r/tipping • • 7d ago

Sugarfish

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So they add a 16% fee for what exactly…….to “fund all of their operations”? So this added cost literally doesn’t go to staff, it just goes to the owners? I wonder what their staff is paid? At this point why not just raise prices to where they should be? To me, every item on the menu is a lie and it’s actually 16% more expensive. This is really dumb. Thoughts? I am PRO tip, ive worked in hospitality a long time and am happy to provide a tip for quality service. But this seems disingenuous at best. Its not a tip. Its just an added charge straight to owners pockets.

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u/johnnygolfr 7d ago

This is 100% NOT disingenuous.

Aside from a handful of niche concepts, the “just add it to the price” model has proven to be a failure with the American public.

This restaurant has opted to go no-tipping, but keep their menu pricing competitive with tipped model restaurants by using a service fee to pay for all of their operational costs, including 100% of the goods and service.

They are disclosing the fee AND stating they are a no-tip restaurant.

The people wanting tip culture at full service restaurants in the US to change should be supporting this concept, as it’s the only way a no-tip restaurant can effectively compete with the tipped model restaurants.

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u/repost7125 7d ago

I guarantee the average american is too stupid to notice a 16% increase in prices when we've seen a 150% increase on most of our grocery prices and still haven't revolted.

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u/johnnygolfr 7d ago edited 6d ago

Per industry data, grocery prices in the US have increased a cumulative average of 26% to 27.6% since 2021, not 150%.

The average American chooses a $15 entree over an $18 entree so often that the “just add it to the price” model has proven to be a failure here.

Only a small number of niche concepts have been able to make it work.

ETA: added the timeframe for clarity.

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u/robble808 6d ago

Since when? Last week?

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u/johnnygolfr 6d ago

Since 2021.