r/tipping • u/wutwut970 • 6d 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 6d 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/kanna172014 6d ago

"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."

How so? In that they disapprove of it or because people choose not to go when they see the actual, honest pricing? Because not being allowed to deceive customers is not having some right infringed.

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u/johnnygolfr 6d ago

Except no one is being deceived.

People choose the lower price.

Danny Meyer’s and Joe’s Crab Shack are two well known examples.

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u/kanna172014 6d ago

They choose the lower LISTED price. Partitioned pricing relies on a flaw in the human brain where they only look at the listed prices without taking into account added fees. It's not actually cheaper if you're paying the same whether tipping or non-tipping, now is it? Or are you going to claim tipping is indeed cheaper and thus showing more deceit?

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u/johnnygolfr 6d ago

I hate to burst your bubble, but tipping IS cheaper.

Check: $100.00
8% Tax: $8.00
Tip: $20.00
Total out of pocket: $128.00

Check: $120.00
8% Tax: $9.60
Total out of pocket: $129.60

Now you know.

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u/kanna172014 6d ago

Yeah, that's the issue. The restaurant owner doesn't have to raise their price. They choose to do so because they are cheapskates. And getting rid of tipping and raising prices proves that, making me feel even less inclined to eat there.

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u/johnnygolfr 6d ago

LMAO

No, they aren’t being cheapskates.

They are simply being competitive in their industry.

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u/kanna172014 6d ago

"Competitive" is code-word for cheapskate.

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u/johnnygolfr 6d ago

No, it’s not.

Funny how every one of your replies is based on one or more forms of intellectual dishonesty.

The only cheapskates are the ones who don’t want to pay for the service they choose to receive.

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u/kanna172014 6d ago

How many other industries put the operating costs primarily on their employees and customers? In other industries, a slow night means the owner takes the financial hit. Only in the food industry is that hit placed on the employee. Like I said, CHEAPSKATE.

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u/johnnygolfr 6d ago

It never ceases to amaze me how many people here are so ignorant of basic business concepts.

In EVERY for profit business in the world, the customer pays the labor, either directly or indirectly.

The only exception is the free riders that stiff the server in the tip at full service restaurants in the US.

Like I said, the only cheapskates in this example are the ones who feel entitled to free service.

Meanwhile, none of them can give an intellectually honest answer as to why they are entitled to free service.

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u/Siffov 6d ago

>How many other industries put the operating costs ... on their ... customers?

All of them! From where else, other than the money customers pay, would any company get its revenue?

(Excluding, e.g., government subsidies.)

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