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

[MarchHare]

nm, didn't read carefully enough

[AltaGuy]

They'll go back within a year to the standard model. This method, while way more fair for everyone, always fails.

FOH will continue to be compensated more than BOH, people will continue to Springs1 it up every time they're unhappy (and complain ad nauseum here and elsewhere about tipping and how that service they got that one time in Europe was sooo much better); and secretly most men will be happy that a little or a lot of Madmen-style chauvinism exists in their local restaurants and bars.

[btimbit]

Originally Posted by AltaGuy

They'll go back within a year to the standard model. This method, while way more fair for everyone, always fails.

FOH will continue to be compensated more than BOH, people will continue to Springs1 it up every time they're unhappy (and complain ad nauseum here and elsewhere about tipping and how that service they got that one time in Europe was sooo much better); and secretly most men will be happy that a little or a lot of Madmen-style chauvinism exists in their local restaurants and bars.

Don't forget that people will continue to whine either way, yet these places will continue to be packed every single night

[AltaGuy]

Originally Posted by btimbit

Don't forget that people will continue to whine either way, yet these places will continue to be packed every single night

Ha, they will be when they ditch this silly idea. People just love being able to punish a server for a bad day.

[btimbit]

Originally Posted by AltaGuy

Ha, they will be when they ditch this silly idea. People just love being able to punish a server for a bad day.

Yeah, really interested in seeing how this turns out. It's such an interesting subject. People claim that this is what they want, yet the response to it has been pretty negative.

Curious how it translates into sales

[Ducay]

Great idea, effectively doing what most anti-tippers ask for (and the rest of the world used to do): just increase the cost of the food and pay people good wages. Except instead of it being directly in the price, it is in the form of forced tip.

I dont think they could implement a "no tip" policy given that would make the food look unrealistically high compared to competition. If everyone adopted this model, then yes, we could just bake it into the price, but for now, this is the only way.

Bold and welcomed move in theory. I work nearby and will be frequenting this place a lot likely, so hopefully I can ensure I give my 2 cents to the management.

[CliffFletcher]

A lot of restaurants now charge a 15 per cent gratuity on groups of 8 or more. Isn't that the same thing? And have customers rebelled?

[I-Hate-Hulse]

I'm no marketing genius but at these locations, why not increase prices 16%, and institute a "tip free policy". Way easier to sell that. That's a "premium" Earls location so I bet few people would notice an extra $3 for their rack of ribs.

[btimbit]

Originally Posted by I-Hate-Hulse

I'm no marketing genius but at these locations, why not increase prices 16%, and institute a "tip free policy". Way easier to sell that. That's a "premium" Earls location so I bet few people would notice an extra $3 for their rack of ribs.

Barring a major cultural shift, that simply hasn't worked

[flamesfever]

I usually tip at least 20%, so will be saving money.

Glad to see the kitchen help will be getting their fair share.

[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.

[GP_Matt]

I think the reason this fails is that tipping is an averaging game. Those who tip 20% subsidize those who tip 10%. When you put in mandatory 16% the people who tip 10% will stop going and those who tip 16% will save money but the restaurant has lower revenue.

[MarchHare]

Originally Posted by GP_Matt

I think the reason this fails is that tipping is an averaging game. Those who tip 20% subsidize those who tip 10%. When you put in mandatory 16% the people who tip 10% will stop going and those who tip 16% will save money but the restaurant has lower revenue.

Will they, though? What does an average meal with a few drinks at Earl's cost pre-gratuity? Let's say $50. Is someone who normally tips 10% really going to take their business elsewhere if their final bill goes up by $3 from $55 to $58?

[Fire of the Phoenix]

Originally Posted by MarchHare

Will they, though? What does an average meal with a few drinks at Earl's cost pre-gratuity? Let's say $50. Is someone who normally tips 10% really going to take their business elsewhere if their final bill goes up by $3 from $55 to $58?

If they disagree with being forced to tip more than they would like, then yes, it will influence where they decide to go. I don't think it's a matter of breaking down the exact amount to prove that it would be petty or cheap. Some people will just choose to eat somewhere else that doesn't force you to tip an arbitrary amount even if the service isn't good. They will definitely lose some business over this IMO.

[DoubleK]

Originally Posted by AltaGuy

They'll go back within a year to the standard model. This method, while way more fair for everyone, always fails.

This.

Honestly believe this is a test by Earls's so see how sensitive they are to the impacts of higher minimum wage in Alberta.

[I am Beast]

what are they going to do, have people sign a contract when they walk in the door? you can't enforce tipping, what are they going to do call the police every time someone doesn't wanna tip the 16%?

[btimbit]

Originally Posted by MarchHare

Will they, though? What does an average meal with a few drinks at Earl's cost pre-gratuity? Let's say $50. Is someone who normally tips 10% really going to take their business elsewhere if their final bill goes up by $3 from $55 to $58?

I guess the only real answer to this is, it could. Historically, people notice higher prices and make a big deal out of it, no matter how small the increase. Only time will tell the difference. Earls is being smart here by introducing it in a new location rather than switching the policy in an existing restaurant, since restaurants like that always have massive, massive sales within the first 3 months. That's what might save them. Be neat to re-visit this topic in a few months to see where it's gotten too.

This whole thing really proves what I (and a few others) have been saying for years. You can't change the tipping system without trying to change an entire part of North American culture. People claim to have wanted the system to go in this direction but now that it is, they hate it.

[Alberta_Beef]

Originally Posted by TheAlpineOracle

Ther BS position on Alberta Beef wasn't enough?

I know I wasn't pleased about it.

[Ducay]

Originally Posted by I am Beast

what are they going to do, have people sign a contract when they walk in the door? you can't enforce tipping, what are they going to do call the police every time someone doesn't wanna tip the 16%?

Tip will be part of the bill. No different than you not signing a contract that you will pay the full meal price pre-tip at any other restaurant. If you don't pay, you're skipping out on your obligation and is a crime (hilariously the charge is called "Meal Fraud" in Calgary).

[Bill Bumface]

Originally Posted by killer_carlson

do tell.

Alberta Beef has apparently done an amazing job of marketing in Alberta. People blindly believe our beef is superior, but basically no one elsewhere in the world shares that belief.