[retiredguy123]

Originally Posted by Fastskiguy

So if I got to my favorite restaurant, they add on a 22.5% tip on top of tax. If I order a glass of water and burger then the server gets screwed. If I order a cocktail, the seafood tower, a bottle of wine, and a steak, then I get screwed. I know it takes a little more time for the server to service a table with drinks and appetizers but still, it's not even close.

How can we do this so it's fair?

Joe

If the restaurant is adding the "tip", it is not a tip. Tips are optional and the amount is determined by the customer.

[PurePeach]

Originally Posted by stratmax

Have you noticed the food prices in restaurants have gone up dramatically. I'm not sure everybody knows this but last fall, 2024. Florida enacted a law mandating restaurants pay a base wage of $9.98 to their wait staff and a guarantee of $13/hour when combined with the tips.The law gave restaurants time to change their menu prices so they could pay the base wage.
So, why are we continuing to pay 20% tip when there is already a built in tip in the menu prices?
NOTE: the base wage is also going to go up to $10.98 this fall

This is not an included tip. As restaurant owners in GA, the law was always that the server be guaranteed minimum wage. The server was required to “report” their tips daily in order to assure the state/Fed’l that the server was paid minimum wage. This has always been the way it’s worked, even when wages were $2.10/hr (or less). Only the dollar amounts have changed. Don’t stiff the server. If you can afford to pay the price charged for the meal, you can tip the one busting it to get food, and every little thing you think you need after your food arrives, to meet your expectations and making your dining experience pleasurable.

[mtdjed]

Originally Posted by Cuervo

Let's do a little math $13 X 8Hrs. = $104.
Assuming the person works 5 days a week that comes out to $520.
Let's all assume since in today's world $520 a week is not a living wage, the person deiced not to take a vacation.
So, a person working for $13 an hour working 52 weeks a year will earn $27,040.
That is not a living wage that is why I always leave a tip.

I am not advocating elimination of tips but let's cut the Myth of poverty.

First, people chose that occupation, not for $13/Hour, but for the opportunity for the tip income. As one poster indicated from firsthand sources, that tip income can average $250 to $300 per day. At the lower number that equals $65,000. Add to that the Tipped Minimum wage ($8.98/Hour) $18,000/year for a total of $83,000.

Further these poor people have garnered an upcoming bonus of no tax on tips. That gift was given to these folks at the expense of the rest of us. By that I mean that what they don't have to pay, we have to make up.

Not all tipped wait staff receive that level of tips. Depends on the restaurant, location, level of business. But the best staff tend to get the best jobs. You are likely to find lower paid in rural areas , diners, etc

Not saying that even the example mentioned above is ideal, but I would guess there are many residents of the Villages that don't currently have that type of Income.

While we have typically given Tips in cash, it would seem that we were enabling staff to understate Income. No real reason to do that anymore.

[banjobob]

Originally Posted by stratmax

Have you noticed the food prices in restaurants have gone up dramatically. I'm not sure everybody knows this but last fall, 2024. Florida enacted a law mandating restaurants pay a base wage of $9.98 to their wait staff and a guarantee of $13/hour when combined with the tips.The law gave restaurants time to change their menu prices so they could pay the base wage.
So, why are we continuing to pay 20% tip when there is already a built in tip in the menu prices?
NOTE: the base wage is also going to go up to $10.98 this fall

The tip is based on quality of the service , the normal % of 20 was the standard throughout the industry, I tip the 15/20% range more if service better. Good servers deserve a good tip poor food , any other iss ue in the restaurant is the managers concern . I don't consider what the restaurant makes or the servers base pay is. The service received and the value of the meal portion served are the guidelines.

[wanttoknow]

what will become when "no tax on tips" takes place? Would be nice if everyone could work and not report their income to the IRS.
Previously worked in the restaurant industry - made more income as a waiter - then full time in an administrative position where all income was reported to IRS.

[jimhoward]

Originally Posted by Rainger99

I was in Europe last year and almost no Europeans tip. Or if they do, it is usually a euro or two.

That is because the tip is included in the price of the meal. The same with sales tax. If you go to a restaurant in Europe the price on the menu is the price of your meal. No 23% surcharge (15% tip plus 8% sales tax).

If Europe can do it, why can’t the USA?

Servers in Europe make much less than servers in the USA. The tipping is much less, and the hourly pay is more, but not much more. Typical pay <$1700 euros/month (plus tips).

I think you certainly could do that in the USA, but I don't think it will happen. The likely effect would be that meal prices would rise (but by less than the full 15%), and server incomes would go down.

[ChicagoNative]

A little tangent: How did we get to the point of thinking that everyone deserves a “living wage” for any job they have? Many restaurant jobs, particularly of the fast food variety, have traditionally been part-time and stepping stones into the world of work for young people, or retirees looking for something to do or add some spending money to their pockets.

Some who’ve decided to make hospitality their career will work their way up into higher end establishments where, as mentioned, the total compensation is pretty good. Even if one stays with a fast food company, they can work into a store manager or possibly a franchise owner. The key words are “work their way up”.

If anyone isnt satisfied with their station in life, they need to educate themselves, either through traditional schooling or even better, through an apprenticeship program to learn a trade. But that’s hard work! It’s much easier to whine about someone else’s privilege, protest, and demand $15-20 an hour to make a cup of coffee or flip a burger.

It all reminds me of the lyrics sung by the great Mavis Staples:

🎼“If you're walking 'round thinking that the world owes you something ‘cause you're here
You goin' out the world backwards like you did when you first come here, yeah.”🎼

[jimhoward]

TIPS are portrayed as a reward for good service (hence the acronym), and Servers as service employees.

But in reality Servers are sales clerks and TIPS are buyer paid commissions. They perform sales functions. They give you menus, they help you make selections. they take your order, they deliver the product to you. The upsell whenever possible. Todays special is Prime Rib. Can I interest you in desert?

The customer has the option of tipping whatever they want, but in practice, almost everyone tips between 15-20%. So the server is simply getting 15% of everything they sell. If the service is really bad, they may get low or zero, but that doesn't happen often. The fact that the buyer rather than the seller pays that doesn't alter the picture much, although it makes some customers a bit annoyed by the custom.

Thought of in this way, Servers compensation structure is not much different than many other customer facing jobs.

[retiredguy123]

Originally Posted by banjobob

The tip is based on quality of the service , the normal % of 20 was the standard throughout the industry, I tip the 15/20% range more if service better. Good servers deserve a good tip poor food , any other iss ue in the restaurant is the managers concern . I don't consider what the restaurant makes or the servers base pay is. The service received and the value of the meal portion served are the guidelines.

Some posters on this website have admitted that they tip 20 percent even if they get bad service. That is one reason that there are a lot of mediocre restaurants.

[Michael 61]

Originally Posted by retiredguy123

Some posters on this website have admitted that they tip 20 percent even if they get bad service. That is one reason that there are a lot of mediocre restaurants.

20 percent for bad service?? 😂😂

[fdpaq0580]

Originally Posted by Cliff Fr

Would you wait on multitudes of people, some of them aholes, for several hours for $14.00 an hour?

Do I have a choice? 🙃🫠😉

[fdpaq0580]

Originally Posted by FastAndCurious

I always tip.....usually 20 percent, but I get the uneasy feeling that I am being exploited.
Have a nice day.

You are being exploited. That feeling is real.
May you have a nice day as well! 🙂

[jimhoward]

Originally Posted by mtdjed

I am not advocating elimination of tips but let's cut the Myth of poverty.

First, people chose that occupation, not for $13/Hour, but for the opportunity for the tip income. As one poster indicated from firsthand sources, that tip income can average $250 to $300 per day. At the lower number that equals $65,000. Add to that the Tipped Minimum wage ($8.98/Hour) $18,000/year for a total of $83,000.

Further these poor people have garnered an upcoming bonus of no tax on tips. That gift was given to these folks at the expense of the rest of us. By that I mean that what they don't have to pay, we have to make up.

Not all tipped wait staff receive that level of tips. Depends on the restaurant, location, level of business. But the best staff tend to get the best jobs. You are likely to find lower paid in rural areas , diners, etc

Not saying that even the example mentioned above is ideal, but I would guess there are many residents of the Villages that don't currently have that type of Income.

While we have typically given Tips in cash, it would seem that we were enabling staff to understate Income. No real reason to do that anymore.

I think good servers could make that in the villages if they could get enough hours. But restaurants limit them to far fewer than 40 hours per week to avoid paying benefits. They are also quick to cut them on slow days.

[fdpaq0580]

Originally Posted by donfey

I find it strange that none of the responses I've read comment on the fact that a 2020 dollar is now worth eighty cents.

Tips are generally figured on percentage of the bill, regardless of the value of the dollar. Although, the fact that the "custom" has been increased by whoknows wit just that thought, value of a dollar, as an argument to try and justify 5% to 10% to 12% to 15% to 18% to 20% to 25% and up. Where and when does the nonsense end?

[fdpaq0580]

Originally Posted by MX rider

20% is the minimum. 15% went away years ago.

Why? Which authority made that ruling? Sounds like consumer exploitation and a tax dodge to me. Probably worker exploitation as well.