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Customer: Restaurant’s Suggested Tips Don’t Add Up, Are ‘Price Gouging’

radcen said:
I find it interesting that corporate and the store manager think it perfectly acceptable to lie to customers.
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Wow, and so blatantly also. That's pretty amazing. I alway leave a great tip for good service, around 20% for acceptable service. I'd still give a good tip cause it's not the staff's fault but I'd definitely tell the manager I'm not coming back. That's incredibly dishonest.
 
Rexedgar said:
I'm not one to judge where someone eats, but you need to expand your experiences!

How much it costs to eat at resaurants - Business Insider

Lunch for two for thirty dollars, that's some frugal dining!
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The last place where I ate lunch, the Cadillac Bar in downtown San Antonio, TX, my meal (3 beef enchiladas, rice, beans and with soup/salad bar included) was $6.95 and she (having eaten lunch at home already) ate only the free chips and salsa - with two ice teas and tax added the total check was $12 and the tip (for spending less than 1/2 an hour in the place) was $4 (that works out to a 33% tip using your method). Are you saying that I undertipped or overtipped?

It is true that we don't tend to eat at fancy places which allows us to tip fairy well, get a decent meal and still not spend more than we are comfortable with.

The Original Cadillac Bar & Restaurant in San Antonio, Texas - Live Music, Entertainment and Great Food - Catering
 
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ttwtt78640 said:
The last place where I ate lunch, the Cadillac Bar in downtown San Antonio, TX, my meal (3 beef enchiladas, rice, beans and with soup/salad bar included) was $6.95 and she (having eaten lunch at home already) ate only the free chips and salsa - with two ice teas and tax added the total check was $12 and the tip (for less spending than 1/2 an hour in the place) was $4 (that works out to a 33% tip using your method). Are you saying that I undertipped or overtipped?

It is true that we don't tend to eat at fancy places which allows us to tip fairy well, get a decent meal and still not spend more than we are comfortable with.

The Original Cadillac Bar & Restaurant in San Antonio, Texas - Live Music, Entertainment and Great Food - Catering
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Looks like decent spot. Bon Appetit!
 
hard to know for sure if this is on purpose or if it's just a mistake. here's what pisses me off : the restaurant can pay significantly below minimum wage and then count the tips as part of base salary. no, that's not why i'm leaving a tip. i'm leaving a tip as a nice "here's something extra" thing. if they use the tip as part of the base salary, then i'm actually tipping the owner. if i wanted to tip the owner, i would do that. the restaurant exemption from minimum wage needs to be eliminated nationwide. just charge me an extra quarter for the cheeseburger and pay your employees properly like everyone else.
 
Rexedgar said:
Looks like decent spot. Bon Appetit!
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Thank you, the food and service was quite good. I had never heard of the place but had time to kill before an appointment with a lawyer who had an office around the corner. Other than the lawyer, our biggest expense for that trip was the (ridiculous) $15 charged for parking.
 
Helix said:
hard to know for sure if this is on purpose or if it's just a mistake. here's what pisses me off : the restaurant can pay significantly below minimum wage and then count the tips as part of base salary. no, that's not why i'm leaving a tip. i'm leaving a tip as a nice "here's something extra" thing. if they use the tip as part of the base salary, then i'm actually tipping the owner. if i wanted to tip the owner, i would do that. the restaurant exemption from minimum wage needs to be eliminated nationwide. just charge me an extra quarter for the cheeseburger and pay your employees properly like everyone else.
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If tipping/base pay is brought into line with other businesses, you'll be shelling out more than .25 more for that cheeseburger. Server wages are about $ 2.13 where I eat. People in fast food are demanding $15.00, that's a shortfall of almost $13.00 per hour. I'd like to be served by someone with more than fast food skills. I didn't invent the way it's done now, but just paying wait staff more is going to drive restaurant prices way up.

Many restaurants have these tipping 'suggestions.' They are using psychology hoping to embarrass you if you leave less. As i posted earlier, we tip well for what used to be average service because average is the exception, not the rule any longer!
 
radcen said:
Because the manager was so indignant of the "error" and dismissive of the customer I do not see how it can be an honest mistake. If the manager had at least mouthed the words of an apology I would consider it a possibility.
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Plus the Corporate response was "It's only a suggestion"
 
radcen said:
Because the manager was so indignant of the "error" and dismissive of the customer I do not see how it can be an honest mistake. If the manager had at least mouthed the words of an apology I would consider it a possibility.
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Those tips don't go the restaurant owners,manager or any of the higher ups in corporate. Those tips go the waiters and waitresses who waited on those tables. California is one of those states that require restaurants to pay their workers as full wage. So those waiters and waitresses are making a full wage plus tips. So its not hurting or benefiting the employer or any of the higher ups in the cheesecake factory corporate office if customers choose to tip or choose to not tip the people who wait on their tables.
 
jamesrage said:
Those tips don't go the restaurant owners,manager or any of the higher ups in corporate. Those tips go the waiters and waitresses who waited on those tables. California is one of those states that require restaurants to pay their workers as full wage. So those waiters and waitresses are making a full wage plus tips. So its not hurting or benefiting the employer or any of the higher ups in the cheesecake factory corporate office if customers choose to tip or choose to not tip the people who wait on their tables.
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Yes it is. It is easier to attract and retain employees who are making more money working for your business - whether that extra money comes from the employer or the customers is what makes no difference.
 
ttwtt78640 said:
Yes it is. It is easier to attract and retain employees who are making more money working for your business - whether that extra money comes from the employer or the customers is what makes no difference.
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I suppose you are right on that. Many companies do care about employee retention.
 
Rexedgar said:
Guess we can blame you when the price of dining out goes through the roof because the servers are paid a wage that they can live and advance in their careers. It's all like the clown balloon, squeeze in one place it expands in another. I'll wager there is a contest to see who serves you at your regular haunts.:)
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I lived most of my life in California, including time working in restaurants and married to a "professional server". I have now lived in Iowa for over 10 years. California is one of a handful of states that mandates tipped employees be paid full minimum wage whether they get tips or not. Iowa does not. The idea that higher wages cause prices to skyrocket is a myth. I will attest from personal experience that there is no real difference between one or the other, as far as retail pricing goes. What the customer sees. Barring outliers like touristy areas, it's pretty much identical.
 
Rexedgar said:
If tipping/base pay is brought into line with other businesses, you'll be shelling out more than .25 more for that cheeseburger. Server wages are about $ 2.13 where I eat. People in fast food are demanding $15.00, that's a shortfall of almost $13.00 per hour. I'd like to be served by someone with more than fast food skills. I didn't invent the way it's done now, but just paying wait staff more is going to drive restaurant prices way up.

Many restaurants have these tipping 'suggestions.' They are using psychology hoping to embarrass you if you leave less. As i posted earlier, we tip well for what used to be average service because average is the exception, not the rule any longer!
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I believe that's true. At least part of it.
 
jamesrage said:
Those tips don't go the restaurant owners,manager or any of the higher ups in corporate. Those tips go the waiters and waitresses who waited on those tables. California is one of those states that require restaurants to pay their workers as full wage. So those waiters and waitresses are making a full wage plus tips. So its not hurting or benefiting the employer or any of the higher ups in the cheesecake factory corporate office if customers choose to tip or choose to not tip the people who wait on their tables.
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All the more reason to apologize if it indeed truly was an error. Or not be so indignant and dismissive about it. At least pretend it wasn't done on purpose.
 
radcen said:
I lived most of my life in California, including time working in restaurants and married to a "professional server". I have now lived in Iowa for over 10 years. California is one of a handful of states that mandates tipped employees be paid full minimum wage whether they get tips or not. Iowa does not. The idea that higher wages cause prices to skyrocket is a myth. I will attest from personal experience that there is no real difference between one or the other, as far as retail pricing goes. What the customer sees. Barring outliers like touristy areas, it's pretty much identical.
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I can't dispute your comparison between Iowa and CA. From a purely business standpoint, if one day my restaurant costs rise, my prices rise. Business is not known for eating any cost of business increases. I have been fortunate enough to travel to Europe a few times and the servers do not expect the amount that domestic servers do. I think that US tourists have raised the expectation though. I have a tough time comparing dollars to euros when dining out overseas. Things seem more expensive in Europe.
 
Rexedgar said:
If tipping/base pay is brought into line with other businesses, you'll be shelling out more than .25 more for that cheeseburger. Server wages are about $ 2.13 where I eat. People in fast food are demanding $15.00, that's a shortfall of almost $13.00 per hour. I'd like to be served by someone with more than fast food skills. I didn't invent the way it's done now, but just paying wait staff more is going to drive restaurant prices way up.

Many restaurants have these tipping 'suggestions.' They are using psychology hoping to embarrass you if you leave less. As i posted earlier, we tip well for what used to be average service because average is the exception, not the rule any longer!
Click to expand...

i doubt that i'd be paying much more for the burger, but fine. restaurants should still have to pay minimum wage like everyone else, and tips should be extra.
 
Rexedgar said:
I can't dispute your comparison between Iowa and CA. From a purely business standpoint, if one day my restaurant costs rise, my prices rise. Business is not known for eating any cost of business increases. I have been fortunate enough to travel to Europe a few times and the servers do not expect the amount that domestic servers do. I think that US tourists have raised the expectation though. I have a tough time comparing dollars to euros when dining out overseas. Things seem more expensive in Europe.
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I agree with you. My mind says exactly the same thing... businesses don't eat costs, they pass them on... and I make the same argument in other similar scenarios. It just hasn't seemed to pan out that way in my experience and observations, and I cannot say 'why'.

Businesses do have to stay competitive to attract and keep customers, so maybe that's some of it. Though, I do not believe it can remain so forever. At some point they'd have to give in and raise prices.

I spent 18 mos in Europe when in the Army, so I know what you're talking about, but my time was 30-ish years ago so I don't consider that a good comparison to today.
 
Strange. I appear to be alone in believing that a tip should be based on quality of service and not part of an obligation of a server doing their job (a job often done poorly).
 
Helix said:
i doubt that i'd be paying much more for the burger, but fine. restaurants should still have to pay minimum wage like everyone else, and tips should be extra.
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Shoulda, coulda, woulda. "If wishes and buts were candy and nuts, we'd all have a Merry Christmas!"

Not a perfect world in most segments, I agree, thing should be different.
 
reinoe said:
Strange. I appear to be alone in believing that a tip should be based on quality of service and not part of an obligation of a server doing their job (a job often done poorly).
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Which would make you probably the only person who doesn't understand that that's not the thread topic. The topic is actually about lying to customers, not why and/or even really how much.
 
Helix said:
hard to know for sure if this is on purpose or if it's just a mistake. here's what pisses me off : the restaurant can pay significantly below minimum wage and then count the tips as part of base salary. no, that's not why i'm leaving a tip. i'm leaving a tip as a nice "here's something extra" thing. if they use the tip as part of the base salary, then i'm actually tipping the owner. if i wanted to tip the owner, i would do that. the restaurant exemption from minimum wage needs to be eliminated nationwide. just charge me an extra quarter for the cheeseburger and pay your employees properly like everyone else.
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Properly might be a bit of a stretch ;)
 
reinoe said:
Strange. I appear to be alone in believing that a tip should be based on quality of service and not part of an obligation of a server doing their job (a job often done poorly).
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I have the same position. If service is bad, I leave nothing. If all they do is come to the table with the food, I leave a very minimal tip. They actually have to go above and beyond the call of duty to get a generous tip. It's about service, not obligation.
 
Helix said:
i doubt that i'd be paying much more for the burger, but fine. restaurants should still have to pay minimum wage like everyone else, and tips should be extra.
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In most states, it has to be minimum wage, but that's made up of pay plus tips. If tips are high, pay can be lower. No wonder they want high tips!
 
Cephus said:
In most states, it has to be minimum wage, but that's made up of pay plus tips. If tips are high, pay can be lower. No wonder they want high tips!
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tips are extra. they should have to pay minimum wage like everyone else.
 
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