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the idea is that the service you recieve has a significant impact on your restaurant experience, and the tipping culture motivates the server to make your meal more enjoyable. you can agree or disagree with the practice (its a hot point of contention on the internet- see cracked.com) but that is the logic behind it. the restaurant industry isnt any more profitable than any other industry. it has expenses beyond just labor and meal prices reflect those expenses. i imagine meals would cost slightly more without the tipping culture.
the server doesn't lose his tip. im not sure what you mean by that. waiting tables is often one of the best paying low-skilled jobs.
the restaurant industry isnt any more profitable than any other industry. it has expenses beyond just labor and meal prices reflect those expenses. i imagine meals would cost slightly more without the tipping culture.
the server doesn't lose his tip. im not sure what you mean by that. waiting tables is often one of the best paying low-skilled jobs.
ok, but why should the employer be able to subsidise his expenses in this way - ie: pay a lower wage than other industries, because I have heard that tipped jobs get a lower min wage - how is this fair to other industries and the workers?
the server loses his tip because the hourly rate is lower.
seems like a scam to me, one that benefits the owner
Where did you come from? Who are you?
In the last month I've seen about 30 threads you've started...
They're actually good, thought-provoking threads. The OP is a little off on his/her logic, but there's often a good discussion. Let's welcome him/her to the forum.
something that surprises me is that many businesses take tips into account when deciding on the wage rate.
isn't this a little unfair to the worker and customer?
ie: the worker gets a reduced wage, so in effect loses his 'tip' ; and the customer, effectively has to subsidise the wages.
yet, the owner gets all the profit!
something wrong here, right?
A few things to remember when discussing this topic:
- Minimum wage is $7.25/r. The tipped employee has the right to receive a minimum of $7.25/hr with or without tips.
-The customer does not HAVE to tip. There is no law, regulation or rule saying the customer has to do anything more than pay the bill. It is just convention to reward the tipped employee on service.
The owner always get the profit unless there's a profit sharing plan. That's why he/she is the profit.
Ok, but isn't it the case that the min. wage for tipped work, is less than that for non-tipped work?
that to me seems unfair, because the employer could just keep the tips for himself, and so make a great savings/profit in a slightly corrupt manner.
You seemed to have missed the first bullet point in my post. If the employer keeps tips, the employee still has the right to receive $7.25/hr.
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