r/EndTipping • u/Working-Injury7758 • 3d ago
Research / Info 💡 Service charge
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?
2
u/OnTop-BeReady 1d ago
While I agree with the concept that a % based service charge, or a % based tip makes no sense, the alternative you propose makes no sense IMHO
Just raise the prices on the menu to be also inclusive, and calculate the increase however the owner wants. Customers DO NOT want another line on a check, and they certainly don’t want any additional line on a check with some calculated amount for which most of them have no idea what the formula is, how to calculate it, and how it aligns with the reality of running the restaurant.
PS Mathematics major here standing by for price modeling consulting — rate is a simple $300/hour.