The 3% to 5% junk fees are common and pretty much ignored now. But the bad actors are the ones sometimes slapping a 18% fee on top of the 3%-5% fee in an effort to rob the server of their tips. Those are the ones that are thankfully getting called out, review-bombed and Reddit topics. I am sure most of the customers are fooled by that 18% service fee and think it's a tip, if they realized they needed to pay 5% inflation fee, 18% service fee AND 20% tip they would probably blow up.
Seems like if you see that 18%, you will think it is a tip, maybe leave a tiny bit more (if you normally leave 20% or whatever) and just go. If the employees are not happy, that would be up to them to talk to their owners and get it fixed or just leave (and then the owner will have to fix it, or the same will happen to any newly hired staff).
That, of course, assumes that when the 18% goes to the restaurant, they aren't actually using it (or some of it) to offer a pay rate more similar to a non-tipped place (in which case the employees might be fine with it), and could actually be the case even if it states in fine print that it is not a tip (since they aren't necessarily getting that exact 18%, but are getting something extra since the restaurant is collecting more up front).
Usually the restaurants doing the higher wage/higher price brag about what they are doing as a social experiment and such, and usually they don't allow tipping at all or reduce the amount to 5% or 10% max to not insult customers who really want to compliment the service.
There was a rather overpriced counter service restaurant in my area who didn't allow tipping. The prices were already too high but they didn't do tips. So that $5 iced tea, it really was $5 plus tax, no tip, no option to leave one provided short of sneaking cash into an employee's pocket.
Recently they kept the same inflated prices, but now they are automatically adding on 18% gratuity.
Here's the other new thing... I saw a restaurant the other day with what I would describe as modestly expensive prices but they haven't added these fees. What they did do is quietly make a standard fountain soda $8 which is absolutely highway robbery. Obviously they feel that they'll lose money if they add $5 to every entrée, but I think they'll upset more customers with the $8 soda.
I am also noticing appetizers are reaching entrée prices now, and all that does is cause me to not order appetizers at all unless it's a large group where we can all share a few bites.
Seems like if you see that 18%, you will think it is a tip, maybe leave a tiny bit more (if you normally leave 20% or whatever) and just go. If the employees are not happy, that would be up to them to talk to their owners and get it fixed or just leave (and then the owner will have to fix it, or the same will happen to any newly hired staff).
That, of course, assumes that when the 18% goes to the restaurant, they aren't actually using it (or some of it) to offer a pay rate more similar to a non-tipped place (in which case the employees might be fine with it), and could actually be the case even if it states in fine print that it is not a tip (since they aren't necessarily getting that exact 18%, but are getting something extra since the restaurant is collecting more up front).
Usually the restaurants doing the higher wage/higher price brag about what they are doing as a social experiment and such, and usually they don't allow tipping at all or reduce the amount to 5% or 10% max to not insult customers who really want to compliment the service.
There was a rather overpriced counter service restaurant in my area who didn't allow tipping. The prices were already too high but they didn't do tips. So that $5 iced tea, it really was $5 plus tax, no tip, no option to leave one provided short of sneaking cash into an employee's pocket.
Recently they kept the same inflated prices, but now they are automatically adding on 18% gratuity.
I have only seen this work well at one place, which I will name because I think they deserve credit, and it is a bakery-cafe in Long Beach called Colossus. They raised all employees wages well into the $20s/hour and pay benefits. They elected to raise all prices to compensate for the wage increase but at the same time enacted a generous loyalty program as well as banned all tipping. They have never been more successful, and I always tipped there because of the extremely friendly service and high attention to detail which has remained unchanged. They were very transparent on the pricing change and explained their percentages currently being received in tips, wages etc and the entire business case for the change which effectively brought consistency to the employee wages versus the unpredictable ups and downs of tips. They are continuing to expand and now have a growing wholesale business plus they recently expanded their outstanding pizza Friday to offer pizza 7 nights a week and it's substantial and delicious (heavy weight pizza with sourdough type crust, one easily feeds three or more). I found that after the change in pricing I was basically spending the same amount on my usual purchases when I was in town, a fancy coffee and pastry plus a loaf of ultra fancy scratch baked sourdough bread. I think if other businesses were as transparent as they were throughout the transition, emailing and sharing on social media plus postings in store, they would have more success in navigating to good wages for their employees without excessive surcharges.
Usually the restaurants doing the higher wage/higher price brag about what they are doing as a social experiment and such, and usually they don't allow tipping at all or reduce the amount to 5% or 10% max to not insult customers who really want to compliment the service.
There was a rather overpriced counter service restaurant in my area who didn't allow tipping. The prices were already too high but they didn't do tips. So that $5 iced tea, it really was $5 plus tax, no tip, no option to leave one provided short of sneaking cash into an employee's pocket.
Recently they kept the same inflated prices, but now they are automatically adding on 18% gratuity.
I have only seen this work well at one place, which I will name because I think they deserve credit, and it is a bakery-cafe in Long Beach called Colossus. They raised all employees wages well into the $20s/hour and pay benefits. They elected to raise all prices to compensate for the wage increase but at the same time enacted a generous loyalty program as well as banned all tipping. They have never been more successful, and I always tipped there because of the extremely friendly service and high attention to detail which has remained unchanged. They were very transparent on the pricing change and explained their percentages currently being received in tips, wages etc and the entire business case for the change which effectively brought consistency to the employee wages versus the unpredictable ups and downs of tips. They are continuing to expand and now have a growing wholesale business plus they recently expanded their outstanding pizza Friday to offer pizza 7 nights a week and it's substantial and delicious (heavy weight pizza with sourdough type crust, one easily feeds three or more). I found that after the change in pricing I was basically spending the same amount on my usual purchases when I was in town, a fancy coffee and pastry plus a loaf of ultra fancy scratch baked sourdough bread. I think if other businesses were as transparent as they were throughout the transition, emailing and sharing on social media plus postings in store, they would have more success in navigating to good wages for their employees without excessive surcharges.
The tipping model is pretty broken at this point and the generation of extra charges just makes customers more unhappy with things. For this to change you need more restaurants like this who are a bit gutsy, have something worthwhile to serve and are able to get the word out.
In the rest of the world, you don't tip or, at most, you round up a bit. The tipped wage is a relic from an earlier time and only works well for people working in high end dining establishments.
storewanderer wrote: ↑October 18th, 2023, 12:26 am
There was a rather overpriced counter service restaurant in my area who didn't allow tipping. The prices were already too high but they didn't do tips. So that $5 iced tea, it really was $5 plus tax, no tip, no option to leave one provided short of sneaking cash into an employee's pocket.
Recently they kept the same inflated prices, but now they are automatically adding on 18% gratuity.
I have only seen this work well at one place, which I will name because I think they deserve credit, and it is a bakery-cafe in Long Beach called Colossus. They raised all employees wages well into the $20s/hour and pay benefits. They elected to raise all prices to compensate for the wage increase but at the same time enacted a generous loyalty program as well as banned all tipping. They have never been more successful, and I always tipped there because of the extremely friendly service and high attention to detail which has remained unchanged. They were very transparent on the pricing change and explained their percentages currently being received in tips, wages etc and the entire business case for the change which effectively brought consistency to the employee wages versus the unpredictable ups and downs of tips. They are continuing to expand and now have a growing wholesale business plus they recently expanded their outstanding pizza Friday to offer pizza 7 nights a week and it's substantial and delicious (heavy weight pizza with sourdough type crust, one easily feeds three or more). I found that after the change in pricing I was basically spending the same amount on my usual purchases when I was in town, a fancy coffee and pastry plus a loaf of ultra fancy scratch baked sourdough bread. I think if other businesses were as transparent as they were throughout the transition, emailing and sharing on social media plus postings in store, they would have more success in navigating to good wages for their employees without excessive surcharges.
The tipping model is pretty broken at this point and the generation of extra charges just makes customers more unhappy with things. For this to change you need more restaurants like this who are a bit gutsy, have something worthwhile to serve and are able to get the word out.
In the rest of the world, you don't tip or, at most, you round up a bit. The tipped wage is a relic from an earlier time and only works well for people working in high end dining establishments.
Yep and that is why I called out this little bakery. They had a great way of handling this change which I've seen torpedo other restaurants sometimes even causing their closure. That doesn't mean that their work is perfect; they're a moderate to higher priced bakery-cafe which means under this new model sometimes fancy coffee drinks are $6 or $7 so certainly more than Starbucks, but you definitely get a ultra high end quality beverage and baked goods. They're smart and conscious of trends but don't jump on dumb bandwagons like what I call Instagram food such as the new cream filled round croissant trend (imagine a jelly donut that not only squirts filling everywhere but also flakes all over your clothes! But they look pretty on camera so you should buy one for $9!). They're in a famous "restaurant row" called Belmont Shore where there is no room for error; if a business falters and starts losing customers they'll never get them back because they can walk usually just a couple short blocks on wide pedestrian friendly streets to the competitor. If anyone were to try to adopt their model I'd also recommend they study their clientele demographics, income, and political views because all of them probably worked in the favor of this great little shop. The same practices in let's say a place with opposing political views could result in immediate financial collapse.
Dickey's is now calling this fee being attached to online orders a "Recycling Fee." 49 cents flat extra on every online order. I pulled various locations in multiple states and all were charging this fee.
HCal wrote: ↑March 26th, 2024, 12:26 am
Perch (rooftop bar in downtown LA) now has a 4.5% "security fee".
Typical, business owners continue to force customers to subsidize their business.
Customers will continue to be forced to "work" to spend their money and to help owners pay for their overhead expenses (costs for operating a business, including payroll and benefits).
HCal wrote: ↑March 26th, 2024, 12:26 am
Perch (rooftop bar in downtown LA) now has a 4.5% "security fee".
Did you ask about what that fee was and if it was optional? I am curious how they would describe the exact use of a "security fee."
I probably wouldn't have asked at the end of the visit to a bar to the server who obviously has nothing to do with this... just pay and make a note to remember that in the future.
HCal wrote: ↑March 26th, 2024, 12:26 am
Perch (rooftop bar in downtown LA) now has a 4.5% "security fee".
Did you ask about what that fee was and if it was optional? I am curious how they would describe the exact use of a "security fee."
I probably wouldn't have asked at the end of the visit to a bar to the server who obviously has nothing to do with this... just pay and make a note to remember that in the future.
No, I am not the confrontational type and don't like to drag service staff into these things. They do have uniformed security guards so I assume the answer would have been that it is for paying their salary, but I'm fairly sure they have had those for years.
Edit: Their website says: A 4.5% Security charge is added to all guest checks for the additional security measures in place for staff and guests.
*The restaurant retains the entire of this charge for security resources.
*This charge should not be considered a tip.
