Mandatory 16% tip at new Earls 67 locations (Stephen Ave)

[CorsiHockeyLeague]

I am fine with this. Just have to mentally adjust - everything on the menu costs 16% more. I sometimes get takeout from that location if I'm workin late because there's not much downtown that's open after 6 to pick up from, so I'm curious if they'll try to autograt the takeout orders too.

By the way, I've only peeked inside but the renos look quite good.

[CaramonLS]

Originally Posted by troutman

I suppose it happens, but I never saw a kitchen where waitresses shared tips. Trained chefs leave the industry real quick when they see how much more the wait staff earns.

Former Earls employee here. Yes, servers have always tipped out. On Average, the Kitchen staff earned between 1.00-1.50 per hour on top of their current wage, which was paid out by mgmt.

I think servers tipped out 2% to the Kitchen and then tipped 3% to the bar. But the vast majority went to the servers.

[calgaryblood]

Originally Posted by TheAlpineOracle

Ther BS position on Alberta Beef wasn't enough?

No I actually was going to try the new steak but they switched back unfortunately.

[Weitz]

I usually only go there when it's free. But I wonder what the thinking is here. This will be the only tip ever now. 1% more than what I would tip if I was paying. But not a single of my vendors will be tipping more because it's easy now.

They should concentrate more on not bringing 50% of the food out cold.

[Oling_Roachinen]

Originally Posted by CorsiHockeyLeague

I am fine with this. Just have to mentally adjust - everything on the menu costs 16% more.

Shouldn't really need to adjust all that much. Assuming you tip somewhat average and the menu prices stay the same, for the time being there's not much of a change. Unless they do try to gouge you on takeout..

[wontondestruction]

How is this any different to places where there is no tipping, and they just charge more to pay a higher wage? Maybe it would have been better if they just increased menu prices and made Earl's a "no tipping" restaurant.

[calgaryblood]

Don't think anyone is concerned with the amount you're forced to tip as any self respecting person will tip at least that much with good service.

It's that there is now no incentive for servers to give good service.

[rubecube]

Originally Posted by wontondestruction

How is this any different to places where there is no tipping, and they just charge more to pay a higher wage? Maybe it would have been better if they just increased menu prices and made Earl's a "no tipping" restaurant.

This way it comes out of the customers' pockets instead of Earl's.

[rubecube]

Actually that's pretty funny when you think about it. Earl's gets to play the "Hey, look at us helping out the little guy" role while actually forcing their customers to foot the bill.

[wontondestruction]

Originally Posted by rubecube

This way it comes out of the customer's pockets instead of Earl's.

A 16% increase on each menu item vs. a 16% mandatory service charge is the same thing.

[speede5]

Worked in a bar and the waitresses were supposed to tip 10% to the runners and bartenders but it's all honor system.

Who keeps Earls accountable to their staff for this 16%?

Servers must just love not knowing their tip income until payday, and having to pay full taxes since it's now on their payslip. Our credit card tips always came on our paycheques, but the cash was in your pocket and up to you to claim.

[Jbo]

In places like France, the tip is built into the bill as well. I would say the service I received there was pretty mixed. Don't like the idea of horrible service still getting a tip tacked onto my bill. Put me in the "do not like" column

[rubecube]

Originally Posted by wontondestruction

A 16% increase on each menu item vs. a 16% mandatory service charge is the same thing.

Bah you're right. That was the 2 hours of sleep talking.

[wontondestruction]

Originally Posted by rubecube

Actually that's pretty funny when you think about it. Earl's gets to play the "Hey, look at us helping out the little guy" role while actually forcing their customers to foot the bill.

I don't know how anyone could think that it wouldn't come out of the customer's pockets. No business wants to cut into their profit margins. I guess it's good that they let us know what they're doing, so we can make out own decision if we want to dine there. Maybe it's more targeted at foreign visitors who come from places where there is no tipping.

[Enoch Root]

If it's mandatory, it isn't a tip.

Just raise the price and say no tipping.

(i know has been said several times but I'm saying it again anyway)

[ken0042]

Originally Posted by wontondestruction

A 16% increase on each menu item vs. a 16% mandatory service charge is the same thing.

Actually it isn't. The more salary a company pays it's employees, the more other costs go up like CPP, EI, etc. So if they collect tips from customers and pass those tips along to the employees, it isn't income from the employer's perspective.

I get what you mean, and the difference is minimal. And I would rather it be that way. But I can understand why a company would do this. Especially Earls, known for squeezing every penny.

[PsYcNeT]

How European of them.

[Shazam]

Sounds like it would be a controlled tip, so that income would be subject to EI/CPP.

http://www.cra-arc.gc.ca/tx/hm/xplnd...g.html#control

[Lubicon]

Two thoughts:
1. this will now be taxable income I would imagine? I know tipping is already but it is often not reported by staff. Now they may not have a choice.
2. Earl's website does not specify but I would assume (and hope) they apply the 16% to the before before tax total and not the after tax amount on the bill.

I'm still not a fan of this. Tipping is discretionary in my books and I want the choice whether to tip and if so how much. I guess I still do have the choice, by not going to places that have a mandatory gratuity.

[GGG]

Good news,

They can't just raise menu prices and ban tipping because people are stupid and do math. Which is more expensive a $17 item or a $20 item with tip included.

People will feel that the menu looks expensive and not eat there.

Also tipping does nothing to improve service. maximizing throughout maximizes tips as the % difference between good tips and bad tips is minimal. And giving better service to people does not correlate with good tips.

Also people who tend to tip on service are less severe versions of springs1 where it's either tipping on how attractive the waitress is or how well their key dances.