Siun wrote:As the mother of a line cook, I'm mighty glad to see a beginning discussion of the inequity of restaurant wages. I have no trouble tipping but knowing that the BOH gets none of that cash is ridiculous. In Chicago, line cooks at good, high end spots are getting around $12 an hour or so with no benefits and often a bunch of hours off the clock (and folks who cook at Next, etc get less than that). The ones I know can't imagine doing anything else - but can't survive on what they make.http://www.lthforum.com/2015/05/assumptions-ground-up/
thetrob wrote:Interesting article. Opens up some new discussions.
http://resto.newcity.com/2016/09/29/truthabouttippinglaws/
Kman wrote:thetrob wrote:Interesting article. Opens up some new discussions.
http://resto.newcity.com/2016/09/29/truthabouttippinglaws/
Very interesting, thank you for posting.
lougord99 wrote:Listening to an article on marketplace on NPR. They were saying that many restaurants are paying their servers significantly higher wages because that is the only way they could get anyone to come back to work.
"Equity within the whole restaurant": The problem with the tipped wage
spinynorman99 wrote:Would be a great idea if all restaurants had the same business model and pricing structure, but they run the gamut from high-end fine dining to casual neighborhood spots to counter-service-only diners. It's a daunting task to try and apply a sea change transformation of a century-old practice across the board. The European model has restaurants actually paying a living wage. That would profoundly impact restaurant pricing here and drive most people away, leading to collapse for many businesses.
tjr wrote:And I'm doubly unsympathetic if, as the article implies, servers expect a substantial voluntary tip on top of the service charge. This is effectively just retaining the existing tip system with higher prices.
Cathy2 wrote:In advance, the entire cost of the event including tip was agreed with the owner. When the servers presented the bill, it was the agreed amount and lines for the tip.
spinynorman99 wrote:Can't address that specific situation but having a line for a tip doesn't mean you have to tip if you've already done so through a negotiated payment. And sometimes people will add a tip for an experience that exceeded their expectations.
Cathy2 wrote:The experience was less than expected
Matt wrote:My wife and I won an in-home dinner with a private chef at a fundraiser. (The chef owns a catering company, so not a restaurant chef coming into our home, for what it’s worth.)
Any idea on what to tip? I have a rough idea of “fair market” cost because we added two people beyond the original size of the party as stated in the silent auction listing.
The chef and an assistant will be in our home preparing the food, plating, and serving (so it’s not just a drop off-type thing).
Any suggestions/experiences anyone can share would be appreciated.
boudreaulicious wrote:
And I know you didn’t ask about this but since you mentioned it, are you donating extra $$ for the extra people? If that hasn’t been discussed, I would offer. The cause may be something meaningful for the person who donated and they might appreciate you contributing an additional amount proportionate to the value of what you already spent for the extra meals.
People mostly choose restaurants based on obvious factors, like the quality of the food, the quality of the service and the prices. As restaurant owners, we see this firsthand every day. Atmosphere, location and parking availability may be lesser factors, but the price and the quality of the food and service matter most.
As the Chicago City Council considers eliminating the law allowing tip-based businesses to factor tips into overall wages, let’s keep these things in mind. If Chicago makes the wrong move, restaurants will close, worker earnings will significantly decline and the quality of service will suffer. Restaurant and bar owners, workers, customers and the city will all lose.
Restaurant industry economics are notoriously fragile. While the small percentage of high-end restaurants have higher margins, most restaurants are like ours: small, family-owned operations with single-digit margins. We support families and a few dozen employees: teenagers getting their first job, 20-somethings serving beers and mixing drinks, and plenty of moms and dads who are also supporting loved ones.
Today in Illinois, the median wage of a bartender or server is about $28 per hour with tips. In our restaurants, servers often earn $45 to $50 an hour. Even the lowest earners in the restaurant business get at least the $15 minimum wage because the law requires owners to make up the difference if tips fall short.
Eliminating tipped wages means the guaranteed, hourly wage for restaurant workers will automatically rise from the current $9.48 to $15.80, a difference of $6.32 per hour. Shifting that cost from tippers to owners has a number of negative consequences.
First, restaurants will have to raise prices. Food and labor costs are the two most significant line items for a restaurant, accounting for about two-thirds of overall costs. Add in operating costs for occupancy (rent or mortgage), utilities, repairs, maintenance and administration, among others, and the typical restaurant owner is lucky to come away with 3% to 5% of overall sales in profits. On a million-dollar business, that’s just $30,000 to $50,000 per year.
Basic laws of economics suggest that higher prices will mean fewer customers. Fewer customers means fewer restaurants, fewer restaurant jobs and less economic activity. Even tourism, which is only now approaching pre-pandemic levels, could be affected.
The tipping system also empowers customers. If they like their server and the service is good, they can overtip. If they don’t like the service, they can undertip. Nobody likes feeling powerless, especially when it comes to spending their own hard-earned money.
From the point of view of servers and bartenders, the tipping system rewards the hardest workers. They know exactly how to boost tips. Provide great service, be attentive and anticipate a customer’s needs. Customers like to reward outstanding service. And nothing is more demoralizing to hard workers than colleagues who still make the same wage while doing less work.
In short, the beauty of the tipping system is that the customers have influence, restaurant owners have a little more economic security and the servers make more money.
After seeing how operators in Washington, D.C., were walloped by that city’s rollback of the tip credit, the restaurant industry is mobilizing to prevent a repeat in Chicago.
Mayor Brandon Johnson has set abolishment of the tip credit as a priority for his young administration, which came to power in May 15. A measure to kill the employer break has been publicly endorsed by 26 of Chicago’s 50 alderman, signaling that passage is likely. A final vote on phasing out the credit is expected to be held early next month.
I'd also want clarification on whether sales tax is calculated pre or post service charge. It shouldn't be, I think, because IL doesn't tax services. That's actually a positive argument for service charges rather than straight increased menu prices.All checks will include an 18 percent service charge on food items.
...
Sandwiches:
Wisconsin Cheeseburger - 1/3 lb, Wisconsin cheddar or Swiss cheese, served with broasted potatoes $15 (with service charge $17.70)
WhyBeeSea wrote:I've always found it interesting how much discourse is generated by tipping policies. I might be in the minority, and I'm knocking anyone that does, but it's never been something I'm that concerned about.
I'll check the bill to see if a tip is included or not, and then go from there. If I'm not 100% sure, I'll ask the server and that clears things up.
To be clear, this is from an industry news entity that isn't pretending to be neutral. No surprise that it doesn't explain just how exactly DC operators were "walloped"?Dave148 wrote:After seeing how operators in Washington, D.C., were walloped by that city’s rollback of the tip credit, the restaurant industry is mobilizing to prevent a repeat in Chicago.
https://www.restaurantbusinessonline.co ... -escalates