best interest to read about the culture and tipping and other etiquette before visiting or traveling.
hawkeye10
 
  0  
Reply Wed 4 Nov, 2015 05:00 pm
@Linkat,
I was talking to the people at my favorite French place in Seattle. They are concerned that a lot of their customers are tourists and people in town for business, as they have a good national following. The fear is that rolling a service charge into the menu price will scare off people with sticker shock. That does seem to me to be a reasonable concern for restaurants who need to set up unusual for America business models to deal with high min wage cities.
Linkat
 
  1  
Reply Wed 4 Nov, 2015 05:15 pm
@hawkeye10,
That is the tougher side - it is hard enough to deal with tourism from other countries - but if you are within the same country you expect things like tipping to be the same - maybe prices to be higher in certain areas like NYC or larger cities, but probably not to the extent that they could go up as a result.
hawkeye10
 
  0  
Reply Wed 4 Nov, 2015 05:40 pm
@Linkat,
Right, and Seattle is already a high cost of living place, and getting worse fast since the taxpayers there rarely reject tax increases, usually property taxes. They just passed another $1 billion over 5 year bond issue yesterday, which was a huge jump over the bond issue that it is said to be replacing. Somebody has to pay. My brother was here last year from Texas, he said that if he had to pay our prices for dining out he would go about half as often as he does. Our drinks are ridiculous too, Seattle craft cocktails are pushing $14 now. Five years ago they were mostly $10. Now they are going to add a service charge to that too? Yikes.
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