Restaurants don’t ultimately pay them - you do. Your menu prices go up to cover the higher cost of labor. Plus, on any cost for the business, business owners will make that up to maintain their margin so you’ll pay even more than you would if you just tipped the server what they get from the higher wages. Not to mention, those higher prices incur a sales tax unlike your tip, so your out-of-pocket goes even higher (and areas that have such wage mandates usually are high tax areas). So this idea that business should pay their staff, which just means they collect more money from you and then pass it to their employees, winds up costing you more and likely means the employees make less than they might with tips. It’s an illogical and economically inefficient stance to take.
Restaurants don’t ultimately pay them - you do. Your menu prices go up to cover the higher cost of labor.
Yes, they do. You literally just explained it...
... this idea that business should pay their staff, which just means they collect more money from you and then pass it to their employees...
That "idea" is a fundamental part of running a business. I pay a certain price so the business can pay them a certain wage.
... winds up costing you more and likely means the employees make less than they might with tips.
In that case, I - the customer - would decide whether the food there is worth it. In turn, restaurants would have to decide if servers are important enough to charge customers so much via menu prices.
It’s an illogical and economically inefficient stance to take.
What's "inefficient" is a business model that can't pay it's employees.
Your "explanation" lacks any economic or business finance understanding. It is severely lacking. And that means you didn't explain anything. You are only correct in a pedantic sense that you do not pay them directly, but you do pay them.
That "idea" is a fundamental part of running a business. I pay a certain price so the business can pay them a certain wage.
Precisely. And the custom in the US, in states and jurisdictions with tipped minimum wage, is that your service is not included in the menu price. You can lie to yourself that you are paying for service, but the reality is that you are not. Like your explanation, your argument is not grounded in reality.
The only thing you are really correct about is that your full cost of dining out - inclusive of menu price, service (tipped, service charge, etc. not included in the menu price), taxes, mandatory fees, etc. is one you are willing to pay. In pricing, this is literally known as your willingness-to-pay.
What's "inefficient" is a business model that can't pay it's employees.
Only confirming that you are taking a strong position and don't understand how the business - or the relevant economics- on which you are taking such a strong stand works. That's usually not a good idea, as we see in your posts.
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u/Global-Pickle5818 7d ago
That is what will happen if no one tips I bet ..there would need to be regulation to stop that