Came across this article on the increase in number of places demanding tips, increasing amount of tips, and automated systems trying to shame you into tipping, a lot.
Recall, a parting gift from a previous administration was a new reg that allows restaurant “JCs” to take money out of the tips servers earn, to subsidize back office payroll, so the “JC” can keep more money for himself.
Remember the horrors unleashed, when Fox Mulder refused to tip for a lousy meal at an automated restaurant?
I didn’t know about the change in the law. From now on, I will write “0” tip on the credit card bill and tip in cash the old-fashioned way.
Wendy
It doesn’t matter. As long as the server is paid at least the Federal minimum wage, not the sub minimum some states allow for tipped employees, the “JC” can pool all tips, and distribute some of the money to back office staff.
What I notice, and have yet to find the answer, is that when dining out, they set up the CC, before my signature, or Tip amount, I get the notification of the amount billed from the CC account, but never see where the Tip has been added to that amount. Doesn’t seem to matter if just the two of up or if I pick it up for the bigger group, where the tip is a lot larger, it never shows anywhere. Are the wait staff being stiffed? It seems there should be a final, full amount shown somewhere…
Curious, maybe I should flip to carrying cash for tips… ??
In a variety of places, gratuity is included in the price. So the price is higher because it is “all inclusive”. See if it says that somewhere on the menu.
It figures that CNBC would see tipping being a problem rather than sub minimum wages paid to servers in much of the restaurant industry.
I would not interpret the story as entirely from the “JC” viewpoint. The more people pay in tips, the more they subsidize the back room staff, and the more the “JC” keeps for himself. The “JC” could pay the cook minimum wage, and not have him walk, by taking enough away from the servers so that the cook’s total pay is competitive. To be able to take enough away from the servers, to pay everyone else enough above minimum so they don’t walk, while the servers still make enough to not walk, requires taking a lot away from the customers. So the “JC” advertises a meal for $10, then zings customers with a 40% tip when they pay. Why would a “JC” have a problem with that?
Steve
That is understood, generally for larger groups, many times they short themselves when they do it that way, but… But I still don’t see the catch-up amount, one owner told me they caned the amount if done soon after the sale, but that adjustment doesn’t show up because in today’s world, the charge shows up nearly instantly when the CC is run… Still a mystery…
Hey @wecoguy
DD works in hospitality - her response:
When the party is finished dinner and requests the bill, the POS system that the restaurant uses spits out the bill. When you tender your credit card, the POS system gets an approval for the amount of the check and records the transaction with the bank as “not totally closed out”.
Your server delivers you the check and credit card slips and you write the tip amount on the slip and leave one copy and take the other.
At the end of the night, when the restaurant is closing the day, the tip amounts are entered into the POS system and the finalized transaction is recorded with your credit card bank.
Then you see the final total with tip on your credit card statement.
'38Packard
This invites a bigger problem. The IRS is turning its resources to smaller tipping businesses.
I think the idea is to force small business owners into paying payroll taxes to keep SS solvent and to make employment in restaurants more equitable.
Wow, I don’t even remember the last time I’ve seen one of those, it’s been that long. At least a decade or two. These days it’s always a handheld credit/debit card terminal.
That sequence does make the most sense, and I believe one owner/server has explained it that way, but I guess I’m maybe not looking close enough at the next statement to catch that adjusted amount… And a[arently it doesn’t trip a new notification in the later closing posting, maybe because the difference is below the notification threshold we’ve set up… Thanks for sorting the details out…
You must live in the EU! Not so much here in the US…
'38Packard
Canada. We should really be closer in technology.
Sweet. So the JCs can systematically underpay their back staff in addition to their front staff.
The pleasure is up to the customer to guess how much tip really is adequate for the particular establishment, facing the choice of being either fleeced or shamed. Customer focus US-style I suppose.
Mexico also.
1234567890 (stupid character minimum rule)
d fb
And it gives the “JC” denyability. If staff complains about low pay, the “JC” can remind them that much of their pay comes from the tips given to the servers, so if they don’t like their pay, it’s all the server’s fault for not extracting a big enough tip, right?
Steve
If an employee doesn’t like their pay, they simply have to get a different job that pays them more to their liking. And, sure enough, mny of the employees are indeed walking. That’s why all those “cheap eats” restaurants that you like are closing down, reducing hours, or raising prices.
It varies, in my area. At the Wendy’s/Tim’s dual, over the last 5 times I have been in there, the Tim’s dining room is open, but the Wendy’s dining room has been closed, drive-up only. I was at the dentist a couple weeks ago, and commented on the other Wendy’s having it’s dining room closed most of the time. The girl chipping away at my teeth agreed. That Wendy’s is a favorite of the office staff for lunch, as it is an easy walk, but whether the dining room is open varies from day to day, totally unreliable.
Arby’s and BK have consistently had their dining rooms open for months.
A new wrinkle today. I drove over to Best Buy to drop off some old electronics for scrap tonight. As I got to the store, I noticed light coming out through the windows in the exit doors, but not the entrance doors. Approaching closer, I saw they had a metal door down inside the entrance doors. Consulted their store hours posted on the door. They now close at 8PM. I got there at 3 minutes after 8. When did they close before the plague, 9pm. or 10?
Steve