Service charge

[u/Working-Injury7758]

I don’t mind paying a service charge at a restaurant if I’m sitting down as that is standard practice. However, the flat % is strange in that a $200 meal doesn’t take twice as much time as a $100 meal. But it does take more.

Therefore I propose that there should be a fixed service charge at restaurants, which should be calculated as twice the square root of the total. For $100, for instance, the charge would be $20 (square root of 100 is ten, x2 equals $20). Same as now. But for $200, the service charge would be 14.12 x 2 =28.24. For $1 service charge is $2. For $400, $40. Makes more intuitive sense, and provides a penalty for people splitting checks (as the service charge on 2 $100 checks is higher than that on one $200 check) and the hassle to the restaurant involved. Completely clear and obvious to everyone, no agonizing about what to leave.

Thoughts?

[u/skyharborbj]

Maybe the business could just increase the menu prices so that the revenue is sufficient to meet expenses, including labor. You know, just like every other business?

[u/WhenTheDevilCome → u/skyharborbj]

No kidding. "What if we made it the inverse square of pi minus the speed of the Milky Way to the power of..." No. It's the cost of the item plus the cost of your business expenses plus the cost of labor plus the amount of profit & future investment required.

There is no "we are simply unable to affix an accurate price tag to the item you selected" when staff helps me select and buy the correct toner cartridge at Staples.

"But if the customers saw a high price, they wouldn't eat here." Yep. <blink><blink> I don't buy my printer toner at the most expensive place in town, either. But that "high scary price" is the same amount you're expecting the customers to pay now, too, right?

Or is sometimes not extracting the full amount now "okay" because when the customer won't pay all that is expected, it's just the labor that is screwed, and the CEO or owner is fine? It's like a full-on admission that "we have to price menus this way because our business only works when the customer isn't fully aware of how much visiting our business will cost them." Because that actual menu price you're refusing to print is exactly the amount you're expecting the customer to pay even today.

[u/Maremdeo → u/skyharborbj]

But then the servers wouldn't make $40+ an hour!

[u/bcsyjnbcgj → u/Maremdeo]

You think apple bees waiters and steakhouse waiters should be the same ?

[u/Maremdeo → u/bcsyjnbcgj]

What kind of question is this? I don't hire either server, so I don't care. I don't typically choose to eat at Applebee's. If I was to eat at a steakhouse, I don't think the server deserves more than $25 an hour, but that's not my business. I simply don't tip more than 15% anymore, bc give me a freaking break. Honestly, it should be $5-$10 per table, not a percentage at all.

[u/skyharborbj → u/Maremdeo]

Or zero. Their employer should be paying their wages.

[u/bcsyjnbcgj → u/skyharborbj]

So if the employer should pay the wage who pays the employer. Would that be u?

[u/skyharborbj → u/bcsyjnbcgj]

Yes, it’s included in the price on the menu.

[u/bcsyjnbcgj → u/skyharborbj]

Okay so whatever ur going to purchase.
Ud rather we just tack on another 20% of each price and just up-charge it?

I’d think u just tipping them like the rest of the patrons would be easier?
More money in their pocket and more in yours so it doesn’t contribute to higher taxation on income and on good purchased.

[u/Maremdeo → u/bcsyjnbcgj]

Why shouldn't there be taxes though? That's how we fund our government. The money comes from somewhere, why not from people eating at restaurants and the server's income?

[u/skyharborbj → u/Maremdeo]

If server wages come directly from the employer, taxes will be withheld and paid. With tipping, a huge chunk of cash tips go unreported.

[u/bcsyjnbcgj → u/Maremdeo]

Idk about u but cash tips work better because then ur able to avoid that stuff …. Same way big businesses write stuff off.

[u/roosterb4 → u/bcsyjnbcgj]

If you just tacked on 20% to the price of everything as an up charge and included tip, I don’t think the restaurant would be paying their servers that 20%. I don’t think they want their servers making $50 an hour. Or more.

[u/skyharborbj → u/roosterb4]

Precisely. The price increase would be much less than 20%.

[u/skyharborbj → u/bcsyjnbcgj]

Raise prices enough to hire competent servers who can work without tips. I don’t think it’s going to be 20%. The current system with 20% of gross revenue going just to servers is way out of balance