Yet more about Tipping

[Roc Doc]

While I'm not anti-tip like IYJ, I do think the below proposal is a little commie. WTF, how come it has to come out of our end? Can't the restaurants just charge more, to pay more? Oh, that would take the incentive away from the server? Guess what, so will this.


Tipping the balance

MARKETPLACE: Tipping the balance

Trade group aims to build gratuities into prices of restaurant meals

By JENNIFER ROBISON
REVIEW-JOURNAL

Yakup Ulutas, general manager of Cafe Intermezzo in Dunwoody, Ga., founded Fairtip.org, a nonprofit organization calling for restaurants to add an automatic 20 percent service fee to every check. He says instituting involuntary tips is a matter of both fairness and practicality.
Photo by The Associated Press.

A national trade group wants to make optional tipping as obsolete as the three-martini business lunch.

FairTip, an Atlanta-based trade group, is angling for a national, industrywide automatic service charge of 20 percent per restaurant tab. If the organization succeeds, compulsory gratuities would have broad implications for local wait staff, restaurateurs and consumers.

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Yakup Ulutas, founder of FairTip and general manager of a restaurant in Dunwoody, Ga., said instituting involuntary tips is a matter of both fairness and practicality.

First, the fairness.

Servers rely on tips to push their incomes beyond the minimum wage. But the prevailing average tipping rate has been stalled at around 15 percent since the 1970s, Ulutas said. That's despite a host of more recent deductions from gratuities, including the 3 percent to 5 percent a server must hand over to untipped, back-of-the-house workers such as busboys and bartenders.

What's more, Ulutas said, waiters and waitresses are the only restaurant employees who risk financially the wrath of dissatisfied customers.

Diners who aren't happy with their meals often express their displeasure by stiffing the server on the tip. Or if a bartender is backed up and drinks arrive late, the waiter could take a tip hit. The establishment's owner still gets paid for the food and drink, he said, even as servers lose their wage-padding gratuity.

Tips today range from zero to 30 percent, making them unreliable sources of compensation, he added.

Throw in potentially bigger tips for specific population subsets -- attractive young women, for example -- and the entire tipping system as America's diners know it becomes hopelessly inequitable, Ulutas said.

Beyond bringing balance to the tipping process, a 20 percent service charge would have pragmatic benefits for restaurants and their customers, FairTip contends.

A standard gratuity would help the Internal Revenue Service know what and how to tax food servers, and a continually high tip rate would increase the money flowing into federal coffers, he said.

It would also free customers from doing the math on a bill to determine tip size. And it would elevate the profession of waiting tables, as higher-quality staff would remain in or join the sector for its consistently bigger paychecks, Ulutas said.

"If you want to see (food service) as a profession, the only way you can do it is to implement a service charge," he said.

Ulutas said FairTip has about 3,000 individual members nationally, including 154 members in Las Vegas. He said the group is gaining traction in the city, particularly among servers at small local restaurants and chain eateries. He said he didn't know of any members who work in restaurants inside resorts on the Strip.

One restaurant-industry representative said he didn't foresee a major groundswell of support among local wait staff for mandatory tipping.

Paul Hartgen, president and chief executive officer of the Nevada Restaurant Association, said the state's pay scale for food servers differs from the wages that restaurants in other states offer.

Nevada is one of seven states with no tip credit -- the wage allowance that sets server pay in 43 states at $2.13 an hour rather than the federal minimum wage of $5.15 an hour. Tip credits are based on the understanding that gratuities will take servers' income well beyond the minimum.

Because Nevada's tipped workers must make at least $5.15 an hour independent of their gratuities, Hartgen said mandatory service charges wouldn't be "that big a deal" among local food servers.

Bob Ansara, owner of Ricardo's Mexican Restaurant at 4930 W. Flamingo Road, said he has mixed feelings about the FairTip movement.

Ansara acknowledged that an automatic service charge would simplify taxation issues and the distribution of tips.

Also, he said, the move would likely be popular with many of his servers. Typical tips at Ricardo's range from 12 percent to 18 percent, though groups of 10 or more must pay a 17 percent automatic gratuity.

Though a mandated charge would save his business "a ton of aggravation," Ansara said he didn't favor requiring 20 percent gratuities.

"The positives would outweigh the negatives for us, but I don't think it's in the best interest of the consumer," Ansara said. "We would end up paying a price. No restaurateur would force a tip on anyone if they didn't feel we met their expectations. The perception (that consumers would pay 20 percent regardless of service) would hurt the industry."

Ansara added that gratuities aren't as random as FairTip's organizers say. Most customers tip consistently, he said, and food servers have steady incomes if they put in regular hours at an established eatery.

Table-side demeanor can also occasionally land a server a tip greater than 20 percent, he said.

"Most people want to have a hand in their own destiny if they possibly can," Ansara said. "Those who want to be protected and have guaranteed income might be doing so because of their performance."

Hartgen agreed, noting that many servers emphasize upselling -- encouraging diners to splurge on a bottle of wine, a special dessert or a high-end cut of meat.

"A lot of (wait staff) are really good at what they do, and they would rather have the opportunity to make more money," Hartgen said. "They look to that opportunity to make the guest check higher."

Ansara also discounted Ulutas' contention that rigid service charges would raise the level of professionalism among servers. Professionalism is a function of training and attitude, he said, and promising a set wage won't ensure high service standards.

"Professionalism is about leadership," he said. "It's about each organization's ability to translate their standards to the team."

Ulutas said he's still recruiting wait staff to the FairTip cause. Once he has a critical mass of supporters, he'll approach the National Restaurant Association with a plan for implementing the automatic charge industrywide. He said the transition to mandatory tips will succeed if the entire sector adopts service charges together.

"We need to change the (gratuity) mentality in this country," he said. "This needs to be done, and it needs to be done right."

[fullygruntled]

This is why I don't go out to eat anymore.

That, and the fact that we have two young kids and no money.

[Dieselmh]

There are already two places in town that we avoid when going out to eat lunch on work days because they automatically charge 20% extra for 6 people. If this happens, I'll definately start bringing my lunch more than I already do. If the tip is automatic, they're no incentive for the waitstaff to give good service.

[Krylon..]

Let me ask this. Not sure if this has been covered in other posts.. Why is it that servers aren't paid at least minimum wage? I have never been a server, but I know people who are.. Whats wrong with paying them like everyone else and then tips are optional if the patron feels the need to add on some extra $$ for good service?

I dont mind tipping and usually tip at least 20% or more, depending on the service. So dont take it that I am complaining about tipping.

[ScottFJ40]

Originally Posted by Krylon..

Let me ask this. Not sure if this has been covered in other posts.. Why is it that servers aren't paid at least minimum wage? I have never been a server, but I know people who are.. Whats wrong with paying them like everyone else and then tips are optional if the patron feels the need to add on some extra $$ for good service?

I dont mind tipping and usually tip at least 20% or more, depending on the service. So dont take it that I am complaining about tipping.

Because if they pay them a fair wage, the restaurant has to raise the food and beverage pricing to accomadate their waitstaff's higher wages.

And even having been in the business, I think this whole idea is ludicrous.*the whole tipping the balance idea*

[Screwzer2]

Well, I just came back from Amsterdam and Iceland where tipping is an exception, rather than the rule. Why do we have tips here and not there? One reason is that in the Netherlands (and much of Europe), employers are required to pay a living wage. Because of this, there's less pressure to tip. I still tipped when the service was exceptional, but most times the waiter followed me to the street trying to give me my change back.

[Travis Waldher]

the restaurants I worked in all paid minimum wage or better. Tips were extra. Yet the stores were still competitively priced and profiting (when managed right).

Any restaurant that is paying less than minimum wage is using food costs as a red herring for justification. The bottom line is, they like their profits as is.

That said - I don't go to restaurants that have a mandatory gratuity. Period.

[Haole]

When I tip, I try and make sure I get a shoulder into the side of the cow. Otherwise you could miss and fall in a cow pie.

[bjack]

I was always told, when I was working in restaurants, that if the server didn't make enough tips in the shift that the employer had to make it up to wher they at least make minimum wage.

[NHRedneck]

well....... just recently 5 of us went to chilis late on a sunday (still very much within business hours though) and our waitress was very little to care about us, and her tip sure showed it.... we left nothing, and she deserved nothing.... she was pushy for us to order out meals, slow to get us our drinks, and even had another waitress serve us our entree's...... not help her, serve them on her own. our waitress was no where to be seen....... we were being lively, and if she had paid more attention like most do, then she would have gottten a reasonable tip....... ive worked in food service before, and i know that their livelyhood depends on tips, and im very critical of my wait staff b/c of the time i spent in food service. if your very timely and check up/ refill drinks as soon as noticed then i will give you a nice tip. but when my glass is on the end of the table dead empty, and youve walked by 3 times and not even noticed, thats gonna take a lil out of your tip.....

[Krylon..]

Originally Posted by ScottFJ40

Because if they pay them a fair wage, the restaurant has to raise the food and beverage pricing to accomadate their waitstaff's higher wages.

And even having been in the business, I think this whole idea is ludicrous.*the whole tipping the balance idea*

To me, I dont have a problem with them raising their prices. Actually I have noticed alot of price hikes in the food industry over the last few years at restraunts in our area.. But how often do servers get a wage increase?

[candctroll]

I don't believe in mandatory tipping either. I tip based on service and usually if it's a nice place I spend some time talking to the server so if there is a problem at the bar that is causing a wait or something like that then I already know about it.

Of course there have been some places where service is just bad and I have always spoke to a manager or left a written letter explaining my displeasure.

[ScottFJ40]

Originally Posted by NHRedneck

well....... just recently 5 of us went to chilis late on a sunday (still very much within business hours though) and our waitress was very little to care about us, and her tip sure showed it.... we left nothing, and she deserved nothing.... she was pushy for us to order out meals, slow to get us our drinks, and even had another waitress serve us our entree's...... not help her, serve them on her own. our waitress was no where to be seen....... we were being lively, and if she had paid more attention like most do, then she would have gottten a reasonable tip....... ive worked in food service before, and i know that their livelyhood depends on tips, and im very critical of my wait staff b/c of the time i spent in food service. if your very timely and check up/ refill drinks as soon as noticed then i will give you a nice tip. but when my glass is on the end of the table dead empty, and youve walked by 3 times and not even noticed, thats gonna take a lil out of your tip.....

Most of your points are valid with the exception of the having another waitress bring you your food, that's how it's done at Chili's/Ruby Tuesdays/Pizzaria UNO's/insert any corporate "restaurant" here.

[ScottFJ40]

Originally Posted by Haole

When I tip, I try and make sure I get a shoulder into the side of the cow. Otherwise you could miss and fall in a cow pie.

That was very "fullygruntled" of you

[Krylon..]

Originally Posted by ScottFJ40

Most of your points are valid with the exception of the having another waitress bring you your food, that's how it's done at Chili's/Ruby Tuesdays/Pizzaria UNO's/insert any corporate "restaurant" here.

Applebees is usually like that too.... We go there so often we have waitress that like waiting on us because they know we will tip them well.

[NHRedneck]

....... i expect my food to be delivered by the waitress who took the order..... that way if its fucked up, i can take it out on her, not the innocent girl who got conned into taking out the food for her....... no sense having someone who doenst have a clue who ordered what giving out the food

[4in100]

I really can't stand that resturant (the one in the article). It's right down from my apartment and I know people that think it's the schiz. The food is overpriced, you can't see shit cause of the dim lighting and the typse that frequent it are all pompus foreigners with their high-society ways. That and the fact that they add 20% onto ONE PERSON's ticket, never mind the 6 or 8 person party.

Hell, I've tipped 100% before on my meals. But that is reserved for a select few bertender-ettes that I have a bit more knowledge of besides the fact that they work at a resturant (and no I ain't boning any of them...yet). If I want to tip $1 for a 50 check it should be my perrogative. If the wait-staff didn't sucks ass they'd have gotten paid more. To me the tip is a way to measure how satisfied with the service I recieved.

[beerisgood]

I don't see that catching on.

[GM4Life]

Ya have to work for your tip

[Roc Doc]

Originally Posted by GM4Life

Ya have to work for your tip

That's pretty funny! I'd buy that guy a beer, (like he needs another, )

[qwiksilver]

Whoa! That automatic 20% sounds socialist. But so does minimum wage

Business will always grumble about minimum wage. They did when it was instated during the Depression and minimum wage was .25 an hour. (That's a $2.00 day/$10 a week/$520 a year after people had been making .62 1/2 an hour prior to the Depression.)

[YJ4LIFE]

by definion a gratuity or t.i.p. can't be madated but a service charge can. gratis - Latin for gift... t.i.p. - to insure promptness

[beerisgood]

Originally Posted by qwiksilver

Whoa! That automatic 20% sounds socialist. But so does minimum wage

Business will always grumble about minimum wage. They did when it was instated during the Depression and minimum wage was .25 an hour. (That's a $2.00 day/$10 a week/$520 a year after people had been making .62 1/2 an hour prior to the Depression.)

Try running a business, I bet your atittude would change. People deserve to be paid what they are worth and nothing more. The only source of more money minimum wage earners need is in training, not just a hand out so it can go right back to the government.

[KiGrind]

I had an offer to start out at $3.25 an hour, but I would get like $60 or more a night in tips usually.

Thats more money in one day then I make in half a week at my $6.50 an hour job. Both suck, but look where it goes.

[nissancrawler]

I ate out friday night with a friend, spent $50, left $2...food sucked, I had to go to the bar myself for my drinks, waiter never showed up, even had to get somebody else to tab us out. He actually got the tip, he was nice about it. Sunday night I went out with a friend, spent $40, left a $20 tip, service couldn't have been better. I won't go into a place demanding 20% when some waiter can take an order and never show up again.