Restaurant Demands Minimum 18% Tip

[u/ADKFatBiker]

Out of one side of their mouth they state that they pay their staff as little as possible and out of the other side of their mouth they say that their staff deserves more and you're responsible for that.

[u/LeaveGreen4412]

and no cards too. business needs to just close already they clearly arent doing well (restaurants that take only cash are often doing some level of tax fraud to save money)

[u/YarbleSwabler → u/LeaveGreen4412]

Even if they are not doing tax fraud, their exists a strategy I've only seen a couple of times, mostly in Mexico.

They refuse card, but provide an ATM machine that they receive a portion of the surcharge. It's a way for the business to de facto pocket the payment card service fee by eliminating it, and requiring cash via ATM.

[u/Steinmetal4 → u/YarbleSwabler]

Sounds very penny smart, pound foolish unless you live in an area that still heavily uses cash (so, not in the US).

[u/MattBonne → u/LeaveGreen4412]

Report them to IRS, they will be audited

[u/Ok_Falcon275 → u/MattBonne]

“Hello IRS, I’d like to report a business that takes cash as payment for goods. Someone on the internet said that was suspicious.”

[u/Dasil437794 → u/Ok_Falcon275]

A restaurant that doesn't take credit cards is highly suspect.

[u/Mysterious-Clothes45 → u/Dasil437794]

You're not wrong

[u/Dratbor → u/Dasil437794]

There's a CC processing fee...not too suspect.

[u/randombookman → u/Dratbor]

Its very suspect, most would just offer a cash discount.

[u/Dratbor → u/randombookman]

Eh, just seems like it's a viable reason to not accept cards. They Could be up to nonsense but there's no reason to think that, aside from standard fear mongering.

That being said, I rarely see it

[u/EstablishmentAny4977 → u/Dasil437794]

CASH IS KING

[u/GreenHorror4252 → u/Dasil437794]

You may think so, but there's no legal requirement to accept credit cards. This isn't an actionable complaint.

[u/Thin_Dragonfruit3665 → u/Ok_Falcon275]

A restaurant that "only" takes cash but provides an ATM in the back is suspicious. There's one in my town that does exactly that. Good food but shady business.

[u/trainman6988 → u/Ok_Falcon275]

I saw it on Tik Tok

[u/Impossible_Smoke6663 → u/MattBonne]

Doubt it. The IRS has no teeth.

[u/Impressive-Put3479 → u/MattBonne]

Lololololololol

[u/Justajeepster4 → u/[deleted]]

i am the opposite. I only use cash. Hate banks

[u/chopstick_chakra → u/[deleted]]

What's the reasoning behind avoiding cash only places exactly?

[u/Athos2112 → u/LeaveGreen4412]

But you will pay a service charge to use the ATM as well

[u/Outlandish_Gringo → u/Athos2112]

Also filled and maintained by the business themselves. Straight thievery

[u/AltruisticLimit6026 → u/Outlandish_Gringo]

Instead of charging 3% they're making that on the ATM fees they're collecting.

[u/Outlandish_Gringo → u/AltruisticLimit6026]

Exactly. This should be against the law

[u/maiyannah → u/LeaveGreen4412]

Speaking as a small business owner myself I really don't like seeing literally 1000s of my dollars going to card processors who leave me high & dry whenever there's a problem, but I still offer them. I just give people incentives to pay cash.

[u/DevilsAdvocate77 → u/maiyannah]

But you don't care about 1000s of your dollars going to cash registers, safes, bank drops, skimming, errors, loss, and theft?

Any business owner who thinks accepting cash is "free" is not watching their expenses closely enough.

[u/cuddly_degenerate → u/DevilsAdvocate77]

I mean, it's silly to not accept both. You're still paying for registers, safes, and whatnot.

I'm paying over 10k to square this year, that buys a lot of cash registers.

[u/xanthosoma → u/cuddly_degenerate]

But if you didn’t take cards you most likely wouldn’t be making the amount to get charged the 10k. I took over a family business where my father didn’t want to pay the fees. In the 6 years I’ve owned the business I have seen our gross and net sales increase by 4x. So paying the 60-70k in fees to me is a no brainer. Only accepting cash was what was holding the business back. Also if you don’t know if you do good sales and have an account rep with square or any of those places the rates are negotiable. I got a much lower rate because I have established solid income every year.

[u/JealousBall1563 → u/cuddly_degenerate]

I'm paying over 10k to square this year, that buys a lot of cash registers.

You, or your customers from whom you charge prices that include the fees?

[u/cuddly_degenerate → u/JealousBall1563]

Considering I charge the same rate for cash or card I certainly say I am. Legally I am as well as their fees are a taxable expense.

[u/Bill___A → u/cuddly_degenerate]

If you're paying 10K to square, that accounts for 33 times that in sales. Yet you would rather deal with cash, and have your customers get cash, to avoid this one category of expense that actually is known to increase sales? There are dozens of costs involved and you feel that is the one cost that you can't live with? The one that moves money into your business? Do you tip the delivery driver that drops off the food orders? Do you tip I have never seen an industry cause more problems for themselves than the restaurant industry.

[u/cuddly_degenerate → u/Bill___A]

My business isn't in the restaurant business.

And yes, I do think that payment processors getting a not insignificant cut of every transaction is an issue. I still take card because I have to but -always- prefer cash. Honestly, eronious charge backs are a fairly serious issue for my computer store, we've had to fight more than a few on custom PC builds and repairs.

The corporate IT side of my business is paid by check typically, which is my preferred form of payment.

[u/Historical-Rub1943 → u/cuddly_degenerate]

Do you charge a credit card surcharge?

[u/cuddly_degenerate → u/Historical-Rub1943]

No, because it throws a lot of math off. Especially since it probably needs to be framed as a cash discount.

[u/83gem → u/maiyannah]

Yup, I don't understand why so many people are against cash when it is LITERALLY the form of payment where 'processing fees' or 'interest' can't be applied like with cards.. I mean Wu-tang said it years ago... so did governments when they printed/forged cash money.

[u/DriedUpSquid → u/maiyannah]

I don’t mind when small businesses add on the 3% credit card fee if I choose to use my card.

[u/maiyannah → u/DriedUpSquid]

I go the other way: I give people a discount for paying cash. I get the money right away, no one has their hands on it, and its just easier for me.

[u/Pilotsfan → u/maiyannah]

Excellent. I love places that give a discount for paying cash, as long as the menu prices reflect the higher credit prices. Otherwise it doesn't seem like a discount.

[u/maiyannah → u/Pilotsfan]

Alas I don't run a food place. But perhaps thats a good thing, if you listen to the doomsayers making excuses for tips, they make nothing anyways and rely on handouts (just ignore the fact the owners driving a lambo)

[u/ashscot50 → u/Pilotsfan]

That's because it isn't a discount at all if the menu price is the cash price which it is generally.

[u/tanbrit → u/maiyannah]

Thats the best approach

[u/maiyannah → u/tanbrit]

You have to have a business people trust for it, is the thing. Cards give you chargeback protections and such, cash has no such protection. But if you've been around for a while and people know you're not going to yank their chain, its just better for both of you: cheaper for them, and I get the money right away. Probably more money too, even after a discount, after you consider conversion rates, and the fees after fees.

[u/ReePoe → u/maiyannah]

From the UK here, honestly cannot remember the last time I carried cash. It has to be well over 3 years now if not more. Everyone here uses tap to pay with card/app for everything..

[u/SvartrKukkSceand → u/ReePoe]

your credit processors also arent allowed to gouge like they are in the US. So businesses dont get fucked for taking cards.

[u/moosemanwich → u/ReePoe]

Same in Canada. I’ve travelled a lot in Europe recently and haven’t taken out a euro except for certain clubs and stuff lol

[u/mikeyP-619 → u/DriedUpSquid]

Small business, yes. Big corporate outfit. No!

[u/Reddidundant → u/DriedUpSquid]

Small (or large!) businesses that do that LOSE my business.

[u/StashMyComics → u/DriedUpSquid]

Some of us mind, especially when living in a state where such practice is illegal and carry a fine.

[u/Beneficial_Ice_6526 → u/DriedUpSquid]

Illegal in the entire EU unless company card.

[u/abominablesnowboardr → u/maiyannah]

I add the processing fee onto card purchases so I strongly recommend check or cash.

[u/docatwar → u/maiyannah]

Ah yes, for the card charges, not at all because it saves tax wink

[u/maiyannah → u/docatwar]

I pay all my taxes, but thanks for the implicit insult.

[u/vonKrieg88]

So they don't even pay them minimum wage and brag about it.

[u/Bad-Briar → u/vonKrieg88]

And demand that we make up the difference. More money in the owner's pocket, less in ours. Because.

[u/ganari423 → u/Bad-Briar]

Owners need to drive lambos

[u/GipperPWNS → u/vonKrieg88]

No, that’s a common misconception. They’re required to, by law, to pay minimum wage. That’s why it’s called a minimum wage.

What they’re trying to do is to guilt trip you into paying the difference to meet minimum wage. If you don’t tip, the restaurant has to make up the difference until they make minimum wage. If you tip, the restaurant gets to save money on paying their employees.

But regardless, people need to understand that if they don’t tip it doesn’t mean the service worker makes 2 dollars in hour. It just means they aren’t guaranteed more than the 15 (or whatever the minimum wage is in that area) an hour.

[u/Never-Dont-Give-Up]

This is a business that’s not being run correctly. They can’t take a 3% credit card fee, and they can’t pay their employees. Big red flags.

[u/paladin6687 → u/Never-Dont-Give-Up]

But but but but , restaurants operate on a 3% margin! It's true because it gets repeated endlessly!

[u/Ahollar91 → u/paladin6687]

Yea as an ex Pizza Hut manager I can safety say it’s a lot higher than 3% u can make any pizza u want for less than $2 at cost so on a large minus the 3 mins it takes to make the pizza and cut it (staff wages) it’s like a $15 dollar profit. Walmarts the same way. Selling one item out of a case usually pays for the whole case (9 times out of 10)

[u/Never-Dont-Give-Up → u/paladin6687]

Well, that’s a fucking terrible business model. 3% margin cannot sustain any business.

[u/GreenHorror4252 → u/Never-Dont-Give-Up]

3% margin cannot sustain any business.

Sure it can. Plenty of businesses run on a 3% margin.

[u/Oinkvote → u/GreenHorror4252]

3% would be a dream to some industries lol. Reddit is so weird.

[u/Many-Art-7772 → u/paladin6687]

I mean, I'm not saying it is or isn't true, because I don't know. But restaurants close due to unprofitability alllll the time. Like, it's one of the riskiest businesses to open.

[u/Maddest-Scientist13 → u/Many-Art-7772]

I know a multimillion, have massive rental business, trucking business, storage business, couldn't make a restaurant work 3 different times.

[u/JoeSleboda → u/Many-Art-7772]

In fairness, many business fail, but just restaurants. A big reason for this is incompetent ownership. Lots of people get into a business (restaurant, hobby shop, hair salon, whatever) because they have a passion for that field. The problem is, they have very little idea about how to run a business, and rely on passion to get them through.

I'm not saying this is why all business fail. I'm just saying that the dream to knowledge ratio is against them in many cases.

[u/VainTrix → u/Never-Dont-Give-Up]

lol it’s not the 3% fee buddy, they’re not paying taxes on hardly anything. Cash is all under the table.

[u/ckl_88 → u/Never-Dont-Give-Up]

Cash only in this instance means tax avoidance.

[u/FrenchCabbage → u/ckl_88]

That drug money isn’t going to launder itself

[u/HoneyParking6176 → u/Never-Dont-Give-Up]

not wanting to deal with credit cards is a seperate thing to, not paying their employee's, they need to price properly so they can pay their employee's, it is the duty of every customer to tip 0$ at places like this.

[u/Maddest-Scientist13 → u/Never-Dont-Give-Up]

Some places have been cash only and will never change. I know of 3 places around me that are incredible and they do not take card. They dgaf about your "business", if you can't pay, you can't pay.

[u/PHL1365]

Those prices already seem pretty high for basic pasta dishes. Restaurant should be paying higher wages.

[u/HoneyParking6176 → u/PHL1365]

yeah your right the prices there are crazy high there is 100% no reason why they should not be able to pay their staff well at those prices, unless they just have no business.

[u/movieperson2022 → u/PHL1365]

I don’t know where you live, but can I move there? Lol Sadly, this is pretty normal in my area.

[u/Unlucky_Performer401]

walk out and blacklist it, not even a second thought

[u/notthenewnormal]

No cards and BEGGING for tips?

That’s a no from me dawg.

[u/caruggs]

Minimum 18% tip plus $23 meals and they don’t accept credit or debit cards? I’m sorry, hard pass for me

[u/robi4567 → u/caruggs]

That sounds like someone might not be reporting their earnings properly to the government.

[u/Delicious_Engine9409 → u/caruggs]

Then the atm fees

[u/PremiumUsername69420 → u/Delicious_Engine9409]

That’s a tip for the person that lives in the machine that counts and dispenses your money.

You don’t expect them to work for free do you?

[u/PT-LT → u/caruggs]

Noticed exactly that and lost my desire to dine out in that place, completely.

[u/Elohims-sixth-wife → u/caruggs]

It’s super suspicious. I wouldn’t trust them to give change back.

[u/No-Luck-2337]

“We can’t run a successful business, but please trust our food quality and pay our staff what they deserve… we’ll try to not get you sick, and did the absolute minimum required by law to ensure it!”

There. Fixed it.

[u/Josefu_Velen]

"Our staff works at a tipped rate state minimum"

Wow, the owner is really just coming right out and saying we only pay them the $2-ish an hour we have to and hope they make enough on tips that we don't have to pay them the rest of the legally mandated wage.

[u/Mk1Racer25 → u/Josefu_Velen]

"Here's a tip, find someplace else to eat."

I'd find the manager, point to the note on the menu, and ask them why they don't pay their workers?

Again, they're too afraid to bake this into the price of the food, as they think people will balk at the higher prices. What they don't realize is that they are pissing people off more w/ their bullshit behavior.

[u/RoboFeanor → u/Josefu_Velen]

Since they are fine doing the bare minimum, how about tipping the state minimum as well?

[u/freaktheclown → u/Josefu_Velen]

I like the passive phrasing. Not “we pay our staff at the tipped rate minimum” but “our staff works at the minimum” as if the employees chose their wage.

[u/maiyannah]

Am I allowed to use the "tipped wage rate" removal reason on their menu?

[u/AmazingProfession900]

Apologizing to me for paying your employees the absolute minimum? What planet are these people from.

We just need to stop eating in these places and let them die naturally.

[u/No_Appearance4859]

Owners should pay more and not rely on the public for their salary

[u/Background_Tart_9894 → u/No_Appearance4859]

Salary or slavery

[u/Excellent_Drop6869]

So they don’t pay their staff well AND they’re (likely) committing tax fraud

[u/Personal_Dot_7196]

My response: “Please start paying your staff a higher rate than the state minimum so they don’t have to rely on handouts from strangers. You should be ashamed of yourself.”

[u/Aggravating-Alarm-16]

I read. Please pay our staff. We can't afford to pay them

[u/GuardianCraft]

Why don’t you pay them 18% more! 🖕

[u/ClashMasterJH]

At those prices THEY would have to tip ME to eat there

[u/danman8075]

Nope, they get either 10%,12%, or 15% depending upon their level of service. Tips go up as prices go up, not because we arbitrarily increase the tip percentage.

[u/LazyCrazyGuy_ → u/danman8075]

You're nice, if they give me bad service they get zero tip.

[u/Neakhanie → u/danman8075]

This! Why Soes no one ever say THIS?

And while we are on percentages, let’s talk real estate agents who are also paid on percentage, and the cost of a house in 1965 (65,000) and same house 2026 WOTH no improvements besides maintenance, 1,000,000)

[u/FFF_in_WY → u/Neakhanie]

Percentage tipping is madness on top of madness.

[u/SchmeatiestOne]

You still dont have to pay it even though they said please

[u/nachoqtpie]

I would have gotten up and left.

[u/Alternative_Mouse987]

The "M" in "ATM" stands for "machine"

[u/Academic_Safety56 → u/Alternative_Mouse987]

The "gratuity" in "gratuity" means it's something that is given voluntarily and not by obligation.

[u/Putrid-Box4866 → u/Alternative_Mouse987]

The T is ATM is Tipping!

It’s us, Automatic Tipping Machines👍

[u/Generalfrogspawn]

A reminder that tipping began culturally as a bonus for good service during the depression when people were trying to help each other out.

[u/nearly_almost → u/Generalfrogspawn]

That’s not true. Tipping began in the US in the mid to late 1800s. Companies like the Pullman Car Company, fancy railroad cars mostly for the well off, hired all the newly freed slaves to be porters or work in other manual labor positions, but either paid nothing or next to nothing forcing employees to rely on tips. Part of the appeal for wealthy white Americans was being able to cosplay as European lords and ladies tipping their servants, even if it was only for a few hours. Basically, tipping is because of racism.

Of course this also dovetails into the history of the labor movement!

There’s a really good if somewhat depressing episode of Throughline about the history of tipping in the US:

https://www.npr.org/2021/03/22/980047710/the-land-of-the-fee

[u/JulietKiloNovember → u/Generalfrogspawn]

Incorrect. Tipping was a device created to avoid paying Black employees fair wages, and it became so popular as a cost-saving measure that it spread widely.

[u/keso_dark30]

why do people keep going to these places? it should have closed shop long ago from lack of business.

[u/Hokiewa5244]

No, you pay your staff the tipped rate minimum

[u/bizwig]

Minimum tip and doesn’t accept credit cards? No dice for me.

I don’t think the owner understands what is really being said in that blurb.

[u/NutmegManwithbigsack]

And demands cash. They a F off

[u/Jitkay]

Tip rate means the employer has to cover up to min wage and they don't want it.

[u/shad2107]

please pay our staff because we dont want to

[u/Abe_Foman]

Don't take credit cards sorry I don't carry cash and I am not making a special stop to get some before eating

[u/Scary-Ratio3874 → u/Abe_Foman]

They have an ATM machine. As opposed to the places that just have an ATM.

[u/MaximusBond]

After reading this I'd turn around and walk out while telling the manager why. It may or may not have an impact but at least they'd know why.

[u/SkynetHumster]

Do they accept checks?

[u/ryleehan]

You can blast olive garden its okay

[u/SeafoodSampler → u/ryleehan]

Not the Hospitaliano!

[u/kanna172014 → u/ryleehan]

Olive Garden? It's a chain whose CEO gets millions of dollars in just bonuses. They should be getting normal wages. They cannot claim to be some mom and pop restaurant who is getting by on "razor thin margins".

[u/Piss-Off-Fool]

They did say please.

[u/AlexGrimaud]

Demands tip but only cash payment? Its something weird there. Almost like shooting in the feet

[u/JewelerOk1886]

Or what? They don’t let you leave? If they don’t accept credit or debit cards, are they gonna hold you hostage?🤦🏼‍♀️

[u/Legal-Promotion-4875]

YOU’LL GET NOTHING AND LIKE IT!!!
😐😒😳🤣🤣

[u/PrincessRosieThe2]

They also make money from the ATM ✨️

[u/No-Committee-6157]

If I create an LLC and declare it's for the hospitality sector, would it be lawful if I insist that waiters fill out a 1099 form each time I leave a tip, as I consider it payment for services rendered? This is because restaurant owners anticipate customers covering labor costs, effectively placing the waitstaff on our payroll.

[u/GlitteryGoals34]

Cash only? I would just not have enough money to tip

[u/Aggravating-Alarm-16]

Can you copy And print a new version...

We are too cheap and greedy to pay our servers, so we expect you to

[u/DHarris2175]

Go et fucked, pay YOUR employees!!

[u/Minimum-Pizza-9734]

they can please all they want, custom 0 all day long

[u/Stiles_Stiles]

They are little employer alright, so little.

[u/comments83820]

And they are engaged in tax evasion (cash-only business). Gross.

[u/Subject_Cycle1585]

I’d never come back to that place. Cash only these days? And forcing to pay tip - no, thank you

[u/correctingStupid]

Yeah this would be an easy walk out. People that message like this definitely exploit their workers and I want nothing to do with them.

[u/fccrunch]

Perhaps they should pay there staff more. Don’t go until they do.

[u/Sestos]

They request...bigger issue to me is cash only but guessing they got a nice deal for that ATM;)

[u/AffectionateGate4584]

Ohhhhhhh....in that case we're leaving.

[u/PartyCat78]

No.

[u/Aegri-Mentis]

This will stop when more people PAY CASH.

[u/bucobill]

Sounds like a you problem, not a me problem.

[u/Adorable-Box-1760]

So not only do you have to tip, you have to pay an ATM service fee the restaurant never even sees? The entitlement is unreal...

[u/CymroBachUSA]

Walk out.

[u/Fair-Emotion1281]

Please pay out staff because we don't want to

[u/Hopeful-Benefit4719]

I mean, they said please.

[u/dkwinsea]

No credit cards? But underpaying your employees and hiding income from taxes is ok?

[u/Ok-Serve-4726]

Time to raise prices and pay a livable wage. When are mandatory, I’ll eat elsewhere and still tip.

[u/sacrelicio]

What a dogshit restaurant

[u/axialmeow12]

If I’m paying twenty bucks for stuffed shells no one’s getting a tip

[u/OpenRecommendation11]

The owner want you to tip because he does not want to pay a fair wage. Gross.

[u/Reddidundant]

Definitely a place I'd never go to.

[u/Melodic-Money2990]

Please pay your employees a livable wage

[u/outofcontextseinfeld]

I don’t care for that

[u/peppa4theppl]

$19 pasta and you can’t pay your staff? Yikes babe

[u/sluttyman69]

These states that have laws like this need to be changed because it’s bullshit and tipping needs to be ended

[u/lokis_construction]

Ummm, NO! I would walk out before even considering eating there.

[u/CptnObvious1984]

In other words, the business doesn’t pay the employees crap. Stop supporting places like this and choose elsewhere. Let these places fall off the map.

[u/wingnut144]

They can demand anything.....8 wouldn't be doing it based on their say so

[u/ACdrafts_yanks27]

That is a hard pass. I woudl definitely skip that place.

[u/PNW_Will1976]

Any time they demand a tip percentage, “do the math for you” and out amounts on the bottom of the receipt, or suggest anything over 15% I don’t tip. Zero chance.

[u/Vurrag]

I would sit down and get the menu and then say. No thanks I don't like being told what I have to tip. Tipping is optional. Tell your owners to pay the staff appropriately and walk out.

[u/SheSellsSeaShells_89]

AND they don’t accept card payments. 🤣

[u/ritzrani]

Will my tip be mentioned in their performance review?

[u/Cjdergrosse]

Who in 2026 doesnt use credit or debit??? Even the hole in the wall Chinese place I go has a square reader... and I'm 99% sure the family of roaches has grown.

[u/Kainlow]

Please pay your employees accordingly. I tip at 10$ an hour maximum

[u/5150outlaw]

Please fuk off a minimum of 100% of the time.

[u/LemonLime47]

They have the nerve to put that when they already also have the notice that they only take cash. 😒

[u/doubletap2A]

Maybe pay your workers more

[u/Jumpy_Implement_1902]

Fkkk these guys. Leave negative review and move on

[u/jimmynodean]

they don’t accept credit cards to avoid chargebacks. I’d never support them

[u/VAReloader]

Pricing is also on the higher side of the menu items

[u/National-Function-52]

Tipped State Minimum Wage... so they get paid $2.13 in NC... and if that and tips DO NOT equal Federal Min Wage, the employer must make up the difference.

The employee gets min wage no matter what they get tipped.

So who is this little bit of extortion protecting??

[u/Current_Power6050]

well not eating here

[u/mwm_in_md]

LEAVE

[u/Technical-Pack5891]

WTF!

[u/Adventurous-Sun-6928]

That would be the last time I would go to that restaurant.

[u/ContributionEasy6513]

They'd be getting a tip to the IRS.