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eridani

(51,907 posts) Fri Oct 23, 2015, 05:10 AM Oct 2015

New York restaurateur eliminates bad tippers in his restaurants with a smart new pricing strategy

In 1966, we didn't know what might happen. Now we do.

http://www.upworthy.com/new-york-restaurateur-eliminates-bad-tippers-in-his-restaurants-with-a-smart-new-pricing-strategy

Tipping was started in the 17th century by British aristocrats as what journalist Paul Watcher describes as "a sprinkle of change for social inferiors." It was brought to the U.S. by rich Americans who vacationed in Europe after the Civil War.

When the practice arrived, people weren't that into it — it was viewed as un-American. Despite that, it stuck with us, and today about 4.3 million people make a living mostly on tips.

How did tipping go from being just a little something extra to a full-on means to an end?

The big change came in 1966, when the Fair Labor Standards Act was amended with a subminimum wage for tipped workers and a tip credit for employers.

That change allowed employers of tipped workers to offload the responsibility of paying the legal federal minimum wage onto their customers.

The current federal minimum for tipped workers (those earning more than $30 per month in tips) of $2.13 an hour hasn't budged since 1991, when the inflation-adjusted value of the dollar was 75% higher than it is today. By comparison, the federal minimum wage has been increased six times in the same period.

Meyer is eliminating the traditional tipping system by building a service charge (and then some) into the prices at all of his full-service restaurants. He wrote on his company website that tipping was getting in the way of their ability to provide "meaningful career opportunities and advancement" for their 1,800 employees.

4 replies

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New York restaurateur eliminates bad tippers in his restaurants with a smart new pricing strategy (Original Post) eridani Oct 2015 OP

^ Wilms Oct 2015 #1

What's the difference Mendocino Oct 2015 #2

I am all for getting rid of tipping donna123 Oct 2015 #3

I agree a fair wage at minimum is necessary. gvstn Oct 2015 #4

Wilms

(26,795 posts)

1. ^

Reply to eridani (Original post)

Fri Oct 23, 2015, 07:52 AM

Oct 2015

Mendocino

(7,488 posts)

2. What's the difference

Reply to eridani (Original post)

Fri Oct 23, 2015, 09:44 AM

Oct 2015

between conservatives and canoes?

Canoes sometimes tip.

donna123

(182 posts)

3. I am all for getting rid of tipping

Reply to eridani (Original post)

Fri Oct 23, 2015, 08:58 PM

Oct 2015

Last edited Fri Oct 23, 2015, 09:38 PM - Edit history (1)

ALL tipping. Other countries don't have it. When I went to Canada, I was stupid and didn't realize and tipped everywhere. I don't believe in tipping because it is very unfair. That waitress at Denny's or someplace who may be middle aged or older and maybe not too attractive is going to get $3 on $20 meal while the person working at some high end restaurant who is usually more attractive and younger will get $40 on a $200 meal. Granted the $20 meal may be 30-1 hr while the $200 meal will be at least 2 hrs and the Denny's waitress will be serving more tables but still, I suspect the high end restaurant waiter makes more. I also know the tips are distributed among all staff, the busboys etc. Also I have found at high end restaurants, the wait staff is usually white and for some reason at least in my experience, male rather than female. There will probably be income difference between wait staff at Denny's vs wait staff at high end restaurant but I think no tipping would still work better. This 2.13 is absurd, it's evil, and from what I understand Herman Caine is responsible for setting that level. If anyone has waited tables, I would love to learn more about this and how much people really earn.

edited to add, how else this is not fair. The bellhop or whatever you call them at a hotel gets tipped for all of like 10 mins work for bringing up your luggage while the maid gets tipped for like what 2 hrs of work? and it's much easier to give a smaller tip to someone you don't see than someone you see face to face. You may also forget to tip the maid since you don't see her. Every cleaning person I have seen in hotels are women while the bellhop is male. Again this inequality. Or what about valet parking, it's always males. They get tipped for what amount of work? I know in NY apts it's customary to tip the doorman at holiday time and again, I think most of them are male. I am all for reasonable pay, a much higher minimum wage, but tipping, I am very against.

gvstn

(2,805 posts)

4. I agree a fair wage at minimum is necessary.

Reply to donna123 (Reply #3)

Fri Oct 23, 2015, 09:09 PM

Oct 2015

And tips should be extra.

I always tip more when visiting low cost restaurants. The waitpeople do the same work, refilling your coffee or whatever but when the tab comes to $13 even 20% isn't really fair for how much work they did, compared to a $200 dinner where the waiter just put a plate on the table.

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