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The arguments I’ve seen in this sub say that restaurant owners should raise their prices by the prevailing tip rate and use the extra revenue to pay their employees. Then, customers will not required to pay the servers’ wages.
Of course, the obvious fallacy is in thinking that customers wouldn’t be paying the servers’ wages. The wages will be paid out of the revenue generated from paying customers.
Then, I wonder who gets to determine the amount of the “prevailing tip rate”. And if that rate is higher than 15% or 20%, will there be weeping and gnashing of teeth?
And if the rate for price increases is 15% or 20%, why not just leave things as they are?
Lastly, do customers really want to give up the option to leave a $0.00 tip in exchange for the aforementioned guaranteed price increases?
What people don’t realize is the actual cost of the service….this blows my mind that people want servers to make $15 /hr. Then you have clowns in this sub that think if you can’t pay your server a wage they shouldn’t be in business….restaurants make profit on the food and beverages they serve, not the service.
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- 11 months ago
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High end restaurants where table bills are $100 will yield $20-30/table. If you’re waitstaff that tips 30 tables in a weekend that’s a great haul and they will lose that when they go to hourly. Chicago and liberal suburbs are really screwing the economy.