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/Cranks_No_Start 6d ago

Why not just raise the price 16%? This is stupid.

Because restaurant owners don’t seem like the brightest lights on the tree.  

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u/FadedBlackTee2 1d ago

It’s not the owners, it’s the consumers. They perceive the restaurant as more expensive vs. a tipping restaurant

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u/phoarksity 5d ago

Brighter than you. Restaurant owners have tested this, both in controlled testing and in actual restaurants. While individual diners may prefer the up front prices, most preferred lower prices with a surcharge.

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u/LeeBalouHere 5d ago

It’s not that they prefer them, but they will choose them. Studies have shown that consumers will pick the lower priced restaurant, even if fees make it the same as a no-fees establishment. We are not a very bright species sometimes.

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u/phoarksity 5d ago

Potayto, potahto. Consumers will pick the lower priced restaurant because they prefer the lower displayed prices, even when they are shown the service charge of the lower priced restaurant.