[Stu from NYC]

Originally Posted by Sparky365

They are adding gratuity to our total at the Poke in Brownwood. You won't notice it unless you ask for your receipt. I don't have a problem tipping as long as I know I am doing it.

Would never pay for anything without getting a receipt.

There is something to be said that a tip should be earned not just given.

We do plan for going to poke but would ask them to remove the gratuity so I can put in what I feel is appropriate which is normally 20% or a bit more these days.

[croughwell]

This started to become common practice in South Beach because foriegn tourists didn't tip.

[nn0wheremann]

Tipping is obnoxious. Pay the staff a reasonable wage, charge the customer an honest price.

[LucyP]

Restaurants and stores are charge for each CC payment by percent and some pass it on instead adding to price of items. It’s company they choice to process their CC payments. I worked in a store and price of items were added like dollar more or two to makeup for charges, so nobody had a extra charge on their sale slip.

[Bill14564]

Originally Posted by croughwell

This started to become common practice in South Beach because foriegn tourists didn't tip.

But did that turn out better or worse for the employees? I normally tip 20% or more UNLESS I see that gratuity has been added; if I see 15% or 18% has already been added then I figure that is sufficient.

I usually don't look at the check closely enough to see that a gratuity or service charge has been added. Guess I'll have be start paying more attention.

[photo1902]

Originally Posted by Skip

Just another way of charging more, rather than re-printing the menus.

In Europe, "Servis Compris" means the tip is already added to the menu price. You can leave more if you'd like. There are pros and cons to both (Europe vs. US).

I would think that the servers in Miami would be totally against any "service charge" since the customer would think it's the tip. It really wouldn't last very long.

Skip

Many restaurants in Miami and South Beach have had this "service charge" for years. We were shocked to find this out on a trip a few years ago.

[ron32162]

So if your tax amount is let say is 5.00 and 20% of that would be 1 cent, That worries you?

[JMintzer]

Originally Posted by ron32162

So if your tax amount is let say is 5.00 and 20% of that would be 1 cent, That worries you?

Ummm... Try $1.25... I know, Maths is hard...

[Vermilion Villager]

Several drinking establishments in Northern Minnesota now charge if you use a credit card. Usually 2-3%. I questioned it and the owner said "last year I paid $50,000 in credit card fees". To which I responded if $50,000 is 2% of the total charges your customers paid… That means you took in $2.5 million in gross revenue. He shut up real quick!

[Bill14564]

I just read an article (not in the local paper) about the ruling. I have to say, I disagree with the ruling and the restaurants. Technically, the ruling is probably correct but realistically it is wrong.

What the restaurant is saying:
- The service charge is not a tip, it is a charge to cover the wages of the employees. The law requires that the restaurant pay a minimum wage and the service charge is used to meet that minimum wage. If the customer desires to leave an extra gratuity (tip) for the server, they should do that.

What the customer (me) believes:
- The restaurant is trying to protect their employees from customers who do not tip and therefore adds the tip to the check. The 18% (or whatever amount) is a tip on top of the minimum wage the restaurant already pays. The customer does not need to leave a gratuity because it is already included.

What it boils down to:
- In the case of the Miami restaurant, they are raising their prices in a deceitful way that harms their employees. The restaurant needs/wants to charge more for their food in order to pay the legally-required minimum wage but doesn't want to drive away customers. By adding the service charge they can collect more from the customer while keeping the prices the same. The customer believes this service charge is a "tip" even though it is actually used to cover minimum wages. Since the tip is already included the customer either does not leave more or leaves very little more. The employees lose out on actual tips.

IMPORTANT: This was the argument made by the Miami restaurant. Other restaurants may actually pass the service charge to the employees as an actual tip in addition to their legally-acceptable wages.

[Bill14564]

Originally Posted by ron32162

So if your tax amount is let say is 5.00 and 20% of that would be 1 cent, That worries you?

Originally Posted by JMintzer

Ummm... Try $1.25... I know, Maths is hard...

??? The calculator on my computer tells me that 20% of $5.00 is $1.00. Where did the extra $0.25 come from?

[Stu from NYC]

Originally Posted by Bill14564

??? The calculator on my computer tells me that 20% of $5.00 is $1.00. Where did the extra $0.25 come from?

New math?

[Rainger99]

Interesting article where the writer was almost tricked into tipping 43 percent of the food-and-beverage total!


Diner beware: A few tips about tips in South Florida’s restaurant minefield | Michael Mayo - South Florida Sun Sentinel - South Florida Sun-Sentinel

[Rainger99]

An explanation of the court ruling and the law.

Servers Call Foul on the System That Lets Miami Restaurants Keep Service Charges | Miami New Times

[flsteve]

Originally Posted by Vermilion Villager

Several drinking establishments in Northern Minnesota now charge if you use a credit card. Usually 2-3%. I questioned it and the owner said "last year I paid $50,000 in credit card fees". To which I responded if $50,000 is 2% of the total charges your customers paid… That means you took in $2.5 million in gross revenue. He shut up real quick!

HAHAHA! Weaponized Mathematics!!!