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

[btimbit]

Joeys and Cactus Club aren't owned by Earls, but all three are owned by the same people (One of which is named Earl)

[YYC in LAX]

Will the servers think people are cheap when they don't tip beyond the 16%?

[rain_e]

Originally Posted by btimbit

Joeys and Cactus Club aren't owned by Earls, but all three are owned by the same people (One of which is named Earl)

Jeff Fuller and Stewart Fuller, two other sons of Leroy, are involved in Joey (a western Canadian restaurant chain) and Cactus Club Cafe, respectively. Earls owns a 65% share of the latter establishment.

https://en.wikipedia.org/wiki/Earls_(restaurant_chain)

[btimbit]

Originally Posted by rain_e

Jeff Fuller and Stewart Fuller, two other sons of Leroy, are involved in Joey (a western Canadian restaurant chain) and Cactus Club Cafe, respectively. Earls owns a 65% share of the latter establishment.

https://en.wikipedia.org/wiki/Earls_(restaurant_chain)

Poorly worded in the wikipedia page. It's a 65% share by the owners, not by Earls itself. The source article even says that but whoever added it into the Wikipedia article quoted it wrong.

[Lubicon]

Originally Posted by Philly06Cup

Airlines did it with their crazy fee and tax structure. Government had to step in and regulate.

Would love government to regulate that stated prices on menus are the final price to the consumer.

I'm absolutely dead set against this idea. Disagreed when the gov't stepped in and made the airlines do it and would don't like it here or anywhere else either.

[oilyfan]

Originally Posted by Lubicon

I'm absolutely dead set against this idea. Disagreed when the gov't stepped in and made the airlines do it and would don't like it here or anywhere else either.

Why?

[CorsiHockeyLeague]

Because people should be able to price their products however the heck they want. If customers don't like it they won't come.

[Lubicon]

Originally Posted by CorsiHockeyLeague

Because people should be able to price their products however the heck they want. If customers don't like it they won't come.

That plus it makes it plain as day what extra fees and charges are being added to the base price. Roll it all into one price and those items disappear into the background.

[Regorium]

Originally Posted by Lubicon

That plus it makes it plain as day what extra fees and charges are being added to the base price. Roll it all into one price and those items disappear into the background.

Makes sense to me. I think that each fee should be its own line item.

Carbon tax, gas tax, alcohol tax, convenience fees (ticketmaster), hospitality fee - all of this stuff is only effective if you actually ensure that people know that it exists.

Otherwise they just blame oil companies/restaurants for gouging them.

[Hack&Lube]

http://www.fortmcmurraytoday.com/201...ospitality-fee

Haha, it looks like a cafeteria. The old Lounge look was much nicer in my opinion.

[nfotiu]

Originally Posted by Northendzone

So does that mean that 100% of the prix, we, I mean tip will now get reported to revenue Canada?

This will influence my eating decision as I'll likely choose to dine elsewhere.

Why is that?

[GreenLantern2814]

Why not just increase the price of menu items a couple bucks, pay your employees properly instead of like dancing monkeys, and tell patrons tipping isn't required because your staff already makes a wage?

Go ahead, explain why that hippie bull#### doesn't work in the real world.

[I-Hate-Hulse]

Originally Posted by Lubicon

That plus it makes it plain as day what extra fees and charges are being added to the base price. Roll it all into one price and those items disappear into the background.

Ahh yes, the day's of "$40 flights" advertised and $227.50 in taxes and fees. That wasn't confusing or misleading at all.

[foshizzle11]

Originally Posted by GreenLantern2814

Why not just increase the price of menu items a couple bucks, pay your employees properly instead of like dancing monkeys, and tell patrons tipping isn't required because your staff already makes a wage?

Go ahead, explain why that hippie bull#### doesn't work in the real world.

I agree with this. I lived in Holland and tipping isn't something that is done ever, unless the service is above and beyond what is expected when you go out. Eating out there is more expensive in general over there but the staff don't make minimum wage and they count on the tips. It seems to work just fine over there. That is what they should try, not forcing tipping on their customers.

[Lubicon]

Originally Posted by I-Hate-Hulse

Ahh yes, the day's of "$40 flights" advertised and $227.50 in taxes and fees. That wasn't confusing or misleading at all.

Quite correct, it was not misleading at all. There was absolutely no question to how much the airline was charging you for the flight. There was also no question as to how much the additional charges and taxes were and to whom they were being paid.

[Simanium]

Originally Posted by GreenLantern2814

Why not just increase the price of menu items a couple bucks, pay your employees properly instead of like dancing monkeys, and tell patrons tipping isn't required because your staff already makes a wage?

Go ahead, explain why that hippie bull#### doesn't work in the real world.

Because if Earls increases wages that means that Earls has to pay an increased amount for matching CPP and EI contributions. This adds up to a lot for an entire restaurant. Earls doesn't have to contribute to payroll deductions for tips. Also, my understanding is that since it is a Service Charge, the 16% tip will not go into the revenue of the business and accordingly not taxed to the corporation, whereas an increase in menu prices would increase general revenue and would be taxed. Menu prices would have to increase by a percentage a fair bit more than 16%, to account for taxes and payroll deductions, to still have the same net effect for the employees.

[DownhillGoat]

Originally Posted by Simanium

Because if Earls increases wages that means that Earls has to pay an increased amount for matching CPP and EI contributions.

Does this count towards the actual wage though? Or when minimum wage goes up, are they getting min wage plus this?

[Regorium]

Originally Posted by GreenLantern2814

Why not just increase the price of menu items a couple bucks, pay your employees properly instead of like dancing monkeys, and tell patrons tipping isn't required because your staff already makes a wage?

Go ahead, explain why that hippie bull#### doesn't work in the real world.

The problem is that humans are stupid. You see a $17 burger and think that's reasonable. You see the exact same burger next door that's $19.99, and you immediately go to the first restaurant, regardless of the massive sign saying "NO TIPS REQUIRED".

Most people cannot do $17 * 1.16 in their head and realize it's the same. There's a reason that things are priced at 9.99 and 19.99 rather than 10 and 20. You might think that it's ridiculous, but that's just objective, proven human psychology.

Another factor is what tipping means to people in these days. Some people still think that it means an optional tip to reward good service. However, the vast majority of people do agree that it's just another 15-20% "tax" on your bill, and good service does not correlate with good tips (nor does bad service correlate with bad tips). An additional fee on top is exactly how the modern day "tip" system works.

Finally, by committing to "100% of the fee goes to our staff", it's clear, transparent, and easily auditable by both staff and management. It reduces drama between the front and back. It makes it more legitimate - people have no choice but to report their income. On the other hand, raising the prices on the menu with no tips might just end up with poorly paid staff anyways - and they have no incentive at all with regards to profit sharing.

I think a huge concern is that no good waitress will want to work there, which leads to poor service, and people blaming the lack of tipping for this. A waitress at this type of establishment (basically a model) will make WAY more money at a traditional place like Earls, Cactus or Shark Club - places where 25-30% tips with loads of alcohol are the norm. You're left with the ones a tier below, meaning you're gonna get lower quality service.

[Bean]

As this gratuity is mandated by the employer, does it change the handling of the money from a 'direct' tip to a 'controlled' tip ultimately being taxable and added to a worker's T4 slip?

http://www.cra-arc.gc.ca/tx/hm/xplnd/tps-eng.html#tips

I've never agreed that service industry workers are taxed largely on their hourly wages and can choose to declare their tips as earnings for tax purposes. Particularly in instances when the majority of total income is from gratuities.

[ken0042]

Originally Posted by Lubicon

Quite correct, it was not misleading at all. There was absolutely no question to how much the airline was charging you for the flight. There was also no question as to how much the additional charges and taxes were and to whom they were being paid.

Every business has multiple expenses to be able run. However you don't go into Canadian Tire and see a hammer priced at $5, and then have it with several line items such as delivery, stocking, building maintenance, etc bringing the final price to $20. You just see the hammer priced at $20.

Same as the airlines. Yes, they need to pay the airport a fee to land. They need to buy fuel for the plane to function. All I want to know is how much it will cost the airline to get me from point A to B.