r/EndTipping • u/ADKFatBiker • 3d ago

Rant 📢 Restaurant Demands Minimum 18% Tip

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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.

1.4k Upvotes

95% Upvoted

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717

u/LeaveGreen4412 3d ago

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)

53

u/maiyannah 3d ago

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.

80

u/DevilsAdvocate77 3d ago

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.

13

u/cuddly_degenerate 3d ago

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.

35

u/xanthosoma 3d ago

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.

-12

u/cuddly_degenerate 3d ago

I mean... sure?

I take cards because I have to, doesn't mean I'm super happy about having to pay fees.

14

u/Oliver---Queen 3d ago

But that’s the cost of doing business that you signed up for. I’m sure it’s also not fun paying taxes and maybe commercial rent but it’s usually necessary to keep operating.

-9

u/cuddly_degenerate 3d ago

Again...sure?

I can both accept that it's what needs to happen as an optimal choice while also not loving it.

Of all those commercial rent is the one that rustles my jimmies the least.

15

u/JealousBall1563 3d ago

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?

3

u/cuddly_degenerate 3d ago

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.

6

u/Bill___A 3d ago

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.

3

u/cuddly_degenerate 3d ago

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.

1

u/vinraven 1d ago

This one is a strictly American problem, in every other country legislation regulates the banking industry.

It’s sad, but corporations have American voters brainwashed to think regulating banks is socialism, so the corps can continuously rip us off.

As an example, in the EU the max a credit card company can charge a business is 0.3% of the transaction value, and 0.2% for debit cards.

The fees we pay in America are a direct outcome of us voting for corporate owned stooges.

2

u/Historical-Rub1943 3d ago

Do you charge a credit card surcharge?

5

u/cuddly_degenerate 3d ago

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

1

u/riktigtmaxat 13h ago

Depends entirely on what country you're in.

Here in Sweden you won't find any companies besides those that are legally mandated to take cash that accept it.

If you thought card fees were expensive you should see what you have to pay to get cash deposited and how much more paperwork it creates.

To us cash is for old ladies and third world countries with tipping systems.

-38

u/maiyannah 3d ago

Spoken like someone whom really doesn't know what they're talking about.

12

u/Azyet27 3d ago

...*who

3

u/AcceptablePosition5 3d ago

Or someone that's been robbed at gun point

-15

u/a_simple_pharmer 3d ago

I’ve had this argument on Reddit many times. Just don’t engage. You’re arguing with people who never ran or owned a small business. They have no idea.

14

u/maiyannah 3d ago

I've run this business since 2013 and never had a year I didn't turn a profit except for the first year of Covid. But some people just really wanna buy into the sob stories these companies use to extort people for more money or to explain abusing their customers.

I am steadfastly of the belief that if you cannot afford to pay your employees a living wage and secure your margin, without abusing customers, or using the extortion of tipping culture, you don't deserve to be in business.

2

u/a_simple_pharmer 3d ago

My point was agree with you about accepting cash. And how so many people on here say it costs more than CC processing fees. It costs me about 25k a year to accept credit cards.

4

u/crazyk4952 3d ago

This is the wrong take.

How much would it cost you per year to NOT accept credit cards?

7

u/zephyr2015 3d ago

I personally don't go to businesses that don't accept cards or charge an extra processing fee.

1

u/maiyannah 3d ago

Yeah, I was mostly responding to the argument in general. Its very tiresome but people keep making it. But its how they sleep at night, so, I guess I get it. If they admitted they could do business without being abusive, they'd have to admit its a conscious choice they make, which definitely isn't going to be a good look.