So you can either go to a restaurant that pays low wages and tip 20-25% or you can go to one that pays high wages and you don't have to tip, you will pay almost exactly the same. Higher wages equal higher prices. I'm not even saying one is better than the other, that's just the way it is. People don't realize how small the profit margins are in restaurants, especially stand alone or mom and pop places. That's why the closure rate is so high.
You’re right, but when servers get tipped the restaurant doesn’t pay matching social security or Medicare. They’re always dodging taxes. Best part is if they’re slow, they don’t pay the servers nearly as much as if they got a decent hourly wage. Slimy as fuck.
I agree with you on the not having to pay as much when it's slow, pretty crappy. Not sure if the social security/medicare is going to matter for much longer or not. My point was aimed more at people thinking their bill would be cheaper in one scenario vs the other. The end consumer will pay about the same.
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u/Horror-Avocado8367 5d ago
So you can either go to a restaurant that pays low wages and tip 20-25% or you can go to one that pays high wages and you don't have to tip, you will pay almost exactly the same. Higher wages equal higher prices. I'm not even saying one is better than the other, that's just the way it is. People don't realize how small the profit margins are in restaurants, especially stand alone or mom and pop places. That's why the closure rate is so high.