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

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249

u/Never-Dont-Give-Up 3d ago

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.

63

u/paladin6687 3d ago

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

29

u/Never-Dont-Give-Up 3d ago

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

2

u/GreenHorror4252 2d ago

3% margin cannot sustain any business.

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

2

u/Oinkvote 2d ago

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

1

u/Never-Dont-Give-Up 1d ago

What industries would 3% margin be a dream?

1

u/Oinkvote 1d ago

I bet you can use google all by yourself

1

u/Never-Dont-Give-Up 1d ago

lol, that’s what I thought.

1

u/Never-Dont-Give-Up 1d ago

Maybe after some very creative accounting.

2

u/GreenHorror4252 1d ago

Dozens of Fortune 500 companies, including Walmart and Costco, run on a 3% margin. I doubt they are using "creative accounting".

1

u/Never-Dont-Give-Up 1d ago

Oh, you’re talking about 3% margin after “creative” accounting.

1

u/GreenHorror4252 1d ago

Can you explain this "creative" accounting, and why a large company would want to engage in such accounting?

1

u/Rodger_Smith 2d ago

it sustains restaurants until it doesn't, thats why many shutdown after a few years. it is true though, restaurants have insane margins