3% surcharge in restaurant, but "keep tipping as usual"
May 14, 2019, 11:14 am
#32
Original Poster
Join Date: Sep 2008
Posts: 7,875
Restaurants adding surcharges are doing so to generate pressure on local officials not to raise the compensation of tipped staff. It is done this way as a means of showing local customers why their tab is increasing. Just as easy to increase menu prices as happens when other expenses such as good and rent increase.
But, don't mix & match your distaste for tipping with whether you tip in the US. If it is a better deal to eat dinner in Tokyo than New York, go to Tokyo.
But, don't mix & match your distaste for tipping with whether you tip in the US. If it is a better deal to eat dinner in Tokyo than New York, go to Tokyo.
Telling someone to go to Tokyo-do you also tell someone to go to Mexico if they speak Spanish?
Are they not allowed to go to restaurants that prohibit tips, get takeout, get fast food?
May 14, 2019, 11:24 am
#33
Join Date: Dec 2015
Location: SNA
Programs: MARRIOTT TITANIUM / HILTON GOLD / UA SILVER / AMEX PLAT
Posts: 609
$15*5= $75
6(tables) * 5(hours) * $45= $1350
$1350 * 18% = $243 + $75 (wage) =
$318 (Pre-tip total)
Now if they expect even 15% tip on the $1350 that is $ 202.50
Thus the grand total is $520.50.
Sorry, once it is 2023, I will not be giving tip in California.
May 14, 2019, 11:42 am
#34
Join Date: May 2012
Posts: 605
If I saw a surcharge in NY, I would deduct it from my tip. I already tip around 20% unless bad service, then it's zero. The other day, we had very good service, so I tipped 25%. But no, I would not take the surcharge and a tip. I'd also prob. not go back to that place and inform this BS on Yelp and Google reviews. That's just absurd. I've left several establishments who've not only added a surcharge, but a minimum too. 3% surcharge or $5.00 (I guess for small purchases). I was at a local hardware store not to long ago with a few hundred dollars worth of material. They wanted like an additional $9.00 for the 3% surcharge. I just left the stuff at the register, walked out and went over to Home Depot. I also told them good job in losing a customer for life. I hope the missed $9.00 was worth losing a sale for a few hundred dollars.
These surcharges are just obscene. CC discount rates have been around for nearly 40 years. They are in fact cheaper now then they were in the past. This passing it on to the customer is a new phenomenon which the smaller places will do. Most customers who are aware of what they spend and actually look at their receipts will notice and either refuse to pay or walk out. Again, very bad business.
These surcharges are just obscene. CC discount rates have been around for nearly 40 years. They are in fact cheaper now then they were in the past. This passing it on to the customer is a new phenomenon which the smaller places will do. Most customers who are aware of what they spend and actually look at their receipts will notice and either refuse to pay or walk out. Again, very bad business.
May 14, 2019, 12:07 pm
#35
Join Date: Jun 2011
Location: YVR
Posts: 39
Canada. Had an old friend who didn't believe in tipping, when he went into a brewpup in the Metro Vancouver area that our group frequented, he got seated and was ignored for 40 minutes, before he gave up and left. Wish this country was more Japan-like in not tipping.
May 14, 2019, 12:13 pm
#36
Original Poster
Join Date: Sep 2008
Posts: 7,875
But when I go to Canada I feel it is not the same expectation like in the US. Maybe I just have this illusion of them being friendlier and more easy going
May 14, 2019, 12:17 pm
#37
Join Date: Nov 2018
Posts: 72
Interesting concept that thankfully hasn't migrated to South Florida where I live and dine out regularly. With respect to the link to the Karls website and their rationale...they blame the Affordable Care Act and increased minimum wages. I would feel no obligation to leave a tip: the service staff now receive health insurance and a higher hourly wage, two forms of compensation forced upon the business where the direct beneficiary is the service staff. While the service staff doesn't pick up a cash tip on the table, they also don't have to lay out cash for the employer portion of the insurance premium. Sure the employee may have to pay a portion of the insurance premium, but now they have health insurance-- and a higher hourly wage.
Yes, some readers will be tempted to argue mathematically that they are better off with the cash tip and no surcharge or why a certain amount should still be left as a tip. BUT.... that's not the point.
If restaurateurs feel the need to impose a surcharge to express their political views, then I say customers should express their feelings with their wallet, which will lead to service staff expressing their feelings with their feet, meaning to walk out, electing to work at another establishment that treats them better.
Yes, some readers will be tempted to argue mathematically that they are better off with the cash tip and no surcharge or why a certain amount should still be left as a tip. BUT.... that's not the point.
If restaurateurs feel the need to impose a surcharge to express their political views, then I say customers should express their feelings with their wallet, which will lead to service staff expressing their feelings with their feet, meaning to walk out, electing to work at another establishment that treats them better.
May 14, 2019, 12:21 pm
#38
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,508
Not quite.
In addition, even if did start off that way, it's now a cultural thing that's not easily going to go away regardless of one's hourly pay. For instance, some restaurants tried getting rid of tipping and had to bring it back pretty quickly due to complaints from customers and employees.
In addition, even if did start off that way, it's now a cultural thing that's not easily going to go away regardless of one's hourly pay. For instance, some restaurants tried getting rid of tipping and had to bring it back pretty quickly due to complaints from customers and employees.
May 14, 2019, 12:21 pm
#39
Join Date: Jun 2015
Location: DTW
Programs: Alaska, Delta, Southwest
Posts: 1,663
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None of the above should ruin anyone's vacation for heaven's sake! Other than restaurants and some hotel staff, there aren't really any other tipping situations the average tourist would encounter. It's funny how people are quick to advise tourists to be open and adapt to local culture and customs (which is good advice), except when visiting the US where it's OK to whine and complain that everything is wrong.
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None of the above should ruin anyone's vacation for heaven's sake! Other than restaurants and some hotel staff, there aren't really any other tipping situations the average tourist would encounter. It's funny how people are quick to advise tourists to be open and adapt to local culture and customs (which is good advice), except when visiting the US where it's OK to whine and complain that everything is wrong.
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We have to save the fund the farmers who are ruining the atmosphere by taxing the food we eat, but only at restaurants. Huh? It is optional if you are able to catch it on your bill then wait around to remove it. What nonsense! NOPE, California is just plain nuts and I am living here, we are taxed and given fees to offset some made up political issue. No wonder retiree's are taking the pension and moving out of state.
California restaurants can now add a 1% surcharge to help fight climate change. (CNN) People eating out at California restaurants may start to see an optional 1%surcharge added to their bill. The money will go to a public fund that helps farmers who use practices that reduce carbon in the atmosphere.Apr 26, 2019
California restaurants can now add a 1% surcharge to help fight climate change. (CNN) People eating out at California restaurants may start to see an optional 1%surcharge added to their bill. The money will go to a public fund that helps farmers who use practices that reduce carbon in the atmosphere.Apr 26, 2019
If I saw a surcharge in NY, I would deduct it from my tip. I already tip around 20% unless bad service, then it's zero. The other day, we had very good service, so I tipped 25%. But no, I would not take the surcharge and a tip. I'd also prob. not go back to that place and inform this BS on Yelp and Google reviews. That's just absurd. I've left several establishments who've not only added a surcharge, but a minimum too. 3% surcharge or $5.00 (I guess for small purchases). I was at a local hardware store not to long ago with a few hundred dollars worth of material. They wanted like an additional $9.00 for the 3% surcharge. I just left the stuff at the register, walked out and went over to Home Depot. I also told them good job in losing a customer for life. I hope the missed $9.00 was worth losing a sale for a few hundred dollars.
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Oh, and for those saying this is a uniquely American thing, I saw tip jars when I was in Italy about 10 years ago. One person even held a jar out to me asking for a gratuity, although in hindsight she might have actually been a hobo, not an employee, which I guess would have made that not a gratuity at all.
May 14, 2019, 12:21 pm
#40
Join Date: Jun 2016
Programs: American Airlines, Delta, United, Southwest
Posts: 45
One San Diego restaurant (part of Cohn group) I use to go to started the 3% surcharge when California raised minimum wage and bla, bla health insurance costs. I say "use to" because I'm boycotting them until they quit it or surcharges become so prevalent that I can't avoid. I wish it would work like Europe.
One reason they do it that hasn't been mention is that raising menu prices affects how much rent they pay while a surcharge doesn't. Can't completely explain this part b/c I don't really understand commercial real estate leases.
One reason they do it that hasn't been mention is that raising menu prices affects how much rent they pay while a surcharge doesn't. Can't completely explain this part b/c I don't really understand commercial real estate leases.
May 14, 2019, 12:30 pm
#41
Join Date: Dec 2015
Location: SNA
Programs: MARRIOTT TITANIUM / HILTON GOLD / UA SILVER / AMEX PLAT
Posts: 609
Not quite.
In addition, even if did start off that way, it's now a cultural thing that's not easily going to go away regardless of one's hourly pay. For instance, some restaurants tried getting rid of tipping and had to bring it back pretty quickly due to complaints from customers and employees.
In addition, even if did start off that way, it's now a cultural thing that's not easily going to go away regardless of one's hourly pay. For instance, some restaurants tried getting rid of tipping and had to bring it back pretty quickly due to complaints from customers and employees.
May 14, 2019, 12:58 pm
#42
Join Date: May 2012
Posts: 605
Good point. As an American, I acknowledge we're not perfect, but I do grow weary of hearing the constant pretentious musings on how everything we do is wrong. But I may be getting a bit off topic here.
Wow... I've got a Pacific Coast road trip (San Diego to Seattle) planned for next year. Maybe I should plan everything I ever want to see in California so I never have to come back after that.
Seriously, a 3% surcharge at a hardware store? For what? You pulled everything you're buying from the shelf on your own, eh? This is like a tip jar at the Walmart checkout - actually it's worse, since the tip jar would theoretically be optional.
Oh, and for those saying this is a uniquely American thing, I saw tip jars when I was in Italy about 10 years ago. One person even held a jar out to me asking for a gratuity, although in hindsight she might have actually been a hobo, not an employee, which I guess would have made that not a gratuity at all.
Wow... I've got a Pacific Coast road trip (San Diego to Seattle) planned for next year. Maybe I should plan everything I ever want to see in California so I never have to come back after that.
Seriously, a 3% surcharge at a hardware store? For what? You pulled everything you're buying from the shelf on your own, eh? This is like a tip jar at the Walmart checkout - actually it's worse, since the tip jar would theoretically be optional.
Oh, and for those saying this is a uniquely American thing, I saw tip jars when I was in Italy about 10 years ago. One person even held a jar out to me asking for a gratuity, although in hindsight she might have actually been a hobo, not an employee, which I guess would have made that not a gratuity at all.
May 14, 2019, 1:35 pm
#43
Join Date: Mar 2017
Programs: HHonors, TrueBlue, Delta SkyMiles, Hyatt Discoverist, Starwood Preferred Guest, American Airlines.
Posts: 2,035
I thought tipping was supposed to be based on the pre-tax amount. Since this fee is presumably added on top of that amount, I would think it wouldn't matter.
(BTW, I feel like surcharges like what OP's describing are sour grapes on the restaurant's part, but that's maybe a discussion for another thread.)
(BTW, I feel like surcharges like what OP's describing are sour grapes on the restaurant's part, but that's maybe a discussion for another thread.)
$10 for a pizza.
$5 delivery fee
$1.20 in tax (yes they tax the delivery fee too)
_____________________________________
Total = 16.20, which they expect you to tip $3.24 to make it a 20% tip, when in reality, $2 is a 20% tip because you should only tip on the food cost, not the entire food cost, plus tax, plus the delivery charge.
Restaurant owners are greedy and cheap... That's the only way to summarize the point of this thread.
May 14, 2019, 1:46 pm
#44
Join Date: Mar 2017
Programs: HHonors, TrueBlue, Delta SkyMiles, Hyatt Discoverist, Starwood Preferred Guest, American Airlines.
Posts: 2,035
If I saw a surcharge in NY, I would deduct it from my tip.
These surcharges are just obscene. CC discount rates have been around for nearly 40 years. They are in fact cheaper now then they were in the past. This passing it on to the customer is a new phenomenon which the smaller places will do. Most customers who are aware of what they spend and actually look at their receipts will notice and either refuse to pay or walk out. Again, very bad business.
These surcharges are just obscene. CC discount rates have been around for nearly 40 years. They are in fact cheaper now then they were in the past. This passing it on to the customer is a new phenomenon which the smaller places will do. Most customers who are aware of what they spend and actually look at their receipts will notice and either refuse to pay or walk out. Again, very bad business.
May 14, 2019, 2:00 pm
#45
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,508
If you've ever ordered Pizza Hut, you'll notice the tip percentage is based on the cost of food, the tax, and then the delivery fee. So it looks like this:
$10 for a pizza.
$5 delivery fee
$1.20 in tax (yes they tax the delivery fee too)
_____________________________________
Total = 16.20, which they expect you to tip $3.24 to make it a 20% tip, when in reality, $2 is a 20% tip because you should only tip on the food cost, not the entire food cost, plus tax, plus the delivery charge.
Restaurant owners are greedy and cheap... That's the only way to summarize the point of this thread.
$10 for a pizza.
$5 delivery fee
$1.20 in tax (yes they tax the delivery fee too)
_____________________________________
Total = 16.20, which they expect you to tip $3.24 to make it a 20% tip, when in reality, $2 is a 20% tip because you should only tip on the food cost, not the entire food cost, plus tax, plus the delivery charge.
Restaurant owners are greedy and cheap... That's the only way to summarize the point of this thread.
(Speaking of which, I went somewhere recently that tried to default to 28%. Yeah, no.)