American Tip Culture vs Paying Livable Wage

[+Edouard Subscriber²]

Not sure if this topic has legs but let's see. The entire western world attempts to pay a livable wage through minimum hourly rates...except America who expects workers to partially live on tips and a woefully inadequate minimum wage that many Republicans are attempting to abolish. Any opinions on this are welcome.

Also, WTF is this living wage fee?

 

[neufuse Veteran]

ah another way to offload payroll to customers.........

[Michael Scrip]

On 13/06/2025 at 21:58, neufuse said:

ah another way to offload payroll to customers...

Customers are the only way restaurants make money to pay their employees.  Customers pay for the food supply... the power bill... the rent... and yes payroll.  Without customers... restaurants wouldn't have a business.  

The problem here is that people get upset when they see extra fees on their bill.

If a restaurant charged $16 for a cheeseburger... no one would care.

But if it's broken down to $13 for the cheeseburger and $3 for the extra fee... then people get bothered.  People don't like fees... or simply the appearance of fees.

It's like concert tickets.  You buy a ticket for $50 and then you must also pay $25 in fees.

Why not just just charge $75 for the ticket?

In the end it's the same price... but it feels different.

[FloatingFatMan]

On 14/06/2025 at 18:28, Michael Scrip said:

Customers are the only way restaurants make money to pay their employees.  Customers pay for the food supply... the power bill... the rent... and yes payroll.  Without customers... restaurants wouldn't have a business.  

The problem here is that people get upset when they see extra fees on their bill.

If a restaurant charged $16 for a cheeseburger... no one would care.

But if it's broken down to $13 for the cheeseburger and $3 for the extra fee... then people get bothered.  People don't like fees... or simply the appearance of fees.

It's like concert tickets.  You buy a ticket for $50 and then you must also pay $25 in fees.

Why not just just charge $75 for the ticket?

In the end it's the same price... but it feels different.

Because the food service industry has successfully lobbied the idiot US government to let them get away with paying their staff less than the legal minimum wage, which is just atrocious and sickening.  This is just another way to fleece the customer and I'm extremely sceptical that the kitchen staff see any of that additional fee revenue.

Pay your f-ing staff you cheap b-stards! Everyone else does!

[theefool]

To me that "Living Wage Fee" is a forced tip.  Then of course  it asks for another tip.  I'd point to that other fee, and say there is the tip.  

Note:  I typically tip 25%, I'd possibly do another 7% in this situation myself.

[i_was_here]

On 14/06/2025 at 10:28, Michael Scrip said:

Customers are the only way restaurants make money to pay their employees.  Customers pay for the food supply... the power bill... the rent... and yes payroll.  Without customers... restaurants wouldn't have a business.  

The problem here is that people get upset when they see extra fees on their bill.

If a restaurant charged $16 for a cheeseburger... no one would care.

But if it's broken down to $13 for the cheeseburger and $3 for the extra fee... then people get bothered.  People don't like fees... or simply the appearance of fees.

It's like concert tickets.  You buy a ticket for $50 and then you must also pay $25 in fees.

Why not just just charge $75 for the ticket?

In the end it's the same price... but it feels different.

I agree with this very much. The feeling also applies to shipping for online stores. Especially if the item or order price is small.

[neufuse Veteran]

On 14/06/2025 at 13:28, Michael Scrip said:

Customers are the only way restaurants make money to pay their employees.  Customers pay for the food supply... the power bill... the rent... and yes payroll.  Without customers... restaurants wouldn't have a business.  

The problem here is that people get upset when they see extra fees on their bill.

If a restaurant charged $16 for a cheeseburger... no one would care.

But if it's broken down to $13 for the cheeseburger and $3 for the extra fee... then people get bothered.  People don't like fees... or simply the appearance of fees.

It's like concert tickets.  You buy a ticket for $50 and then you must also pay $25 in fees.

Why not just just charge $75 for the ticket?

In the end it's the same price... but it feels different.

the problem is a tip is VARIABLE you aren't guaranteed a specific income... just freaking pay your staff and set a fixed price for food

[FloatingFatMan]

On 14/06/2025 at 18:50, theefool said:

To me that "Living Wage Fee" is a forced tip.  Then of course  it asks for another tip.  I'd point to that other fee, and say there is the tip.  

Note:  I typically tip 25%, I'd possibly do another 7% in this situation myself.

If a server wants 25% tip out of me, I'd better damn well be getting more than my food brought to me!  Tips are for service above the regular functions of a server, bringing my order to me.  You want more, do more.