"Admin fee" in lieu of tipping [General]

2014 Nov 22
I just saw @THEEcorkdork and @twosixate tweet this article: ny.eater.com

We've discussed the controversial topic of tipping on this site many times before. I'm of the opinion that tipping to supplement meagre waitstaff compensation is outdated, ineffective as a means of feedback, and even condescending.

I propose that introducing an "admin fee" on restaurant bills and removing tip-based compensation would reduce the number of sad rants we see on online review sites. Leaving a low tip is the epitome of passive aggression. If diners are forced to leave a decent "tip" they are also much more likely to take up any complaints with management during their visit rather than waiting until they get home to spam review sites with their furious indignation.

Other--more obvious--benefits of admin fees over tips:
* No tax evasion.
* More fair distribution of pay between front and back of house staff.
* No uncomfortable moments with visitors from countries who don't tip.

Ottawa's restaurant scene is impressive for its size. Embracing an (inevitable?) movement like this ahead of the other big three Canadian cities would be pretty cool!

Thoughts?

2014 Nov 22
Sounds fine to me but what's next ?
Detailed billing like an Ottawa Hydro or car repair bill ?

Food Cost (parts) $xx.xx
Food Preparation Cost (labour) $xx.xx
Wait Staff Salary Supplement $xx.xx
Other Staff Salary Supplement $xx.xx
Table Rental $xx.xx
Reservation Booking Fee $xx.xx
Etc.


2014 Nov 22
You could just have no tipping and increase prices. I think that's the way it is in France.

2014 Nov 22
That runs on the assumption that the management of a restaurant is receptive and willing to make things right when food or service fall below par. And we all know, some places just don't or can't do that. Are all diners entitled to a good experience? Are food service workers entitled to fair pay if their performance sucks? Seems like a battle of entitlement to me.

Also, I'd argue that going online and posting a negative review based on an isolated incident is probably the epitome of passive aggressive behaviour, not low tipping.

2014 Nov 22
I feel I should note that by saying what I did, I am trying to parse out the real issue(s) here... Systemic low wages and an alleged tax evasion culture, entitlement issues, social media abuse of business, the list goes on. Is the solution as simple as a fixed service fee?

2014 Nov 22
Entitlement works both ways. If you walk into a sport shop for advice on skis, and the sales person does not know what they are talking about, what do you do? Do you have any recourse other than go to a different shop and hope the owner gets the picture that way?

I recall the year I took off from university - there was me with 2 years under my belt and applying for a job at CompuCenter. The owner told me straight-up that he'd take someone with 2 years of sales experience in any other area, rather than me with 2 years of university computer science.

I don't think the retail market has really changed since then, either.

Why do you as a restaurant patron feel entitled to have a say in the workers' wages?

2014 Nov 24
Call me a dreamer, but I just wish servers could be paid proper wages like any other employment and tipping would just be a compliment in response to good service, and not tipping wasn't directly stealing from their means to make minimum wage.

2014 Nov 24
I understand wait staff are paid a living wage all over Europe, and tipping is unknown. When I go to London, am at a pub and always tip, even tho no one else does, I am uncomfortable, but would feel just as weird if I didn't tip. In my work I meet a lot of people from all over the world and we have interesting discussions on this topic. The usual question I get is 'Why don't you pay these people a reasonable wage?'
It puts the restaurant in an interesting position, because they would have the job of weeding out the lousy servers, as opposed to the customer voting with his/her wallet. A poor server might have no inclination to be nice to customers without the possible tip incentive.

2014 Nov 24
I may be in the minority, but I don't find my tips are really dependant on a server's performance. It's more like an automatic percentage that just gets tacked onto the final total most of the time. Can we really assume that servers won't perform at their jobs without the tip hanging over their head? Changing the system may take some of the antagonism out of the customer/server relationship.

2014 Nov 24
Interesting points of view. I wonder if posters tip anyone else? Handymen, paperboys, hotel cleaners, etc.?

2014 Nov 26
I tip servers, bartenders, cab drivers, food delivery people, bellhops (who carry my bags, not who open my car door), hotel room cleaners, handymen who are a pleasure to deal with, Rogers/Bell/Enbridge/Hydro/etc technicians who go above and beyond (or more likely I email their office to tell their supervisor I was impressed).

I don't tip all these people the same amount or percentage tho'.

I tend to agree that servers should be paid a fair wage and not have tips hanging over their heads, but acknowledge that comes with an increase in prices and what follows could be bad for the industry, because while the price for customers is technically the same, (bill = food + service), the actual bill amounts will go up with expected backlash.


2014 Nov 26
Perhaps a huge benefit of tip-based compensation from a restaurateur's perspective is that a server's income is proportional to how busy he or she is. A server working hard during a busy shift earns way more from tips than one who works a dead shift.

The restaurant business is risky enough. Tips allow a business owner to shift some of that risk onto his employees. If no customers show up, he is only out minimum wage (or less).

Also, why do we tip servers, delivery people, valets, hairdressers, and massage therapists, but not doctors, lawyers, or mechanics? They all provide services to us and we have every interest in expressing appreciation of a job well done.

Food for thought.

2014 Nov 27
In additional to servers, I tip bartenders, cab drivers, food delivery, hotel cleaning staff but this is closer to a flat rate of to even the bill more so than a percent of the cost of item purchased.

I don't tip trades people as I the ones I deal with tend to be self employed and they set their own prices at the onset or their companies do.

I did want to say that tipping well entrenched here and paying a fair reasonable living wage is something relatively unheard of in retail regardless of whether the business is tip based of note. There are a few retail businesses that are an exception and work on different /alternative business models.

What I find hard to justify is that the tips are based on percent of dollar spent so servers serving in everyday type establishments receive a lower tip per meal served than the servers working in the high-end/special occasion type establishments.

When I go to dinner with my husband and the bill is $200, why is is standard to leave upwards of $30 or $40 tip when we would leave a $9-10 tip on a meal where the bill is in the $60-70 range? I find this even worse when you take into consideration what portion of the meal is alcohol or not. The same $60 meal without alcohol could be closer to $150 if we are in the mood to have a few drinks. Why should the server get much larger tip for brining over a bottle of wine or two ...

2014 Nov 27
The beauty of tipping is that it is at the patron's discretion. At some point my percentage drops if the service is poor or if the overall cash amount becomes ridiculous. I start at 20% and count backwards. I don't tip everyone but I always tip servers in bars and restaurants.

2014 Nov 27
When I lived in Germany servers got a percentage of their intake during the shift which takes care of shifting some risk onto employees yet still ensuring a decent wage for servers.

Doctors, lawyers and mechanics are all already paid very well. Servers get min wage + tips.

And yes, it is not fair that someone working in a swanky place might make a small fortune in tips whereas someone in a simple diner may not.