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Originally posted by Hot_Sauce+Feb 8 2005, 07:39 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Hot_Sauce @ Feb 8 2005, 07:39 PM)</td></tr><tr><td id='QUOTE'>
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Originally posted by Bleeding Red@Feb 8 2005, 12:31 PM
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@Feb 8 2005, 07:14 PM
Here's an interesting idea that I personally WOULDN'T support but I think it makes reasonable mathematical sense:
Take an average restaurant that has annual gross sales of $1 Million. Works out to $2740 per day. The average person spends $25 in a restaurant these days (my educated guess) means that the place sees about 110 people per day. If average tipping rates are 15% then the total yearly tipping through that place would be $150,000 or about $400 per day. Divide the $400 daily tip requirement by the 110 people per day and you get a tipping surcharge of around $3.65 per customer.
If the restaurant did this and HONESTLY split if out to the staff then nobody would have to tip. Of course servers would be pinned for tax on this so double it and make the surcharge $7 per head.
People would hate it and service would fall and restaurants would never be the same but at least you wouldn't have to tip anymore.....
Someone farther up in the thread said something about $8 for a Coke if staff were paid more? I think the math above discounts that opinion.
Do the right thing. Tip for good service and mention bad service to the server and/or the management. Don't be a coward and skulk away.
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There are two things you are missing in your "math above".
1- Other taxes. If the restaurant pays out the surcharge as a part of your paycheque (as some do), they get dinged tax, not just the server. That $1 million dollar pie gets smaller. Also, patrons would be charged tax on the surcharge (7% GST) A $25 bill goes to $34.24 instead of $30.65 in the current system.
2- working hours - With set hourly wages come the desire to work lots of hours. Some restaurants employ 10 people for the two hours of lunch then only one from 2:30-5:30. THose other nine people will soon wnat more hours to make up for any loses.
Is the $1 -> $8 an out of whack ratio, sure. How about paying $4-5 (Stadium prices) for a non-refillable coke? could happen.
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Good point Red. I hadn't factored that in. My ulitmate point is that in a tip free restuarant/bar world we would be paying a great deal more for the same thing and would be getting a crappier product. Like I said - I'd oppose any plan to do it.
Also. Did you know that if you were gross up the tips that wait staff make to an equilvalent salary figure you'd see that they make more than the average Canadian does? 8 hour shift, five days per week with two weeks off equals 2000 hours per year. $100 in tips (grossed up to before salary tax rates (say 35% total rate) equals 150 per day in tips plus $50 in wages = $50,000 per year. Doesn't the average Canadian make something like $38K. Maybe I 'm wrong... [/b][/quote]
You are right.
Hell, I know some guys who work in an upscale steakhouse (and have of over twenty years) they have no mortgages, annual trips to Greece (for a month at a time) and put kids through law/medical school.
I was always more flush than my friends (who worked in ice cream paurlors, retail or at gas stations) when I was waiting tables. I earned my yearly tution in May and the rest was gravey.
the money is great if you are reasonably good at it and can hack it.
I found that after awhile I became very judgemental - labeling people as they walked through the door usually with stariotypes, and greedy (always being around cash can do that) and picky about others in the service industry.