Jul 28, 2022·edited Jul 28, 2022Liked by Andrew Zimmern
I don't think there should be tipping OR service charge models. Employees should just be paid a fair wage and menu prices should reflect that. You don't tip an airline pilot, doctor or lawyer. All costs of doing business should be reflected in the business model. This would end all debates about how much of a tip is appropriate, do you tip on the pre-tax amount, etc. Is it more work for a server to bring you crab legs as opposed to a hamburger? More work to bring you a bottle of Pabst Blue Ribbon vs a $75 pour of Pappy Van Winkle? Of course not... Charging a percent of your bill is kind of silly when you think about. The worst is when restaurants add a tip to your bill. Very adversarial practice.
I'm fine with a service charge, BUT I think that restaurants need better communication. So often, it feels like there is a service charge and it's not communicated whether or not it is in place of a tip. I wouldn't mind if my bill literally said "no tip necessary" or "an additional tip is appreciated but not expected." As a diner, I want to leave a restaurant feeling like I have compensated everyone fairly. After decades of tipping, leaving unsure if you did the right thing is a terrible way to finish a meal.
Another thing that should be acknowledged is that treating restaurant staff, especially waitstaff, with respect (which includes tipping them well) has become a cultural signifier of good character. Haven't we all heard the stories of not going on a second date with someone because they were an ass to restaurant staff?
Long story long, I am down for ending tipping, and paying workers in every restaurant role fairly. But restaurant owners/workers need to communicate expectations clearly and concisely. And have some patience for us. It's a big shift for diners-- most of us aren't dining out that often (especially in fine dining settings), and will take some getting used to.
I mean, if you refer to the proper meaning of gratuity, it's something earned by giving good service. A bonus if you will. Pay those in the service industry a solid living wage that's competitive with any other industry, then let customers actually give that gratuity for a good experience. Then the server can share as set by that location's policy. It drives me nuts when I see a menu or something that says they've added gratuity to the bill for whatever reason. Then it's not gratuity, is it. Just increase your menu costs instead of trying to camouflage it. My hats off and sincere appreciation to those in the service industry, you have a very difficult job.
Agree but I’d prefer that all costs are included in the prices of the items—“baked-in” as it were. 😁. Most other products I buy are priced this way including retail goods. IMO, a separate service charge doesn’t add any helpful information since I am not concerned with the cost breakout between parts (the raw ingredients) and the labor to make my meal. Just tell me the fully-burdened prices including the overhead contribution and I can decide if it’s worth it.
I’m fine with putting the credit card fees back onto the customers but we always tip cash always 25% or more. I don’t want a service charge automatically added on. Danny Meyer tried that in NY and it failed. Brasa tacks on 21% for picking up a sandwich - that wasn’t even dining in. The sandwiches over $14 for a simple chicken sandwich.
Great timing, having a conversation about this now with my niece and nephew.
In an ideal world, tips or service charges would not be necessary to fairly compensate hard-working employees. It would be like other service businesses. When I take my car in for service, I know the money I'm paying compensates the mechanics, my service advisor, the office staff and facilities. The problem is, of course, that we've been using this system for food service for so long, and for change to work, it has to be universal so that no one business suffers for trying a better model.
I read the article (had to sign up with FB, and was dismayed to see the "thank you for signing up for the AM newsletter," which at no point did I consent to - argh), and this was the most important sentence: "Many restaurants have raised prices but they feel there's only so far to go, fearing customers won't stop in for $50 burgers."
What that is saying is we can't tell you what this really costs, so we're going to add a bunch of fees so we get what we need to run a business, and you don't find out what that costs until it's too late to opt out. Interestingly, that's the business model adopted by "budget" airlines, which is one reason I avoid them. Just tell me how much the effing flight is going to cost me and be done with it.
I'm glad restaurants are dabbling in this, and I like the idea of tips becoming as genuine and meaningful as a verbal compliment, rather than an expectation. But as others have said here, if a service charge is added, the diner should be aware of it before they're seated, not when they get the bill, and it should be made VERY clear that any additional tip is REALLY optional.
But in the meantime, I'm not going to bitch about tipping. One of the reasons we go out to dinner is to be spared the work of cooking and cleaning, to experience different food and good service, and enjoy an atmosphere of camaraderie. I don't labor under the expectation that any of that should be a gift to me, and honestly I'm thoroughly sick and tired of our expectation that food in all its forms should be cheap. The only reason we have cheap food is because we've been treating the earth, farmers/farmworkers, and food service workers like DOGSHIT so a precious few people can get rich (really broadening this beyond restaurants here). Cheap has come at the high price of massive income inequality and poor health. Enough already.
Restaurants should pay a fair wage and reflect that in their prices. I am fine with adding a service charge for anything that results in extra cost for the restaurant. But they have to factor in that we are a cashless economy and credit card fees and the like should be treated as an expected expense. I am fine with restaurants charging for bread or for additional condiments. We should pay for what we consume. Unfortunately restaurants can’t hire staff, inflation is real, and COVID is not going away. Things are fragile right now. My dream is that we one day we tip for exceptional service and not because folks are underpaid.
I can really see the argument to eliminate tipping. It’s heartbreaking to watch servers bust their ass for patrons that treat them poorly, and you know or see them not properly tip for the levels of often extra service they required. Employees at every level should be able to be properly compensated by their employer, and yes for that to happen…pricing structures need to change. As others have said, it’s the communication needed before , during & after for this to work. And that’s going to require some serious training of staff at every level. Imagine a lovely intro to a restaurant’s new model with a brief but articulate intro from the person showing you to your table & giving you your first glimpse of their charges if any that are clearly printed & explained on your menus.
This person may also be the one who simply explains their tipping optional policy while gently letting you know the menu has been revised to ensure fair compensation from everyone from the farmers producing the foods to those preparing it.
And servers who can equally speak to the whys… not just point to the menu & say there are the charges.
It’s a bit of a utopia, I don’t mind charges, I do mind surprise charges.
A while back I was traveling with my boss zipping thru the back towns near Appleton Wisc. I got stopped for a hefty speeding ticket… as my boss laughed & called my peers I coughed up my CC for a spicy fine. When the ticket was handed back to me there was a huge service charge for using a CC. That’s when I got a little mouthy. Which cracked my boss up more…”you didn’t flinch when h had to pay the ticket, but the service charge is where you drew the line?!”
Yes! Because it was not told to me. It was principle. !! Ok… so maybe I’m still carrying some SC baggage 😂
I think we need both. There should be a service . There are just too many who simply refuse to understand that the servers, bartenders etc. Are really under paid and under valued. As someone who has always tipped 20 to35% I would still do so
Completely disagree. This "fair wage" isnt fair. Adding a 20% fee to a tab and paying a bartender $23.00 an hour only helps the business owner. We all take a pay cut so you can use the 20% to pay your kitchen and front of the house. Complete crap. Why most my favorite spots have gone downhill. Plus the bartenders at these places always throw out the (but you can still tip if you want) there's nothing fair about taking a 50% pay cut so you no longer have to pay kitchen staff.
First, perhaps Minnesota lawmakers should amend or modify the "Tipping" definition, so tips can be shared with both front & back of house??? The ultimate solution maybe a Federal law that set guidelines and thus outlines sharing/pooling of tips, plus multiple other issues in Restaurant & Hospitality industry that could be resolved…
I did read the whole article by Gita Sitaramiah. No doubt she points out the many issues surrounding the industry and compensation fairness...
Here's my issue, a party of 4 goes to an upscale restaurant like Manny's Steakhouse, and based on their menu (I downloaded) 4 appetizers, 4 steaks, 3 sides (which are for the table). Total: $$461…
Same party goes to a excellent yet casual Steakhouse, Andrew’s Steakhouse, same order, Total: $288... 20% tip each, thus Manny's tip, $92, the Casual tip, $57... that a huge difference... The waitress at Andrew's works just as hard as the waitress at Manny's... thus, WHY is she worth $35 more?? She NOT.!!
That's the paradox... Now it becomes, semantics, eliminate the word "Tips" from the restaurant vocabulary all together, then the State Law doesn't apply, for it’s no longer illegal; servers can pool their 'funds' and the owner can use their discretion accordingly.
Instead of ‘Tips', servers get a "Wait Staff” surcharge WS%?. There would also be "Kitchen & Prep Staff" surcharge KPS%?. Finally a “Hospitality” surcharge H%?…
Let’s re-evaluate the “Server”… As a Server, regardless of the types of restaurant, cheap, low, medium or high end, etc., etc., a Server, in general, all work very hard to serve their customers, shouldn’t they all get paid the same?? The question is, “What’s fair for ALL the servers in this industry?”…
There are 2 possibilities, a server receives a ’set’ $X amount per person being served?? Say $5 per customer, thus a table of 4, the “WS” surcharge would be $20 for that table. Now say the server has 4 tables in their section, 2 tables seat 4, 2 tables seat 6; $20 for 2 tables, $30 for the other 2. So that’s $100 for the 1st seating…
The restaurant's dinner service goes through 4-seatings a night. Therefore the server that night makes $400 a night. Say there are 6 servers, all making $400 each, thus restaurant total WS (Wait Staff) surcharge is an aggregate of $2,400 ‘Pooled” and split among WS, KS's (kitchen Staff) percentage is 12.5 %, the Restaurant percentage is 15%, thus everybody shares in some set %…??
Or forget all the mathematical mishegaas and finally set a minimum wage of $13-$15 and hour… yet, if the restaurant followed some formula of the above, the servers would make more, the kitchen staff get a bonus, and the restaurant creates a Win-Win-Win…
Finally, the bill comes, representing the cost of food with a set $X% profit margin; then there are 2 blank lines, one for WS surcharge, the second one for $KS surcharge. Both at the discretion of the customer… here's couple of scenarios:
> Great service & great food, hopefully they’re both rewarded…
> Great service & so-so food or, So-so service & great food, the surcharges
reflects the diner’s overall experience, rewarding those who shined…
I’m a strong supporter of the “Wellness” surcharge, that would be a very reasonable surcharge. Most customers assume wrongly, believe servers do receive a “Health Benefit” of some kind… either as a shared cost, or able to get a low premium through the restaurant’s health insurance, verses having to blindly find an affordable health coverage… Bottomline is “Fairness” to and for ALL...
I'll be humbled if you actually read this lengthy opinion, yet somewhere in there might be solution??
Andrew, Molly & your subscriber gang, I hope everyone's weekend is spectacular...!!! Enjoy...
I dunno, It's rough out there. I live in Charleston, Many of us agreeing food quality, at even the good spots, has gone down. Prices have gone up. We are certainly cooking more at home, and I am investing in cookbooks. Having spent a decent amount of time in Italy this summer, a service charge of about 3.00 or so was added to each bill. And then, we round up with some extra Euro for great service. Cash, as their credit card machines don't allow for writing in tip. Seems fair. And they are paid a living wage, by their employer.
As a restaurant owner for over 20 years, I can tell you the old model is horrible, but getting rid of tipping is not the answer. The customers love to tip they love that tactic agreement and the fact that they get a minimum wage employee completely beholden to them for their entire income. I after Covid I decided that I hated paying people minimum wage and raised everybody to a living wage and instituted a equal tip pool across the board. And you press us how to increase slightly slightly which intern increased tip revenue as a tip is a multiplier of menu prices. Works like a dream for the last two years
This makes my brain hurt. I don't care either way, as long as people are getting a fair wage and are treated well. This issue probably only matters to people who work for tips...?
No. These people work hard for subpar wages and depend on the diners to subsidize their income. If you can afford to dine in then you can afford to tip. I typically tip 25%. More if the wait staff are exceptional
I don't think there should be tipping OR service charge models. Employees should just be paid a fair wage and menu prices should reflect that. You don't tip an airline pilot, doctor or lawyer. All costs of doing business should be reflected in the business model. This would end all debates about how much of a tip is appropriate, do you tip on the pre-tax amount, etc. Is it more work for a server to bring you crab legs as opposed to a hamburger? More work to bring you a bottle of Pabst Blue Ribbon vs a $75 pour of Pappy Van Winkle? Of course not... Charging a percent of your bill is kind of silly when you think about. The worst is when restaurants add a tip to your bill. Very adversarial practice.
I'm fine with a service charge, BUT I think that restaurants need better communication. So often, it feels like there is a service charge and it's not communicated whether or not it is in place of a tip. I wouldn't mind if my bill literally said "no tip necessary" or "an additional tip is appreciated but not expected." As a diner, I want to leave a restaurant feeling like I have compensated everyone fairly. After decades of tipping, leaving unsure if you did the right thing is a terrible way to finish a meal.
Another thing that should be acknowledged is that treating restaurant staff, especially waitstaff, with respect (which includes tipping them well) has become a cultural signifier of good character. Haven't we all heard the stories of not going on a second date with someone because they were an ass to restaurant staff?
Long story long, I am down for ending tipping, and paying workers in every restaurant role fairly. But restaurant owners/workers need to communicate expectations clearly and concisely. And have some patience for us. It's a big shift for diners-- most of us aren't dining out that often (especially in fine dining settings), and will take some getting used to.
I mean, if you refer to the proper meaning of gratuity, it's something earned by giving good service. A bonus if you will. Pay those in the service industry a solid living wage that's competitive with any other industry, then let customers actually give that gratuity for a good experience. Then the server can share as set by that location's policy. It drives me nuts when I see a menu or something that says they've added gratuity to the bill for whatever reason. Then it's not gratuity, is it. Just increase your menu costs instead of trying to camouflage it. My hats off and sincere appreciation to those in the service industry, you have a very difficult job.
Agree but I’d prefer that all costs are included in the prices of the items—“baked-in” as it were. 😁. Most other products I buy are priced this way including retail goods. IMO, a separate service charge doesn’t add any helpful information since I am not concerned with the cost breakout between parts (the raw ingredients) and the labor to make my meal. Just tell me the fully-burdened prices including the overhead contribution and I can decide if it’s worth it.
I’m fine with putting the credit card fees back onto the customers but we always tip cash always 25% or more. I don’t want a service charge automatically added on. Danny Meyer tried that in NY and it failed. Brasa tacks on 21% for picking up a sandwich - that wasn’t even dining in. The sandwiches over $14 for a simple chicken sandwich.
Great timing, having a conversation about this now with my niece and nephew.
In an ideal world, tips or service charges would not be necessary to fairly compensate hard-working employees. It would be like other service businesses. When I take my car in for service, I know the money I'm paying compensates the mechanics, my service advisor, the office staff and facilities. The problem is, of course, that we've been using this system for food service for so long, and for change to work, it has to be universal so that no one business suffers for trying a better model.
I read the article (had to sign up with FB, and was dismayed to see the "thank you for signing up for the AM newsletter," which at no point did I consent to - argh), and this was the most important sentence: "Many restaurants have raised prices but they feel there's only so far to go, fearing customers won't stop in for $50 burgers."
What that is saying is we can't tell you what this really costs, so we're going to add a bunch of fees so we get what we need to run a business, and you don't find out what that costs until it's too late to opt out. Interestingly, that's the business model adopted by "budget" airlines, which is one reason I avoid them. Just tell me how much the effing flight is going to cost me and be done with it.
I'm glad restaurants are dabbling in this, and I like the idea of tips becoming as genuine and meaningful as a verbal compliment, rather than an expectation. But as others have said here, if a service charge is added, the diner should be aware of it before they're seated, not when they get the bill, and it should be made VERY clear that any additional tip is REALLY optional.
But in the meantime, I'm not going to bitch about tipping. One of the reasons we go out to dinner is to be spared the work of cooking and cleaning, to experience different food and good service, and enjoy an atmosphere of camaraderie. I don't labor under the expectation that any of that should be a gift to me, and honestly I'm thoroughly sick and tired of our expectation that food in all its forms should be cheap. The only reason we have cheap food is because we've been treating the earth, farmers/farmworkers, and food service workers like DOGSHIT so a precious few people can get rich (really broadening this beyond restaurants here). Cheap has come at the high price of massive income inequality and poor health. Enough already.
Restaurants should pay a fair wage and reflect that in their prices. I am fine with adding a service charge for anything that results in extra cost for the restaurant. But they have to factor in that we are a cashless economy and credit card fees and the like should be treated as an expected expense. I am fine with restaurants charging for bread or for additional condiments. We should pay for what we consume. Unfortunately restaurants can’t hire staff, inflation is real, and COVID is not going away. Things are fragile right now. My dream is that we one day we tip for exceptional service and not because folks are underpaid.
I can really see the argument to eliminate tipping. It’s heartbreaking to watch servers bust their ass for patrons that treat them poorly, and you know or see them not properly tip for the levels of often extra service they required. Employees at every level should be able to be properly compensated by their employer, and yes for that to happen…pricing structures need to change. As others have said, it’s the communication needed before , during & after for this to work. And that’s going to require some serious training of staff at every level. Imagine a lovely intro to a restaurant’s new model with a brief but articulate intro from the person showing you to your table & giving you your first glimpse of their charges if any that are clearly printed & explained on your menus.
This person may also be the one who simply explains their tipping optional policy while gently letting you know the menu has been revised to ensure fair compensation from everyone from the farmers producing the foods to those preparing it.
And servers who can equally speak to the whys… not just point to the menu & say there are the charges.
It’s a bit of a utopia, I don’t mind charges, I do mind surprise charges.
A while back I was traveling with my boss zipping thru the back towns near Appleton Wisc. I got stopped for a hefty speeding ticket… as my boss laughed & called my peers I coughed up my CC for a spicy fine. When the ticket was handed back to me there was a huge service charge for using a CC. That’s when I got a little mouthy. Which cracked my boss up more…”you didn’t flinch when h had to pay the ticket, but the service charge is where you drew the line?!”
Yes! Because it was not told to me. It was principle. !! Ok… so maybe I’m still carrying some SC baggage 😂
Yes , there are way too many people who don’t tip enough or at all. Shame on them!
I think we need both. There should be a service . There are just too many who simply refuse to understand that the servers, bartenders etc. Are really under paid and under valued. As someone who has always tipped 20 to35% I would still do so
Completely disagree. This "fair wage" isnt fair. Adding a 20% fee to a tab and paying a bartender $23.00 an hour only helps the business owner. We all take a pay cut so you can use the 20% to pay your kitchen and front of the house. Complete crap. Why most my favorite spots have gone downhill. Plus the bartenders at these places always throw out the (but you can still tip if you want) there's nothing fair about taking a 50% pay cut so you no longer have to pay kitchen staff.
First, perhaps Minnesota lawmakers should amend or modify the "Tipping" definition, so tips can be shared with both front & back of house??? The ultimate solution maybe a Federal law that set guidelines and thus outlines sharing/pooling of tips, plus multiple other issues in Restaurant & Hospitality industry that could be resolved…
I did read the whole article by Gita Sitaramiah. No doubt she points out the many issues surrounding the industry and compensation fairness...
Here's my issue, a party of 4 goes to an upscale restaurant like Manny's Steakhouse, and based on their menu (I downloaded) 4 appetizers, 4 steaks, 3 sides (which are for the table). Total: $$461…
Same party goes to a excellent yet casual Steakhouse, Andrew’s Steakhouse, same order, Total: $288... 20% tip each, thus Manny's tip, $92, the Casual tip, $57... that a huge difference... The waitress at Andrew's works just as hard as the waitress at Manny's... thus, WHY is she worth $35 more?? She NOT.!!
That's the paradox... Now it becomes, semantics, eliminate the word "Tips" from the restaurant vocabulary all together, then the State Law doesn't apply, for it’s no longer illegal; servers can pool their 'funds' and the owner can use their discretion accordingly.
Instead of ‘Tips', servers get a "Wait Staff” surcharge WS%?. There would also be "Kitchen & Prep Staff" surcharge KPS%?. Finally a “Hospitality” surcharge H%?…
Let’s re-evaluate the “Server”… As a Server, regardless of the types of restaurant, cheap, low, medium or high end, etc., etc., a Server, in general, all work very hard to serve their customers, shouldn’t they all get paid the same?? The question is, “What’s fair for ALL the servers in this industry?”…
There are 2 possibilities, a server receives a ’set’ $X amount per person being served?? Say $5 per customer, thus a table of 4, the “WS” surcharge would be $20 for that table. Now say the server has 4 tables in their section, 2 tables seat 4, 2 tables seat 6; $20 for 2 tables, $30 for the other 2. So that’s $100 for the 1st seating…
The restaurant's dinner service goes through 4-seatings a night. Therefore the server that night makes $400 a night. Say there are 6 servers, all making $400 each, thus restaurant total WS (Wait Staff) surcharge is an aggregate of $2,400 ‘Pooled” and split among WS, KS's (kitchen Staff) percentage is 12.5 %, the Restaurant percentage is 15%, thus everybody shares in some set %…??
Or forget all the mathematical mishegaas and finally set a minimum wage of $13-$15 and hour… yet, if the restaurant followed some formula of the above, the servers would make more, the kitchen staff get a bonus, and the restaurant creates a Win-Win-Win…
Finally, the bill comes, representing the cost of food with a set $X% profit margin; then there are 2 blank lines, one for WS surcharge, the second one for $KS surcharge. Both at the discretion of the customer… here's couple of scenarios:
> Great service & great food, hopefully they’re both rewarded…
> Great service & so-so food or, So-so service & great food, the surcharges
reflects the diner’s overall experience, rewarding those who shined…
I’m a strong supporter of the “Wellness” surcharge, that would be a very reasonable surcharge. Most customers assume wrongly, believe servers do receive a “Health Benefit” of some kind… either as a shared cost, or able to get a low premium through the restaurant’s health insurance, verses having to blindly find an affordable health coverage… Bottomline is “Fairness” to and for ALL...
I'll be humbled if you actually read this lengthy opinion, yet somewhere in there might be solution??
Andrew, Molly & your subscriber gang, I hope everyone's weekend is spectacular...!!! Enjoy...
I dunno, It's rough out there. I live in Charleston, Many of us agreeing food quality, at even the good spots, has gone down. Prices have gone up. We are certainly cooking more at home, and I am investing in cookbooks. Having spent a decent amount of time in Italy this summer, a service charge of about 3.00 or so was added to each bill. And then, we round up with some extra Euro for great service. Cash, as their credit card machines don't allow for writing in tip. Seems fair. And they are paid a living wage, by their employer.
As a restaurant owner for over 20 years, I can tell you the old model is horrible, but getting rid of tipping is not the answer. The customers love to tip they love that tactic agreement and the fact that they get a minimum wage employee completely beholden to them for their entire income. I after Covid I decided that I hated paying people minimum wage and raised everybody to a living wage and instituted a equal tip pool across the board. And you press us how to increase slightly slightly which intern increased tip revenue as a tip is a multiplier of menu prices. Works like a dream for the last two years
This makes my brain hurt. I don't care either way, as long as people are getting a fair wage and are treated well. This issue probably only matters to people who work for tips...?
No. These people work hard for subpar wages and depend on the diners to subsidize their income. If you can afford to dine in then you can afford to tip. I typically tip 25%. More if the wait staff are exceptional