Quote:
Originally Posted by jwslam
Restaurant Example:
Burger is $12, you tip the server $2, this goes directly to the server. This costs you $14. You can also choose to tip more or less obviously.
To by increasing the price of the burger, to get $2 to the server, you gotta factor in the business tax as the increased burger price is now revenue, so now you may be paying $15.xx+ for the burger regardless of whether the server cared about you.
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You think the burger joint will increase the price of every burger by over $1 to account for the marginal tax increase? You know that increase would also be taxed, so that seems incredibly unlikely.
Plus, with tipping culture the way it is, most people are already paying $15+ for a $12 burger served by someone who doesn't care about you.
As far as simple math goes, let's say you raise a server's wage by $10 an hour (a pretty great wage increase for anyone). They work an 8 hour shift, with about 5 of those being dedicated to tables. Let's say they do an average of 3 tables per hour with an average sitting of 2.5 people. To account for their increase in salary that day, you need to increase each total bill by just over $2.00.
I'd much rather pay an extra $2.00 on my burger and beer and have a server making decent wages than worry about tipping. I'd certainly even pay more than that at more expensive places.