strickerj

Oh, they wouldn't add the surcharge for cash purchases? I guess that's less egregious, but I still probably return to a place like that - accepting credit cards increases business to the extent that the fees should be an acceptable tradeoff. I don't care for places advertising that they take credit cards but then charging extra for it.

Gig103

I wanted to reply to this many times, and it boils down to the irritation of them trying to add a service fee instead of upping menu prices 5%. I don't know why sit-down restaurants think this is okay when every other industry (from fast food to hardware stores) just roll labor costs into their prices.

flyer4512

A lot of places in Fort Lauderdale beach throw in a 15% service charge which is the tip but not marked as such. We tip at least 20% so it worked for me. From what I was told a lot of foreigners don't tip at all so they add 15%

BamaVol

When's the last time you had your car repaired?

Parts
Labor
Shop Supplies
Tire (or battery) Disposal Fee
Sales Tax

ecaarch

Maybe where you live, but def not everywhere. I live in metro Atlanta. The tax rate in Cobb county is different from the tax rate in Fulton county. The tax rate in unincorporated Fulton county is different from the tax rate in the City of Atlanta. Multiply this by the 10 or so counties and scores of individual cities in the metro area, those that have increased tax because they participate in MARTA or have approved a TSPLOST assessment. Then add to the equation that the tax on food is a different rate than the tax on prepared food. I'm not certain, but I think the lowest tax rate in the area is 3.5% and the highest around 9.5%. That's a pretty big spread with a lot of rates in between. I live here and I can't figure it out, calculator or not. Asking a visitor, especially one from a country where VAT is included in the price, to be able to calculate the tax on their purchase in situations like this is unrealistic at best.

WhIteSidE

Then spell it out and be specific. If I'm paying for labor independently, then the labor to, say, grill a steak should be much less than the labor to make a salad with all that washing and chopping.

These surcharges are exploiting a gullible public. If restaurants are requiring employees to tip out when they received no tip, that's reprehensible, but in no way the diners fault or problem. I'm not actually against tipping culture in general, as it does provide the option to directly and meaningfully say thanks for good service. To me these surcharges seem skeezy because they're sort of fundamentally dishonest. If a restaurant can convince me to pay an extra 15% for the same product, then more power to them and they deserve the profit. But when they disguise this price increase as a service fee they are beguiling the spending public and depending on the good nature of the dining public to swindle them.

Enigma368

tmiw

If the tax rate where you're eating at happens to be above 7.5% or so (not difficult to do in California, for instance), doubling the tax printed on the receipt is a reasonable way of determining tip. Of course, then a visitor has to figure out if the tax rate is above that figure...

bambinomartino

A few scattered thoughts:

Pizza Delivery:

When I delivered pizzas in the US 20 years ago, it was minimum wage plus 6% (customer was NOT charged for it, it came out of the owner's pocket) that sort of covered car expenses plus tips. Things have changed quite a bit lately. The Pizza Hut "delivery charge" given as an example in the post above does not go to the driver. What's more, many shops have gone to a "tipped" sub-minimum wage whenever the driver is on the road, and regular minimum wage when doing tasks in the store. Please DO tip your pizza driver, and not so much on a percentage basis, but try to take into account the distance between you and the store, weather conditions, etc.

Also please don't blame the restaurant owners. Costs have gone through the roof, and the public (and corporate/franchisor) expect them to sell a large "N" -topping for $9.99. It's untenable without those sorts of bill gymnastics.

From what I gather, Uber Eats and the like treat their drivers much worse, so the same applies. They also screw the restaurants royally, so I basically refuse to use those types of services. If I'm in the office late and need a bite, I'll just call in a carry-out and pick it up myself.

Europe

Don't even get me started. I am originally from Europe, albeit the poor cousin parts, so no American chauvinism here.

A few months ago in Vienna, after doing the requisite touristy sachertorte and coffee at the Cafe Mozart, the waiter made it a point to ask me if I wanted to add a tip. In fairness, I very much look and carry myself like an American, so I guess he thought why not take advantage. Still, so much for the proud, well paid professional Kelner or whatever in Europe. By the way, I suspect a waitress at Applebees makes 2 to 3 times what her European counterpart does.

A couple of years ago, old town Florence. Had to have the bistecca fiorentina, of course, and there was a place near the hotel. Menu posted outside, everything looking great. We go in, have dinner, bill comes and - lo and behold - a double-digit percentage "service charge". They did have it listed in tiny print on the otherwise identical menus inside the dimly lit restaurant. It was not on the menu in front of the restaurant. I hope Alfa Romeo bombs again in North America. Va fa Napoli!

Buffets

In the most recently closed "tipping" topic, someone had written that they would not tip as much at a buffet-type restaurant. I am not sure the waiters provide less service at those establishments. They have to constantly remove empty dishes, give refills, etc., but also they are paid as poorly as any other waiter. So please don't discount their tips.

I knew people in the Chinese buffet industry in the 1990s when they had to expand beyond larger cities into smaller markets. Many of the staff were semi-if-at-all-legal and were basically under a form of indentured servitude. Cash tips made a great difference to them.

On a related note, I reckon that prices in restaurants in the US tend to be lower is also due in part to the fact that the kitchens are full of undocumented Hispanic workers who do often do not get paid what they should.

Overall, I am okay with the tipping culture. It can provide for a better dining experience when your server's income depends on the quality of service he or she delivers. I just came back from a new Indian buffet near work for lunch today. Everything was laced with cilantro (coriander for you limeys) which I abhor. The waiter brought some fresh, just out of the oven tandoori chicken for me without the noxious weed on it. He got 20%. And this is in Alberta, Canada, where minimum wage is $15 (CAD).

mikesyr18

Pizza Hut franchise owners could easily start their own business. Why not create better pizza for a slightly higher price?

Many of the smaller chains and local places in this area are doing much better than Pizza Hut, which seem to be closing left and right. Local places and small chains around here don't charge a $5 delivery fee and the food actually tastes like food.

seat38a

Many commercial leases have a rent component and a percentage based on sales component which is based on gross sales and not net sales. Every month on top of your base rent, you pay a percentage usually 7% above your breakpoint (Monthly rent divided by 7%). I don't 100% understand it but from what I've heard, airlines don't pay excise tax on fee's which is the reason they keep raising the fee component.

milepig

Gig103

That isn't a comparable example though, because labor is a billable item (like an entree) in your case. In the dealership situation it would be like surcharging parts by 5% to pay for the parts department salaries/health insurance/etc.

windscar

Up here they may not chase after you, but if you're memorable don't plan on being a repeat customer The girls in the bar and liquor store I worked security at made some real good money with their tips. Waitresses made $30-$40 an hour and the bartenders did $40-$60 an hour.

On either the ANA or JAL subforum, someone made a disturbing report of trip jar popingp up in hipster-like places in Tokyo, as well as a popular Sushi restaurant IIRC.

MSPeconomist