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Why some US restaurants are banning tips

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Re: Why some US restaurants are banning tips

#31

Post by getfacl »

The biggest barrier to ending tipping in the USA is that restaurants are almost always over staffed there.

The owner wants the maximum ratio of servers to customers possible. In the typical USA system, being paid primarily in tips means the server is highly incentivized to upsell the customer as much as possible and do everything they can to increase the total bill, and therefor increase their tip. Essentially a commissioned sales person but the customer pays the commission.

This is the least efficient way to run a restaurant with regard to staffing.

European restaurants typically use a team service model, which greatly reduces the number of staff needed. Every front of house worker can take orders, make and serve drinks, run food to tables, etc. Instead of checking on the customer every few minutes they rely on the customer to ask if you need something. There is no pressure to run up the bill or clear out quickly in this model.

Re: Why some US restaurants are banning tips

#32

Post by ajsnigrutin »

arjie wrote: post #19
ajsnigrutin wrote: post #12

Earlier quoted context omitted.

Somehow the "tip culture" is spreading over here too, especially in touristy areas, even the POS terminals now ask you for a tip.

Interesting. What POS terminals are common there? I am curious about culture spreading through technology defaults and wonder if it's effectively driven by whatever Square chose and whomever else decided to ape the incumbent or whatever.

There's a bunch of them, but the tip offers are usually on the newer touchscreen (probably android based) ones.

The old ones (never seen the tip option on those... for now): https://www.simple-shop.si/en/pos-terminal-tcpip-en and eg https://www.unicreditbank.si/si/podjetja/upravljanje-z-denar...

The new ones: https://www.sumup.com/sl-si/karticni-citalec-terminal/ and https://besteron.com/si/pos-terminali/ (both support tips) + many other in similar designs (full front touchscreen)

I don't think square supports slovenia for now, but POS vedors add the tip option, and our restaurant owners enable it, because it doesn't cost them anything, any many (especially foreign) guests "feel bad" for choosing the zero on the screen.

Re: Why some US restaurants are banning tips

#33

Post by walrus01 »

We need to at least normalize not tipping for counter service. Given the current wage structures and labor laws in the US and Canada, if I sit down at a table and I receive table service, I'm going to tip 15% unless the service was abhorrent.

I am not going to tip if I order and take my food from a counter and serve myself (and then almost certainly clear my own table as well), or I buy any other form of product standing up. Basically, if I'm standing for the entire customer service transaction, it's not tippable.

Re: Why some US restaurants are banning tips

#34

Post by NoboruWataya »

nkrisc wrote: post #15

I never thought about paying staff via tips being a tax dodge for the restaurant if it lets them avoid raising prices and thus taxable revenue.

If the price increase is actually linked to higher wages for the staff, there should be no increase in taxable revenue for the restaurant, because the wages are deductible expenses. But there is still the matter of sales tax (paid by the customer), and the tax payable by the employee on their wages (not sure if tips are technically taxable income already, but regardless, you can bet most staff aren't paying taxes on them).

Re: Why some US restaurants are banning tips

#35

Post by chung8123 »

Rygian wrote: post #6

As a foreigner in the US, I've made the faux-pas of assuming waiters and waitresses were being paid a full salary by their employer. I even suspect that I received sub-par service from some of them, who may have identified me as a "no-tip risk" from the first moment.

To be honest they are paid a full salary. Tipped wage does not preclude the minimum wage. In addition there are many states like CA that do not have a tipped wage.

Re: Why some US restaurants are banning tips

#36

Post by swiftcoder »

anovikov wrote: post #5

These are reasonable prices for a place much cheaper than SFO. This is what people pay in Eastern Europe. 2500 CZK for a set - around $120 - won't be at all surprising or perceived as high in Prague, for instance. It can go up to 8000 or so.

Yeah, I'm kind of surprised by both restaurants tasting menu prices. Those seem downright reasonable for their locations.

Re: Why some US restaurants are banning tips

#37

Post by rock_artist »

getfacl wrote: post #31

The biggest barrier to ending tipping in the USA is that restaurants are almost always over staffed there. The owner wants the maximum ratio of servers to customers possible. In the typical USA system, being paid primarily in tips means the server is highly incentivized to upsell the customer as much as possible and do everything they can to increase the total bill, and therefor increase their tip. Essentially a comm…

It depends and also is culture based. In Spain you can find some places (eg coffee place) with 1-2 workers.

Sometimes it takes a lot of time to get your order at rush hours, but the culture tolerates patience and waiting.

Re: Why some US restaurants are banning tips

#38

Post by NoboruWataya »

snayan wrote: post #20
Rygian wrote: post #6

As a foreigner in the US, I've made the faux-pas of assuming waiters and waitresses were being paid a full salary by their employer. I even suspect that I received sub-par service from some of them, who may have identified me as a "no-tip risk" from the first moment.

I'm not saying they're right to do so, but it sounds like their intuition was honed well if they pegged you correctly during your faux-pas era? Fascinating, wonder what the tell was.

If you are a foreigner I imagine your accent can give you away pretty quickly. Europeans would be far less likely to tip (or tip generously).

Re: Why some US restaurants are banning tips

#39

Post by jamisteven »

getfacl wrote: post #31

The biggest barrier to ending tipping in the USA is that restaurants are almost always over staffed there. The owner wants the maximum ratio of servers to customers possible. In the typical USA system, being paid primarily in tips means the server is highly incentivized to upsell the customer as much as possible and do everything they can to increase the total bill, and therefor increase their tip. Essentially a comm…

LMFAO, have you ever been to a restaurant in Europe? The service is horrific. Sit down and wait 15 minutes for the menus, another 15 to place a drink order, another 10 for the drinks to get there, another 10 to place food order. Now you finish the meal, good luck getting the waiters attention to bring the check. European dining is the worst, every time I am back stateside I feel like im being waited on in the white house or something fancy.

Re: Why some US restaurants are banning tips

#40

Post by Ekaros »

sudo-i wrote: post #24
daef wrote: post #8

Earlier quoted context omitted.

welcome to europe, where tips are optional and sales tax is denoted

Unless it's a bottle deposit tax, then it gets added outside the advertised price ;) 2 Euro bottle of Coke, great, I have 2 euro left, pay 2 euro 20 please... Fawwwwwkkkkkkkkk

Depends on country. In Finland that is also part of the price. Separate line on the receipt, but included in any advertised price.
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